By Mike Boyer
and Jeff McKinney
The Cincinnati Enquirer

Cincinnati's Convergys Corp. Tuesday reported a 7 percent decline in first-quarter net income on a 2 percent increase in revenues.

But earnings per share for the billing and customer care provider came in at 22 cents a share, unchanged from a year ago on fewer shares outstanding, and a penny better than expectations.

The earnings were released after the market closed. Convergys shares closed down 34 cents at $15.71 Tuesday.

For the three months ended March 31, Convergys reported net income of $32.5 million compared with net income of $34.9 million a year ago.

Total revenues rose to $573.9 million from $560 million a year ago.

The company also announced it won a major human resources outsourcing agreement with Textron Corp. Under the multiyear agreement, Convergys will provide human resources and payroll functions for Textron's 40,000 employees worldwide.

As previously announced, the company reaffirmed a billing agreement with AT&T Wireless and won an agreement with Verizon Wireless in the quarter.

Convergys said its customer-care unit increased revenues 7 percent from last year, while operating income declined 27 percent to $31.5 million, reflecting startup costs for new clients.

For the current quarter, Convergys said it expects earnings per share of 18 to 20 cents. For the year, it is forecasting earnings of 85 cents to $1 a share.

In other earnings news:

First Financial Bancorp posted a 7 percent drop in first-quarter profits.

The Hamilton-based parent of First Financial Bank earned $9.9 million, or 23 cents a share, down from $10.6 million, or 24 cents a share, in the same period last year.

But quarterly results also showed some encouraging news for the $3.9 billion banking company, whose shares have been buffeted in recent months by weaker earnings, pressure to boost profitability and operating without a president since October.

First Financial's share earnings of 23 cents beat the consensus estimate of 21 cents by Wall Street banking analysts.

First Financial also said its first-quarter 2004 profits were its best quarterly results since the second quarter of 2003.

"Though our earnings were slightly less than last year, we're obviously pleased that we were 2 cents ahead of consensus estimates as we work back to stronger profitability," said Doug Lefferson, First Financial's chief financial officer.

The bank's profits fell as its net interest margin - the difference between what it charges on loans and pays on deposits - narrowed.

First Financial's net interest margin was 4 percent last quarter, versus 4.37 percent a year ago.

Its net interest income, most banks' main source of profits, fell 2.9 percent in the quarter. Revenues came in at $50.6 million, down from $51 million in last year's first quarter.

Shares in First Financial closed at $17.27, down 30 cents.

General Cable Corp, Highland Heights-based supplier of wire and cable, Tuesday reported a first quarter loss because of sharply higher metals costs.

For the three months ended March 31, the company said it had a loss of $3.4 million, or 9 cents a share, compared with a profit of $100,000 in the year-ago period.

The latest quarter included $2.7 million in pre-tax charges for the previously announced plans to close some cable-making plants and $500,000 in currency transaction losses.

Revenues for the quarter rose 19 percent to $478.6 million compared with metals-adjusted revenues of $402.5 million a year ago. The company said it expects earnings per share of five to 10 cents in the current quarter as it recovers higher metals costs in its wire and cable products.

The earnings were posted after the markets closed. Shares in General Cable ended Tuesday at $7.60, up 41 cents.

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