UPDATE 2-First American posts Q2 profit on cost cuts

(Recasts, adds details, share movement, conference call details)

July 31 (Reuters) - First American Corp (FAF.N), one of the largest U.S. title insurers, swung to a second-quarter profit, beating analysts' expectations, as it was able to cut costs, sending its shares up about 18 percent.

"Clearly, these results reflect the hard work that began last year to restructure our title operations and change our business model," Chief Executive Parker Kennedy said.

The company, however, said the results were on a preliminary basis, as it was evaluating a possible impairment of an investment held by one of its agents.

First American expects to disclose the final decision on the write-down in its filing with the U.S. Securities and Exchange Commission for the quarter ended June 30.

The company said it will also delay the separation of its financial services and information solutions segments due to uncertainty in the real estate and mortgage credit markets.

Referring to the turmoil in these markets, Chief Operating Officer Dennis Gilmore said in a conference call, "We experienced declining order counts in each month during the quarter, and have yet to see the bottom of the market."

On its ongoing restructuring program, the company said it has identified 30 more offices that will be closed by the end of the year.

First American has so far closed 94 offices and cut 700 jobs in its title insurance segment during the quarter that may result in savings of about $46 million annually.

For the latest quarter, net income was $42.0 million, or 45 cents a share, compared with a net loss of $66.0 million, or 68 cents a share, last year.

Revenue fell 20 percent to $1.72 billion, while total expenses dropped 28 percent to $1.62 billion.

Analysts expected the Santa Ana, California-based company to earn 40 cents a share, before items, on revenue of $1.68 billion, according to Reuters Estimates.

Shares of the company were up $3.69 at $26.29 Thursday on the New York Stock Exchange. (Reporting by Adheesha Sarkar in Bangalore; Editing by Anil D'Silva)