White & Case City base posts 20% drop in revenues for 2009

Latham and Reed Smith buck trend to emerge as strong City performers

White & Case's London office has emerged as the worst performing City arm of a US law firm in 2009 - a year in which results varied significantly between firms.

White & Case saw London revenues plunge by just under 20% to $197m (£130m) during the 2009 calendar year, with profits per equity partner (PEP) dropping by 11% to $1.32m (£872,000).

The figures mark the biggest decline of any US firm yet to announce its London results, although White & Case stressed that the large drop could be largely explained by a change in the average exchange rates it uses to convert revenues from £1:$1.80 in 2008 to £1:$1.50 last year.

A spokesperson said: "It is important to recognise how the changes to the average exchange rate for the US dollar and pound sterling between 2008 and 2009 impacts on our revenue, with nearly two thirds of the drop attributable to the change in the exchange rates."

At the other end of the scale, Latham & Watkins looks set to be one of the best performing US firms in London in 2009 after hiking local revenues by 21.9% to £100m ($151.1m).

Latham London office head Andrew Moyle told Legal Week: "We showed our resilience last year and I would put that down to the diversity and quality of our practices and the benefits of our global platform."

Anglo American firm Reed Smith also grew its City income - although by a more modest 5% - taking turnover to £90.5m ($137m) compared with £86.4m ($131m) in 2008. Kirkland & Ellis saw a 2% increase in London revenues to just under $81m (£53m).

Reed Smith Europe and Middle East managing partner Roger Parker said: "The diversification of our London practice areas had a positive effect on our revenues and was able to offset the obvious decline in real estate and transactional work."

Overall, most US firms saw London revenues either dip or stay static. New York firms Cleary Gottlieb Steen & Hamilton and Weil Gotshal & Manges both saw similar drops in fee income, with Cleary seeing City revenues dip to around $85m (£56m), compared with $90m (£60m) in 2008.

Weil Gotshal dropped from $89m (£59m) to $85m (£56m). Its PEP, however, marginally increased from $3m (£1.9m) in 2008 to $3.2m (£2.1m) in 2009.

Fellow New York leader Skadden Arps Slate Meagher & Flom saw London revenues fall by around 5% to $130m (£86m) in 2009, from $137m (£90m) in 2008. K&L Gates saw City revenues drop by 15% to £27.8m ($42m) from £32.1m ($49m).

Other US firms to have reported a dip in City revenues include Mayer Brown, which saw turnover fall by 16% to £93.8m, and Shearman & Sterling, where income fell by 12% to $99.7m (£65.8m).

White & Case on the Legal Week Wiki