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Crawford profit rises as cost drive pays off

Claims management group Crawford & Company has recorded a second-quarter profit of $US10.2 million ($12.98 million), up from $US8.6 million ($10.94 million) in the corresponding period last year, largely due to cost reductions and higher case volumes.

CEO Harsha Agadi says he is pleased with the result, despite softer market trends in the Garden City Group legal services segment.

Garden City Group revenue was $US19.7 million ($25.04 million) in the second quarter, down from $US25.7 million ($32.69 million). Operating losses totalled $US1.7 million ($2.16 million), compared with $US2.6 million ($3.3 million) in the corresponding period last year.

Net income for the Crawford Group grew 18%, driven by consolidated operating earnings growth of 22%, with the operating margin expanding 230 basis points.

Mr Agadi says this reflects cost reductions, higher case volumes and lower corporate costs.

“We believe the decisive steps we took through the second quarter to reduce our expense structure have positioned the company to deliver the financial expectations we set at the beginning of the year,” he said.

The company says it is on course for a full-year profit between $US34 million ($43.28 million) and $US39 million ($49.64 million).

The second quarter featured restructuring costs of $US6.5 million ($8.27 million), described as a reduction in administrative costs, “consolidation of management layers in certain operations” and the phase-in of operations in the Philippines and India.

Mr Agadi says the company will focus on revenue growth, leveraging global resources and containing costs for the rest of this year.