By Narayan Ammachchi
Accenture’s earnings in the Americas have risen in the third quarter of fiscal 2013, but the global outsourcing and consulting firm cut its full-year outlook owing to a reduction in Europe and Brazil.
The company reported net revenues of $7.2 billion, an increase of 1 percent in U.S. dollars over the same period last year, but slightly below the it’s guided range of $7.25 billion to $7.50 billion.
In its American locations, the Accenture’s net revenue increased to $3.44 billion, an 7 % rise, compared with $3.23 billion for the third quarter of fiscal 2012. But Accenture’s revenue fell by an average 5 percent in Europe, Asia Pacific as well as Africa.
According to the company, smaller contracts are fast declining and the consulting business clients are increasingly cutting back on spending.
“Our clients held back on spending more than we expected, particularly in Europe and Brazil, and the environment is more competitive. Our bookings continue to reflect projects that are larger and longer in duration, and we booked fewer short-term projects,” stated Pamela Craig, company’s chief financial officer, in a conference call.
Consulting business clients, who the company believed would award more contracts, have continued to cut back on spending, forcing the company to lower its predictions.
New bookings for the quarter were $8.3 billion, with consulting bookings of $3.9 billion and outsourcing bookings of $4.4 billion.
“Quarterly new bookings of $8.3 billion brought us to nearly $25 billion for the first three quarters of the year, which positions us well for the future,” said CEO Pierre Nanterme, in a press release.
Net income for the quarter was $874 million, compared with $763 million for the third quarter last year, and includes the favorable impact from the $50 million reorganization benefit.
According to company officials, demand for technology outsourcing has continued to soar, but the ERP sector appeared to be slowing down.
Accenture expects outsourcing revenue to moderate, and consulting revenue to decline modestly or grow slightly in the current quarter.