Productivity gains help CoreLogic's 2Q net income rise by 2%
CoreLogic's second-quarter net income increased 2% over the previous year because of higher operating income resulting from improvements in productivity.
The company also attributed the increase to lower interest expense and tax provisions.
However, there was a $6 million charge to earnings associated with a previously terminated pension plan that reduced the second-quarter results.
CoreLogic would not disclose which pension plan was involved. However, in its 10-K filing for 2016, CoreLogic said a pension plan for RELS, which it acquired full ownership of in January of that year, was terminated effective Oct. 31, 2016.
CoreLogic planned to make a total contribution of $9.9 million to this pension plan in 2017.
The 10-K also listed frozen unfunded supplemental management and executive benefit plans along with a frozen pension restoration plan.
Net income for the quarter was $41 million, up from $40.4 million for the same period last year.
The company recorded operating income of $78 million, up 3% over the second quarter of 2016, driven by productivity gains that offset the company's investments in technology.
"In terms of revenue, we materially outperformed market volume trends in U.S. mortgage and grew our insurance, spatial and international operations," said President and CEO Frank Martell in a press release. "Underlying organic growth accelerated to 4% in the quarter buoyed by new product growth, share gains and pricing actions across our core solution sets."
During the second quarter CoreLogic's revenue totaled $474 million compared with $500 million in the same 2016 period as market share and pricing-related gains as well as contributions from new products in both the property intelligence and the risk management and work flow segments helped to partially offset the impact of an estimated 15% decline in mortgage originations.
CoreLogic acquired a 45% stake in appraisal technology company Mercury Network in June, with the remaining 55% set to be purchased in the current quarter.
Revenue in the property intelligence segment fell 9% year-over-year to $251 million as lower origination volume reduced the need for valuations.