Page 25 - ATODAY

BUSINESS A25
Wednesday 14 October

JPMorgan earns $6.27 billion in 3Q; misses its estimates

KEN SWEET to preferred shareholders, bank totaled $22.8 billion, its consumer bank through quite challenging” market
AP Business Writer up from a profit of $5.13 bil- compared with $24.5 billion layoffs, attrition, branch conditions led to a decline
NEW YORK (AP) — JPMor- lion a year earlier. in the same period a year closures and lower staff- in revenue in the division.
gan Chase & Co. saw its On a per share basis, the earlier. ing levels. The consumer Lower commodity prices
third-quarter profits rise 22 bank earned $1.68 per JPMorgan Chase’s con- bank’s headcount is down also impacted the results.
percent from a year earlier, share, compared with $1.35 sumer banking division, its roughly 10,000 workers Lower commodity prices
helped by a tax benefit. But per share a year earlier. largest business by revenue year-to-date. also indirectly impacted
the bank’s core results still Removing one-time items, and net income, reported In its corporate and invest- JPMorgan’s credit costs.
missed analysts’ expecta- including a $2.2 billion tax a 4 percent rise in profits as ment banking division, the The bank had to take out
tions as revenue declined benefit from issues related revenues fell 4 percent. The bank reported net income higher loan reserves to cov-
in most of JPMorgan’s busi- to the financial crisis, JPM- decline in revenues was of $1.46 billion, down 13 er loans given to oil and
nesses. organ said it earned $1.32 primarily tied to lower mort- percent from a year earlier. gas companies.
The largest U.S. bank by as- a share, which missed ana- gage income. JPMorgan Chief Financial JPMorgan shares were
sets said Tuesday it earned lysts’ estimates of $1.37 per JPMorgan has been ag- Officer Marianne Lake said down 1.2 percent to $60.99
$6.27 billion after payments share.Net revenue at the gressively cutting costs in the summer’s “generally in after-market trading. q

Top beer makers to join forces to face industry challenges

A beer vender pours Bud Light into a cup at Wrigley Field before Game 4 in baseball’s National to take over its nearest ri- to shifting global tastes.
League Division Series between the Chicago Cubs and the St. Louis Cardinals, Tuesday, Oct. 13, val in a bid to stave off the In wealthy countries, peo-
2015, in Chicago. Anheuser Busch InBev clinched a deal Tuesday to take over SABMiller in a bid megabrewers’ most seri- ple are turning to locally
to stave off the megabrewers’ most serious problems: the surge in popularity of craft brews and ous problems: the surge in brewed beers or other
weakening sales in the rich markets of the U.S. and Europe. popularity of craft brews drinks such as wine. In the
and weakening sales in the U.S., craft beer sales ac-
(AP Photo/Paul Beaty) rich markets of the U.S. and count for 10 percent of
Europe. SABMiller accept- beer volumes, compared
RAF CASERT Associated Press world’s biggest beer maker ed in principle a takeover with virtually nothing a few
PAN PYLAS bid worth 69 billion pounds years ago. The same could
BRUSSELS (AP) — The clinched a deal Tuesday ($106 billion) from Anheus- soon apply in Europe, said
er Busch InBev in a deal Giulio Lombardi, senior di-
that seeks strength in size. rector at Fitch Ratings.
The combined company “The global beer market
would control nearly a third overall is largely flat and in
of the global market. some regions is declining
Belgium-based AB InBev, as other beverages such
already the world’s largest as wine continue to pen-
brewer, makes Budweiser, etrate,” said John Colley,
Corona, Stella Artois and professor at Warwick Busi-
Beck’s. SABMiller, based in ness School in England.
London, has Miller Genuine “Microbrewers and their
Draft, Peroni and Milwau- highly differentiated cask
kee’s Best among its 200 or ales also continue to make
so brands. progress.” In coming years,
AB InBev’s determination beer sales are expected
to close the deal after five to grow most in emerging
attempts shows how estab- economies in regions such
lished beer brands know as Africa, where SABMiller
they have to act to adapt has a strong presence.q

Twitter purging up to 336 workers as new CEO slashes costs

MICHAEL LIEDTKE growth at the messaging not know what else to do,” $2 billion. Dorsey has acknowledged
Associated Press service and compounded Windsor said. When reports of the antici- that Twitter is too confus-
SAN FRANCISCO (AP) — an uninterrupted cycle of Dorsey told Twitter em- pated layoffs surfaced late ing for many people to
Twitter is laying off up to 336 financial losses. ployees in a Tuesday letter last week, investors initially use, turning off new users
employees, signaling CEO Cutting costs can boost that a more streamlined fretted that Dorsey might at a time when other social
Jack Dorsey’s resolve to profits but at Twitter, it has company will result in more be reacting to disappoint- services such as Snapchat
slash costs while the com- also raises uncertainty products rolling out more ing performance in the and Facebook’s WhatsApp
pany struggles to make about the future, the com- quickly. “We feel strongly quarter that just ended in have grown in popularity.
money. pany’s pursuit of faster that engineering will move September. Twitter eased As part of its revival plan,
The cutbacks announced growth and its ability to at- much faster with a smaller those worries Tuesday by Twitter last week unveiled
Tuesday could equate to tract a bigger audience. and nimbler team,” Dorsey disclosing that its revenue a new feature called “Mo-
about 8 percent of Twitter’s The layoffs may be a sign wrote. for the period will hit or ments” that packages
workforce of 4,100 people. of desperation at a sinking Twitter’s workforce has slightly exceed its previ- commentary, video and
The purge comes two company, said Edison In- nearly doubled over the ously target of $545 million photos about major events
weeks after Twitter brought vestment Research analyst past two years, hindering to $560 million. The official that have captured peo-
back one of its co-found- Richard Windsor. efforts to turn a profit for results are due out Oct. 27. ple’s attention. The work
ers as permanent CEO in “It is important to run a the first time in its nine-year Twitter’s stock gained 99 on Moments began while
hopes that Dorsey would tight ship, but simply cut- history. Since Dorsey and cents, or 3.5 percent, to Dorsey’s predecessor, Dick
be able to resolve prob- ting jobs is often the action his partners started the ser- $29.74 in midday trading Costolo, was still Twitter’s
lems that have slowed user of a company that does vice, Twitter has lost nearly Tuesday. CEO.q