FTI Consulting reported a 3.4 percent dip in revenues to $444.7M due to lower demand in its corporate finance and restructuring operation.
The firm recorded a $5.2M deficit compared to a $26.5M year ago profit due to a special charge of $30.1M, which includes a $16.1M expense for severance costs tied to cutting four percent of its 4,700 workforce.
FTI expects the layoffs, lease terminations, office relocations and divestitures of some overseas offices will result in savings of $23M during the second half
CEO Steven Gunby expressed confidence that FTI will rebound from its slow start. "This expectation is supported by the strong sequential improvement compared to the first quarter and significant new wins in our corporate finance & restructuring segment; continued investment where we have confidence we can grow; and the disciplined actions we have taken to align costs with demand and reduce overhead," he said.
On the PR front, FTI's strategic communications unit was down 7.4 percent to $46.2M as project-based revenue in North America, especially for financial communications and corporate reputation work declined.