Santa Ana, California-based The First American Corporation faced a rough third quarter with the company reporting $2.1 billion in total revenue, a six-percent decrease when compared to figures from the previous year. In addition, the company said its net income reached $46.6 million during the third quarter of 2007, a drop compared to the $90.4 million it experienced in the third quarter of 2006.

When analyzing the company’s earnings per diluted share, First American added that, “Earnings per diluted share were 49 cents in the third quarter of 2007, versus earnings per share of 92 cents in the third quarter of the prior year.”
In a press statement, First American’s Chief Executive Officer and Chairman Parker Kennedy mentioned some of the factors that contributed to the loss in earnings.
“Sharp declines in mortgage originations created a challenging operating environment during the quarter,” said Kennedy. “The Title Insurance segment cut costs aggressively and our managers will seek additional cost savings as we continue our focus on the goal of maximizing the pretax margins in our Title Insurance segment.”
Click here to read First American’s full press release for the third quarter.