(RTTNews) -  Wesco Financial Corp. (WSC: News ), Friday reported a decline in earnings for the third quarter, primarily on weakness in CORT's furniture rental and Precision Steel's businesses as a result of the recessionary economic environment as well as as a fall in investment income.

According to the Pasadena, California-based company, net income for the third quarter declined to $9.88 million or $1.39 per share from $16.16 million or $2.27 per share in the comparable period year-ago.

The company, which operates furniture rentals as well as accident and health insurance said its total revenue for the quarter declined to $203.88 million from $207.00 million in the year-ago period.

Segment-wise, revenues from furniture rentals declined to $77.20 million from $86.20 million year-ago, while sales and service revenues declined to $27.46 million from $35.84 million year-ago.

Revenues from insurance premiums earned related to affiliated business increased to $78.44 million from $57.16 million year-ago, while revenues from insurance premiums earned related to unaffiliated business declined to $3.87 million from $6.32 million in the year-ago period.

Revenues related to dividend and interest income declined to $15.87 million from $20.47 million. Other revenues increased to $1.02 million from $990 thousand in the prior year period.

Wesco Financial's total costs and expenses increased to $191.55 million from $187.16 million in the year-ago period.
Wesco said the decline in its consolidated earnings for the 2009 periods were attributable mainly to weaknesses in CORT's furniture rental and Precision Steel's businesses significantly to the recessionary economic environment.

The company added that the investment income declined due to a decline in interest rates on short-term investments and from a reduction in dividends received. The negative impact on Wesco's earnings resulting from the foregoing factors has been partially offset by improved underwriting results of Wesco's insurance businesses.

Year-to-date net income declined to $42.77 million or $6.01 per share, compared with $58.45 million or $8.21 per share in the comparable period year earlier.

Revenue for the nine-month period increased to $617.20 million from $578.53 million in the year-ago period.

WSC closed Friday's trade on AMEX at $334.00, up $2.05 or 0.62%.

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by RTT Staff Writer

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