Lehman Brothers Holdings Inc. today reported net income of $194 million, or $0.70 per common share (diluted), for the third
quarter ended August 31, 2002, compared with $309 million, or $1.14 per common share (diluted), reported for the third quarter of fiscal 2001.
For the first nine months of fiscal 2002, net income was $788 million, compared with $1,125 million for the comparable period of fiscal 2001.
Net revenues (total revenues less interest expense) for the third quarter were $1.35 billion, compared to $1.63 billion in the third quarter of fiscal 2001, and $1.66 billion in the fiscal 2002 second quarter. The challenging market conditions experienced in the first half of the year deteriorated further in the third quarter due to widening spreads in the credit markets, driven by a record level of downgraded debt and an increased level of defaults, and a steep decline in global equity markets. In addition, investment banking revenues reflected continued weak merger and acquisition and equity origination levels, as well as lower debt underwriting volume in the market.
For the first nine months of fiscal 2002, net revenues were $4.6 billion, compared with $5.5 billion for the first nine months of fiscal 2001.
For the quarter ended August 31, 2002, the Firmâ€™s pre-tax operating margin was 20 percent, and the Firmâ€™s return on common equity was 9 percent. Despite the prolonged period of challenging market conditions, the Firmâ€™s pre-tax operating margin was 25 percent, and return on common equity was 12.5 percent for the first nine months of the year (excluding special preferred dividend).
As of August 31, 2002, Lehman Brothers stockholdersâ€™ equity and trust preferred securities totaled $9.6 billion, and total capital (stockholdersâ€™ equity, trust preferred securities, and longterm debt) was approximately $48 billion. Book value per common share was $33.49.
For further information please visit www.lehman.com.
(source: Lehman Brothers)