ServiceMaster Fourth-Quarter Profit Falls

DOWNERS GROVE, Ill. — ServiceMaster Co., operator of Terminix and other chains providing home maintenance services, said Monday its fourth-quarter profit sank 85 percent from the year-ago period, which benefited from a large tax benefit.

For the quarter ended Dec. 31, 2005, ServiceMaster reported net income of $27 million, or 9 cents per share, versus a prior-year profit of $181.9 million, or 60 cents per share.

Excluding the income tax provision in both periods, ServiceMaster reported earnings from continuing operations of $24 million, or 8 cents per share, versus $20.6 million, or 7 cents per share, a year ago.

The tax provision results from a January 2005 agreement the company reached with the Internal Revenue Service after a review of federal income taxes through 2002.

Revenue for the period reached $719.6 million, up 5.3 percent from $683.4 million a year ago.

ServiceMaster's Terminix pest control business reported a 5-percent increase in quarterly revenue and a 10-percent increase in operating income.

Source: Reuters