American Express earnings hit by unit sale

American Express Co., which specializes in travel services and credit cards, on Monday reported fourth quarter earnings that were down from year-earlier results that included profits from a financial planning unit it no longer owns.

Excluding the unit, which now operates independently as Ameriprise Financial Inc., results in the October-December period were up 12.2 percent from a year earlier, boosted in part by higher spending on the company's cards.

New York-based American Express said net income totaled $745 million, or 59 cents a share, in the fourth quarter, down about 17 percent from the year-earlier profits of $896 million, or 71 cents a share.

Excluding the spin-off costs for Ameriprise and related businesses, fourth-quarter earnings were $751 million, or 60 cents a share, up from $669 million, or 53 cents a share, a year earlier.

Revenues were $6.44 billion in the fourth quarter, a 9 percent increase over the $5.9 billion reported a year earlier.

Analysts surveyed by Thomson Financial had projected earnings of 59 cents a share of income of $6.84 billion.

While a number of financial institutions took a hit to earnings because of the spike in bankruptcy filings ahead of the Oct. 17 change in the nation's bankruptcy law, American Express was less affected because many of its customers have high incomes and are less likely to file for bankruptcy.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Kenneth I. Chenault, chairman and chief executive, said in a statement accompanying the report that "higher spending by affluent consumers, small businesses and corporate card members more than offset the impact of an industrywide spike in bankruptcy filings."

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

He said that aggressive marketing helped add 2 million new cards in the fourth quarter and that spending grew 15 percent.

Chenault noted the card company's 2005 deals with major U.S. financial institutions, including Citibank in New York and Bank of America in Charlotte, N.C., and added: "All in all, American Express is entering 2006 in excellent competitive position."

For the full year, net income totaled $3.73 billion, or $2.97 a share, up 8.4 percent from $3.45 billion, or $2.68 a share, in 2004. Profits from continuing operations were $3.22 billion, or $2.56 per share, for all of 2005, up from $2.69 billion, or $2.09 a share, in 2004.

Revenue for the year was $24.27 billion, up 10.5 percent from $21.96 billion in 2004.