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Oct 29, 2009 (Datamonitor via COMTEX) --
Arthur J Gallagher, a provider of insurance brokerage and third-party claims settlement services, has reported net earnings of $41.6 million, or $0.41 per diluted share, for the third quarter ended September 30, 2009, compared to $37.8 million, or $0.40 per diluted share, for the same period of 2008. The company plans to reduce its existing middle and back office workforce by approximately 400 positions, over the next few months.
For the third quarter of 2009, revenues were $439.5 million, compared to $428.2 million for the same period of 2008. Revenues of the brokerage segment were $325.8 million, compared to $314.4 million for the third quarter of 2008. Risk management segment reported revenues of $113.5 million, compared to $118.6 million for the third quarter of 2008.
For the first nine months ended September 30, 2009, net earnings were $111.8 million, or $1.12 per diluted share, compared to $72.6 million, or $0.78 per diluted share, for the same period of 2008. Revenues were $1.29 billion, compared to $1.23 billion for the same period of 2008.
For the first nine months of 2009, brokerage segment reported revenues of $955.4 million, compared to $884.6 million for the same period of 2008. Risk management segment reported revenues of $339 million, compared to $350 million for the first nine months of 2008.
The company has said that the job reductions, which represent nearly 4% of its global workforce, will be done through a combination of job elimination and attrition. In connection with this action, Gallagher expects to record a nonrecurring, pretax charge in the fourth quarter of 2009 of approximately $10 to $13 million for related severance costs.
Patrick Gallagher Jr, chairman, president and CEO of Arthur J Gallagher, said: "The Gallagher team continued to perform well in the third quarter. EBITDA growth of 11% and EBITDA margin expansion of 1.9% in our combined brokerage and risk management segments is an excellent result in this environment.
"For the first nine months of 2009, our brokerage and risk management operations combined to grow revenues 5%, grow EPS 8%, grow EBITDA 19% and expand EBITDA margins by 2.5% from the same period in 2008."
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