American Express Posts a 21% Quarterly Gain
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American Express Co. reported a 21% gain in second-quarter profit, but its core charge card and travel-related businesses continued to post disappointing results.
The New York company benefited from an after-tax gain of $425 million from the public sale of shares in its First Data Corp. subsidiary in April.
Weighing against that were a $300-million addition to reserves by its troubled Balcor Co. real estate subsidiary and an $84-million charge against earnings by its Shearson Lehman Bros. Inc. investment unit.
Overall, American Express’ earnings were $310 million, or 63 cents a share, up from $256 million, or 53 cents a share, a year earlier. Revenue rose 7.8% to $6.98 billion from $6.48 billion.
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