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Travelers on the dot in 2Q
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July 20, 1998: 9:54 a.m. ET
Financial services firm earned 77 cents a share, matching estimates
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NEW YORK (CNNfn) - Dow component Travelers Group Inc. said Monday its operating income rose 5 percent in the second quarter, matching consensus estimates of 77 cents a diluted share, up 5 cents from a year earlier.
The New York-based provider of financial services and insurance reported operating earnings of $921.6 million, or 77 cents per share on a fully diluted basis, compared with $877.6 million, or 72 cents a diluted share, a year earlier. Revenues rose 10 percent to $10.1 billion from $9.18 billion.
The 1998 earnings included a gain of $191.2 million, or 16 cents a diluted share, from a restructuring credit.
Travelers Group, a financial services holding company, oversees four principal units that handle investment services, property and casualty insurance, consumer finance and life insurance.
The group is in the midst of a $70 billion blockbuster merger with Citicorp which, if approved by regulatory officials, will spawn the largest financial services company in the world, topping Bank of Tokyo-Mitsubishi Bank Ltd.
Travelers Property Casualty Corp., a Travelers subsidiary, said its second-quarter net income climbed to 312.5 million, or 80 cents a diluted share, from $276 million, or 69 cents a diluted share, a year earlier. Revenues increases to $2.53 billion, from $2.43 billion.
The 1998 figures included an investment gain of $6.2 million, or 2 cents a share, while the 1997 numbers included a loss from investments of $4.4 million, or 1 cent a share.
Travelers Group said net income in the first six months of 1998 rose to $2.23 billion, or $1.87 a diluted share, from $1.7 billion, or $1.40 a diluted share, a year earlier.
The first-half results included a restructuring credit gain of $191.2 million, or 16 cents a diluted share. Portfolio gains in the first half were $114.3 million, or 10 cents a share, compared with $14.6 million, or 2 cents a share, a year earlier.
Revenues increased to $20.46 billion from $17.9 billion a year ago.
Shares of Travelers (TRV) were up 3/8 at 72 1/16 in mid-morning trade Monday on the New York Stock exchange.
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Travelers
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