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FTI Consulting says profits fall due to one-time charges

Baltimore-based FTI Consulting Inc. said profit was down 33 percent in the second quarter compared with a year earlier but would have risen if not for the effect of one-time charges from layoffs.

FTI warned investors in July that the "special charges" would affect earnings initially, but officials said the reduction in executive management would lead to about $9 million in savings during the second half of the year.

The business services firm, which has divisions across the world that help companies restructure, find financial fraud and deal with other corporate challenges, reported $16.9 million in profits during the three months ending in June, down from $25.1 million a year earlier.

But FTI said its restructuring charges totaled $16.8 million, compared with none a year earlier. If not for that, the company said it would have produced 64 cents per share in profit, up from 52 cents a share a year earlier. Wall Street analysts' expectation was 57 cents, according to Thomson Reuters.

The company reported just over $400 million in revenue during the three months ending in June, the first time it crossed over that mark in a quarter. Revenue increased 15 percent from a year earlier.

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