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PAINEWEBBER POSTS RECORD FOURTH QUARTER AND YEAR END RESULTS; FOURTH SUCCESSIVE QUARTERLY INCREASE IN PROFITS

 PAINEWEBBER POSTS RECORD FOURTH QUARTER AND YEAR END RESULTS;
 FOURTH SUCCESSIVE QUARTERLY INCREASE IN PROFITS
 NEW YORK, Jan. 21 /PRNewswire/ -- PaineWebber Group Inc. (NYSE: PWJ) today reported record results for 1991 and the fourth quarter. The company also said its latest quarter was the fourth successive quarterly increase in profits.
 For the 1991 fourth quarter:
 -- PaineWebber reported that net earnings were $46,972,000, or $0.96 per share ($0.77 fully diluted), compared to operating income of $3,106,000 before a charge of $95,452,000 for restructuring and merchant banking reserves, which resulted in a loss of $92,346,000, or $2.64 per share, in the year ago period.
 -- Revenues, including net interest, for the 1991 fourth quarter increased 43 percent to a record $585,412,000, compared with revenues of $409,137,000 a year ago.
 For the year:
 -- PaineWebber reported record net earnings of $150,716,000, or $3.15 per share ($2.50 fully diluted), compared to a loss, including the charge, of $57,351,000, or $2.16 per share, in 1990. Excluding the charge, PaineWebber earned $38,101,000 in 1990.
 -- Revenues, including net interest, in 1991 increased 22 percent to a record $2,109,771,000, compared with revenues of $1,736,354,000 a year ago.
 All per share amounts reflect the 3-for-2 stock split effected in the form of a stock dividend during the 1991 fourth quarter.
 In addition:
 -- At Dec. 31, 1991, PaineWebber's total capital was $1.87 billion, up 21 percent from $1.55 billion a year ago, and its book value per common share was $18.34.
 -- Recently, PaineWebber's credit ratings were upgraded by three rating agencies -- Moody's Investors Service, Thomson Bankwatch and IBCA Inc. -- reflecting the growth in the firm's capital and the improved liquidity in its balance sheet.
 Donald B. Marron, chairman and chief executive officer, said, "PaineWebber's record results reflect the successful implementation of our strategic programs which positioned the firm to benefit from 1991's buoyant market conditions. Most importantly, we are benefiting from the enormous flow of new capital that individuals and institutions are entrusting to us."
 In particular, Marron noted that, in 1991:
 -- Each of PaineWebber's major revenue generating businesses posted increases for the quarter and the year. For the fourth quarter, revenues from commissions improved 27 percent, principal transactions increased 65 percent, investment banking was up 88 percent and asset management rose by 28 percent. For the year, revenues from commissions increased 11 percent, principal transactions improved 39 percent, investment banking rose 26 percent and asset management increased 20 percent.
 -- PaineWebber's retail sales and marketing business posted record results in the fourth quarter and for the full year, reflecting four years of continued gains in market share.
 -- Assets under control at PaineWebber grew by 26 percent to $93.2 billion, up from $73.8 billion a year ago. PaineWebber's asset gathering strategy is providing the planned effect of increasing recurring fee-driven revenues.
 -- Institutional sales and trading, both debt and equity, had a record year reflecting an increased focus on client service and risk management.
 -- PaineWebber continued its focus on cost containment which resulted in increased profitability and profit margins on an expanded revenue base.
 "Clearly, it was the emphasis we placed, over the past few years, on improving our infrastructure, controlling costs including compensation, and investing in technology that has driven PaineWebber's expenses down and is allowing us to generate higher profits," Marron said. "While 1991 revenues increased 22 percent, we were able to reduce total non- compensation expenses from 1990's level."
 He concluded by stating, "Our industry is undergoing fundamental change. It is clear that individual and institutional investors have enormous investing power and are attracted to firms that are customer- focused and provide value-added products and services. Implementation of our goal to establish an even stronger relationship with our clients -- a relationship responsive to their needs and based on trust -- made us more successful in 1991 and, we believe, will continue to propel our growth in the future."
 PaineWebber Group Inc., with its subsidiaries PaineWebber Incorporated and PaineWebber International, serves the investment and capital needs of a worldwide client base. The firm employs approximately 12,900 people in 268 offices worldwide.
 PAINE WEBBER GROUP INC.
 Summary of Operations and Earnings Per Share
 (Unaudited)
 (In thousands except share and per share amounts)
 Periods ended Quarter Year
 Dec. 31 1991 1990 1991 1990
 Revenues:
 Commissions $190,072 $149,208 $ 723,048 $ 652,238
 Interest 289,748 334,756 1,214,248 1,394,507
 Principal transactions 171,976 103,966 654,195 471,968
 Investment banking 98,263 52,295 292,700 231,430
 Asset management 58,522 45,707 217,433 181,324
 Other 19,591 12,047 64,271 47,038
 Total revenues 828,172 697,979 3,165,895 2,978,505
 Interest expense 242,760 288,842 1,056,124 1,242,151
 Net revenues 585,412 409,137 2,109,771 1,736,354
 Expenses (excluding
 interest):
 Employee comp. &
 related exp. 333,353 244,198 1,228,070 1,032,475
 Office & equipment
 rental 36,279 34,606 137,307 132,465
 Communications 28,908 31,140 115,217 124,408
 Business development 32,926 30,452 115,237 115,872
 Professional services 13,612 15,069 46,773 57,153
 Brokerage, clearing,
 & exch. fees 16,207 15,649 63,219 63,316
 Other 51,863 41,096 177,701 164,170
 Restructuring & merchant
 banking reserves -- 149,128 -- 149,128
 Total expenses
 (excluding interest) 513,148 561,338 1,883,524 1,838,987
 Earnings (loss) before
 taxes 72,264 (152,201) 226,247 (102,633)
 Tax provision (benefit) 25,292 (59,855) 75,531 (45,282)
 Net earnings (loss) 46,972 (92,346) 150,716 (57,351)
 Preferred stock div. 5,783 5,783 23,132 23,174
 Earnings (loss) applic.
 to common shares $ 41,189 $(98,129) $ 127,584 $ (80,525)
 Earnings (loss) per share:
 Primary $0.96 $(2.64) $3.15 $(2.16)
 Fully diluted $0.77 $(2.64) $2.50 $(2.16)
 Weighted average common
 shares:
 Primary 42,865,000 37,169,000 40,497,000 37,362,000
 Fully diluted 60,772,000 37,169,000 63,452,000 37,362,000
 -0- 1/21/92
 /CONTACT: Eileen Ruvane of PaineWebber Inc., 201-902-6768; or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber/
 (PWJ) CO: PaineWebber Group Inc. ST: New York IN: FIN SU: ERN


GK-KD -- NY031 -- 1717 01/21/92 10:31 EST
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Date:Jan 21, 1992
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