UPDATE 2-CRA Int'l profit falls but shares rise on optimism

(Adds analyst comments, details, share movement)

By Sweta Singh

BANGALORE, March 20 (Reuters) - CRA International Inc (CRAI.O: Quote, Profile, Research) posted a first-quarter profit that fell by more than half, hurt by weakness in its overseas businesses, but its shares rose as investors were reassured about the legal consultancy's prospects.

On March 7, the company had forecast a drop in its first-quarter earnings on weak performance of its international business and withdrawn its fiscal 2008 outlook.

The overly pessimistic assumptions about the business after the pre-announcement on March 7 have been clarified, and the share movement reflects that, analyst Tim McHugh of William Blair & Co said.

"The investors were left to assume a situation that was worse than it was reflected by management today," McHugh said.

RESTRUCTURING EFFORTS

The Boston, Massachusetts-based company said it will incur a charge of about $4.1 million in the second quarter as it plans to move its London and Palo Alto offices into new locations.

CRA also cut some jobs in two of its foreign operations and was looking at shutting down or divesting most of its operations in Australia and New Zealand.