JD Journal » revenues down

Dorsey & Whitney Continues to Suffer from Revenue Losses

marvins — Tue, 01 Feb 2011 13:54:47 +0000

Dorsey & Whitney LLP, a leading US law firm with more than 850 lawyers, continued to suffer from revenue losses as the firm’s gross revenue dipped for the second consecutive year. Based on the data released by Dorsey & Whitney, the firm registered gross revenues of $322.7 million in 2010, a figure that is 6% lower than 2009 and a 12% decline from a peak of $367 million in 2008.

Despite the gross revenue decline, the firm’s revenue per lawyer climbed by 2% to $568,713 and its profits per equity partner increased by 4% to $521,756. The firm attributed the gain to the lower headcount at the firm. In 2010, the firm’s total headcount dropped 7.5%, a decrease of 45.7 full-time equivalent lawyers to 567.4 lawyers. The firm’s total number of partners also dipped by 4%, a decline of 11.6 FTE equity and non-equity partners to 265.8 total partners.

Marianne Short, managing partner at Dorsey & Whitney, said that the firm is now finding ways to increase to start increasing its gross revenue. “The firm continues to manage expenses carefully.” She added: “The decline in total lawyers reflects movement of some of our younger lawyers to jobs with clients. But Dorsey is looking for good lateral hires with books of business.”

In 2009, Dorsey cut about 8% of its expenses, which resulted to an increase in the firm’s net profit by 1% to $118.4 million.

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.

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.

Buchanan Ingersoll’s Revenue Down for 2008

Erik Even — Wed, 18 Mar 2009 16:33:32 +0000

Buchanan Ingersoll & Rooney saw its 2008 gross revenue fall by 3.3%, from $282.1 million in 2007.

The Pittsburgh, Pennsylvania-based firm increased its revenue per lawyer by 2% from $554,000. The profits per equity partner fell 1.2% dip from $570,000. The average compensation for all partners decreased by 3.6% from $445,000 to $429,000.

The firm expects a lower attorney headcount by the end of March after the annual performance review process. It is also leaving vacancies open. They cut 25 staff positions in November, and 30 in February.

The firm saw a 5% drop in headcount in 2008, to 481 lawyers. Buchanan’s equity partner tier grew by one from 108 to 109, and the non-equity tier increased by 11.8% from 85 to 95.

The firm did not cut salaries in 2008 or so far in 2009, and paid bonuses — but salaries are frozen. Buchanan Ingersoll will have a smaller summer class in 2009, and the firm’s starting associates will start on the normal date.

Buchanan, Ingersoll & Rooney PC is a law firm and lobbying group. The firm has over 500 lawyers in sixteen offices nationwide, and was ranked 82nd on the National Law Journal’s 2008 list of the 250 largest law firms in the United States.

O’Melveny & Myers Decimates Staff, Firing 190

Erik Even — Wed, 04 Mar 2009 17:34:02 +0000

O’Melveny & Myers today announced the layoffs of 10% of attorneys and 10% of staff. About 190 people will be affected.

From firm chairman AB Culvahouse:

I am writing to inform you about some very difficult and unprecedented decisions we have made affecting lawyers and staff. We will be reducing approximately 90 legal and 110 staff positions from our Firm. The majority of the positions are in the US, with some in Asia and a smaller number in London. Altogether the reduction will impact roughly 10% of our lawyer workforce and roughly 10% of our staff workforce.

On February 12th, Los Angeles-based O’Melveny 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 & Myers LLP is the 19th largest law firm in the world. It employs 1200 attorneys in 14 offices worldwide.

Rumor: Shearman & Sterling Laying Off Support Staff

Erik Even — Tue, 03 Mar 2009 22:46:48 +0000

According to rumors on the Tubes (it’s not a truck!), Shearman & Sterling is laying off administrative staff today.

Lawyers are apparently unaffected. An official announcement is expected tomorrow.

If you know anything about layoffs at Shearman & Sterling, please send us a confidential tip!

Two weeks ago, Shearman & Sterling reported a 4.9% drop in revenues to $876 million for 2008, and a 9.6% fall in profits per equity partner, to $1.665 million. Revenue per lawyer remained above the million-dollar mark.

Shearman & Sterling LLP is a law firm headquartered in New York City, with 19 offices located in major financial centers around the world. It was founded in 1873.

As of 2006, it was the 17th largest law firm in the world as measured by 2006 annual revenue. Shearman & Sterling is a white shoe firm, the equivalent of the Magic Circle in the UK.

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.

Revenues Down at Shearman & Sterling

Erik Even — Thu, 19 Feb 2009 16:35:59 +0000

Shearman & Sterling reports a 4.9% drop in revenues to $876 million for 2008, and a 9.6% fall in profits per equity partner, to $1.665 million. Revenue per lawyer remained above the million-dollar mark.

The declines posted by Shearman were similar to those reported by Skadden, Arps, Slate, Meagher & Flom, and pretty average when compared to major New York firms that have posted their results.

Shearman is more global than some of its peers, with 45 percent of its lawyers overseas, but less diversified in its practice mix, with only 22 percent of its revenues deriving from disputes.

One bright spot is the Abu Dhabi office, which is doubling in size. Another is Latin American project finance. A third bright spot is the arbitration group whose top clients are among the world’s most litigious.

Shearman represented Merrill Lynch in its acquisition by Bank of America; and the firm is helping BofA to unwind its derivative contracts with Lehman Brothers.

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.

Profits Plummeting at McKee Nelson

Erik Even — Wed, 04 Feb 2009 21:52:53 +0000

The Blog of Legal Times reports that profits are plummeting at New York-based tax & finance boutique McKee Nelson.

The firm has reported a drop in revenue of nearly 16 percent, for gross revenue of $160 million in 2008. Profits per partner plunged 15 percent, or nearly $200,000, to $1.02 million.

The down numbers were foreshadowed in November when the firm laid off 17 lawyers – 13 in its New York office and four in Washington. The layoffs were focused in the mortgage-backed securities, asset-backed securities, and collateralized debt obligation areas of the firm’s capital markets practice…

Wendy Bernero, the chief marketing officer of the firm, confirmed to the BLT that McKee Nelson was particularly exposed in the capital markets area. She says, in 2007, the practice accounted for about 45 percent of the firm’s revenue. In 2008, however, that number was cut down to about 33 percent.

Via The BLT.