RISMEDIA, September 5, 2007–The First American Corporation has announced that the company expects to reduce personnel by approximately 1,300 full-time equivalents (“FTE”s) in the third quarter of 2007. This is in addition to approximately 600 FTEs eliminated in the second quarter of 2007.The personnel reductions in the second and third quarters of 2007 are expected to generate annualized cost savings of $108 million. Of these personnel reductions, 1,400 FTEs will be in the title insurance and services segment, which is expected to generate annualized cost savings of $66 million. The company also expects to curtail or eliminate certain perquisites and executive benefits in the third quarter, resulting in annualized cost savings of $16 million, including $12 million in the title insurance and services segment. In light of rapidly changing economic conditions the company continues to evaluate its personnel needs, including its utilization of offshore resources.
In addition, the company announced that Frank V. McMahon, vice chairman and chief financial officer of The First American Corporation, will present at the Keefe, Bruyette & Woods Insurance Conference on Sept. 4, 2007, at 4:15 p.m. EDT. During the presentation management will discuss these cost reduction initiatives and ongoing efforts to reduce expenses. The presentation materials will be available at www.firstam.com/investor under the Presentations section. A webcast of the presentation will also be available online at the same location following the conference.
More information about the company and an archive of its press releases can be found at www.firstam.com.
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