CDI posts profit gain on alternative energy work

High gasoline prices may be giving motorists migraines, but they portend future growth for CDI Corp., its chief executive said today in reporting banner first-quarter earnings.

"We're seeing continued client investing . . . in new and alternative energy," Roger Ballou said, listing projects in wind, solar, biodiesel and coal gasification. "Spending is ramping up at a giant rate."

CDI provides engineers for capital-intensive projects such as those. Ballou said he saw no sign that capital spending was falling off.

The Philadelphia staffing and project-engineering company reported a 72.6 percent increase in profit to $8.5 million, or 42 cents a diluted share, from $4.9 million, or 25 cents a share, in last year's first quarter.

Revenue rose from $307.3 million a year ago to $331.9 million in this year's first quarter. Ballou said CDI expected 7 percent to 9 percent revenue growth for the second quarter and the year.

CDI's profit was boosted by an appellate-court decision that reversed an earlier legal defeat in a contract case. CDI had set aside $1.6 million to cover costs. Even without the $1.6 million, CDI's earnings would have been up 52 percent, the company said.

Ballou said soft spots included a decline in revenue from Todays Staffing, its temporary-hiring division for office and retail help. CDI also lost traction in its aerospace-engineering business, which was partly affected by problems at one of its major clients, Airbus, the European plane manufacturer.

CDI shares closed up 23 cents, or about 0.8 percent, at $30.36 a share today on the New York Stock Exchange.