FTI Consulting reported a 2.9 percent decline in its strategic communications operation in the first quarter as M&A-related project revenue and retainer fees overseas fell during the period.
Overall, FTI said revenue rose 9.2% to $395.2M while net income slipped 4% to $18.4M across its business units, including restructuring, economic, technology and litigation consulting.
FTI’s strategic communications unit, renamed from FD last year, saw retainer fees fall in Europe, the Middle East and Africa, while M&A projects slumped in the Asia Pacific region. Latin America, however, showed positive results for Q1.
Its first quarter PR work in the U.S. included Kodak’s bankruptcy and “pink slime” crisis victim AFA Foods. FTI, which has 596 staffers in the PR division, counseled 14 M&A deals in Q1 worth $2.B, according to mergermarket.
President and CEO Jack Dunn said uncertainty in the world economy makes it difficult to forecast results for the year. “In fact, with elections looming or just resolved in every major country, double dip recessions in Europe, the continuing debt crisis, and growing concerns about China, probably the only certainty is change,” he said, adding that such issues can often be a chance for “great opportunities” at FTI.
FTI’s economic consulting business, which caters to law firms, corporations and global businesses on issues like anti-trust and M&A, posted the strongest gains among its units with 34.7% growth (11% organically) to top $100M in revenue.
Technology consulting joined strategic communications in the red for the quarter with a 2.7% decline to $49.7M.