Industry News

First American revenue up, profits down

CEO 'pleased' with growth despite low mortgage activity

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

The First American Corp. today said its first-quarter profit for 2005 fell because of the costs of investing in new businesses, despite "unusually steep" revenue. First American said it earned $69.7 million, or 71 cents per share, compared with $79.2 million, or 83 cents per share, in the year-ago period. The company's CEO said he was "especially pleased" with the growth in revenue "despite a lower level of mortgage origination activity." The nation's largest data provider, including mortgage and title insurance services, today said it had revenue of $2 billion in the first quarter of 2005, up from $1.7 billion in the 2005 period. "Though strong, earnings did not keep pace with the revenue growth for the quarter. Factors affecting results included an increase in the loss provision rate for the title insurance operations and continued investments in new business initiatives," said Parker S. Kennedy, chairman and chief executive officer of The First American Corporation, in a statement...