GE in $5.7 B Deal with Haier; BlackRock, Citigroup Profit Surge

Mukesh Buch
15 Jan, 2016
New York City

BlackRock profit jumped 6%. Citigroup net surged after loan losses slumped and operating expenses declined. GE plans to sell its appliance business to China-based Haier for $5.4 billion. Fastenal net declined 6%. Wells Fargo net in the quarter was flat at $5.7 billion.

[R]9:30 AM New York – BlackRock profit jumped 6%. Citigroup net surged after loan losses slumped and operating expenses declined. GE plans to sell its appliance business to China-based Haier for $5.4 billion. Fastenal net declined 6%. Wells Fargo net in the quarter was flat at $5.7 billion.[/R]

Tollbooth Index dropped 187.08 or 1.8% to 9,971.64.

Earnings Review

BlackRock, Inc ((BLK)) slumped 4.3% or $13.32 to $296.68 after the investment management company said revenues in the fourth-quarter ending in December increased 4% from a year ago to $2.86 billion.

Net income in the quarter jumped 6% to $861 million or $5.11 per diluted share compared to $813 million or $4.77 per share from the same quarter last year.

Citigroup Inc ((C)) plunged 6.4% or $2.91 to $42.47 after the financial services provider reported revenues in the fourth-quarter ending on December jumped 4% from a year ago to $18.5 billion.

Net income in the quarter surged to $3.3 billion or $1.02 per diluted share compared to $344 million or 6 cents per share from the same quarter last year.

Citigroup reported loans in the period dropped 4% to $618 billion while deposits rose 1% to $908 billion.

Citigroup said total allowance for loan losses at quarter slumped 2.06% to $12.6 billion compared to $16 billion at the end of the prior year period.

The bank said operating expenses including legal and related expenses in the quarter declined to $411 million from $2.9 billion in a year ago period.

General Electric Co ((GE)) slipped 1.9% or 57 cents to $28.49 after the diversified industrial conglomerate said it plans to sell its appliance business to China-based Haier Group for about $5.4 billion in cash.

Fastenal Company ((FAST)) plunged 4.1% or $1.58 to $37.67 after the industrial tools and equipment maker said net sales in the fourth-quarter ending in December slid 0.4% from a year ago to $922.8 million.

Net earnings in the quarter declined 5.5% to $111.9 million or 39 cents per diluted share compared to $118.4 million or 40 cents per share from the same quarter last year.

Wells Fargo & Company ((WFC)) declined 3.6% or $1.84 to $48.80 after the financial services provider stated revenues in the fourth-quarter ending in December decreased 1% from a year ago to $21.6 billion.

Net income in the quarter was flat at $5.7 billion and diluted earnings per share increased to $1.03 compared to $1.02 from the same quarter last year.

U.S. Bancorp ((USB)) dropped 2.2% or 89 cents to $39.04 after the financial services provider said total interest income in the fourth-quarter ending in December increased 1.9% from a year ago to $1.16 billion.

Net income in the quarter rose 0.7% to $1.48 billion or 80 cents per diluted share compared to $1.49 billion or 79 cents per share from the same quarter last year.