NEW YORK (CNN/Money) - American Express said Monday second-quarter profits more than tripled as cost-cutting from job cuts offset the stock market weakness that has hurt business at financial services firms.

Cheaper borrowing costs and an improved investment portfolio also helped the company compensate for rising marketing expenses.

But while income from its travel, financial and banking services rose in the quarter ended last month, American Express said its 2002 profit may not top Wall Street forecasts.

For the latest quarter, American Express reported earnings rose to $683 million, or 51 cents a share, from $178 million, or 13 cents, a year earlier.

Analysts polled by earnings tracker First Call expected 50 cents a share.

The latest figures include a $78 million pre-tax loss related to investments in WorldCom, which filed for bankruptcy protection Sunday.

Second-quarter revenue rose 16 percent to $5.7 billion, topping forecasts.

But looking ahead, CEO Kenneth I. Chenault said expanded marketing efforts this year will raise costs enough to hurt results.

"Our earnings for 2002 are likely not to exceed the current Wall Street consensus," Chenault stated. The company, scheduled to hold a conference call after the markets close, did not elaborate.

Analysts polled by First Call estimate the company will earn $2.01 a share this year.

"We expect to see the benefit of our expanded marketing efforts in improved business metrics starting late this year and into 2003," Chenault said.

He linked the some of the improved second-quarter results to lower payroll costs due to layoffs.

Shares of New York-based American Express, a component of the Dow Jones industrial average, fell about 3 percent in early afternoon trading.

Net income at American Express' travel services and credit card unit rose 9 percent to $565 million as lower corporate card spending in the travel and entertainment sector was partially offset by higher consumer spending.

American Express' financial advisors reported quarterly net income of $145 million, compared with a $307 million net loss a year ago. The results, in addition to the hit from WorldCom bonds, were affected by stock market losses, which cut the size of assets under management and lowered investment fees.

The financial results benefited from an easier comparison with a year ago, when they were hurt by an $826 million pre-tax charge from junk bond losses.

And American Express' bank unit reported quarterly net income of $18 million, up from $12 million a year ago.

Low interest rates make it cheaper for American Express to borrow money. The Federal Reserve cut the overnight, intra-bank lending rate 11 times last year.