Costs and charge outpace ABM 2Q revenue increase

ABM Industries Inc., a facilities-service provider, on Tuesday reported fiscal second-quarter profit fell 34 percent, hurt by higher costs and a goodwill impairment charge.

Profit for the quarter ended April 30 fell to $11.1 million, or 22 cents per share, compared with a profit of $16.7 million, or 33 cents per share last year.

Excluding a charge related to the impairment of goodwill in the company's lighting segment, expenses related to corporate and infrastructure initiatives and the acquisition of OneSource Services Inc., and a benefit from the reduction of self-insurance reserves, earnings from operations rose 25 percent to $25.8 million from $20.6 million last year.

Revenue rose 35 percent to $938.5 million from $697.9 million a year ago, helped by a growing customer base and acquisitions, the New York company said.

ABM provides facilities services such as janitorial, parking, security and engineering services.