UPDATE 2-Convergys quarterly profit down; sees weak Q2

(Adds conference call details, analyst comments)

By Sayantani Ghosh

BANGALORE, April 29 (Reuters) - Convergys Corp (CVG.N: Quote, Profile, Research), which runs customer call centers and handles billing for other businesses, reported an 18 percent drop in first-quarter profit, hurt in part by restructuring costs, and indicated a weak second quarter, sending shares down 5 percent.

In a conference call with analysts, CFO Earl Shanks said Convergys expects the second half of 2008 to contribute about 60 percent of the expected full-year profit.

This implies earnings of about 25 cents a share in the second quarter, considering the company's full-year outlook of $1.31 to $1.36 a share.

Analysts were expecting a profit of 31 cents a share for the period.

Kaufman Bros Equity Research analyst Karl Keirstead said a back-end loaded year and weak outlook were affecting shares. The company also affirmed its full-year revenue outlook of $2.85 billion to $3 billion.

For 2008, analysts were expecting earnings of $1.32 a share on revenue of $2.89 billion.

Net profit in the first quarter was $35.9 million, or 28 cents per share, compared with $43.6 million, or 31 cents per share, a year ago.