Washington Mutual Inc. (NYSE: WM) reported Tuesday that it lost more than $1 billion in the first quarter, dragged down by the struggling economy and flagging real estate values.
The Seattle-based bank lost more than $1.1 billion, or $1.40 per share, compared with a profit of $784 million, or 86 cents per share, in the first quarter of the previous year. Analysts polled by Thomson Financial had forecast a loss of $1.05 per share.
Washington Mutual said it needed to set aside $3.5 billion to cover bad loans in its $250 billion portfolio during the period. The bank set aside less than half as much to cover bad loans in the year-ago period.
While shares closed up 3% to $10.66 in regular trading Tuesday, they fell in after-hours trading.
Railroad operator CSX Corp. (NYSE: CSX) reported that its first-quarter profit soared 46%, lifted by fuel surcharge recovery and with rising ethanol and grain volumes.
CSX said it earned $351 million, or 85 cents per share, compared with $240 million, or 52 cents per share, in the previous year. Revenue rose 12% to $2.7 billion. Analysts surveyed by Thomson Financial had forecast 74 cents per share on revenue of $2.63 billion.
The company also said it expects to reach the "upper end" of its previous full-year guidance of at $3.40 to $3.60 per share.
Shares closed up 66 cents to $57.77 on Tuesday, then surged an additional $1.35 in after-hour trading.
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Reader Comments (Page 1 of 1)
4-16-2008 @ 7:20AM
B. Harrison said...
Blame the "Harvard & Princeton 'MBA" bypes" for driving the outsourcing of everything to foreign countries, and undermining the manufacturing base of the USA.Manufacturing is the core base of our economy . .. keeping Americans employed and our money circulating within our own country. The "MBAs" destroyed all of that in their quest to maximize quarterly profits. Repeatedly, the "one bright spot" in all of the economic news is our export news. It will take a decade or more to rebuild our lost industries. Temporaily suspending gasoline taxes is a token bandaid of questionable value to placate the "masses". We need REAL LONG TERM SOLUTIONS; and Congress is doing NOTHING to help