American Express’ Quarterly Profit Plunges 60%

American Express Co. said Monday that third-quarter profit dropped 60%, hammered in part by the effects of the Sept. 11 attacks.

Americans canceled vacations and avoided stores and restaurants, eroding American Express’ revenue from charge cards and travel services in an already weak economy. The New York-based company, known for its signature green charge cards, warned of a profit shortfall in September, after companies shelved business trips.

American Express posted net income of $298 million, or 22cents a share, in the third quarter, compared with $737 million, or 54 cents, in the same period last year.

The latest quarter’s results included a previously announced charge of $352 million for sweeping layoffs and a restructuring. American Express is cutting about 6,100 jobs in the second half of this year, writing down junk bond losses and reorganizing businesses. The slack economy and stock market slump damaged results in areas such as its Financial Advisors investment group.

The firm also recorded $98 million in costs for waived fees and loan loss reserves after the Sept. 11 attacks.

“The terrorist attacks obviously had a significant impact” on consumer spending, business travel and investment activity, Chief Executive Kenneth Chenault said. “We are moving aggressively to lower our operating expenses.”

Excluding one-time costs, American Express earned $595 million, or 45 cents a share, in the third quarter. Revenue fell 1% to $5.5 billion.

Analysts expected earnings of 19cents to 36 cents a share, earnings tracker Thomson Financial/First Call said. American Express said consensus estimates included the restructuring charge but not the one-time Sept. 11 costs.

American Express stock rose $1 to $30.32 Monday on the New York Stock Exchange.

Other earnings, excluding one-time gains and charges unless noted:

* Conoco Inc., the No. 3 U.S. oil company, earned $404 million in the third quarter, or 64 cents a share, compared with $523 million, or 83 cents a share, a year earlier. Revenue was $9.7 billion, down 9% on lower prices for refined products, crude oil and natural gas, the Houston-based company said.

* Entergy Corp. said third-quarter profit was $278.7 million, or $1.24 a share, down from $306.1 million, or $1.37, a year earlier. Revenue fell 25% to $2.6 billion, the New Orleans-based utility holding company said.

* Hasbro Inc., the No. 2 U.S. toy maker, reported third-quarter net income of $50.6 million, or 29 cents a share, compared with $13.8 million, or 8 cents a share, a year earlier. Cost-cutting boosted results even as revenue fell to $893.4 million from $1.1 billion a year earlier. The Pawtucket, R.I.-based company said it expects cost savings for the year, excluding its interactive unit, to top its forecast of $50 million to $70 million.

* St. Paul, Minn.-based Minnesota Mining & Manufacturing Co. reported third-quarter earnings of $437 million, or $1.10 a share, down 12% from $499 million, or $1.25 a share. Sales declined 7.1% to $3.97billion.

* Safeco Corp. reported a third-quarter net loss of more than $100 million as the Seattle-based insurer set aside cash to cover the escalating cost of old claims and payouts for World Trade Center damage. Operating earnings before one-time charges fell to $7.8 million, or 6 cents a share, from $9.1 million, or 7 cents, a year ago, but exceeded estimates. Revenue fell to $1.71 billion from $1.76 billion.

* Tupperware Corp., a maker and direct seller of plastic storage containers, lost $12.6 million in the third quarter, or 21 cents a share, compared with net income of $4.7 million, or 8 cents, a year earlier. Excluding restructuring costs, the company had profit of $7.2 million, or 12 cents a share. On that basis, Tupperware was expected to earn 11 cents a share. Sales rose 6% to $238.6 million.

* USFreightways Corp., the second-largest operator of regional trucking companies, said third-quarter operating profit was $13.2 million, or 49 cents a share, before special charges of $5.9 million to pay severance and implement a new freight management system. Revenue at the Chicago-based company dipped 4% to $618.6 million.

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