Lindsey Morden 2-Q Loss Reflects U.S. Woes

International adjuster Lindsey Morden (TSX: LM) saw its net loss widen to $2.9 million (21 a share) for the second quarter of this year compared with the net loss of $2.6 million (19 a share) reported for the same period in 2003.

Overall, the adjuster’s revenue dropped to $102.1 million for the most recent quarter from the $103.0 million reported 12 months before. Much of the decline was felt in continuing operations. At the same time, the company’s operating costs shot up to $99.8 million from $96.3 million shown for the comparative period a year ago. Revenue declines came from the U.S. and international operations, which could not be compensated for by revenue gains in Canada, Europe and the U.K.

Lindsey Morden’s operating earnings for Canada and Europe increased over the latest reporting period, but not enough to compensate for declining earnings in other segments.

For the first six months of 2004, the company posted a net loss of $24 million, equal to $1.73 a share, compared with a loss of $4.6 million, or 33 a share, disclosed for the first half of 2003. Revenue for the first half of 2004 dropped marginally to $205.7 million from last year’s $207.0 million, with operating costs rising to $198.6 million against the $195.7 million reported a year ago.