Administaff 3Q profit down more than half

Administaff 3Q profit down 51 percent amid rising unemployed health-benefit claims

• On 11:03 am EST, Monday November 2, 2009

HOUSTON (AP) -- Administaff Inc. said Monday its third-quarter profit dropped by more than half as health benefits climbed amid rising benefit costs, including a large number of claims and increased participation in COBRA health-benefit plans.

The company, which provides human-resources services for small and medium-sized businesses, said its net income fell 51 percent, to $5.8 million, or 23 cents per share, from $11.9 million, or 46 cents per share, a year ago. Revenue fell 7 percent, to $390.9 million.

Analysts surveyed by Thomson Reuters, on average, expected earnings of 22 cents per share on revenue of $396.6 million.

Unemployment hit a 26-year high of 9.8 percent in September, and the October report due Friday could show it topping 10 percent.

Shares fell 3 cents to $24.79 in midday trading.