ADP's Profits Drop, Company Scales Back 2003 Growth ForecastADP's Profits Drop, Company Scales Back 2003 Growth Forecast

ROSELAND, N.J. (AP)--Automatic Data Processing Inc. said Wednesday that fiscal second-quarter profit dipped from a year ago and scaled back its 2003 growth forecasts.

For the quarter that ended Dec. 31, the payroll-processing giant posted net income of $261.7 million, or 43 cents a share. That result was down 1.1% from the $264.6 million, or 42 cents a share, of a year earlier.

The latest results were in line with the mean estimate of analysts surveyed by Thomson First Call.

Revenue was flat at $1.68 billion for the quarter, a figure ADP said was in line with expectations. However, revenue at the company's brokerage services unit--which provides transaction services to the financial industry--declined 14 percent.

ADP said first-half results were close to its original plan.

However, the company adjusted its fiscal 2003 revenue and earnings-per-share percentage growth estimates to the low single digits from the mid single digits.

"Our most difficult issue remains in brokerage services where our revenue and pretax earnings continue to be significantly impacted by the overall weakness in the financial services industry," chairman and chief executive Arthur F. Weinbach said.