Old Republic Reports Higher Third Quarter and Year-to-Date Operating Earnings
October 28, 2005
Old Republic International Corporation (NYSE: ORI) reported operating earnings growth of 10.7 percent for the third quarter of 2005. Net operating income, which excludes realized investment gains or losses, was $119.2 million, or 64 cents per share in the quarter compared to $107.6 million, or 58 cents per share, in the same year-ago period. Net income in this year's third quarter totaled $121.6 million, or 65 cents per share, versus $109.1 million, or 59 cents per share, for the year-ago quarter.
For the first nine months of 2005, net operating income grew by 22.5 percent to $392.3 million, or $2.12 per share in 2005, compared to $320.1 million, or $1.73 per share, for 2004. Net income was $408.2 million, or $2.20 per share, versus $334.5 million, or $1.81 per share, for the same period of 2004. Net operating and net income for the first nine months of 2005 include a non-recurring recovery of income taxes and related accumulated interest of $57.9 million ($45.9 million net of tax or 25 cents per share).
The recovery stems from a recent favorable resolution of the Company's claim for a permanent Federal income tax refund applicable to the three years ended December 31, 1990. Consolidated pretax earnings for the first nine months of 2004 were affected adversely by required non-recurring stock option compensation charges of $5.6 million, (or 2 cents per share after tax) representing the expense of a vesting acceleration of stock option costs.
(unaudited; amounts in millions except share data and percentages; all per-share amounts are stated on a diluted basis)
|Quarters Ended,September 30,||Nine Months Ended September 30,|
|Net Operating Income||$119.2||$107.6||10.7%||$392.3*||$320.1||22.5%|
* Includes non-recurring income tax and related accumulated interest recovery of $45.9 after tax, or 25 cents per share.
Source: Old Republic