NEW YORK (CNN/Money) - American Express Co. Monday reported profits more than doubled in the latest quarter as cost cutting and strength in its credit card businesses more than offset the stock market weakness that hurt the company's financial services unit.

New York-based American Express said third-quarter net earnings rose to $687 million, or 52 cents a share, up 130 percent from $298 million, or 22 cents a share, earned a year earlier, when business suffered following the Sept. 11 attacks.

After adding one-time costs from the attacks to last year's results, profits rose 15 percent.

The results topped expectations. Analysts had expected American Express to earn 51 cents a share, on average, according to First Call, which tracks profit forecasts.

Third-quarter revenue rose 3 percent to $5.9 billion at the company, which issues credit cards, manages money and provides travel services.

A year ago, the company recorded $352 million in costs associated with job cuts and restructuring charges following the Sept. 11 attacks, which hit the travel business and briefly closed the company's New York headquarters.

Shares of American Express (AXP: up $1.12 to $34.25, Research, Estimates) are down 2.5 percent this year, outperforming the Dow industrials and Standard & Poor's 500 indexes, which both contain American Express.

Looking ahead, American Express said 2002 earnings will not exceed $2.01 a share, versus analysts' average forecasts of $1.98.

Income at the company's travel and credit card unit more than doubled to $553 million, from $248 million a year ago. Overall credit quality remained strong and, as a result, the total provision for losses declined six percent.

Financial services profits rose 5 percent to $152 million. Assets under management and management fees declined from year-ago levels as the U.S. stock market heads toward a third straight year of declines.

"The results reflect stronger revenue momentum in the card businesses, which more than offset the impact of weaker equity markets on our financial services business," said Kenneth I. Chenault, chairman and chief executive officer of American Express, in a statement.

Amex's banking unit enjoyed earnings of $25 million compared with a loss of $43 million a year ago.

American Express cut about 6,800 jobs this year to save money during the downturn. On Monday the company credited some of its profit gain to those cuts, which reduced costs by 3 percent in its financial services unit.

American Express scheduled a conference call for later Monday to discuss the results.