The First American Corp. Announces Financial Results for the 3Q of 2007 - Reports Earnings Per Diluted Share of 49 Cents
November 1, 2007
SANTA ANA, Calif., -- The First American Corporation (NYSE: FAF), , announced financial results for the third quarter and nine months ended September 30, 2007.
Total revenues for the third quarter of 2007 were $2.1 billion, a decrease of 6 percent relative to the third quarter of 2006. Net income was $46.6 million in the third quarter of 2007, compared with net income of $90.4 million in the third quarter of 2006. Earnings per diluted share were 49 cents in the third quarter of 2007, versus earnings per share of 92 cents in the third quarter of the prior year. The results for the current quarter included pretax charges for restructuring costs of $17.1 million, or 11 cents per diluted share, and an addition to legal and regulatory reserves of $8.0 million, or 5 cents per diluted share. Also included in the current quarter were net realized investment gains of $1.7 million, or less than 1 cent per diluted share.
"Sharp declines in mortgage originations created a challenging operating environment during the quarter," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "The Title Insurance segment cut costs aggressively and our managers will seek additional cost savings as we continue our focus on the goal of maximizing the pretax margins in our Title Insurance segment."
"The Information Technology business group, comprised of our Mortgage Information, Property Information and First Advantage reporting segments, generated mixed results. The slowdown in mortgage activity adversely impacted our businesses focused on origination and securitization clients; however, the default-related businesses and First Advantage continued to post favorable results."
Source: The First American Corp