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Banking industry

Fourth-Quarter Earnings Report: Mixed Bag for Major US Companies

Strategic Insights

— 2 min read

Major US companies reported varied results for the fourth quarter of 1997, with some experiencing significant gains and others facing challenges due to the Asian currency crisis. Continental Airlines, for instance, saw a notable increase in earnings of 181% due to higher passenger numbers and lower fuel costs. On the other hand, J.P. Morgan & Co. reported a 35% decline in profits, largely attributed to the same economic crisis.

Key Takeaways:

  • Cypress Semiconductor's net income declined to $100,000 from $1.3 million in the same quarter of the previous year, resulting in an earnings per share of none compared to 2 cents in 1996.
  • Continental Airlines' fourth-quarter earnings benefited significantly, with a 181% increase in net income to $73 million and earnings per share of 97 cents, up from 62 cents in 1996. Revenue rose to $1.85 billion from $1.56 billion.
  • J.P. Morgan & Co. saw a decline in its fourth-quarter profits by 35%, with a net income of $271 million compared to $419 million in the same quarter of 1996. Earnings per share decreased to $1.33 from $2.04.
  • Chase Manhattan Corp. reported stronger fourth-quarter profits, with a 4.5% increase in net income to $874 million and earnings per share of $1.94, up from $1.74 in 1996.
  • Citicorp's net income for the fourth quarter increased by 7.4% to $1.06 billion, with earnings per share rising to $2.20 from $1.97 in 1996.
  • Banc One's earnings rose 7.4% in the fourth quarter, partly due to growth in its credit card business. The company reported a net income of $474.8 million and earnings per share of 79 cents.
  • Wells Fargo's profits more than doubled in the quarter, reaching $298 million, and earnings per share increased to $3.36 from $1.11 in 1996, due in part to the acquisition of First Interstate Bancorp.
  • Enron Corp. reported a 51% increase in earnings, with a net income of $169 million and earnings per share of 53 cents, up from 41 cents in 1996. Revenue rose to $5.87 billion from $4.05 billion.

Statistics:

  • Cypress Semiconductor's net income decreased by 92.5% in the fourth quarter of 1997.
  • Continental Airlines' revenue increased by 18.1% in the fourth quarter of 1997.
  • J.P. Morgan & Co.'s net income decreased by 35.3% in the fourth quarter of 1997.
  • Chase Manhattan Corp.'s net income increased by 4.5% in the fourth quarter of 1997.
  • Citicorp's net income increased by 7.4% in the fourth quarter of 1997.
  • Banc One's earnings rose 7.4% in the fourth quarter of 1997.
  • Wells Fargo's profits increased by 142% in the fourth quarter of 1997.
  • Enron Corp.'s revenue increased by 46.2% in the fourth quarter of 1997.

Sources:

  • "Column: Corporate Earnings"

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