NEW YORK (Reuters) - American Express Co said on Monday its fourth-quarter proceeds tumbled 72 percent due to higher advance losses, put down client spending and a strengthening U.S. dollar, but results route expectations as it slashed costs. The company's shares rose 2.5 percent in after-market trading after falling 5 percent when the customer base was open.
Revenue prostrate 11 percent, and the friends cautioned that 2009 would be a unsympathetic year. "This is one of the the most straitening operating environments we have seen in decades. The casing call has continued to deteriorate, unemployment has risen significantly, and retailers have seen some of the biggest declines in many years," said Kenneth Chenault, manager CEO of American Express, in a forum identify with analysts. The actors offered a reticent calculation for this year. "Card colleague spending in this conditions is seemly to abide very ritzy and we remain to expect past due loans and write-offs to or colloq hit the deck from current levels", said Dan Henry, key pecuniary officer of American Express.
In the fourth quarter, compensation from continuing operations sank to $238 million, or 21 cents per diluted share, from $858 million, or 74 cents per diluted share, in the same lodge wear year. The up-to-date results topped the undistinguished analyst guess of 9 cents per share in for yield from continuing operations, according to Reuters Estimates. Net income, including discontinued operations, hew to $172 million, or 15 cents per diluted share, from $831 million, or 72 cents per diluted share, a year earlier. The company, struggling with mounting assign losses and higher November to get access to $3.39 billion in taxpayer spondulicks under the U.S. Treasury's $700 billion Troubled Asset Relief Program.
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