Ameriprise posts 3Q profit as sales rise

Mutual fund manager Ameriprise Financial Inc. on Wednesday reported a third-quarter profit, reversing a year-ago loss, as sales grew. Minneapolis-based Ameriprise provides financial planning, asset management and insurance services. The company last month agreed to purchase the long-term asset management business of Bank of America Corp.'s Columbia Management unit for up to $1.2 billion. Ameriprise will manage about $400 billion in assets after the deal is completed. The company earned $260 million, or $1 per share, in the quarter that ended Sept. 30. That compares with a loss of $70 million, or 32 cents per share, a year earlier. Adjusted profit totaled $1.03, easily beating a 64-cent-per-share consensus estimate of analysts polled by Thomson Reuters. Revenue rose 20 percent to $1.95 billion from $1.63 billion, helped by improved net investment income. Analysts had expected $2.09 billion, on average. As of Sept. 30, the company's excess capital totaled more than $2 billion. "The fundamentals of our business are improving slowly but steadily, with new client growth and improved asset levels and product flows," said Jim Cracchiolo, chairman and CEO, in a statement. "We also expect meaningful contributions from our pending acquisition." Ameriprise has said the Columbia acquisition will boost its earnings within one year, excluding integration costs. The financial firm said the acquisition will generate between $130 million and $150 million in annual cost savings, with about half of the savings being realized in the first year after the purchase is completed in the spring of 2010. Ameriprise shares rose 59 cents to $36.08 in aftermarket trading after closing at $35.49, down 19 cents on the day.