Goodwill charge buries Crawford profit
Global claims management provider Crawford & Company has reported a first-half loss of $US85 million ($102 million), due primarily to heavy goodwill charges booked against its Broadspire subsidiary.
Falling operating results at the US subsidiary have combined with the impact of reduced US employment and a sagging company stock price to produce a $US94 million ($112 million) impairment charge levied during the second quarter.
CEO Jeffrey Bowman pointed to improved US property and casualty performance but said the company "like other businesses, expects to face continued near-term macroeconomic challenges".
The first-half result compared poorly with the $US17 million ($20 million) net profit US-based Crawford earned in the same period last year. Total revenue decreased 7% to $US522 million ($624 million).