[Newspoetry] NYTimes.com Article: Lehman Profits Jump 33 Percent; Bear Sterns Sees 6 Percent Drop

[futrelle at ncsa.uiuc.edu]

This article from NYTimes.com 
has been sent to you by A Concerned Citizen futrelle at ncsa.uiuc.edu.

Newspoetry

Mike, I didn't realize you were such a corporate behemoth.  What are you going to do with those huge profits?  Spend it all on model trains, no doubt ...

A Concerned Citizen
futrelle at ncsa.uiuc.edu

/-------------------- advertisement -----------------------\


LOOKING FOR A TRULY HIGH-SPEED INTERNET EXPERIENCE?

Then visit Alcatel.com and see what makes us the
world's leading supplier of DSL solutions.
Alcatel, world leader in DSL solutions.

http://www.nytimes.com/ads/email/alcatel/index.html

\----------------------------------------------------------/

Lehman Profits Jump 33 Percent; Bear Sterns Sees 6 Percent Drop
http://www.nytimes.com/reuters/business/business-lehman-earns.html

January 4, 2001

By REUTERS

 

Filed at 9:47 a.m. ET 

NEW YORK (Reuters) - Lehman Bros Holdings Inc. (LEH.N), one of Wall
Street's few remaining independent investment banks, on Thursday
reported a 33 percent rise in quarterly profits, topping estimates,
as it raked in fees from trading and helping companies with mergers
and bond offerings. 

 Meanwhile, Rival Bear Stearns Cos. Inc. on Thursday said               
its fourth-quarter profits fell 6 percent because of a steep
decline in revenue                from investment banking
operations and costly employee compensation               
packages.  

Lehman reported net income of $399 million, or $1.46 a share, for
the fiscal fourth quarter ended Nov. 30, up from $301 million, or
$1.14 per share, a year ago. 

The results breezed past analysts' average profit forecast of $1.26
per share, as compiled by research firm First Call/Thomson
Financial. 

The fourth quarter was a tough one for many Wall Street companies
because stock markets slumped, curbing trading volume and forcing a
pullback in stock offerings, while credit quality concerns hit the
corporate bond market. 

Lehman's stock jumped $1 to $77 on Thursday on the New York Stock
Exchange, just shy of its 52-week high of $80-1/8. 

Net revenues rose 20 percent to $1.7 billion, driven by bond
trading and merger advice. 

For the whole year, Lehman said it posted record results in every
business, as well in Europe and Asia. Its revenues rose 44 percent
in 2000 to $7.7 billion, while profits rose 57 percent to a record
$1.78 billion. 

``In what was clearly one of the most difficult operating
environments in several years, Lehman Brothers posted significant
year-over-year increases in the fourth quarter, and a return on
equity over 22 percent,'' Richard Fuld Jr., Lehman's chairman and
chief executive, said in a statement. 

Lehman's investment banking revenues rose to $544 million in the
quarter from $425 million a year ago, lifted by a record $243
million from advising companies on merger deals, it said. Its
biggest deals included Nortel Networks Corp.'s(NT.TO) purchase of
Alteon WebSystems Inc. (ATON.O) and the sale of No. 2 U.S. cement
company Southdown Inc. (SDW.N) to Mexico's Cemex (CX.N). 

Revenues from assisting with stock offerings fell to $135 million
in the fourth quarter from $155 million, but bond underwriting
revenues rose to $166 million from $141 million. 

The 150-year-old firm, previously known for trading bonds, has
shifted its focus to lucrative businesses like stock trading and
merger advisory. 

Its capital markets revenues, which includes stocks and bonds sales
and trading, rose to $986 million compared with $828 million last
year. Bond trading revenues rose to $657 million compared with $508
million, while stock trading revenues rose to $329 million from
$320 million, it said. 

At Lehman's client services business, which includes its
investments arm and services catering to rich individuals, revenues
rose to $168 million from $158 million a year ago. 

Total noninterest expenses rose 18 percent to $1.1 billion in the
fourth quarter. 

 Bear Stearns, whose U.S. work force totals about 11,000, reported
a net                profit of $195.2 million, or $1.36 per share,
down from $207.5 million, or                $1.32 per share, a year
earlier. 

 The results beat analysts' consensus earnings estimate of $1.11
per share as                compiled by market research firm First
Call/Thomson Financial. 

 Investment banking net revenues from helping companies issue
stock,                advising on mergers and acquisitions, and
other services fell 25.4 percent, to                $229.0 million
from $307.1 million a year ago. Weak equity and bond               
markets contributed to the decline, the company said. Employee               
compensation packages grew more expensive in the quarter, rising to
$727                million from $621 million a year ago. Total
revenues, net of interest                expense, rose 7.5 percent
to $1.38 billion. 

 Separately, Bear Stearns said it authorized a $1.2 billion stock
repurchase                program. 

 

The New York Times on the Web
http://www.nytimes.com

/-----------------------------------------------------------------\


Visit NYTimes.com for complete access to the
most authoritative news coverage on the Web,
updated throughout the day.

Become a member today! It's free!

http://www.nytimes.com?eta


\-----------------------------------------------------------------/

HOW TO ADVERTISE
---------------------------------
For information on advertising in e-mail newsletters 
or other creative advertising opportunities with The 
New York Times on the Web, please contact Alyson 
Racer at alyson at nytimes.com or visit our online media 
kit at http://www.nytimes.com/adinfo

For general information about NYTimes.com, write to 
help at nytimes.com.  

Copyright 2000 The New York Times Company