Hewitt Posts Strong First Quarter Sales GainHewitt Posts Strong First Quarter Sales Gain

Human-resources outsourcing and services firm Hewitt Associates posted strong gains in sales and profits for its fiscal first quarter on the strength of its October acquisition of rival Exult Inc., the company said Friday.

For the quarter ended Dec. 31, Hewitt's sales increased 34% from one year earlier to $710.4 million. Net income rose 16% to $34 million, while per-share earnings increased from 28 cents to 30 cents. Hewitt reported the strongest growth in its outsourcing business, where revenue jumped 47% to $520.4 million. Consulting sales rose a more modest 7% to $190 million.

Looking ahead, Hewitt says it expects total revenue growth for fiscal 2005 to fall between 31% and 35%. It predicts earnings to come in between $152 million and $156 million.

Meanwhile, Hewitt has been mentioned as a possible suitor for Mellon Financial Corp.'s HR-services division. Mellon has engaged Citigroup to help it secure a buyer for the unit, according to a report in the New York Post on Tuesday. Hewitt officials weren't immediately available for comment. Hewitt acquired Exult in October 2004 in a $690 million stock deal.