EARNINGS ROUNDUP / AMERICAN EXPRESS
TIMES WIRE REPORTS
American Express Co. said profit dropped 72% as more customers fell behind and defaulted on loans.
Profit from continuing operations declined to $238 million, or 21 cents a share, from $858 million, or 74 cents, a year earlier, the New York company said. The earnings missed the 22-cent average estimate of 20 analysts surveyed by Bloomberg.
American Express sought $3.39 billion from the U.S. Treasury last year to boost capital as surging consumer defaults forced it to set aside more reserves and the market for bonds backed by credit-card debt seized up. Chief Executive Kenneth Chenault cut 7,000 jobs and froze hiring and management raises to help reduce expenses by $1.8 billion this year.
