Company Cites Effective Cost Containment and Favorable Commercial Revenues
CHICAGO, Jan. 13 /PRNewswire/ -- Chicago Title Corporation (NYSE: CTZ), a
leading provider of title insurance and real estate-related services, today
announced that it expects earnings for the fourth quarter of 1999 to exceed
the results reported for the same period in 1998.
The company anticipates that earnings will reach at least $27.5 million or
$1.25 per basic and diluted share in the fourth quarter of 1999, when expenses
associated with Chicago Title's pending merger with Fidelity National
Financial, Inc. (NYSE: FNF) are excluded. During the same period in 1998, net
income was $26.3 million or $1.20 per basic and diluted share. The company
expects to report earnings by or slightly before January 31, 2000.
John Rau, President and CEO, noted that several factors are contributing
to the strong performance. Rau said, "Our diversified revenue mix allowed us
to benefit from better than anticipated levels of commercial business and
residential home sales, helping to offset lower levels of residential
refinance activity. Active and ongoing management of costs also contributed
to higher profitability. Relative to peak staffing levels in the beginning of
1999, we reduced our labor force by over 14 percent through year-end. These
factors will allow us to exceed the consensus market forecast of $1.05 per
share in the quarter."
Rau commented further, "We are pleased with our financial performance and
remain excited about our pending merger with Fidelity. With the FTC's
provisional acceptance of a consent decree this week and with the development
of integrated operating plans and the solicitation of stockholder proxies
underway, we remain on track to consummate our merger with Fidelity National
Financial, Inc. during the first quarter of 2000."
Chicago Title Corporation is a leading national real estate services
company that provides a full range of services required to complete real
estate transactions. With over 340 full service offices, 10,000 employees and
4,300 policy-issuing agents nationwide, it provides title insurance, escrow,
closing services, property valuation, credit reporting, flood compliance, home
warranty, default management and real estate information and technology
services. Chicago Title is the parent of Chicago Title and Trust Company,
Chicago Title Insurance Company, Security Union Title Insurance Company, and
Ticor Title Insurance Company. A comprehensive package of real estate
services is available through CastleLink(SM), which delivers title products as
well as the products of Chicago Title Flood Services, Inc., Chicago Title
Credit Services Inc., Chicago Title-Market Intelligence Inc., Chicago Title
Field Services Inc. and Consolidated Reconveyance.
The statements made in this press release contain certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934 that involve a number of
uncertainties and risks that could significantly affect current plans and
anticipated actions and Chicago Title's future financial condition and
results. In addition to the matters described in this press release, risk
factors listed from time to time in Chicago Title's reports and filings with
the Securities and Exchange Commission may affect the results achieved by
Chicago Title.
For more information on Chicago Title Corporation via fax, free of charge,
dial 1-800-PRO-INFO and enter the ticker "CTZ"
SOURCE Chicago Title Corporation
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Related links:
http://www.ctt.com
CONTACT:
Toshie Y. Davis, Vice President, Investor
Relations of Chicago Title Corporation, 312-223-4788
NOTE TO EDITORS: For further information on Chicago Title's
products and services, visit our web site at http://www.ctt.com
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