New business raises Towers Watson profit

PROFESSIONAL services giant Towers Watson yesterday announced a 39 per cent jump in its third quarter earnings after a boost from new business.

The New York-headquartered firm, which has seven offices in the UK, earned $94.9m (£61.3m), or $1.34 per share, in the quarter ending 31 March, up from $68.2m a year earlier. Revenue rose by more than four per cent to $941m.

The human resources and risk management consultancy also raised its forecast for 2013 earnings. It now expects earnings of $5.37 per share based on $3.6bn revenue.

Towers Watson said its service costs increased one per cent to $801.4m, mainly because of increases in salaries and employee benefits.

Chief executive John Haley said: “The success we’ve had is in large part due to their consideration of our clients’ needs as we continue to bring innovative ideas to the market with a disciplined financial approach.”

Shares closed up 61 cents, or nearly one per cent, at $75.61 on the New York Stock Exchange.