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AmSouth beats Street
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July 13, 1999: 4:04 p.m. ET
Bank tops earnings expectations while announcing 1,400 job cuts
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NEW YORK (CNNfn) - AmSouth Bancorporation beat Wall Street's earnings expectations Tuesday while announcing plans to cut about 1,400 jobs as it proceeds with its acquisition of First American Corp.
The Birmingham, Ala.-based reported second- quarter earnings of $74.2 million or 42 cents per share, exceeding the expectations of analysts polled by First Call Corp.
AmSouth reported earnings of $65.5 million or 36 cents per share in the year-ago period.
For the six months ending June 30, AmSouth reported net income of $144.6 million, or 81 cents per diluted share, compared to $127.5 million or 70 cents per diluted share in the year-ago period.
Last month, AmSouth (ASO) announced plans to buy the Nashville-based First American (FAM) for $6.3 billion. When the merger is completed, AmSouth will have $42 billion in assets, 680 branches in nine Southeastern states and 1,350 automated teller machines.
The company said 24 branch offices in overlapping markets will be consolidated, while about 1,400 "non-revenue-producing positions," or about 10 percent of the combined work force, have been marked for elimination. About 160 of these positions will be cut immediately.
AmSouth was up 1/16 at 22-3/16 in recent trading, while First American was up 3/16 at 40-3/16.
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AmSouth
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