Goldman Sachs Reports Wider than Expected Loss for Q3 2011

October 18 00:00 2011

New York, October 18 (RainbowNewsLine.com) – New York-based Goldman Sachs Group reported a third quarter loss of $393 million, or 84 cents per share, compared with a profit of $1.9 billion, or $2.98 per share, a year earlier. It was the second quarterly loss in 12 years. Goldman Sachs lost money on investments and revenues from trading, asset management and from the decline in securities underwriting.

The third quarter loss was far worse than the average estimate of 26 analysts surveyed by Bloomberg, which was 11 cents per share, with estimates ranging from a $1.02 loss to a $1.22 profit.

Before the results were released, Jon Fisher, a portfolio manager at Fifth Third Asset Management in Minneapolis, which has about $16 billion under management, said that the third quarter “was a very challenging trading quarter and subsequent quarters are likely to be a repeat given the current market environment,” and added that “Any positive comments made regarding the near-term trading environment are unlikely to be believed.”

Goldman Sachs dropped to $96 in New York at 7:57 a.m. from $96.90 yesterday. The stock has fallen 42 percent this year, compared with a 24 percent decline in the Standard & Poor’s 500 Financials Index.

The company, in a statement in July, had said that it planned to cut 1,000 jobs to reduce annual costs by $1.2 billion. At the end of September it had 34,200 employees, down 1,300 from the end of June.

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