Heidrick hires CFO, warns of low revenues

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Smith replaces Donald Kilinski, Heidrick's CFO since 1997, who said last October that he would be leaving the company at the end of the year.

Piers Marmion, Heidrick's CEO, said Smith had experience in both finance and operations as well as a record with international service businesses.

Last month Heidrick reduced the size of its board of directors by accepting the resignations of Robert Luis-Dreyfus and John Viney. While Viney retained his position as chairman, Europe, and stepped down from the board to devote his full attention to headhunting, Dreyfus resigned because of a conflict, the firm said.

Heidrick has indicated a commitment to a more independent board of directors and further changes in its composition are expected this year.

Heidrick also revised downwards its expectations for worldwide consolidated revenue for the fourth quarter, ended December 31, 2001, to between $85m (€95m) and $88m. In November the company's estimate was between $95m and $105m.

Revenue in all geographical regions was lower than expected. Marmion said: &quotThrough our considerable efforts to reduce costs, and because of the variability of certain elements of our compensation structure, we do not expect to report increased losses on the lower revenue.&quot

Heidrick & Struggles is assuming that no improvement in the economy will occur in 2002.