Cigna Earnings Fall 25 Percent
%mlink(STRY:; PHOTO:; AUDIO:%)
PHILADELPHIA (AP) _ Cigna Corp. said Friday its fourth quarter earnings dropped 25 percent, partly due to reduced international business and severance and other restructuring costs.
But its results excluding charges beat analysts’ expectations, and its shares rose more than 2 percent in early trading.
Cigna said it had net income of $191 million, or $1.32 a share, for the three months that ended Dec. 31, compared with net income of $277 million, or $1.76 a share, for the fourth quarter of 2000.
The company said it recorded an after-tax charge of $62 million, including severance, real estate and other costs of a restructuring program. The restructuring includes cutting about 2,000 jobs and consolidating existing health care service centers into regional centers.
Excluding nonrecurring items, the company said it had operating income of $277 million, or $1.92 a share, for the three months. Analysts polled by Thomson Financial/First Call had expected earnings of $1.81 a share.
Revenue for the quarter was $4.94 billion, down from $5.11 billion in the fourth quarter of 2000, primarily due to reduced international business resulting from the sale of a Japanese life insurance operation.
In morning trading on the New York Stock Exchange, Cigna shares were up 2.1 percent, or $1.92 a share, to $91.60.
For the year, Cigna said its net income was $989 million, or $6.59 a share, on revenue of $19.12 billion. In 2000, it had a net income of $987 million, or $6.08 a share, on revenue of $19.99 billion.
Cigna provides employers with managed health care coverage, group life, accident and disability insurance, pension, 401(k) retirement and other benefits plans.
On the Net: