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.