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For the second quarter, net income attributable to Dun & Bradstreet dropped to $76.8 million or $1.43 per share from $84.2 million or $1.51 per share in the year-earlier quarter. Income from continuing operations was $77.9 million, down 8% from $84.8 million in the prior-year quarter.
Quarterly results included a net pre-tax, non-core gain of $13.0 million and a net after-tax, non-core gain of $12.1 million. In the prior year, net after-tax, non-core gain was $20.2 million, while net pre-tax, non-core charge for the quarter was $8.6 million.
Earnings before non-core gains and charges were $1.21 per share, up 5% from $1.15 in the prior year similar period. On average, five analysts polled by Thomson Reuters expected earnings of $1.21 per share for the quarter.
Total revenue for the quarter declined to $416.9 million from $427.7 million in the same quarter a year ago, missing Street estimates of $424.89 million.
In the preceding quarter, Dun & Bradstreet reported a profit that surged 70% to $104.2 million or $1.93 per share, helped by strong growth in international segment and a lower provision for income taxes. Core and total revenue fell 2% to $407.4 million.
Amongst others in the industry, Acxiom Corp. (ACXM | Quote | Chart | News | PowerRating) reported first quarter net earnings of $4.19 million or $0.05 per share. Total revenues were $255.98 million, compared to $331.07 million in the prior year quarter.
Another player, Equifax Inc. (EFX | Quote | Chart | News | PowerRating), in its second quarter, reported a profit that dropped 16% to $59.6 million or $0.47 per share, hurt by weakening economic conditions, consumer caution in the U.S, and softness in demand for credit related services. Revenues dropped 9% to $455.4 million.
infoGROUP, Inc. (IUSA | Quote | Chart | News | PowerRating), in its first quarter, reported a slip to loss of $9.34 million or $0.16 per share, as sales dropped to $127.54 million from $153.29 million in the year-ago quarter.
For the quarter under review, Dun & Bradstreet's core revenue was $405.3 million, up 1% before the effect of foreign exchange and a decline of 2% after the effect of foreign exchange. After the effect of foreign exchange, revenue from North American segment dropped 3% to $320.3 million, while international segment gained 3% to $85.0 million from the prior year quarter. Before the effects of foreign exchange, North American and international revenues dropped 3% and increased 20% respectively.
Commenting on the results, Steve Alesio Chief Executive Officer said, "The current economic conditions continue to impact our customers in North America. As a result, we expect the back half of 2009 to be tougher than we originally anticipated. We are taking appropriate actions to flex our cost base, while also continuing to invest. While the net impact will lower our outlook for 2009, we are still positioning D&B well for 2010 and beyond."
Total revenue, which included the results of a divested business, was $416.9 million. This result is up 1% from the prior year quarter before the effect of foreign exchange and down 3% after the effect of foreign exchange. Total revenue included $11.6 million of revenue associated with that portion of the business, compared to $14.2 million of revenue in the same prior year period.
Operating income was $110.0 million, up 4 % from the prior year similar period.
For the six-month period, net income attributable to Dun & Bradstreet surged to $181.0 million or $3.40 per share from $145.4 million or $2.61 per share in the year-ago period. Total revenue for the period was $824.3 million, down from $842.4 million in the same period a year ago.
Looking ahead to full year 2009, Dun & Bradstreet lowered its earnings guidance on reduced expectations for North America. The company now expects earnings to grow 1% to 5% before non-core gains and charges, compared with original growth of 9% to 12%, before non-core gains and charges.
The company also expects core revenue to be down 1% to up 1%, before the effect of foreign exchange, compared with original growth of 2% to 5%, before the effect of foreign exchange
Dun & Bradstreet said it does not provide guidance on a GAAP basis as it is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of non-core gains and charges
DNB closed Wednesday's regular trading at $82.78, down $0.38 or 0.46%, on a volume of 0.52 million shares. In the last 52-week period, the stock traded in the range of $64.00 to $98.90, with a three-month average volume of 0.51 million shares.
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