ARS, AMS Incurs Impairment Charge
The ServiceMaster Co. recorded a noncash impairment charge in 2003’s third quarter of $481 million (pre-tax), associated with its American Residential Services (ARS), American Mechanical Services and TruGreen business units. Jonathan Ward, chairman and CEO of ServiceMaster, said that the charge reflects that “these businesses have not performed at levels that met our expectations,” but that they can generate improved results in the future.
For the first nine months of the year, ARS/AMS reported revenues of $506 million, a decrease of 8 percent from the same time in 2002. The decline reflects a sharp reduction in commercial construction activity, as well as declines in the plumbing and HVAC service lines.