US – Pensions consultancy firm Watson Wyatt Co. says its focus on clients has positioned it well to achieve higher market share and growth as the economy improves.

"While the economic environment remains challenging, our client focus and financial discipline continue to produce strong bottom-line results and generate cash," says the company’s president and chief executive John Haley.

“This client focus positions us well to achieve market-share gains and growth as the overall economy improves."

The company reported second-quarter net income of 12.1 million dollars, or 0.36 dollars a share, compared to 10.1 million dollars, or 0.30 dollars per share in the prior year period. The results exceeded analysts’ expectations.

It attributed the result to better than expected final results from its Asian and Latin American operations.

Revenues were roughly flat at 174.6 million dollars, against 174.9 million dollars a year before.

The results include 1.2 million dollars relating to “headcount reductions” made in the quarter.

Its international division, which represents 11% of its total revenues, “showed moderate growth”. It expected revenue at the division to rise by around 10%-12% in fiscal 2003.

It foresaw “roughly flat to one percent higher” fiscal 2003 revenues for the company overall. Its benefits group revenue growth was expected at 4% “reflecting a more moderate rate of increase in the retirement practice in the back half of the year” and modest expansion in healthcare consulting.