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Citigroup tops 2Q targets
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July 19, 1999: 8:05 a.m. ET
Financial services firm cites cost cuts, consumer business for earnings gain
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NEW YORK (CNNfn) - Citigroup Monday exceeded second-quarter earnings forecasts, as the financial services provider reported operating earnings growth of 21 percent that was attributed to cost-cutting and strong consumer business growth.
The New York-based company earned $2.5 billion, or 71 cents per diluted share, up from $2.1 billion, or 57 cents, a year earlier. The consensus analyst estimate was for Citigroup to report earnings of 65 cents per share, according to earnings tracking firm First Call Corp.
Revenue rose 10 percent to $15.0 billion.
Company executives, who said Citigroup is on track to top targets for 20 percent growth this year, cited a cost-cutting and diversification of its product lines. Citigroup said it's likely to top targets of cutting $2 billion in costs this year.
But notably, co-chairmen and chief executives John Reed and Sanford Weill said Citigroup is now turning its focus more toward the Internet as many of its customers use credit cards for e-commerce.
"It is imperative that we continue to build on our strong presence on the Internet," Reed and Weill said in a statement. "Since 95 percent of all business on the Web is transacted by credit card, Citigroup's leading 20 percent share of the North American card market makes us a key beneficiary of the revolution in e-commerce."
The company's loss in its Internet segment grew to $44 million as it continues to invest in such initiatives.
Citigroup said income in its global consumer business rose 40 percent and business income rose 34 percent in the second quarter from a year earlier.
Shares of Citigroup (C), one of 30 stocks in the Dow Jones industrial average, rose 1 to 49 on Friday. 
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Citigroup
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