Crawford profit down 66% in fourth quarter
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Profit at Crawford & Co. fell considerably in the fourth quarter of 2014 despite the fact that its third-party administration business saw growing revenues during the year, the claims management services provider said Monday.
Atlanta-based Crawford reported $3.73 million in net income for the fourth quarter of 2014, down 66.4% from the fourth quarter of 2013, according to a company statement. The company generated $305.64 million in revenue for the quarter, down only slightly from $306.72 million during the same period the prior year.
Crawford reported $31.11 million in net income for 2014, down 39.4% from 2013. Revenue in 2014 declined 2.4% to $1.22 billion.
Crawford President and CEO Jeffrey T. Bowman said in a statement that the company's fourth-quarter decline in revenue and profit resulted from lower earnings in the company's legal settlement administration and its Europe, Middle East and Africa and Asia Pacific operations. Crawford was also hurt by administrative costs related to its acquisition of London-based claims management firm GAB Robins Holdings UK Ltd. for $73.3 million, which was announced in December.
Crawford's workers compensation and liability TPA unit, Broadspire Services Inc., marked a bright spot on the company's overall financial results, generating $268.89 million in revenues for 2014, up 6.6% from 2013.
“In the Broadspire segment, we saw a steady and significant improvement in both revenue and operating profitability throughout 2014, and we were pleased with the improved performance we accomplished in this business,” Mr. Bowman said in Monday's statement. He added that he expects Broadspire to see continued growth in 2015.
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