Rising unemployment and the struggles of the U.S. auto industry were both evident as payroll and benefits outsourcer Automatic Data Processing Inc. reported a slim 3 percent profit rise in its first quarter. Cost controls offset lower revenue.

The company attributed the revenue decline to the recession, along with unfavorable foreign exchange rates, which ADP said shaved 2 percentage points from the total.

"The actions taken in last year's fourth quarter to reduce our expense structure benefited the current quarter's results," said President and CEO Gary C. Butler. ADP reduced expenses 5 percent from the year-ago quarter to $1.69 billion.

ADP also boosted its guidance for the full fiscal year.

For the three months ended Sept. 30, net income rose to $284.1 million, or 56 cents per share, from $276.9 million, or 54 cents per share, in the year-ago period. There were 2 percent fewer shares outstanding in the most recent period.

Revenue dipped 4 percent to $2.1 billion from $2.18 billion last year.

Analysts polled by Thomson Reuters, on average, expected profit of 50 cents per share, on revenue of $2.05 billion.

The company's largest unit, employer services, which provides payroll processing, saw a 3 percent drop in revenue to $1.49 billion.

ADP said the number of employees on its client's payrolls dropped 6.5 percent, and revenue from its traditional payroll and payroll tax filing business fell 7 percent.

PEO services, its personnel services division, reported a 6 percent revenue increase to $296.2 million. Continued...