PHH Corp. reports drop in earnings for quarter

June 01, 1991

PHH Corp. has reported a decline in earnings per share and income from continuing operations for its fiscal fourth quarter, which ended April 30.

Income from continuing operations was $12.7 million, vs. $15.9 million for the same quarter in 1990.

"While not up to our prior-year achievements, PHH's performance was as anticipated considering the economic slowdown, its impact on our clients and their volume of activity with the company," said Robert D. Kunisch, the Hunt Valley-based company's chairman and chief executive officer.

Roy Meierhenry, the PHH chief financial officer, said that the weak economy has hurt two of the company's major business segments: relocation services and fleet management.

The soft real estate market -- especially in Europe -- has meant fewer job transfers offered to employees who work for PHH's corporate clients, he said.

Still, Mr. Meierhenry said that there is cause to believe financial results will improve in coming quarters.

"Our clients are beginning to exhibit less pessimissm," he said, noting that a number of clients have recently increased their advertising budgets.

The fourth quarter of PHH's fiscal 1990 included a provision for the discontinuation of PHH Environments, an office facility management business. Most of that business was sold. The charge reduced net income from 94 cents and share to 8 cents a share.

Three months ended 4/30/91

.. .. .. ..Revenue ... .. .Net ... .. .. Share

'91 ... 243,419,000 ... 12,674,000 ... .75

'90 ... 258,239,000 ... 1,355,000 ... .08

% change ... -5.7 .... . +835.4 .. .. +837.5

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