H&R Block reports reduced third-quarter profit

KANSAS CITY, Mo. -- H&R Block Inc. on Tuesday reported a third-quarter profit of $106.7 million, down from $132.3 million during the same period last year.

The Kansas City-based tax preparer said that 2004 marked the first time the company has reported a profit in each of the first three quarters of a fiscal year.

H&R Block reported earnings per share of 59 cents for the quarter that ended Jan. 31, compared with earnings of 73 cents per share for the third quarter of 2003.

The results for the third quarter of 2004 included a $17 million gain on the sale of some mortgage assets.

Third-quarter results in 2003 included a $130.9 million gain on a similar transaction, H&R Block said.

Analysts surveyed by Thomson First Call had expected profit of 45 cents per share.

H&R Block reported revenues of $977.2 million, compared with revenues of $958.4 million during the same quarter last year.

H&R Block traditionally has reported losses during its first two quarters and frequently has reported losses in its third quarter because of the seasonal nature of the income tax preparation business. But the company said it recently has been able to control costs while earning more money. Its mortgage business, bolstered by low mortgage rates, has done especially well.

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