Danielson Holding Corporation reported a loss of $14.33 million ($0.74 per diluted share) on revenues of $94.1 million for the year ended Dec. 31, 2001, compared with income of $1.03 million ($0.05 per diluted share) on revenues of $86.2 million, for the year ended Dec. 31, 2000.
In 2001 DHC exited certain lines of its insurance subsidiary’s business, including workers’ compensation and non-California private passenger automobile. The net loss for the year was the result of an increase in loss and loss adjustment expenses primarily in the non-California private passenger automobile and workers’ compensation lines of business, and costs associated with the exit of these lines.
For the fourth quarter of 2001, Danielson reported a loss of $8.0 million ($0.42 per diluted share) on revenues of $21.6 million, compared with a loss of $5.0 million ($0.27 per diluted share) on revenues of $25.0 million for the fourth quarter of 2000. The reduction in earnings for the fourth quarter was due to an increase in loss and loss adjustment expenses as a result of higher than expected losses in the non-California private passenger automobile programs and significant adverse development in the California workers’ compensation line, along with costs associated with the elimination of these lines in the fourth quarter.
The fourth quarter loss was also due to the write-off of accrued interest of $3.0 million related to DHC’s investment in American Commercial Lines LLC (“ACL”) Senior Notes. As previously reported, DHC has entered into an agreement with ACL to acquire 100 percent of the membership interests in ACL.
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