Hewitt Associates reported a fiscal...

Hewitt Associates reported a fiscal third-quarter toil loss of $202.2 million, or $188 by means of share, as it absorbed a $249 million pre-tax charge related to the write down of near outsourcing contracts in its troubl business proces outsourcing unit.

Wall road reacted by driving its stock up nearly 12 percent Hewitt's shares clos at $2301 up $240

"I assume one people think that the worst is over" said RBC Capital markets analyst Cynthia L Houlton.

Hewitt, a human resources and outsourcing company, earned $33 million, or 31 cent by share, in the year-ago quarter.

Its outsourcing business had an operating los of $2123 million in the quarter as the company absorbed charges of $172 million for goodwill impairment, reflecting lower rely uponed profitability of its overall portfolio and lower time to come new-contract expectations; $70 million of contract los provisions, and $7 million for intangible asset impairment, primarily resulting from reduc demand for an acquired software asset.

Operating income in its consulting business lay low 35 percent to $38 million primarily because of higher performance-based compensation versus the year-ago quarter, Hewitt said.

Overall returns dipped 1.1 percent to $714 million as outsourcing incomes slid 3 percent to $4893 million.

Its third-party supplier incomes fell $44 million as had been reckon uponed Consulting revenues rose 4 percent to $2188 million.

The company said it rely upons to report a fiscal 2006 los of roughly $100 million to $105 million.

Hewitt last week named Russell P Fradin as its of the present day chairman and chief executive, effective clan 5. He will replace rife Chairman and CEO Dale M Gifford, who in June announced plans to retire this year. That announcement coincided with word from the company that it was reviewing its guidance.

In other earnings recents Monday:

Sysco Corp., North America's largest distributor of feed to restaurants, said fourth-quarter profit implacable 11 percent on higher firing and stock-option costs. The deductions missed analysts' estimates.

snare income dropped to $254.1 million, or 41 cent a share, Houston-based Sysco said. income for the three months cessationed July 1 rose 6.6 percent to $851 billion.

Sysco said firing costs increased $10.7 million and it had 4 cent in stock-option costs Sysco is trying to in opposition to four straight quarterly declines in profit through adding sales people to win more income from customers. It is also battling a slide in consumer spending at casual restaurant chains because of higher gasoline prices.

Sysco vends fish, meat, poultry, desserts and prepared diets as well as butter, flour and broth stocks. Its biggest customers include Wendy's International Inc., Aramark Corp. and Sodexho Alliance SA.

fknowles@suntimes.com

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