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Thursday 20 april 2017 BUSINESS
A24

CSX 1Q profit rises slightly as restricting limits profit

JOSH FUNK The railroad said that with- the railroad is in the early “I am pleased to join the nadian provinces.
AP Business Writer out the $173 million restruc- stages of major operation- CSX team and working CSX shares have risen 31
OMAHA, Neb. (AP) — CSX turing charge it would have al changes after hiring CEO together we are going to percent since the begin-
Corp.’s first-quarter profit delivered earnings per Hunter Harrison, who led make this company the ning of the year when it was
rose about 2 percent as share of 51 cents. Canadian Pacific’s turn- best North American rail- first reported that Harrison
the railroad hauled more, The analysts surveyed by around. road, capable of consis- might take over as CEO.
but its results were hurt by FactSet expected CSX to Harrison was hired in March tently meeting and ex- During the same period,
restructuring expenses. report adjusted earnings after the Mantle Ridge ceeding the expectations the Standard & Poor’s 500
The Jacksonville, Flori- per share of 43 cents. hedge fund pressured the of our customers and our index has climbed slightly
da-based railroad said CSX said its revenue im- railroad to make changes. shareholders,” Harrison more than 4 percent.
Wednesday that it earned proved 10 percent to $2.87 Harrison has a track re- said in a statement with The company’s stock rose
$362 million, or 39 cents per billion. Analysts expected cord of reducing costs and Wednesday’s earnings re- $1.42, or 3 percent, to
share. $2.76 billion. boosting profits through the port. $48.35 in after-hours trading
That’s up from $356 million, CSX announced 1,000 lay- scheduled operating mod- CSX operates more than
or 37 cents per share, a offs of management em- el he developed at CP and 21,000 miles of track in 23 following the release of the
year ago. ployees in February, and Canadian National. Eastern states and two Ca- earnings report.
Morgan Stanley posts strong profit, helped by trading desks

largely due to lackluster it has, was 10.7 percent in
trading, there were con- the quarter. Morgan Stan-
cerns that Morgan Stanley ley’s top management
might be in a similar posi- had made it a high priority
tion. for the company to have a
That turned out not to be return on equity above 10
the case. percent.
Morgan Stanley’s institu- “We reported one of our
tional securities division, strongest quarters in recent
which includes its invest- years. All of our business-
ment bank and trading op- es performed well in im-
erations, had net revenue proved market conditions,”
of $5.15 billion compared Morgan Stanley Chairman
with $3.71 billion a year and CEO James Gorman
earlier. While stock sales said in a statement.
and trading revenue were In wealth management,
down slightly from a year Morgan Stanley had net
earlier, typically a spot that revenues of $4.1 billion
In this 2012 photo, people pass Morgan Stanley headquarters in New York. Wealth management Morgan outperforms in, compared with $3.7 bil-
and investment banking firm Morgan Stanley saw profits rise 74 percent in the first quarter, helped the firm made up for it in its lion in the same period
by its well-regarded trading desks. fixed-income department. a year earlier. The busi-
(AP Photo/Richard Drew) Bond sales and trading ness expanded assets un-
KEN SWEET management arm, a part compared with $1.13 bil- revenues were $1.7 billion der management to $2.19
AP Business Writer of the firm’s business that lion, or 55 cents per share, versus $873 million a year trillion from $1.999 trillion a
NEW YORK (AP) — Wealth its executives have been in the same period a year earlier. year earlier, despite cutting
management and invest- focusing much of its energy earlier. The results topped Notably, the firm reported back on retail locations
ment banking firm Morgan on, also had higher profits analysts’ expectations of that its annualized aver- and slightly reducing the
Stanley saw profits rise 74 in the quarter. 89 cents per share, accord- age return on common number of wealth manag-
percent in the first quarter, The New York-based bank ing to FactSet. equity, a metric used by ers.
helped by its well-regarded said Wednesday that it After Goldman Sachs re- investment banks to mea- Morgan Stanley’s stock
trading desks. earned $1.93 billion in the ported a disappointing first- sure how well the bank is rose $1.06, or 2.5, percent
Morgan Stanley’s wealth first quarter, or $1 a share, quarter profit on Tuesday, performing with the assets to $42.27.

American Express profit falls 13 percent, but tops forecasts

KEN SWEET same period a year earlier. able portion of American man and CEO Kenneth cards as well, which is
AP Business Writer American Express earned Express’ credit card loans Chenault. Removing Cost- good for AmEx since it can
NEW YORK (AP) — Credit $1.34 a share compared and its billed business. To co, AmEx had a relatively charge interest.
card company American with $1.45 a share a year recover, AmEx has been strong quarter. American Express’ bread
Express said Wednesday ago. That beat analysts’ more aggressively market- Card member spending, and butter are charge
that its first quarter profit forecasts of $1.28 per share, ing its products, as well as a key metric for how often cards, which means the
fell 13 percent from a year according to FactSet. making changes to prod- American Express custom- balance has to be paid off
earlier, as the company The drop in profits from a ucts like the Platinum Card ers are using and spending at the end of every month.
continues to deal with the year earlier mostly has to to entice more customers. on their card, was up 14 American Express had first-
aftermath of losing its part- do with the fact that Ameri- “The results reflect many percent from a year earlier. quarter revenue of $7.9 bil-
nership with warehouse can Express still had the of the investments we’ve AmEx charges a small fee lion, down 2 percent from
chain Costco. Costco co-branded credit been making to grow to a merchant every time $8.1 billion in the same pe-
The New York-based com- card in 2016. the business, plus contin- an American Express card riod a year earlier.
pany said it earned $1.24 That partnership ended in ued progress in reducing is used. AmEx shares rose 2 percent
billion in the quarter, down June. Before the divorce, operating expenses,” said More customers are keep- in after-hours trading to
from $1.43 billion in the Costco represented a size- American Express Chair- ing a balance on their $77.22.