Paine Webber Earnings Decline
Oct. 13, 1998
NEW YORK (AP) _ Paine Webber Group Inc.'s profit for the third quarter fell by 27 percent as trading and investment banking revenues declined.
Earnings for the three months ended September 30 fell to $82.9 million, or 51 cents per share on a diluted basis, from $112.8 million, or 70 cents a share, a year ago.
Total revenues fell 4.7 percent to $1.031 billion from $1.082 billion.
The results beat Wall Street estimates of 50 cents per share, according to First Call. But Paine Webber's stock fell $1.06 1/4 to $24.25 on the New York Stock Exchange.
Revenues from trading in the period fell to $148.45 million from $289.28 million. Chairman and chief executive Donald B. Marron said Paine Webber's trading losses were tied to the exit of domestic institutional investors from fixed-income trading.
Revenues from investment banking at Paine Webber fell to $119.63 million from $128.41 million a year ago.
Interest revenues rose to $909.17 million from $785.56 million, and revenues from asset management rose to $184.69 million from $141.71 million.
For the first nine months of the year, Paine Webber's net income rose to $333.1 million, or $2.10 a share, from $306.74 million, or $1.88 a share, a year ago. Revenue rose to $3.309 billion from $3.043 billion.