LandAmerica plunges 33% on wider Q2 loss
Title insurer LandAmerica Financial Group Inc. (NYSE:LFG) has plummeted 33% today after announcing after Tuesday’s close it had widened its second-quarter net loss. For the quarter ending June 30, total revenues were $712.4 million, down 29% from a year earlier. Net loss was $50 million, or $3.29 per share, compared to a loss of $7.9 million, or $0.42 a share, for the year-ago quarter.
“Adverse claims development from past periods has masked the significant cost reductions we have achieved over the past six quarters leading to a disappointing bottom line,” said Theodore Chandler Jr., chairman and CEO, in a statement.
The company said it was reducing its quarterly dividend to $0.05 per share to preserve capital. The Glen Allen, Va.-based company’s shares are at $11.22 at 9:45 a.m. ET, down $5.50 from Tuesday’s close. Immediately following the opening, the shares fell to a 52-week low of $10.50.
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