WASHINGTON (dpa-AFX) - Educational services provider DeVry Inc (DV) announced that, in response to continued softness in student enrollment, it is eliminating approximately 570 positions across its institutions, inclusive of both the fourth quarter of fiscal 2012 and the first quarter of fiscal 2013.
The company noted that it will continue to execute on its cost reduction program and remains committed to achieving at least $50 million of cost savings in fiscal 2013, primarily at DeVry University and Carrington Colleges Group. Total operating costs and expenses at these institutions are expected to be down in the first quarter of fiscal 2013 both on a year over year and sequential basis and down for the full year.
Total first quarter DeVry operating costs and expenses are expected to be down slightly on a sequential basis, even as growth investments continue at DeVry's healthcare and international institutions.
The company announced that it anticipates reporting revenue for its fiscal fourth quarter ending June 30, 2012, between $500 million and $510 million. Total operating costs and expenses in the quarter are anticipated to be between $465 million and $475 million, which is expected to produce earnings per share in the range of $0.43 to $0.46, before discrete items.
The company expects a pre-tax restructuring charge of approximately $7 million related to workforce reductions.
Analysts polled by Thomson Reuters expect the company to report earnings of $0.78 per share on revenues of $516.69 million for the fourth-quarter. Analysts' estimates typically exclude special items.
'While we are disappointed with this quarter's results, we are optimistic about mid- and long- term growth in higher education,' said Daniel Hamburger, DeVry's president and chief executive officer.
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