Equitable’s Profit Jumps 62%
Equitable Cos., the fourth-largest U.S. life insurer, said its first-quarter earnings from operations rose 62%, as rallies in financial markets boosted annuity sales, investment banking and money management. Profit rose to $213.9 million, or 92 cents a diluted share, from a year ago, exceeding analyst estimates of 79 cents. The New York company’s investment unit--investment bank Donaldson, Lufkin & Jenrette Inc. and money manager Alliance Capital Management--saw profit rise 38% to $105.7 million. In other earnings, also shown excluding one-time gains and charges:
* Legg Mason Inc., a brokerage and mutual fund company based in Baltimore, said fiscal fourth-quarter earnings rose 60% to $23.5 million, or 80 cents a diluted share, beating analyst estimates of 77 cents, as roaring financial markets boosted fees from investment advice and asset management. Revenue jumped 35% to $246.3 million.
* Mirage Resorts Inc.’s first-quarter profit fell a steeper-than-expected 27% to $41.6 million, or 22 cents a diluted share, from a year ago, missing analyst estimates of 27 cents. The Las Vegas casino operator’s revenue dropped 4% to $377.9 million.
* General Re Corp. reported a 5% rise in first-quarter earnings to $249.9 million, or $3.12 a diluted share, from a year ago, in line with estimates, helped by a decline in losses and improved investment income even as revenue shrank. The Stamford, Conn.-based company, which takes on risk for primary insurers, said total operating revenue dropped 10% to $1.9 billion.
* Ford Motor Co. is dropping its corporate advertising slogan, “Quality is job one,” after 17 years for a new slogan that it hopes will be more inspirational. The No. 2 auto maker this week is debuting its new slogan, “Better ideas. Driven by you.”
* Merrill Lynch & Co. and lawyers for female brokers who sued the firm for gender discrimination have reached a settlement that awards the plaintiffs $600,000 and abolishes the firm’s mandatory arbitration process. Pending approval from a judge, 2,500 women who are current or former brokers for the nation’s largest securities firm will be able to bring bias claims dating back as far as Jan. 1, 1994, before a neutral panel beginning in July.
