Title Insurer First American Swings to a Profit, Beats Estimates

Los Angeles Times (08/01/08)
First American Corp. reported a net income of 45 cents per share for the second quarter, compared to a loss of 68 cents a share during the same period in 2007. The title insurer saw its shares surge 12 percent due to the fact that it exceeded the expectations of analysts, who had predicted profits of 43 cents a share. First American CEO Parker Kennedy said the company has weathered the mortgage crisis and housing slump because it set aside $500 million during the past two years to cover losses, and the company has managed falling volume by downsizing its workforce and postponing a spin-off that aims to divide its title insurance and mortgage data businesses.