Friday, January 18, 2013

American Express' 4Q earnings down 47 percent

American Express says its net income fell 47 percent in the fourth quarter, as the credit card issuer racked up hefty charges related to restructuring costs and other one-time expenses.

The New York-based company said Thursday that it posted net income of $637 million, or 56 cents per share, for the three months ended Dec. 31. That compares with net income of $1.2 billion, or $1.01 per share, in the same period last year.

Excluding roughly $594 million in after-tax charges, American Express' earnings amounted to $1.09 per share.

Analysts polled by FactSet were expecting adjusted earnings of $1.06 per share.

Revenue for the quarter grew 5 percent to $8.14 billion, in line with analysts' forecast.

Management said spending by cardholders rose 8 percent during the quarter.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-01-17-US-Earns-American-Express/id-6f3f4614055c46ac8cc5bf46a72165ce

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