Invesco, NYSE Euronext, CME & Principal

One money manager and two exchange operators posted profits in the fourth quarter, while an insurer's earnings headed south.
FEB 05, 2008
One money manager and two exchange operators posted profits in the fourth quarter. Invesco Ltd. posted a 7% increase in fourth quarter profit, due an increase in investment management fees. The Atlanta-based money management firm’s net income grew to $175.9 million, or 43 cents per share, from $165.2 million, or 40 cents per share, during the year-ago period. The earnings were offset by $12.8 million in charges related to the company relisting on the New York Stock Exchange in December and $9.8 million related to proposed settlement of market timing litigation. The combined items slashed earnings by 4 cents per share. Fees from investment management grew 19%, while revenue from service and distribution fees rose 11%. Assets under management rose 9% to $500.1, compared to the year-ago period. NYSE Euronext Inc. , the parent company of the New York Stock Exchange, reported that quarterly profit more than tripled, as trading volume grew and more companies listed the exchange. Net income rose to $156 million, or 59 cents per share in the quarter ended Dec. 31, up from $45 million, or 29 cents per share, in the year-ago period. Excluding buyout costs and other one-time charges, net income totaled $175 million, or 66 cents per share. Average daily trading volume on the NYSE and the NYSE Arca increased 16% in 2007 from 2006. CME Group Inc., the parent of the Chicago Mercantile Exchange, said fourth-quarter net income increased 96%, as its acquisition of the Chicago Board of Trade increased trading volume. Net income for the quarter totaled $201.1 million, or $3.75 per share, in the last three months of 2007, compared to $102.6 million, or $1.91 per share, in the fourth quarter of 2006. Trading volume on the CME increased 23% to 10.6 million contracts per day. Principal Financial Group Inc. said yesterday that earnings fell 87% in the quarter, hurt by write-downs from investments that involved subprime mortgages. The Des Moines, Iowa-based insurer said net income fell to $34.1 million, or 13 cents a share, from $284.1 million, or $1.04 a share, in the year-ago quarter. The results included net realized and unrealized capital losses of $211.5 million, of which more than $50 million was related to the subprime mortgage crisis. The company posted a $9.7 million gain from investments during the year-ago period.

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