First American Financial Reports Drop in 2nd-Quarter Profit

First American Financial Corp., a Santa Ana title insurance and real estate-related financial services provider, reported second-quarter profit of $1.1 million, or 10 cents a share. That compares with profit of $7.6 million, or 67 cents a share, for the 1994 second quarter.

The company incurred a significant loss in the first quarter of the year as the real estate market weakened and the refinancings and home sales that require title insurance services dropped off.

First American said its second-quarter results reflect marked improvements in the national real estate market. Still, revenue was down 21% from the year-earlier quarter, to $293.2 million from $369.0 million.

The first-half loss of $11.6 million, or $1.01 a share, contrasted with net income of $17 million, or $1.49 a share, for the same period in 1994. Revenue for the six months declined 25% to $554.4 million from $741.4 million.

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Revenue Plunge

First American Financial’s revenue fell 25% for the first half of 1995 compared to the same period last year, leaving the company with an $11.6-million loss for the first half. Figures in millions of dollars, except per-share data:

2nd qtr 2nd qtr 6 months 6 months 1994 1995 1994 1995 Revenue $369.0 $293.2 $741.4 $554.4 Net income (loss) 7.6 1.1 17.0 (11.6) Per share (loss) 0.67 0.10 1.49 (1.01)

Source: First American Financial; Researched by JANICE L. JONES / Los Angeles Times