Profits sink at the Phoenix School of Universal Technical Institute of automotive Inc. for the second quarter in a row, fell nearly 18 percent, the company reported on Tuesday.
"Sustained economic Pressure, affordability problems and difficulties for the continued efforts of debt our student recruitment throughout the quarter, the negative impact as it for years," said Kim McWaters, chief executive officer.
Net income fell 17.5 per cent, to $ 6 million, or 24 cents per diluted share, in the three months ended 30 September. The company reported a profit of $ 7.2 million over a period of years. In July, the Institute reported that profits in the third quarter was down 36 percent compared with the previous year.
Higher education helps to ended fiscal 2011 with UTI $ 451.9 million in revenue, 3.7 percent from $ 435.9 million in 2010. Profits fell nearly 6 percent from $ 17.9 million in 2010 to $ 9.8 million in 2011.
While UTI expects that the application may take students by 2012, enrollment was lower and the sluggish economy make it perhaps the overall student population will decrease in the percentage of the "low teens" in 2012 and earnings will drop by a single digit percentage, according to a company news release.