« “attempted suicide” | Home | Recent Comments | Categories | Level 2B »
American Express Profit Falls on Higher Defaults
[Quote:]
American Express Co., the biggest U.S. credit-card company by purchases, withdrew its 2008 earnings forecast after second-quarter profit fell 37 percent on worse-than-expected consumer defaults. The shares slumped 11 percent in extended trading.
Profit from continuing operations declined to $655 million, or 56 cents a share, from $1.04 billion, or 86 cents a year earlier, the company said today in a statement. The average estimate of 17 analysts surveyed by Bloomberg was 82 cents. American Express said it added $600 million before taxes to reserves for U.S. loan losses.
“By almost any measure, the U.S. economy and business environment are much weaker than the assumptions” the company had in January, Chief Executive Officer Kenneth Chenault said today in a conference call.
|