CME Group Provides Operating Expense and Capital Expenditure Guidance for the Second Half of 2007
September 28 2007 - 4:00PM
PR Newswire (US)
CHICAGO, Sept. 28 /PRNewswire-FirstCall/ -- CME Group (NYSE;
Nasdaq: CME), the world's largest and most diverse exchange, today
updated CME operating expense and capital expenditure guidance for
the second half of 2007. For the last six months of 2007, CME Group
expects operating expenses, excluding merger-related costs for
restructuring and integration, to total $425 to $430 million. This
total includes $30 million for amortization of purchased
intangibles resulting from the merger. The company expects
operating expenses on a GAAP basis to total $460 to $470 million,
which includes approximately $35 to $40 million of merger-related
restructuring and integration costs. Non-operating expenses will
increase as a result of recognition of the ERP guarantee and
financing of the fixed price tender offer. For the last six months
of 2007, the company expects capital expenditures to total between
$95 and $105 million, net of leasehold allowances, which includes
the acceleration of the CME Globex and trading floor cutovers and
continued expansion of data centers to support future growth. The
above statements are forward looking and actual results may differ
materially. Please see "Note Regarding Forward-Looking Statements"
at the end of this news release for a description of certain risk
factors and CME Group's annual and quarterly reports on file with
the Securities and Exchange Commission (SEC) for a more complete
description of risks. CME Group will provide operating expense and
capital expenditure guidance for the full year 2008 when the
company reports its full year 2007 results. CME Group
(http://www.cmegroup.com/) is the world's largest and most diverse
exchange. Formed by the 2007 merger of the Chicago Mercantile
Exchange Holdings and CBOT Holdings, CME Group serves the risk
management needs of customers around the globe. As an international
marketplace, CME Group brings buyers and sellers together on the
CME Globex electronic trading platform and on its trading floors.
CME Group offers the widest range of benchmark products available
across all major asset classes, including futures and options based
on interest rates, equity indexes, foreign exchange, agricultural
commodities and alternative investment products such as weather and
real estate. CME Group's Class A common stock is traded on the New
York Stock Exchange and the Nasdaq Global Select Market under the
symbol "CME." The Globe logo, CME, Chicago Mercantile Exchange, CME
Group, Globex and E-mini, are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the
Board of Trade of the City of Chicago. All other trademarks are the
property of their respective owners. Further information about CME
Group and its products can be found at http://www.cmegroup.com/.
Note Regarding Forward-Looking Statements Statements in this news
release that are not historical facts are forward- looking
statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or implied in any
forward-looking statements. Among the factors that might affect our
performance are: our ability to successfully integrate the
businesses of CME Holdings and CBOT Holdings, including the fact
that such integration may be more difficult, time consuming or
costly than expected; revenues following the merger may be lower
than expected; increasing competition by foreign and domestic
competitors, including new entrants into our markets; our ability
to keep pace with rapid technological developments, including our
ability to complete the development and implementation of the
enhanced functionality required by our customers; our ability to
continue introducing competitive new products and services on a
timely, cost-effective basis, including through our electronic
trading capabilities, and our ability to maintain the
competitiveness of our existing products and services; our ability
to adjust our fixed costs and expenses if our revenues decline; our
ability to continue to realize the benefits of our transaction
processing services provided to third parties; our ability to
maintain existing customers and attract new ones; our ability to
expand and offer our products in foreign jurisdictions; changes in
domestic and foreign regulations; changes in government policy,
including policies relating to common or directed clearing; the
costs associated with protecting our intellectual property rights
and our ability to operate our business without violating the
intellectual property rights of others; our ability to generate
revenue from our market data that may be reduced or eliminated by
the growth of electronic trading and the redundancies in the market
data offerings of Chicago Mercantile Exchange Inc. and Board of
Trade of the City of Chicago, Inc.; changes in the rate per
contract due to shifts in the mix of the products traded, the
trading venue and the mix of customers (whether the customer
receives member or non-member fees or participates in one of our
various incentive programs) and the impact of tiered pricing; the
ability of our financial safeguards package to adequately protect
us from the credit risk of clearing firms; changes in price levels
and volatility in the derivatives markets and in underlying fixed
income, equity, foreign exchange and commodities markets; economic,
political and market conditions; our ability to accommodate
increases in trading volume without failure or degradation of
performance of our systems; our ability to execute our growth
strategy and maintain our growth effectively; our ability to manage
the risks and control the costs associated with our acquisition,
investment and alliance strategy; industry and customer
consolidation; decreases in trading and clearing activity; the
imposition of a transaction tax on futures and options on futures
transactions; and seasonality of the derivatives business. More
detailed information about factors that may affect our performance
may be found in our filings with the Securities and Exchange
Commission, including our most recent Quarterly Report on Form
10-Q, which is available in the Investor Relations section of the
CME Group Web site. We undertake no obligation to publicly update
any forward-looking statements, whether as a result of new
information, future events or otherwise. CME-G DATASOURCE: CME
Group CONTACT: Media, Anita Liskey, +1-312-466-4613, or William
Parke, +1-312-930-3467, both at , or Investors, John Peschier,
+1-312-930-8491, all of CME Group Web site: http://www.cme.com/
http://cmegroup.mediaroom.com/
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