Tuesday, July 17, 2012

Goldman Sachs Beats Estimates as Profit Dives 11%




According to Blooomberg Goldman Sachs Group Inc. (GS) plans to cut $500 million of expenses this year, mostly from compensation, after reporting the lowest first-half revenue and earnings in seven years.

   “We’re controlling the levers that we can, which are expenses and capital,” Chief Financial Officer David A. Viniar, 56, said today on a conference call with analysts. “We obviously don’t want to go too far on either one because we think that the world will get better.”

CEO Lloyd C. Blankfein, 57, who has run the company for six years, cut 3,200 jobs in the past 12 months to contend with a slowdown that he said was a temporary reaction to the 2008 financial crisis. After revenue in all of the firm’s businesses fell in the first half of 2012, the company is adding new cost cuts to the $1.4 billion achieved since last year, Viniar said.

Second-quarter net income slid to $962 million, or $1.78 a share, in the three months through June 30, from $1.09 billion, or $1.85, a year earlier, New York-based Goldman Sachs said today in a statement...

Read more at http://www.bloomberg.com/news/2012-07-17/goldman-sachs-profit-falls-11-beating-estimates.html

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