CBOT soars in first quarter

CBOT Holdings Inc. posted a 58% increase in net income due to higher trading volume, the exchange announced today. Net income rose to $55.4 million, or $1.05 per share for the quarter ended March 31, compared to $35.1 million, or 66 cents per share, during the first quarter of 2006. Excluding $13 million in merger-related costs, net income for the quarter was $68.4 million, or $1.29 per share. Quarterly revenue increased 34% to $187.7 million, compared to $140.1 million in the year-ago period. Analysts polled by Thomson Financial were looking for a profit of $1.17 per share on revenue of $192.9 million. Average daily trading volume for the quarter was 3.9 million contracts, up 24% from 3.1 million during year-ago period. "The positive momentum we built last year is carrying through into 2007, as we experience higher trading volume and continue to effectively manage expenses," said CBOT president and chief executive Bernard W. Dan, according to a statement. The announcement comes as CBOT shareholders are set to vote on an offer from Chicago Mercantile Exchange Holdings Inc. on July 9. The exchange is considering an unsolicited offer from the Atlanta-based IntercontinentalExchange Inc., which is said to be worth $9.9 million, compared to the CME's $8 million offer from October (InvestmentNews, October 17) .