(Updates with loss in third paragraph.)
Oct. 27 (Bloomberg) -- FBR & Co., a provider of investment banking and institutional brokerage services, dropped as much as 15 percent in New York trading after the firm reported a $26.1 million third-quarter loss.
The shares slid 30 cents to $2.11 at 10:17 a.m., after reaching $2.05 earlier today. The Arlington, Virginia-based company is firing 30 percent to 35 percent of its employees, a person familiar with the decision said yesterday after the close of trading, when the loss was disclosed. The person spoke on condition of anonymity because the reductions haven’t been announced publicly.
FBR’s loss was 43 cents a share, compared with a loss of $6.6 million, or 10 cents, a year earlier, the company said yesterday in a statement. Revenue declined to $20.1 million from $57.4 million. The firm said it ended the quarter with 426 employees, down from 501 at the start of the year.
The third quarter “presented an environment far more challenging than any of our prior estimates, and we must now take further actions to achieve consistent profitability,” Chief Executive Officer Richard J. Hendrix said today during a conference call. “Yesterday we implemented a restructuring plan that will reduce the company’s fixed costs by approximately 35 percent.”
--Editors: Steve Dickson, Rick Green
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