DOW JONES NEWSWIRES
Earnings surged in the second quarter to record levels at
members of the New York Stock Exchange as write-downs were sharply
lower, the NYSE said Tuesday.
Banks in July reported much-improved results for the period as
write-downs and other items were generally less than a year
earlier, while some companies such as Citigroup Inc. (C) were
helped by big gains.
The 194 member companies which conduct business with the public
reported an after-tax profit of $18.2 billion on revenue of $62.62
billion. That compares with prior-year earnings of $1.07 billion
and revenue of $61.01 billion. The prior earnings record wasn't
provided by the NYSE, and a spokesman wasn't immediately available
to comment.
The new record was led by Citigroup's $4.28-billion profit,
aided by a $6.7 billion gain from combining Smith Barney with
Morgan Stanley's (MS) brokerage business.
While revenue for the member firms rose 2.6%, expenses tumbled
42% amid the slump in write-downs and other charges.
In the second quarter, 55 companies were unprofitable, reporting
a combined pretax loss of $466 million. That pales in comparison to
the prior year's $4.56 billion and the first quarter's $1.47
billion.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com