Bear Stearns posts loss after subprime writedowns

Source: Exec Digital USA

Date :12/20/2007 4:01:07 AM

Bear Stearns Companies Inc. reports bigger-than-expected writedown of its mortgage portfolio caused the investment bank’s fourth quarter loss.

For the fiscal year and the fourth quarter ended November 30 the leading financial services firm reported $1.52 earnings per share (diluted), compared with $14.27 for fiscal 2006.

Net income for the fiscal year was $233 million compared with $2.1 billion earned in fiscal year ended November 30, 2006 while net revenues for the 2007 fiscal year were $5.9 billion, compared with $9.2 billion in the prior fiscal year.

The after-tax return on common stockholders' equity was 1.8 percent for fiscal 2007.

Financial performance

The net loss for the fourth quarter of 2007 was $854 million as compared with net income of $563 million for the fourth quarter of 2006.

Net revenues for the 2007 fourth quarter were a loss of $379 million down from revenues of $2.4 billion for the 2006 fourth quarter.

"We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses," said James E. Cayne, chairman and chief executive officer.

December 20, 2007