Crawford & Company 2007 Q1 results buoyed by international segment

Crawford & Company (NYSE: CRDA; CRDB), an independent provider of claims management solutions to insurance companies and self-insured entities, announced a 2007 Q1 profit of US$3.3 million compared to net income of US$5.8 million for the 2006 first quarter.
The company announced 2007 Q1 consolidated revenues (before reimbursements) totaling US$243.6 million compared to US$201.6 million in 2006 Q1.
Crawford & Company CEO Thomas W. Crawford stated: “Our first quarter 2007 operating results exceeded our plans, led by the performance of the [newly acquired] Broadspire [Management Services Inc.] which exceeded our expectations for the 2007 first quarter and was profitable in the month of March.
We took significant steps to realize operating efficiencies in the newly-combined Broadspire operation, and more than accomplished our plan by reducing operating expenses by US$28.7 million on an annualized basis.”
Crawford said the companys international segment had a strong start to 2007, following a record 2006 fourth quarter, and their results helped to offset the expected decrease we anticipated in our U.S. property & casualty operating segment.
Crawford & Company noted its international operating expenses increased by US$11.2 million, a 16.2% increase. Operating earnings improved to US$4 million in the current quarter, more than tripling last year’s first quarter operating earnings of US$1.3 million, the company announced. This improvement reflected an increase in the operating margin from 1.8% in the 2006 first quarter to 4.7% in the 2007 quarter, primarily due to improved operating efficiency in the U.K., Asia Pacific, and Canada in the 2007 quarter.