This compares to $US 8.1 billion for the prior year-a growth rate expressed in US dollars of 14.1 percent in its assurance and advisory business services, tax and law, and corporate finance lines of business. The growth rate using local currencies was 17.6 percent. Ernst & Young sold its consulting services arm to Cap Gemini, the French information technology and consulting group, in May 2000.
Growth in Ernst & Young’s key service lines was 10.5 percent for audit and advisory business services, 16.1 percent for tax and law, and 32.2 percent for corporate finance. The organization expects continued growth next year following a series of large client wins this year, including CGNU in the United Kingdom, Olivetti in Italy, NEC in Japan, and Verizon and Compaq in the United States.
Ernst & Young was the first of the Big Five firms to separate its consulting services practice from its core businesses-helping it to focus resources on the core of its business: assurance and advisory business services, corporate finance, and tax and law practices. Commenting on this move, Ernst & Young Chairman Philip A. Laskawy said: Our outstanding success shows that, as we expected, separating audit and tax from consulting services had a positive impact on performance. We are demonstrating strong double-digit growth in our continuing lines of business, consistent with our track record of providing solutions that help clients achieve their business strategies.
Our continued growth in the past fiscal year is the result of the efforts of the 78,000 dedicated Ernst & Young people worldwide, said James S. Turley, Chairman-elect of the organization. I believe we have been successful because we are viewed as a trusted business advisor, and because we create value and confidence for our clients everyday. He added: I am very bullish on our future. (Editor’s note: Mr. Turley is scheduled to become Chairman upon the retirement of Mr. Laskawy on June 30, 2001.)
Ernst &Young has realized unprecedented success in its global new business pursuits since the spin-off of its consulting arm, and is positioned to continue growing and advancing its leadership in the profession. The number of global and emerging companies that have selected Ernst & Young as their professional advisors over the last year is truly gratifying and is a tribute to the ability of our people to stay focused during a year of extraordinary change for our organization, said William L. Kimsey, Chief Executive Officer of Ernst & Young International.
