John W. Simpson, 92, Dies; Pioneer Of Nuclear Power Mr. Simpson played a major role in developing the nation’s first commercial nuclear power plant.... Read Full Article Administration Seeks Overhaul Of Patent System The goal is to improve the quality of patents, which should curb the rising wave of patent disputes and lawsuits, the director of the government’s patent office said.... Read Full Article Iraq’s Escape Is Soccer, But Soccer Can?t Escape War Sports fandom is a universal phenomenon, but in Iraq, soccer, the country’s most popular sport, may have greater meaning than usual.... Read Full Article Delays Continue At New Heathrow Terminal Canceled flights and continued struggles with the with the new computerized baggage-handling system could cost British Airways up to $50 million, analysts said.... Read Full Article Universal Near Deal With Video Site On Royalties Universal Music Group is negotiating a settlement with Bolt.com, an online community that it sued over copyright infringement.... Read Full Article |
Goldman Beats Estimates Despite Market TurmoilGoldman Sachs topped estimates for fourth-quarter earnings on Tuesday, rounding out another record year despite the turbulence in the financial markets. Multimedia mm.DI = true; mm.LI = true; mm.AH = "Back Story With The Times’s Jenny Anderson"; mm.AS = ""; mm.AD = "444"; mm.AU = "http://graphics8.nytimes.com/podcasts/2007/12/18/19backstory-anderson.mp3"; mm.IU = ""; writePlayer();Net income edged up 2 percent, to $3.2 billion, while earnings per share rose 6 percent, to $7.01. Analysts surveyed by Thomson Financial expected $6.61 a share. Revenue rose 14 percent, to $10.7 billion. Return on equity, a measure of the investment bank’s profitability, was 34.6 percent for the quarter. In the period a year earlier, profit was $3.15 billion, or $6.59 a share. The firm was helped by increased client activity, bets that the subprime mortgage market would fall and strong commodity results. It was also aided by the sale of a majority interest in 14 power generation facilities held by Cogentrix Energy Inc., which netted Goldman $800 million. Lloyd Blankfein, Goldman’s chairman and chief executive, said, “We are ever mindful of the importance of effective risk management.” He said the company continues to see “significant growth opportunities across the global economy.” Goldman’s investment banking pipeline, deals it has in the works, decreased during the quarter but was higher than it was at the end of 2006, according to a statement. For the year, profit rose 21 percent, to $11.4 billion from $9.4 billion in 2006. Earnings per share totaled $24.73, up 26 percent. Revenue soared 22 percent, to $46 billion, with every major business line reporting solid increases, led by investment banking. Asset management and securities services were the laggards, with only a 5 percent increase in revenue. For the fourth quarter, debt-underwriting revenue fell 15 percent from the same period a year ago, hurt by the slowdown in leveraged lending, which depends on the debt market to finance buyouts. Total principal investments fell 26 percent, to $1 billion. A number of businesses suffered from the third quarter, however, with fixed-income revenue falling 32 percent, equities trading falling 25 percent, financial advisory tumbling 12 percent and total trading and principal investing taking a 16 percent hit. Value-at-risk, which measures the amount of money the company might lose on a given day, skyrocketed to $151 million from $106 million for the fourth quarter of 2006. Shares of Goldman were down $1.63, to $207, in early trading. Tag CloudExternal InformationAdditional InformationOn the Contrary: Profiting With Honor...Advertising: Newspaper Readers of a Different Kind... Patchwork City: Insurers Bear Brunt of Anger in New Orleans... Labor Rights Issues Are Stalling Trade Pacts... Where Am I?News Main Page - Business - Goldman Beats Estimates Despite Market Turmoil |
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