Crawford reports higher profit, expenses cut
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Atlanta-based claims management firm Crawford & Co. reported a profit of $10.2 million for the second quarter of 2017, an 18.2% increase over the same period in 2016.
Total revenue fell 4.6% to $284 million, Crawford reported Wednesday. Much of the decrease was due to “foreign exchange headwinds,” said Harsha V. Agadi, president and CEO.
“We believe that 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,” Mr. Agadi said.
The firm expects to report a full-year profit of between $34 million and $39 million, a Crawford statement said.
Crawford recorded restructuring charges of $6.5 million in the second quarter of 2017, which were related to a reduction in administrative costs, “consolidation of management layers in certain operations” and the phase-in of operations in the Philippines and India, the statement said.
Revenue before reimbursements, which excludes expenses passed on to clients, for its third-party administrator, Broadspire Services Inc., increased 3.7% to $77.9 million. Broadspire’s operating profit increased 36.9% to $8.9 million.
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