Results for
RSM McGladrey dropped for the second straight year as its parent,
H&R Block, reported results for the year ended April 30. McGladrey's earnings fell by 15.5 percent on a 3.5-percent decline in revenue. And the company's new CEO says he will be looking at the unit's operations.
"Obviously, RSM McGladrey is on my radar," CEO
William Cobb said in this week's earnings call. Cobb assumed his position on April 25. He said the economy had hurt McGladrey, which has led to increased competition that has hurt billings.
The company cited tough conditions in the professional services market, along with the decline in revenue from a multi-year consulting enagement. It said the drop in earnings was solely attributable to a decline in revenue.
McGladrey's earnings for the year just ended were $49 million, down from $58.7 million in fiscal 2010. Revenue for the most recently ended year was $829.8 million, a decline from $860.3 million the prior year.
