Correction: U.S.I. Holdings Corporation
NU Online News Service, Dec. 22, 12:30 p.m. EST--U.S.I. Holdings Corporation announced this week it has reduced its 2004 earnings guidance, not that it has restated its earnings, as was reported in an article yesterday on the NU Web site.[@@]
After the close of the stock markets on Tuesday, the Briarcliff Manor, N.Y.-based insurance broker issued a statement saying it lowered its earning guidance for 2004 from $1.02 to $1.07 a share, to 96 cents to 98 cents a share. It also said that its board of directors has approved a plan to reduce ongoing operating expenses. The plan is expected to result in cost savings of approximately $5 million, before taxes, in 2005.
The majority of the cost savings will be attributable to the company's insurance brokerage segment. The company also said it expects to take an efficiency initiative charge estimated at approximately $11 million, before taxes, principally in the fourth quarter of 2004.
The charge will cover, in approximately equal parts, employee severance, lease termination costs and service contract terminations. The company said the actual amount of the fourth-quarter charge will depend on its ability to execute the severance arrangements and other contract terminations by year-end.
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