By Mike Boyer and Jeff McKinney
The Cincinnati Enquirer

Cincinnati's Convergys Corp. reported slightly lower third-quarter earnings due to continued weak results from its data processing business.

Net income for the three months ended Sept. 30 was $45.5 million, or 31 cents a share, versus a profit of $55.6 million, or 34 cents a share, a year ago.

"The business environment for our information management group remains challenging in North America,'' chairman and CEO James Orr said in a statement. The billing and custom care provider is the largest preparer of cellular phone bills, and the company's operations have suffered because of the slowdown in the telecommunications market.

Operating earnings for the billing business fell 38 percent in the third quarter to $29 million from $46.4 million a year ago.

That decline was partly offset by gains in the company's customer care operations. Operating earnings for its customer management group rose 5 percent to $46.3 million from $44.1 million a year ago.

Total third-quarter revenues rose two percent to $570.7 million from $561.2 million a year ago.

In other reports:

• Bank of Kentucky Financial Corp.: Brisk refinancing activity and higher fee income helped the parent of The Bank of Kentucky post a 14 percent rise in third-quarter profits.

The Crestview Hills company earned $2.5 million, or 42 cents a share, up from $2.19 million, or 36 cents a share, during last year's third quarter.

The higher profits came as the banking company's net interest income rose 26 percent to $6.8 million and fee income rose 105 percent to $666,000. Much of Bank of Kentucky's gains came from the sale of mortgages, which rose 115 percent to $955,000.

Bank of Kentucky, with assets of about $783 million, operates 25 branches in the Northern Kentucky area.

• General Cable Corp.: The Highland Heights cable and wire manufacturer, reported a third quarter return to profitability.

For the three months ended Sept. 30, the company said net income was $2.1 million, or 6 cents a share, compared with a loss of $4 million, or 12 cents a share, a year ago. The latest quarter included a pre-tax charge equal to a penny a share for cost-cutting in Europe.

Revenues rose 7 percent in the third quarter to $382.5 million.

• LSI Industries Inc.: The Blue Ash maker of lighting and graphics Tuesday reported improved results for the fiscal first quarter, thanks in part to improved sales to petroleum/convenience store chains.

For the three months ended Sept. 30, LSI said net income was $2.6 million, or 16 cents a share, on revenues of $59.1 million. For the year-ago period, the company reported a net loss of $16.3 million, or $1.02 a share, after a goodwill impairment charge. Operating earnings a year ago, before the non-cash charge, were $2.2 million, or 14 cents a share. Revenues in the first quarter last year were $56.1 million.

• NS Group Inc.: The Newport oil and gas pipe supplier reported a narrower loss for the three months ended Sept. 30.

Third-quarter loss was $2.2 million, or 11 cents a share, versus a loss of $7.5 million, or 36 cents a share, in the same period last year.

Sales rose to $73.6 million from $57.3 million a year ago. An increase in drilling activity produced a 7 percent increase in energy product shipments and a 5 percent improvement in average revenue per ton from the second quarter, the company said.

CEO Rene J. Robichaud said he was encouraged by increased drilling activity, which should increase demand for the company's drilling and line pipe. He said shipments and revenue per ton should be higher in the fourth quarter.

• U.S. Bancorp: Loan growth and improved credit quality helped the parent of U.S. Bank post a 14 percent gain in third-quarter profits.

The company, which operates about 114 branches locally, earned $984.9 million, or 51 cents a share, up from $860.3 million, or 45 cents a share, from the same time last year.

The gain came as the bank's net interest income rose 5.3 percent to $1.83 billion, while the provision for credit losses dropped 6.1 percent to $310 million.

E-mail jmckinney@enquirer.com or mboyer@enquirer.com.