Korn/Ferry Reports Loss, Warns of Weakness

Korn/Ferry International, the largest executive-search firm, reported a loss for the latest quarter and said results would be worse in the current quarter.

The news sent the company’s shares down to as low as $7.45 on the NYSE before they recovered to close off 73 cents, or 7.8%, at $8.60.

The Los Angeles-based company said it lost $7.3 million, or 19 cents a share, in its fiscal third quarter ended Jan. 31, contrasted with net income of $6.9 million, or 18 cents, in the year-earlier period.

Sales plunged 41% to $93.3 million as firms hired fewer executives in the recession and cut jobs.

Korn/Ferry, which has cut 30% of its work force in the last year, said it expected a loss per share in the mid-20-cent range for its fiscal fourth quarter.