American Express Q2 Income Falls 76 Percent

Share this article:
American Express Co. said yesterday that its second-quarter net income was $178 million, down 76 percent from $740 million a year ago.


The decline was not unexpected, as the company warned on July 18 that its income would be lower because of an $826 million write-down in its high-yield, or junk bond, portfolio. American Express also noted then that it expects to incur a restructuring charge of $310 million to $370 million in the third quarter as a result of eliminating 4,000 to 5,000 positions.


The company also said its net revenue for the second quarter fell 12 percent to $4.9 billion, or 13 cents per share, from $5.6 billion, or 56 cents per share, in the same quarter a year earlier.


American Express said net income for its Travel Related Services division rose 3 percent to $519 million, from $505 million a year ago. Net revenue for the division was up 6 percent to $4.6 billion in the second quarter, from $4.4 billion a year earlier.


Net income also rose at American Express Bank to $12 million in the second quarter, up 59 percent from $7 million in the year-ago quarter. Net revenue rose 5 percent to $159 million, from $151 million in second quarter 2000.


American Express Financial Advisors reported a second-quarter net loss of $307 million, compared with net income of $275 million in the year-ago period. Net revenue for the second quarter fell 85 percent to $162 million, from more than $1 billion a year ago.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Opinions

App of the Week: Life Organizer

App of the Week: Life Organizer

Life Organizer aims to help users be as productive as possible.

Marketing GloBALLization

Marketing GloBALLization

The Yankees aren't the only team searching for talent overseas.

The Best Birthdays Are Multichannel

The Best Birthdays Are Multichannel

The "best" birthday greetings aren't always the ones with the biggest deals.