Ameriprise 4Q Earnings Tumble to $111M
Thursday January 26, 7:35 pm ET
Ameriprise Financial Fourth-Quarter Earnings Plunge on Costs Linked to American Express Spinoff
biz.yahoo.com
NEW YORK (AP) -- Ameriprise Financial Inc. on Thursday on Thursday said significant costs in its spinoff from American Express Corp. last fall caused asset management giant's fourth-quarter profit to slide 53 percent.
The Minneapolis-based financial company said it booked $82 million in expenses during the quarter to separate from AmEx, sending quarterly profit down to $111 million from $235 million in the year-ago period.
However, adjusted to remove separation expenses and discontinued operations, Ameriprise reported profit of 77 cents per share during the period -- beating Wall Street expectations by 3 cents, according to analysts polled by Thomson Financial.
"2005 was a historic year for Ameriprise Financial, as we successfully executed one of the largest spin-offs in financial services history, while also driving solid business results," said Chairman and CEO Jim Cracchiolo in a statement.
Revenue rose 1 percent to $1.87 billion. Factoring out discontinued operations and its AMEX Assurance division ceded to American Express as part of the deal, adjusted revenue rose 5 percent during the period.
The company said total clients increased 1 percent to 2.8 million from the year-ago period. Meanwhile, the number of financial advisers grew to 12,397 from 12,188 in the September quarter.
At the end of the year, Ameriprise said it owned, managed and administered assets of more than $428.1 billion. |
