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American Express on mark
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January 24, 2000: 2:09 p.m. ET
Financial giant announces 3-for-1 stock split along with record income for '99
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NEW YORK (CNNfn) - American Express Co. announced a 15 percent gain in fourth quarter net income, in line with expectations, along with record annual income and plans for a 3-for-1 stock split.
The New York financial service company, a Dow Jones industrial average component, saw net income rise to $606 million, or $1.33 a diluted share, which was the same as forecasts by First Call on the company. In the year ago period net income was $530 million, or $1.16 a share.
The company attributed the gain to growth in its travel related services and its financial advisers. The financial advisers had record fourth quarter net income of $238 million, 14 percent increase from the $209 million the division made in the year-earlier period.
Overall revenue at the company rose 15 percent in the quarter to $5.2 billion on a managed basis.
For the year net income was $2.5 billion, or $5.42 a diluted share, up from $2.1 billion, or $4.63 a share, before special gains it recorded in 1998. With those special items. year-ago income was $2.2 billion, or $4.76 a diluted share.
Revenue for the year was $19.5 billion, up 13 percent from $17.2 billion in 1998.
The company said that its board approved the stock split, subject to shareholder approval at its April annual meeting, for shareholders of record as of April 25. The split is to be effective May 10.
The dividend will be set at 8 cents per share after the split, rounded up from what would have been 7.5 cents a share.
Shares of American Express (AXP) were trading up 5-1/4, or 3.5 percent, to 156-15/16, in afternoon trading. 
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American Express Co.
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