American Express Profit Rises 15%
American Express Co. on Monday said second-quarter earnings rose 15%, led by its credit card and money management businesses.
The New York-based financial and travel services company said net income rose to $520 million, or $1.08 a share, from $452 million, or 93 cents, in the second quarter last year. That exceeded analyst estimates of $1.06 a share.
The company’s results were helped by a booming economy and increased travel that boosted profit at American Express’ travel-related services unit--which includes its credit cards as well as its traditional charge cards, travel agencies and travelers’ checks--10% to $355 million.
American Express Financial Advisors, which sells mutual funds and life insurance, reported a 20% rise in profit to $183 million.
The company’s revenue rose 8.5% to $4.42 billion. It was the first time American Express achieved its goal of having two-thirds of net income growth come from increasing revenue, as opposed to cost cuts and stock buybacks.
Expenses rose 7.2% to $2.65 billion.
American Express stock, which had risen in the last four months to as high as $83 on July 3 from a low of $58.13 on April 14, largely because of takeover speculation, fell 69 cents to close at $78.88 on the New York Stock Exchange.
*
Westinghouse Electric Corp. on Monday reported a slight profit in the second quarter contrasted with a year-ago loss, but sales continued to slip at its CBS television network and TV stations.
The company said second-quarter earnings came to $1 million, totaling 0 cents a share, contrasted with a loss of $89 million, or 20 cents a share, a year earlier. In the year-ago quarter, Westinghouse earnings were reduced by $114 million for pollution cleanup costs.
Revenue rose to $2.41 billion from $2.15 billion.
Westinghouse’s media businesses saw operating profit fall 19% to $155 million. A $22-million loss in its network segment was partially offset by radio, where profit more than doubled.
This fall, Westinghouse plans to split into CBS Corp., a media company based in New York, and Welco, a power-systems company based in Pittsburgh.
Westinghouse shares fell 63 cents to close at $23.75 on the New York Stock Exchange. Wall Street had expected a second-quarter loss of about 2 cents a share.
At a Glance:
Tyson Foods Inc. said its fiscal third-quarter earnings more than tripled to $45.2 million, or 21 cents a share, from $14.6 million, or 7 cents.
Pennzoil Co. said second-quarter earnings rose 44% before a charge, beating expectations, to $35.6 million, or 76 cents a share, from $24.8 million, or 54 cents.
Safeco Corp. reported higher second-quarter earnings of $117 million, or 93 cents a share, compared with $106 million, or 84 cents a share, the year before.
St. Paul Cos. reported higher second-quarter net income of $230.5 million, or $2.50 a share, compared with $130.0 million, or $1.42 a share, a year earlier.
Ascent Entertainment Group Inc. reported second-quarter earnings before items of $16.4 million, or 55 cents a share, compared with $9.1 million, or 31 cents.
