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02 October 2012 at 14:34 - Posted by AfricaFinance

Ernst & Young reports 2012 global revenues of US$24.4 billion



  Good growth across all service lines
    Emerging markets saw combined revenue growth of 15.5%
    Headcount at an all-time high of 167,000

Ernst & Young today announced combined global revenues of US$24.4 billion for the financial year ended 30 June 2012, compared with US$22.9 billion in 2011. Revenues grew 7.6% in local currency (US$ 6.7%).

Our business model and strategy continue to weather the economic turmoil and withstand the test of time. All of our service lines showed growth. Assurance revenues were up 4.1%, Tax 7.0%, Transactions 9.4% and Advisory 16.2%, a good performance given the current business climate. Growth in all of our service lines was almost entirely organic, with acquisitions accounting for less than one half of one percentage point.

“FY12 remained a dynamic and volatile period in the world economy. The ongoing sovereign-debt crisis in Europe, the impending ‘fiscal cliff’ in the US, and signs that the emerging-market economies are slowing all point toward a challenging business climate in the months ahead. We will also continue to face regulatory uncertainty in many jurisdictions around the globe. That said, we are pleased that our business showed good results, the best since 2008, in the midst of what has been several years of uncertainty,” said Jim Turley, Global Chairman and CEO of Ernst & Young.

Our strongest performing sectors, all with double digit growth, were: Automotive, Life Sciences, Mining & Metals and Oil & Gas.

As a result of the improvement in our business, we’ve grown our headcount to 167,000, an increase of more than 15,000 people in fiscal 2012. And, while we still have much to do in terms of diversity and inclusiveness, we are making steady improvement. Globally 25% of our new partners this year are women, up from 23% last year and 20% in 2010.

Our success in the emerging markets is largely the result of a strategic investment program started six years ago. Since the inception of this program, we have invested more than US$1.8 billion in our geographies, the majority of which has been earmarked for the emerging markets.

“We are committed to maintaining our investment in the emerging markets,” said John Ferraro, Global Chief Operating Officer of Ernst & Young. “Every growth orientated company, no matter where they are headquartered, knows their importance.”

The results of this have been clearly visible in 2012, as Brazil saw organic revenue growth of 17.5%, while India, Africa, China and the CIS increased revenues 19.8%, 10.2%, 11.8% and 15.6%, respectively.

“Ernst & Young, and our profession’s role in the world’s capital markets, has never been more important. Given these uncertain economic times we have to remain focused on working with our clients to deliver the best possible service, wherever they are in the world,” concluded Turley.

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Notes to editors

Jim Turley, Global Chairman and CEO, Ernst & Young

As previously announced these are the last set of results that Jim Turley will comment on as he retires in June 2013 to be replaced by Mark Weinberger. Jim, who has led Ernst & Young since 2001, has championed the organization’s successful efforts to lead the profession in globalization and investment in new and emerging markets. Under Jim’s leadership, the organization has grown from US$10b in annual global revenues to US$24.4b, has doubled its headcount and has established itself as the most globally integrated organization in our profession in mindset, actions and structure. Jim has championed a strong people culture, which is underscored by its drive for increased diversity and inclusiveness that has been recognized by many external awards

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