Merrill Lynch & Co Inc on Wednesday reported $7.9 billion in write-downs for the third-quarter, the company's first loss in six years.
The write-down was much lower than the $5.5 billion the world's largest brokerage forecast earlier this month.
Merrill reported a net loss of $2.3 billion, or $2.85 a share, from continuing operations, compared with profit of $3 billion, or $3.14 a share, last year.
Third quarter 2007 total net revenues of $577 million decreased 94 percent from $9.8 billion in the prior-year period and were down 94 percent from $9.7 billion in the second quarter of 2007.
Uncertainty
These write-downs and losses were partially offset by strong revenues in Global Wealth Management, Equity Markets, and Investment Banking, particularly in regions outside of the U.S.
Merrill Lynch Chairman and Chief Executive Stan O'Neal cited continued uncertainty in the market for risky subprime mortgages however in a statement he remained positive that Merrill is “ working to resolve" the remaining impact.
Merrill Lynch’s third quarter 2007 pre-tax net loss was $3.5 billion.
October 24 2007
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