Exult Wins Pact With International Paper

Exult Inc., which runs human resources departments for companies, said Thursday that it won a $600-million contract to manage International Paper Co.’s payroll and employee benefits for 10 years.

The Irvine company said it will manage International Paper’s human resources department in Memphis, Tenn., and administer payroll, benefits and support for the company’s 70,000 U.S. employees. Exult will offer jobs to more than 200 International Paper employees in Memphis.

The agreement is one of the biggest to date for Exult, matching a $600-million contract with the oil company BP PLC, Chief Financial Officer Mike Henn said.

The contract with International Paper will boost Exult’s revenue by $60 million a year, Henn said. Exult in July reported a loss of $24.8 million, while revenue rose more than sevenfold from a year earlier to $64.3 million. The company said at the time it expects to turn a profit in the first half of 2002. Exult shares rose 10 cents Thursday to $11.19 on Nasdaq.