NEW YORK (Thomson Financial) - Merrill Lynch Thursday reported a fourth-quarter loss from continuing operations of $10.3 billion, or $12.57 a share, down from year-ago equivalent earnings of $2.2 billion, or $2.29 a share.
The company's net loss for the latest quarter was $9.8 billion, or $12.01 a share, down from a profit of $2.3 billion, or $2.41 a share.
Merrill said it recorded net writedowns of $11.5 billion in the latest fourth quarter from U.S. asset-backed securities collateralized debt obligations, or CDOs, and U.S. subprime residential mortgages outside of the company's U.S. bank-related investment securities portfolio.
It also recorded credit valuation adjustments of $2.6 billion in the latest quarter stemming from hedges with financial guarantors on U.S. asset-backed securities CDOs.
'While the firm's earnings performance for the year is clearly unacceptable, over the last few weeks we have substantially strengthened the firm's liquidity and balance sheet,' said John Thain, the company's chairman and chief executive officer.
Revenue came in at negative $8.2 billion for the fourth quarter, compared to $8.4 billion a year earlier.
Merrill said its net exposures to U.S. asset-backed securities CDOs totaled $4.8 billion at the end of the fourth quarter, down from $15.8 billion at the end of the third quarter.
The mean estimate of analysts polled by Thomson Financial was for a loss of $4.93 a share in the December period.
The stock closed Wednesday at $55.09. Michael Baron mb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The company's net loss for the latest quarter was $9.8 billion, or $12.01 a share, down from a profit of $2.3 billion, or $2.41 a share.
Merrill said it recorded net writedowns of $11.5 billion in the latest fourth quarter from U.S. asset-backed securities collateralized debt obligations, or CDOs, and U.S. subprime residential mortgages outside of the company's U.S. bank-related investment securities portfolio.
It also recorded credit valuation adjustments of $2.6 billion in the latest quarter stemming from hedges with financial guarantors on U.S. asset-backed securities CDOs.
'While the firm's earnings performance for the year is clearly unacceptable, over the last few weeks we have substantially strengthened the firm's liquidity and balance sheet,' said John Thain, the company's chairman and chief executive officer.
Revenue came in at negative $8.2 billion for the fourth quarter, compared to $8.4 billion a year earlier.
Merrill said its net exposures to U.S. asset-backed securities CDOs totaled $4.8 billion at the end of the fourth quarter, down from $15.8 billion at the end of the third quarter.
The mean estimate of analysts polled by Thomson Financial was for a loss of $4.93 a share in the December period.
The stock closed Wednesday at $55.09. Michael Baron mb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.