How do you lose two billion dollars in three months and still be in business?
Merrill Reports Big Loss, Plans 4,000 Layoffs
April 17, 2008, 6:53 am
Merrill Lynch said Thursday that it lost $1.96 billion for the first quarter this year, as the meltdown in the housing and credit markets continued to batter the firm.
Much of that stemmed from more than $9.4 billion in write-downs and “credit valuation adjustments” tied to the firm’s holdings in mortgage securities and loans meant to finance leveraged buyouts. The firm also said it intends to cut 4,000 jobs, or 10 percent of its workforce.
The loss, which amounts to $2.19 a share on revenues of $2.93 billion, is a sharp reversal from the $2.16 billion in profit and $9.6 billion in revenue it earned in the same time last year. Analysts surveyed by Bloomberg News had expected on average a loss of $1.79 a share.
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