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Crawford swings to loss in third quarter

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Crawford & Co. said Monday that costs related to global expansion and the acquisition of GAB Robins Holdings U.K. Ltd. resulted in a net loss for the Atlanta-based claims management provider in the third quarter.

For the quarter ended Sept. 30, Crawford reported a net loss of $1.01 million, with net income of $10.19 million during the third quarter of 2014. The company reported nearly $310 million in revenue for the recent quarter, down 1.6% from a year earlier.

In a statement, Crawford said that it incurred $6.1 million in restructuring costs during the quarter. Those charges were related to the implementation of Crawford’s Global Businesses Center in Manila, Philippines, the GAB Robins acquisition and restructuring of Crawford’s Americas and Europe, Middle East and Africa/Asia Pacific business segments.

Broadspire Services Inc., Crawford’s third-party administration unit, saw positive results in the quarter. The unit, which handles workers compensation and liability claims, reported $74.2 million in third quarter revenue, up 8.8% from the period last year.

“While our overall results are not where they need to be, I am excited by the opportunities in 2016 and am optimistic about where our company is heading,” Crawford interim CEO Harsha V. Agadi said in a statement. “We believe that our cost reduction activities, when complete, will enable our businesses to achieve their operating margin targets in the current claim environment and provide an opportunity for significant profit contribution when claim volumes begin to grow.”

For the first nine months of 2015, Crawford reported $6.37 million in net income, down nearly 77% from a year earlier. Revenue for the first three quarters of this year reached $941.02 million, up 3.2% from a year earlier.

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