PricewaterhouseCoopers reports fiscal 2000 revenues of $21.5b

PricewaterhouseCoopers today announced global revenues of $21.5 billion for the fiscal year ended June 30, 2000, a 15 percent increase over the previous year`s turnover of $18.7 billion, as expressed in underlying local currencies. Net revenues - which exclude all subcontractor and other pass-through expenses - were $19.6 billion.

"Our strong financial performance reflects the focus and effectiveness of our people in building a culture of client service and product innovation," said PricewaterhouseCoopers CEO James J. Schiro. "This was especially gratifying coming during a year in which we laid the groundwork for our impending restructuring and played a leadership role in forging consensus on a new U.S. regulatory framework for our profession. Our focus now is to further enhance our innovative leadership in the networked economy by building on our traditional skill sets," Mr. Schiro added.

Assurance and business advisory services generated global revenues of $8.4 billion, an increase of 11 percent in underlying local currencies. This growth was attributable to the provision of audit services as well as to new services that attest to a company`s market strategy, intellectual capital and the integrity of its information technology security and privacy. New product initiatives in this arena include BetterWeb, beTRUSTed and e.conomy. New audit engagements included Exxon/Mobil, Viacom, FleetBoston, Nokia, BNP Paribas, Boehringer Ingelheim and SE Banken. Among recent advisory services engagements were risk management services for Raytheon and Waste Management and a major project for Georgetown University Medical Center.

In tax, success in the e-business marketplace and strong demand for services such as international mobility consulting and international corporate restructuring generated global revenues of $4 billion, an increase of 17 percent over the previous year as expressed in underlying local currencies.

PricewaterhouseCoopers is now the leading provider of tax services to 75 percent of the largest global eMarkets, with e-business related revenue in the service line of more than $150 million. New web services launched include GlobalVatOnLine, providing extensive details on VAT rules and rates in more than 70 countries. Recent new tax work includes engagements for The Thomson Group and Sega Europe Limited.

Management Consulting Services (MCS) generated revenues of $6.6 billion, an increase of 14 percent in underlying local currencies. Fiscal 2000 saw the expansion of our market leadership in the areas of eMarkets, customer relationship management and supply chain consulting, making PricewaterhouseCoopers the benchmark in fully integrated, end-to-end business transformation services. Significant new client engagements include projects with Palm, and eMarkets work from Transora, a business-to-business eMarketplace for consumer products companies. PricewaterhouseCoopers continues to be a leading player in "B to B" exchanges, having devised a range of solution sets aimed at vertical industries. Among its newest offerings were the New World Networks solution for advanced communications companies and the Internet Banking solution for financial service clients.

Project finance and privatization, corporate value consulting and real estate helped increase revenues to $1.5 billion in Financial Advisory Services (FAS), a gain of 21 percent in underlying local currencies. The 31.3 percent growth rate in Global Human Resource Solutions (GHRS), to $719.9 million, benefited from strong performance in organizational effectiveness and development consulting, as well as HR and benefit administration services. Finally the 166.2 percent gain over the previous year to $218 million in Business Process Outsourcing (BPO) services was fueled by a strategic market shift to global, multi-process outsourcing, where clients are benefiting from the firm`s scale, web based technology and process expertise.

On a geographic basis, revenue growth was in the strong double digits in North America, up 13 percent to $9.6 billion; in Asia-Pacific, up 23 percent to $2.2 billion; and Europe/Middle East/Africa, up 16 percent to $8.8 billion. Weaker overall economic conditions in South America limited growth there to 5.3 percent.

Approximately 60 percent of PricewaterhouseCoopers` revenues are earned in currencies other than the U.S. dollar. Expressing growth in local currencies provides a more accurate measure of performance in the countries where revenues are earned and profits distributed.