Stewart Information 2Q Profit Drops
|July 27, 2007|
Stewart Information Services Corp., which provides title insurance and related services, said Friday its second-quarter profit dropped 36 percent due to the soft housing market and the collapse of the subprime lending business.
For the quarter ended June 30, net income fell to $10.1 million, or 55 cents per share, from $15.7 million, or 86 cents per share in the prior year quarter.
Revenue declined 11 percent to $573.4 million from $644.7 million in the second quarter of 2006.
The company said its revenue fell because of a drop in home sales, a decline in home prices, a falloff in new home construction and reduced subprime lending.
Problems in the subprime market also affected the number of title orders, which fell 11 percent during the quarter, the company said.
Coopyright 2007 Associated Press