ATLANTA–A contraction in claims volume led to lower profits in the first quarter of 2004 at claims management services company Crawford & Co.

The Atlanta-based company’s financial results followed the resignation last week of Crawford’s chairman and chief executive officer, Grover L. Davis. Marshall G. Long, who was executive vp of claims management services, was named interim CEO of the company.

Crawford recorded net income of $2.4 million for the first quarter, compared with $3.2 million in the same period in 2003. First-quarter revenues before reimbursements amounted to $169.9 million in this year’s first quarter, up slightly from $167.3 million a year ago.

Mr. Long said in a statement that despite an industrywide falloff in U.S. claims, there were “encouraging areas of performance, for example, in our class-action services, which grew revenues at 32% over the prior year first quarter. However, this growth was not sufficient to offset double-digit volume declines among our insurance company and self-insured clients.”

The company said severance costs associated with Mr. Davis’ resignation are expected to total around $850,000.