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Schaeffer's Street Stories: State Street Corporation Hammered to New Lows on Earnings Warning


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Published in Business and Finance on Tuesday, January 20th 2009 at 11:29 GMT, Last Modified on 2009-01-20 11:29:33 by Market Wire   Print publication without navigation


CINCINNATI--([ BUSINESS WIRE ])--The shares of State Street Corporation (NYSE: STT) have plummeted more than 50% this afternoon following news that quarterly earnings fell sharply and unrealized losses jumped in its commercial paper program and investment portfolio.

For the fourth quarter, net income came in at $65 million, or 15 cents per share, down from $223 million, or 57 cents per share, a year earlier. The numbers include expenses to cut its workforce and prop up ailing funds. On an operating basis, earnings were $511 million, or $1.18 per share, down from $540 million, or $1.38 per share, a year earlier.

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