ServiceMaster’s 2Q Profits Slip

DOWNERS GROVE, Ill. — The ServiceMaster Co. announced that net income in the second quarter slipped to $77.1 million, down from $79.8 million in the year-earlier quarter. Terminix’s revenues, however, were up 1 percent from 2005.

Earnings from continuing operations were 25 cents a share, matching what analysts, on average, had expected, according to Reuters Estimates. Revenue at the Downers Grove, Illinois-based company rose 5.6 percent to $1.02 billion, just short of the $1.03 billion analysts had expected.

ServiceMaster Chief Executive J. Patrick Spainhour said the "existing uncertainties in the general economy reduce our visibility somewhat." But he added the company still expects a recent acquisition and cost cutting should allow it to achieve the earnings forecast.

The company still expects revenue growth this year in the mid-single digit percentage range, and earnings per share from continuing operations rising in the low double digits. Analysts were expecting the company to earns 67 cents a share from continuing operations on sales of $3.45 billion.

It said the fourth-quarter results should be "relatively strong."