Downers Grove, IL, November 2, 2006--ServiceMaster Co., said its third-quarter profit declined 17 percent, weighed down by lean revenue growth, higher expenses and year-ago gains from discontinued operations.
Earnings for the quarter slipped to $68 million, or 23 cents per share, from $81.6 million, or 27 cents per share, during the same period last year. This year's results included income of $6.5 million from discontinued operations versus $11.4 million a year ago.
Analysts polled by Thomson Financial were looking for earnings of 20 cents per share.
Revenue increased 5 percent to $971.4 million versus $925.5 million a year ago, topping analysts' estimates of $970.6 million. The company saw slight sales improvements in its TruGreen ChemLawn, Terminix and American Home Shield units.
Total operating costs and expenses climbed 6 percent to $861.3 million from $801.6 million a year ago.
"During the months of August and September, the combination of intense summer weather, execution issues and rising factor costs had an adverse impact on our major business units," Chairman and Chief Executive J. Patrick Spainhour said in a statement.
ServiceMaster maintained its full-year earnings from continuing operations outlook in a range of 61 cents to 63 cents per share, excluding restructuring charges and a consolidation of its headquarters.
