Aetna Lifts Estimates for 3rd Quarter, Year

EARNINGS

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Aetna Inc. said third-quarter profit would be higher than expected as the second-biggest U.S. health insurer controlled medical expenses and increased premiums.

Aetna also said full-year profit would beat estimates. Chief Executive John Rowe is eliminating jobs and has promised to trim $300 million from operating costs this year.

Third-quarter profit will be about 70 cents a share and 2002 profit will be about $2.20 to $2.25 a share, excluding some items, Aetna said. Aetna was expected to earn 35 cents in the quarter and $1.48 for the year.

Shares of Hartford, Conn.-based Aetna closed down $1.41 to $31.69 in trading on the New York Stock Exchange. The announcement was made after the markets closed. In after-hours trading, Aetna soared to $35.01.