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ADP Revs and Net Up E-mail
Written by The Progressive Accountant   
Tuesday, 31 January 2012 13:55

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Carlos Rodriguez, ADPAutomatic Data Processing reported that its net income rose 20.9 percent while revenue climbed by 7.7 percent for the second quarter ended December 31. CEO Carlos Rodriguez said results were driven by strong new business growth in the most recently ended period.

"We experienced continued strength in our key business metrics," Rodriguez said during last week's earnings webcast. He pointed to grow in new business sales, clients on payroll and client balances. Client retention, however, was slightly down for the year to date. ADP, however, has reduced its forecast saying that there will be less wage and bonus growth than previously anticipated. ADP expects revenue for 2012 will be 7 percent to 9 percent higher than in 2011 with about a 7 percent-rise in employer services revenue.

Net income for the second quarter was $375 million, up from $310 million a year earlier. Revenue reached $2.6 million, compared to $2.4 billion in last year's corresponding period. Revenue for payroll services was $2.1 billion in the period just ended, an increase of 6.9 percent from the year earlier $1.9 billion.

Rodriguez pointed to growth in the Run platform, which is replacing the older EasyPay system, as a factor in increased revenue. ADP has also focused on "being "able to attach additional products and services" as one of the key strategies for Run.



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