Paychex 4Q profit falls

ROCHESTER — Payroll and personnel services provider Paychex Inc. said Wednesday its fiscal fourth-quarter profit and sales declined in what the company called one of the most challenging years in its history.

For the three months ended May 31, the company earned $113.8 million, or 32 cents per share, down 16 percent from $135.5 million, or 38 cents per share, in the same period a year earlier.

Revenue slid 4 percent to $495.9 million from $519.2 million.

Analysts, on average, were expecting a profit of 33 cents per share on sales of $510.5 million, according to a survey by Thomson Reuters.

"We were faced with many difficulties including the weakest economic conditions we have ever experienced, a severe credit crisis, and extremely low investment rates of return on our funds held for clients," said Jonathan J. Judge, president and CEO, in a statement.

For the full year, the company earned $533.5 million, or $1.48 per share, down 7 percent from $576.1 million, or $1.56 per share, a year earlier.

Revenue climbed 1 percent to $2.08 billion from $2.07 billion.

Looking ahead, Paychex said it expects fiscal 2010 net income to decline by 10 percent to 12 percent and revenue to decline by 1 percent to 4 percent.

Shares slid 9 cents to $26.62 in after-hours trading. The stock had closed up 57 cents, or 2.2 percent, at $26.71.

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