- News>
- Finance & Markets
Merrill Lynch reports sharp rise in second quarter earnings
New York, July 16: Merrill Lynch reported a 61 per cent rise in its second-quarter net income today, partly due to the exceptional fixed income environment and what the firm called a more positive tone in the equity markets.
New York, July 16: Merrill Lynch reported a 61 per cent rise in its second-quarter net income today, partly due to the exceptional fixed income environment and what the firm called a more positive tone in the equity markets.
The company earned $1.02 billion for the quarter that ended June 27, or $1.05 a share, compared with $634 million, or 66 cents a share, a year ago. The year-ago results include after-tax expenses related to Merrill's stock-research settlement with regulators.
Figures for the second quarter include a $36 million, or 4 cents per share, recovery stemming from an insurance reimbursement related to the Sept. 11 attacks.
The earnings far exceeded the consensus forecast of analysts surveyed by Thomson first call, who estimated earnings at 72 cents per share.
"Merrill Lynch employees have shown outstanding drive, determination, creativity and discipline over the past two years, serving clients throughout the markets' turbulence while reshaping and resizing the company," said chairman and chief executive Stan O'neal.
Those efforts led to considerable operating leverage and diversification, O'neal said, which are reflected in the current earnings, he said.
Revenue for the second quarter increased 7 percent to $5.3 billion from $4.95 billion during the same period one year ago.
The firm also reported that it cut 1,300 jobs from its work force during the quarter, trimming its number of full-time employees to 48,300.
Merrill shares rose $1.81, more than 3 percent, to $53.22 in trading on the New York Stock Exchange.
Bureau Report
Figures for the second quarter include a $36 million, or 4 cents per share, recovery stemming from an insurance reimbursement related to the Sept. 11 attacks.
The earnings far exceeded the consensus forecast of analysts surveyed by Thomson first call, who estimated earnings at 72 cents per share.
"Merrill Lynch employees have shown outstanding drive, determination, creativity and discipline over the past two years, serving clients throughout the markets' turbulence while reshaping and resizing the company," said chairman and chief executive Stan O'neal.
Those efforts led to considerable operating leverage and diversification, O'neal said, which are reflected in the current earnings, he said.
Revenue for the second quarter increased 7 percent to $5.3 billion from $4.95 billion during the same period one year ago.
The firm also reported that it cut 1,300 jobs from its work force during the quarter, trimming its number of full-time employees to 48,300.
Merrill shares rose $1.81, more than 3 percent, to $53.22 in trading on the New York Stock Exchange.
Bureau Report