JD Journal » profits down

Revenue and Profits down, PPP up at Dickstein Shapiro

joshua — Mon, 01 Mar 2010 18:06:42 +0000

As a firm, Dickstein Shapiro shared the country’s economic woes in 2009 with revenues dropping by 4.78% and profits dipping 5.17%, but the partnership still managed to do ok. Per partner profits were up 6.76% to just over $1 million. The discrepancy is due to an 11% reduction in the number of equity partners firm wide. The number of non equity partners rose slightly and non equity partner compensation jumped by a little more than 8% to an average of $525,000.

Associates didn’t fare as well with two rounds of layoffs and a salary freeze. This year, associates at the firm are being paid using a merit based system rather than lockstep compensation.

Profits and Revenue Down at O’Melveny for Second Year Running

daniel — Thu, 18 Feb 2010 21:44:29 +0000

O’Melveny & Myers has reported a second year of revenue and profit loss. The Los Angeles-based firms litigation department, composing 55% of the companies lawyers, has been receiving pressure from clients to lower rates. Coupled with a continuation of the economic downturn, 2009 has seen a gross revenue of $826.6 million, an 8.9% percent drop. The firms average equity partner showed a profit of $1.47 million, down by 4.2%. Laying off 90 lawyers last March, O’Melveny & Myers has seen a 7.9% decrease in total employees, and a 1% decline in per lawyer revenue to $960,000. On a brighter note, the firms expansion in Asia to around 100 lawyers was a factor leading to the growth of its nonequity partners by 33%.

Revenue Down, Profits Up at Latham Watkins

joshua — Wed, 17 Feb 2010 16:55:57 +0000

While gross revenue at Latham & Watkins decreased five percent to $1.821 billion in 2009, profit-per-partner managed to rise by five percent to $1.902 million. Helping to account for the rise in PPP was a big increase in net income from $786 million to $844 million.

The numbers are a big improvement from 2008 when the firm’s profits were down 20.5 percent. That resulted in the layoffs of 190 associates and 250 staff in March of last year. Currently there are 1,880 attorneys at Latham Watkins, down from 2,102. The number of equity partners grew from 436 to 444 and the number of non-equity partners grew from 122 to 131.

Latham & Watkins was founded in 1934 and has 29 offices around the world.

Revenues Down, PPP up at Buchanan

sara — Wed, 10 Feb 2010 17:39:34 +0000

Buchanan, Ingersoll & Rooney reported a 3% drop in revenues and overall profits in 2009. The number of partners declined to 101 from 109. The number of lawyers employed by the firm decreased 10% to 439 from 487. Profits per equity partner and revenue per lawyer both increased by 5%. CEO and chair John Barbour attributes the increases to administrative cost-cutting, reduced associate compensation and the departures of some less productive lawyers. Buchanan’s real estate practice was impacted the most, with 6 lawyers leaving in 2009.

Founded in 1850, Pittsburgh based firm Buchanan, Ingersoll & Rooney is a general practice firm with approximately 500 attorneys and 16 offices including San Diego, Washington, D.C., Miami, New York and Philadelphia.

Revenues and Profits Down at Schulte

sara — Tue, 09 Feb 2010 16:28:29 +0000

New York City based firm Schulte Roth & Zabel reported a decline in gross revenue and profits in 2009. Gross revenue was $397,000,000, dropping 5.5% since 2008. Profits per equity partner were $2,130,588, dropping 7%. According to partner Alan Waldenberg the firm views 2009 “as an extremely strong year” in light of “what happened in the world and what happened to a lot of our clients.” Waldenberg says that the firms corporate and transactional practices were down but litigation, restructuring and trust and estate practices were up.

Founded in 1969, Schulte Roth & Zabel is a general practice firm with over 450 attorneys. In addition to New York City, the firm has offices in Washington, D.C., and London.

Ledingham Chalmers Sees Profits Fall, Will Not Hold Layoffs

Erik Even — Tue, 18 Aug 2009 22:02:11 +0000

Ledingham Chalmers has announced a drop in pre-tax profits of 20%, to £3.3 million ($5.5 million), in the year to March. But the firm does not intend to hold layoffs.

Activity was up in energy and rural matters, but down in property matters. Fee income fell 3% to £9.1 million ($15 million).

Other, larger Scottish rivals have made redundancies this year. Ledingham Chalmers plans to keep its workforce in the hopes that business will improve. It employs 147 staff, including 24 partners.

Ledingham Chalmers LLP is a regional law firm with offices in Aberdeen, Inverness and Edinburgh, and is one of the largest full service firms in Scotland.

SJ Berwin PPP Plummets 50%

Erik Even — Fri, 31 Jul 2009 17:27:02 +0000

Law firm SJ Berwin has announced that profits per equity partner, which were £801,000 ($1.33 million) for 2008, fell to £410,000 ($680,000) for 2009.

The firm saw revenue fall 14% to £184 million ($305 million).

The other British firms that have seen the largest drop in profits are Travers Smith, Clifford Chance, Ashurst and Berwin Leighton Paisner.

Dundas & Wilson Profits Down 12%

Erik Even — Wed, 22 Jul 2009 17:20:59 +0000

Dundas & Wilson, which cut 50 jobs in March, has reported a drop in annual profits of £9 million ($14.8 million).

The firm saw profits of £66 million ($108.5 million) in fiscal 2009, down from £74.8 million ($123 million) in 2008.

The firm is asking staff to agree to a temporary 10% salary reduction from September ’09 to April ’10, to avoid redundancies. Staff would get 18 additional holiday days.

Senior management has already taken a 10% cut.

Edinburgh’s Dundas & Wilson, Scotland’s largest law firm, is the 39th largest law firm in the UK. It employs 550 people in addition to 82 partners, across offices in Edinburgh, Glasgow and London.

Pinsent PPP Down, Confirms Layoffs

Erik Even — Mon, 20 Jul 2009 16:31:01 +0000

Pinsent Masons saw profits per partner plummet 36%, falling to £310,000 ($511,000).

Revenues were up 1% to £215 million ($355 million) in the last fiscal year.

The firm announced a redundancy consultation in June, and now confirms that 20 lawyers and staff will be let go. Pinsent Masons has also implemented sabbaticals and four-day weeks at 80% pay.

Pinsent Masons LLP is a full-service commercial law firm. The firm ranked amongst the top 15 law firms in the UK and internationally ranks in the Global 100. Pinsent Masons has UK offices in Birmingham, Bristol, Edinburgh, Glasgow, Leeds, London and Manchester, and internationally in Beijing, Brussels, Dubai, Hong Kong and Shanghai.

Allen & Overy Reports Revenue Up, Profits Down

Erik Even — Fri, 10 Jul 2009 16:51:37 +0000

Allen & Overy has announced its revenue for the last fiscal year was up 7% to more than £1.09 billion ($1.77 billion), despite a large number of layoffs.

Profits fell 4% to £431 million ($698 million).

The firm has the second highest gain in revenue for Magic Circle firms, after Freshfields reported a 9% gain.

Founded in 1930, Allen & Overy has approximately 5,500 staff in 31 offices worldwide. It is part of the Magic Circle of London-based law firms.

Addleshaw Goddard Reports 30% Drop in PPP

Erik Even — Fri, 03 Jul 2009 16:38:20 +0000

Addleshaw Goddard, which cut 19 partners in February and 85 staff in March, saw a 30.8% plummet in partner profits in fiscal 2008; and turnover fell 11.4% to £173.3 million ($285.5 million).

Profits per equity partner nosedived from £586,000 ($958,000) to £405,000 ($663,000).

The firm is considering reduced work hours and unpaid sabbaticals. There is already a salary freeze in effect.

Addleshaw Goddard LLP is a UK law firm, with almost 750 lawyers and 1,350 staff, based in Leeds, London and Manchester. It was formed in 2003 by the merger of Addleshaw Booth & Co with Theodore Goddard.

According to The Lawyer, a UK legal newspaper, Addleshaw Goddard was ranked 15th largest law firm in the UK by turnover in 2006.

Herbert Smith Sees Profits Plummet

Erik Even — Thu, 11 Jun 2009 18:05:25 +0000

City of London law firm Herbert Smith saw profits fall 22% in 2008, plummeting below £1 million ($1.65 million).

Partners will see earnings drop from £1.04 million to between as low as £808,000 ($1.33 million) for financial 2008-09.

The firm made a profit last year.

Herbert Smith in April announced a redundancy consultation at its London HQ, targeting 84 positions; but no one was fired after staff members signed on for voluntary redundancy or alternative working arrangements.

Herbert Smith was founded in the City of London in 1882 by Norman Herbert Smith, and today has 230 partners and 1,200 fee-earners. It is widely considered to be the UK’s leading litigation practice.

Fried Frank Profits Down Double-Digits

Erik Even — Wed, 18 Mar 2009 16:45:11 +0000

New York’s Fried Frank saw gross revenue fall more than 9% in 2008 to $488 million. Profits per equity partner fell double digits, 23% to $1.23 million.

Revenue per lawyer fell 12%, to $858,000.

Fried, Frank, Harris, Shriver & Jacobson LLP is an international law firm with offices in New York City, Washington DC, London, Paris, Frankfurt, Hong Kong and Shanghai. The firm has more than 600 attorneys worldwide.

Black Thursday II: Latham & Watkins Lays Off 440

Erik Even — Fri, 27 Feb 2009 17:48:43 +0000

Yesterday we reported that Latham & Watkins might lay off up to 150 people.

Isn’t optimism great?

This morning we learn Latham has cut 440 employees — 190 associates and 250 staff. The cuts are the largest to date by a US-based firm.

Managing Partner Bob Dell:

The depth and duration of this recession is unprecedented and we expect the health of the global economy to remain weak at least through 2009. While our diversified practices and global platform provide the stability and strength to navigate these turbulent market conditions, we must adjust our staffing levels in line with the projected needs of our clients. . . . We will be offering a comprehensive separation package, including payment of six months salary and six months of continued medical benefits, as well as other resources to support this transition. . . . ”

As we reported, profits per equity partner dropped 21% to $1.8 million in 2008, while revenues fell 4% from to $1.9 billion.

Latham & Watkins LLP is one of the largest law firms in the world, currently employing around 1,900 attorneys in the US, Europe, the Middle East and Asia. The firm was started in Los Angeles in 1934 and has extensive California roots, but its largest office is now in New York City.

Hammonds to Cut 20 Partners

Erik Even — Fri, 27 Feb 2009 16:52:37 +0000

London’s Hammonds LLP is set to cut about 10% of its partnership.

The top 50 UK law firm is cutting up to 20 partners from its fixed share and equity ranks.

Some partners will also be affected by a de-equitization program in an attempt to deal with underperformance, especially at the top of the partnership.

The cuts, affecting the firm’s offices in London, Birmingham, Manchester and Leeds, will see corporate and real estate under the most scrutiny, with a number of partners having already left the firm. The rest of those affected are expected to leave before the end of the financial year.

In January, the firm had 186 partners, including 74 in the equity.

The move comes after the firm laid off 53 support staff and 24 fee earners as a result of a redundancy consultation launched in November.

Hammonds posted a drop in profits per equity partner of more than 9% for 2007-08, to £367,000 ($525,000). Revenue at the firm edged up 3.4% to £132 million ($188.9 million).

Hammonds’ overseas offices are located in Aosta, Milan, Rome, Turin, Brussels, Paris, Berlin, Munich, Madrid, Hong Kong and Beijing.

Proskauer Rose’s Profits Fall 10% in 2008

Erik Even — Mon, 23 Feb 2009 22:03:46 +0000

Am Law 100 firm Proskauer Rose’s profits per equity partner dropped 10% in 2008 to $1.4 million.

Revenues increased marginally, by 1%, to $634 million. Revenue per lawyer dipped slightly to $916,000.

Total headcount attorney rose slightly from 685 in 2007 to 692 in 2008. The number of equity partners was up two in 2008; 10 new non-equity partners also joined.

Unlike most Am Law 100 firms, Proskauer’s financial year ends October 31st, so the numbers only cover about a month and a half of the financial crisis prompted by Lehman Brothers’ mid-September collapse.

Despite this, the firm’s performance in November and December was roughly in line with the previous six months.

In 2008, Proskauer Rose added an office in Hong Kong, and announced plans to launch in Beijing. The firm also added a Chicago office following the hire of a three-partner insurance litigation team from Mayer Brown.

In December, the firm cut 35 associates and 25 administrative staff.

Dechert Sees Revenues, Profits Down

Erik Even — Thu, 19 Feb 2009 17:49:29 +0000

Philadelphia’s Dechert has become the latest Am Law 100 firm to announce a decline in revenues and profits for 2008.

Profits per equity partner fell by 9% to $2.14 million. Gross revenue dipped 2% to $816 million.

The firm lost 30 attorneys in 2008, with a total of 892 lawyers. Revenue per lawyer rose slightly, hitting $915,000. Equity partnership fell 163 to 152.

The firm moved to reduce its cost base with layoffs in 2008 and early this year. In February 2008, the firm let go of 13 associates. That was followed in December by a reduction of 72 staff; the firm also said that 15 attorneys were under review in London. On February 12 of this year, another 19 lawyers were laid off.

The firm brought on a number of high-profile laterals in 2008 and added an office in Beijing. Former Heller Ehrman chairman Matthew Larrabee joined the San Francisco office shortly after Heller’s dissolution.

In 2006, Dechert was ranked 37th largest law firm in the world based on revenue. In 2007, the National Law Journal ranked the firm 25th largest in the United States based on number of attorneys.

O’Melveny & Myers Sees Revenues, Profits Drop

Erik Even — Thu, 12 Feb 2009 17:44:21 +0000

Los Angeles-based O’Melveny & Myers announced that profits per partner were down more than 7% to $1.5 million. Gross revenues for 2008 were $908 million, an almost 3% drop from the prior year.

O’Melveny lost two high profile partners this winter. The co-head of restructuring, Michael Sage, joined Dechert in mid-January. And white collar practice group head James Asperger left O’Melveny for Quinn Emanuel Urquhart Olver & Hedges last week.

But the firm also recently announced that it had recruited Kenneth Wainstein, a white collar specialist and former homeland security adviser to the Bush administration. O’Melveny also added Dean Collins, a former director at private equity investor Actis, to the firm’s Singapore office.

Melveny & Myers LLP is the 19th largest law firm in the world, and lauded by Vault as one of America’s top twenty most prestigious law firms.

White & Case Profits Fell in 2008, Despite Layoffs

Erik Even — Tue, 10 Feb 2009 20:14:41 +0000

New York City’s White & Case reports it profits per equity partner fell by 5% in 2008 to $1.6 million. The decrease came despite a 7% rise in revenues to $1.467 billion.

The firm laid off 70 associates last November.

Revenue per lawyer fell from $720,000 to $705,000, and continues to lag behind many Am Law 100 competitors such as Latham & Watkins, Mayer Brown, and Orrick, Herrington & Sutcliffe.

In December the firm announced a reorganization of its management structure, following a four month review of its operations by management consultants McKinsey & Co. The changes mean that the firm is now run more closely along regional lines, rather than by office, and has placed renewed focus on 16 global practice groups.

There are no plans for additional layoffs.

Founded in 1901, White & Case LLP is a leading global law firm with 2,300 lawyers in 38 offices in 25 countries, and a total staff of more than 4,800.

Profits Down at Moore & Van Allen

Erik Even — Fri, 06 Feb 2009 00:41:50 +0000

Gross revenue at Charlotte, North Carolina Am Law 100 firm Moore & Van Allen edged up 1.5% to $164.5 million.

But the addition of 25 new lawyers, including five equity partners, meant revenue per lawyer and profits per equity partner took significant hits. Revenue per lawyer fell by 7.5% to $575,000, and profits per equity partner dropped 14.5% to $805,000.

Firm chair Ernie Reigel says Moore & Van Allen’s finance and mergers & acquisitions practices have been hit hard by the economic downturn

Moore & Van Allen also laid off lawyers, as well as staff, between 5 and 10% from each group.