CRAWFORD & COMPANY

ITEM 2.02. Results of Operations and Financial Condition

On July 31, 2006, Crawford & Company (the “Company”) issued a press release containing information about the Company’s financial condition, results of operations, and cash flows for the second quarter of 2006. A copy of the press release is attached hereto as Exhibit 99.1.

The press release contains non-GAAP financial measures and a reconciliation to the related GAAP measure is included. Operating earnings is one of the key performance measures used by the Company’s senior management to evaluate the performance of its business and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate its performance using the same criteria that management uses.

ITEM 9.01. Financial Statements, Pro Forma Financial Statements and Exhibits


Exhibit No.		Description
	99.1	Press Release dated July 31, 2006

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	CRAWFORD & COMPANY (Registrant)
	By:	/s/ W. BRUCE SWAIN
		W. Bruce Swain
		Senior Vice President, Controller and Interim Chief Financial Officer

Dated: July 31, 2006

EXHIBIT INDEX


Number		Descriptions
	99.1	Press Release issued July 31, 2006

EX-99.1 2 g02637exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 31, 2006 Exhibit 99.1 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 FOR IMMEDIATE RELEASE DATE: JULY 31, 2006 FROM: THOMAS W. CRAWFORD CHIEF EXECUTIVE OFFICER CRAWFORD REPORTS IMPROVED SECOND QUARTER 2006 RESULTS NET INCOME INCREASES 57% Crawford & Company (NYSE: CRDA and CRDB), the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, today announced its financial results for the second quarter ended June 30, 2006. Second quarter 2006 revenues before reimbursements totaled $192.6 million compared with $186.0 million in the 2005 second quarter. Second quarter 2006 net income was $4.2 million compared to $2.7 million for the 2005 second quarter. Second quarter 2006 net income per share was $0.09 per share compared to $0.05 in the prior-year quarter. Revenues before reimbursements, by market type, for the Company's operating segments for the quarter ended June 30, 2006 and 2005 were as follows (in 000s):

U.S. revenues before reimbursements were $118.7 million in the second quarter of 2006 compared with $114.4 million in the 2005 second quarter. Revenues from the insurance company market were $51.6 million in the 2006 second quarter increasing from $48.2 million in the 2005 period; this increase includes a $2.2 million rise in catastrophe-related revenues over the 2005 period. Revenues from self-insured clients were $36.8 million in the 2006 second quarter compared with $38.6 million in the 2005 quarter. Legal settlement administration revenues were $30.4 million for the 2006 second quarter, compared with $27.5 million in the comparable year-ago quarter. The Company's legal settlement Page 1 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 administration unit revenues are project-based and can fluctuate significantly. However, the Company has a record backlog of projects awarded, totaling approximately $51.2 million at quarter end. Second quarter 2006 international revenues grew to $73.9 million from $71.6 million for the same period in 2005. This growth reflects increased case referrals in our United Kingdom and European operations resulting from claims management agreements entered into during 2005. However, compared to the 2005 second quarter, the U.S. dollar strengthened against the British pound and the euro, resulting in a net exchange rate decline in the 2006 quarter. Excluding the negative effect of exchange rate fluctuations, international revenues would have been $75.6 million in the 2006 second quarter, reflecting growth in revenues on a constant dollar basis of 5.5%. International operating expenses increased by $2.7 million in U.S. dollars, a 4.0% increase, and increased by 5.9% on a constant dollar basis. Mr. Thomas W. Crawford, chief executive officer of Crawford & Company, stated, "We are pleased to report our second straight quarter of earnings growth over the prior year period. Our U.S. operations continued to benefit from strong performance of our legal settlement administration unit and the on-going improvement in our U.S. property and casualty unit. Revenues produced by our catastrophe adjusters in the quarter grew by $2.2 million as we responded to the numerous storms which occurred during the quarter in the midwestern and northeastern United States. Together these units helped us improve our U.S. operating margin by 2.0% in the quarter, from 1.6% in the 2005 period to 3.6% in the quarter ended June 30, 2006. The quality-driven processes in our self-insured operations established over the past two years continue to show improvement. While not yet visible in our financial performance, we are encouraged by customer response in this unit, where the number of requests for proposals is running well ahead of last year." "Operating earnings in our international segment declined to $3.2 million in the current quarter, reflecting a decrease in our operating margin from 5.2% in the 2005 second quarter to 4.4% in the 2006 quarter, due to lower claims activity in our Canadian region and costs incurred in our United Kingdom and Canadian units in anticipation of new business. For the remainder of 2006, we continue to expect growth and margin improvement in our international division." Total revenues before reimbursements for the six months ended June 30, 2006 were $394.2 million compared with $370.3 million in 2005. Net income for the current six-month period totaled $10.1 million, or $0.20 per share, compared with $5.0 million, or $0.10 per share, reported in the prior year. U.S. revenues before reimbursements for the 2006 six-month period were $249.8 million compared with $226.9 million in 2005. International revenues before reimbursements were $144.4 million in the 2006 year-to-date period compared with $143.5 million during 2005. Excluding the negative effect of exchange rate fluctuations, international revenues would have been $149.3 million in the current year-to- Page 2 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 date period, reflecting growth in revenues on a constant dollar basis of 4.0%. International operating expenses increased by $3.0 million in U.S. dollars, a 2.2% increase, and by 5.7 % on a constant dollar basis. On June 30, 2006, the Company closed the previously announced sale of its Atlanta corporate headquarters for $8.0 million in cash paid at closing and a deferred payment contingent upon the buyer's ability to subsequently redevelop the property. As part of the sale, the Company also entered into a 12-month leaseback of these facilities, as it relocates and consolidates its corporate headquarters in a nearby leased facility. As required by sale-leaseback accounting rules, the Company deferred the pre-tax gain of approximately $4.9 million related to this sale until the expiration of the leaseback agreement in June 2007. "Our operating cash flows for the 2006 six-month period reflect an improvement of $13.7 million as compared to the prior-year period. Overall, our consolidated cash position as of June 30, 2006 is very strong, totaling $65.0 million, up $21.4 million from the balance at June 30, 2005. This represents the highest cash balance the Company has enjoyed since the 1997 third quarter," Mr. Crawford concluded. Crawford & Company updated its previously disclosed guidance for fiscal 2006 to the following amounts: - Revenues before reimbursements of between $480 million and $490 million in U.S. operations and operating earnings of between $15 million and $19 million. - Revenues before reimbursements of between $295 million and $310 million in international operations and operating earnings of between $14 million and $16 million. - After reflecting stock option expense, net corporate interest expense and income taxes, net income of between $15.9 million and $19.2 million, or $0.32 to $0.39 per share. Crawford & Company's management will host a conference call with analysts on Monday, July 31, 2006 at 3:00 P.M. EDT, to discuss its quarterly earnings and other developments. The call will be recorded and available for replay through August 7, 2006. You may dial 1-800-642-1687 (706-645-9291 international) to listen to the replay. The access code is 3214387. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast. Further information regarding the Company's financial position, operating results, and cash flows for the quarter ended June 30, 2006 is shown on the attached statements. Operating earnings (a non-GAAP financial measure) is one of the key performance measures used by the Company's senior management to evaluate the performance of its operating segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate its operating performance using the same criteria that management uses. Net corporate interest expense, stock option Page 3 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 expense and income taxes are recurring components of net income, but they are not considered part of segment operating earnings since they are managed on a corporate-wide basis. Net corporate interest expense results from capital structure decisions made by the Company, stock option expense relates to historically granted stock options which are not allocated to our operating units, and income taxes are based on statutory rates in effect in each of the locations where the Company provides services and vary throughout the world. None of these costs relates directly to the performance of the Company's services and are therefore excluded in order to accurately assess the results of segment operating activities on a consistent basis. Following is a reconciliation of segment operating earnings to consolidated net income on a GAAP basis and the related margins as a percentage of revenues before reimbursements for all periods presented:

Based in Atlanta, Georgia, Crawford & Company (www.crawfordandcompany.com) is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 offices in 63 countries. Major service lines include property and casualty claims management, integrated claims and medical management for workers' compensation, legal settlement administration, including class action and warranty inspections, and risk management information services. The Company's shares are traded on the NYSE under the symbols CRDA and CRDB. Page 4 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830 Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The results achieved in the quarter ended June 30, 2006 are not necessarily indicative of future prospects for the Company. Actual results in future quarters may differ materially. For a discussion regarding factors which could affect the Company's financial performance, see the Company's Form 10-K for the year ended December 31, 2005 filed with the Securities and Exchange Commission, in particular the information under the headings "Business," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company. FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL BRUCE SWAIN AT (404) 847-4407. Page 5 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Per Share Amounts)

Page 6 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (In Thousands, Except Per Share Amounts)

Page 7 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY SUMMARY RESULTS BY OPERATING SEGMENT SIX MONTHS ENDED JUNE 30 UNAUDITED (In Thousands, Except Percentages)

QUARTER ENDED JUNE 30 UNAUDITED (In Thousands, Except Percentages)

(1) A non-GAAP financial measurement which represents earnings before net corporate interest expense, stock option expense, and income taxes. Page 8 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 2006 AND DECEMBER 31, 2005 (In Thousands)

* Derived from the audited Consolidated Balance Sheet Page 9 of 10 (CRAWFORD(R) LOGO) PRESS RELEASE CRAWFORD & COMPANY 5620 GLENRIDGE DRIVE, N.E. P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404)256-0830 CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2006 AND JUNE 30, 2005 Unaudited (In Thousands)

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1-10356		58-0506554

(Commission File Number)		(IRS Employer Identification No.)

		o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

		o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

		o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

		o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))