MGIC reports $97.9 million quarterly net loss
Milwaukee-based MGIC Investment Corp. reported a net loss for the quarter that ended June 30, of $97.9 million, compared with net income of $76.7 million for the same quarter a year ago. Diluted loss per share was 79 cents for the quarter, compared to diluted earnings per share of 93 cents for the same quarter a year ago. The company’s net loss for the first six months the year was $132.3 million, compared with net income of $169.1 million for the first half of last year.
However, total revenues for the second quarter were $424.5 million, up 15 percent from $369.0 million in the second quarter of 2007. The increase in revenues resulted primarily from a 14.3 percent increase in net premiums earned to $350.3 million, the company said. Net premiums written for the quarter were $371.8 million, compared with $321.0 million in the second quarter last year, an increase of 15.8 percent.
Curt S. Culver, chairman and CEO of MGIC, said that delinquencies and foreclosures remain at elevated levels resulting from lower home values and a softening economy and as a result continue to impact the company’s financial results.
Rexnord files for IPO
West Milwaukee-based Rexnord Holdings Inc., the parent company of RBS Global Inc. and Rexnord LLC, announced last week that it has filed for a proposed initial public offering of its common stock. The company plans to list its common stock on the New York Stock Exchange, under the ticker symbol "RXN."
The proceeds from the stock offering, estimated at up to $750 million, will be used to repay indebtedness and for "general corporate purposes," the company said. Apollo Management, the private equity firm that purchased Rexnord in 2006, will not exit the business with the IPO, said Todd Adams, senior vice president and chief financial officer for Rexnord. "These will be new Rexnord shares," he said.
Sale price or number of shares to be issued have not been determined, Adams said. Rexnord has about 7,400 employees worldwide. Adams would not say how many employees the company has locally. Rexnord is a manufacturer with two divisions, power transmission and water management. The company’s power transmission products include gears, couplings, industrial bearings, flattop, aerospace bearings and seals, special components and industrial chain, and conveying equipment. The company’s water management products include professional grade specification plumbing, water treatment and waste water control products.
Metavante conducts food drive
Metavante Corp. is holding a food drive among its Milwaukee and Madison locations to supply local food banks with items to help provide children with adequate nutrition during the summer months. Metavante’s six Milwaukee locations will be partnering with the Hunger Task Force, and Metavante’s Madison location will be partnering with the Society of St. Vincent de Paul, Inc.
Metavante’s wants to raise over one ton of food for the local community. Food barrels and money boxes will be provided at each location for employees to make donations. The drive will run from July 21 through Aug. 1 and all donations will be collected and weighed by the Hunger Task Force and the Society of St. Vincent de Paul, Inc. on Monday, August 4.
The regional Metavante initiative will build off of the momentum of the recent success of Metavante’s Customer Care Center located at Schlitz Park, where employees collected nearly 29,500 food items for Milwaukee’s Second Harvest in June.
