What’s New: In Brief (August 14, 2009)

***CORRECTION This item contains corrected information from an item that originally ran on Aug. 13, 2009. It has been amended to reflect the fact that these are the consolidated 2009 Q2 financial results of Crawford & Company’s operations, not just its Canadian operations. Canadian Underwriter apologizes for the error.

Crawford & Company has reported a net loss of $88.1 million for 2009 Q2, which includes a preliminary non-cash goodwill impairment charge of $94 million.
This is compared to a net income of $7.9 million of 2008 Q2.
The non-cash goodwill charge is primarily related to declines in the Broadspire segment’s current and forecasted operating results, the impact of declining U.S. employment levels on Broadspire’s current and projected claims volume, and declines in the company’s stock prices, the company notes.
Revenues before reimbursements for the international operations segment declined 15.3% to $96.1 million from $113.4 million in the same period in 2008, due to the strength of the U.S. dollar.
Operating earnings declined to $8.2 million in 2009 Q2, down from last year’s second quarter operating earnings of $10.4 million.
The related operating margin was 8.6% in 2009 Q2, compared to a 9.2% operating margin in 2008 Q2.