Itasca, Ill.-based insurance broker Arthur J. Gallagher & Co. reported a first quarter net income loss of $6 million, which the firm attributed to the continued decline in coverage rates.
For the same period last year, Gallagher report net income of $20 million. This year net earnings per share fell to a loss of 7-cents a share from 20-cents a share from the comparative period. Revenues were virtually flat rising $800,000 to $375.8 million.
David Small, an analyst with Bear Stearns, said in a note that 18 cents a share earnings from continuing operations were one-cent off estimates of 19-cents. On the positive side, the broker posted one percent organic growth, with operating income coming in at $1.1 million better than expected.
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