Industry News

First American’s earnings fall

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The First American Corp. reported net income of $116.5 million for the second quarter, down 9.4 percent from $127.5 million in the second quarter of 2003. Net income per diluted share was $1.27, down from $1.47 during the same period last year. Total revenues reached $1.72 billion, up 11.7 percent from $1.54 billion in the second quarter of 2003. "The company posted strong second-quarter results," said Parker S. Kennedy, president of The First American Corp., in a company statement. "Second-quarter earnings benefited from a 26 percent increase in closed title orders, compared with first-quarter closings. A quarter-point hike in interest rates in the second quarter, which was the first interest-rate increase since May of 2000, slowed refinancings, but residential and commercial property purchase transactions remained solid, which resulted in steady real estate activity for the quarter. Traditionally, First American's real estate-related businesses benefit from the seasonally strong...