c/o AP
American International Group took a really huge hit in profit in the fourth calendar quarter of 2014, with figures dropping 67 percent as the insurance provider focused on paying down its debt and injecting more funds into its reserves.
AIG announced Thursday as part of its quarterly financial report that net income was down to $ 655 billion in Q4 2014, a big drop from $ 1.98 billion in Q4 2013. Earnings per share, likewise, dropped from $ 1.34 to $ 0.46 over the same timeframe. Operating profit, which does not include certain items related to investing and debt, came in at $ 0.97 per share, which was nine cents off Bloomberg's average forecast of $ 1.06.
Since assuming the role of chief executive in September, AIG's Peter Hancock has been working to improve operational efficiency and reshuffling management, and these moves have included the issuance of new bonds at reduced interest rates, in hopes of repaying top-tier debt. The insurer also took a charge-off of $ 824 million in relation to Hancock's initiatives. AIG stock had slid $ 0.34 to $ 52.11 following the company's announcement, but is currently at $ 53.96.
Despite its poor performance in the fourth quarter, analysts believe AIG has a chance of redeeming itself in 2015 due to Hancock's efforts. According to Sanford C. Bernstein analyst Joshua Stirling, 2014 may be a "transitional year," making way for the "operational progress" he and his firm expect for the current calendar year.
LOL of the day:
No comments:
Post a Comment