DST Systems reports a $100 million profit and sells more investments

Kansas City-based DST Systems Inc. said Thursday that it earned $100 million in the third quarter, and it cited recent layoffs as being part of a reorganization.

Early this month, DST said it would eliminate 150 jobs in Kansas City, Connecticut, India and Jefferson City, where it is closing an office. The company said all employees were notified in September.

Chief executive Steve Hooley said the company continues to invest in its businesses but needed to make other changes.

“We also remain committed to reducing costs in areas of our business that have seen changes in the business climate. We believe these activities will position our company well to take advantage of future opportunities for growth,” Hooley said in the announcement.

The cutbacks came in its financial services and customer communications operations. The moves will save between $13 million and $15 million a year before taxes, DST said.

DST’s $100 million profit, equal to $2.51 a share, included proceeds from selling stock, real estate and other assets not tied to the company’s data processing and other businesses. A year ago, DST earned $96.9 million, or $2.23 a share, in the quarter.

Proceeds from the sales equaled $100 million before taxes, including $54.4 million from selling shares of State Street Corp. and $32.1 million from selling real estate.

DST said that without the sales and similar items, its businesses earned $61.2 million, compared with a similarly adjusted profit of $52.8 million in the third quarter last year.

Revenues were $679.5 million in the quarter, up 4.2 percent from a year ago.

Shares of DST closed Thursday up $1.26 at $92.60.

This story was originally published October 30, 2014 at 10:45 AM with the headline "DST Systems reports a $100 million profit and sells more investments."