Arthur J. Gallagher Blames Softening Rates, Spitzer for Q4 Profit Decline

Itasca, Ill.-based brokerage Arthur J. Gallagher & Co. reported fourth-quarter net income of $49.1 million, down from $49.2 million a year ago, though revenue was up 6 percent to $386.9 million.

The results fell short of analysts’ estimates of 56 cents a share in profit. Gallagher CEO J. Patrick Gallagher blamed the results on softening rates and “disruptions” caused by investigations stemming from New York Attorney General Eliot Spitzer’s suit against Marsh & McLennan Cos. for bid-rigging.

The company, fourth-largest broker in the United States, said its internal review discovered no evidence of bid-rigging or improper tying.

Latest Comments

• February 24, 2005 at 7:07 am

  Kevin B. O'Reilly says:

  Thanks for pointing that out.
• January 27, 2005 at 6:45 am

  Sjaak says:

  You clever boy!
• January 26, 2005 at 2:13 am

  Chris says:

  With revenue of $386.9 mil, vs. a projected $381 mil by the analysts, it would appear as though Gallagher beat the projections, rather than fell short. Should the numbers be r... read more