* To take $287 mln in after-tax charges related to job cuts
* To record $212 mln charge on membership rewards program
* To take $95 mln charge for cardmember reimbursements
* Expects Q4 EPS $0.56, adj EPS $1.09
* Q4 rev up 5 pct to $8.1 bln
Jan 10 American Express Co said it would
cut about 5,400 jobs, mainly in its travel division, and would
take about $600 million in after-tax charges in the fourth
quarter, which will halve its net income for the period.
The company said some of the cuts would be offset by new
hiring but expects to reduce its workforce 4 to 6 percent by the
end of 2013. It currently employs 63,500 people.
New York-based AmEx said the reductions would be spread
proportionately between the U.S. and international markets.
"For the next two years, our aim is to hold annual operating
expense increases to less than 3 percent," Chief Executive
Kenneth Chenault said in a statement.
The company said it recorded a $287 million after-tax
restructuring charge in the quarter. It also booked a $212
million charge to account for a larger number of customers
redeeming the rewards they earn while using its cards.
AmEx also took a $95 million charge for cardmember
reimbursements for transactions going back several years.
The company said cardmember spending grew 8 percent in the
fourth quarter, the third straight quarter of single-digit
growth after nine quarters of double-digit growth.
AmEx expects to report a profit of $637 million, or 56 cents
per share, including the charges.
Excluding the items, the company estimates fourth-quarter
adjusted net income at $1.2 billion, or $1.09 per share.
Consolidated total revenue net of interest expense rose 5
percent to $8.1 billion in the quarter.
Analysts on average expected the company to earn $1.06 per
share, excluding items, on revenue of $8.12 billion, according
to Thomson Reuters I/B/E/S.
Shares of the company rose 1 percent to $61.45 in trading
after the bell. They closed at $60.79 on the New York Stock
Exchange on Thursday.