NU Online News Service, July 21, 2003, 2:53 p.m. EDT – The weak economy held down revenue at Crawford & Company, Atlanta, during the second quarter, but it improved employee attendance at client employers, the company says.
Crawford, which sells claims systems and services to workers’ compensation insurers, health insurers and self-funded employer health plans, is reporting $6.1 million in net income for the first quarter on $187 million in revenue, compared with $4.9 million in net income on $187 million in revenue for the second quarter of 2002.
U.S. revenue fell to $122 million, from $132 million, partly because of the loss of one major U.S. medical insurance contract and a decline in processing of referrals.
But declines in U.S. employment levels and reported work-related injuries also hurt U.S. revenue, by reducing the number of workers’ comp claims that Crawford processed, Crawford says.
“The U.S. unemployment rate is at its highest point in a decade,” Crawford Chief Executive Grover Davis says in a statement about the second-quarter earnings. “Private-sector workplace injuries have declined significantly, and employee absentee rates are at their lowest levels since 1991.”