Banks’ Profits Exceed Estimates

Several of the largest U.S. banks, led by Chase Manhattan Corp., on Tuesday reported higher-than-expected earnings for the third quarter as a strong economy helped boost loans and fee income.

Citicorp said third-quarter earnings rose 14% before a charge for cutting 7,500 jobs as the bank tries to streamline its back office and computer systems and strengthen its marketing.

The second-largest U.S. bank said profit from operations rose to $1.07 billion, or $2.19 a share, from $935 million, or $1.85 a share, in the same quarter last year.

Citicorp’s profit was reduced by a $556-million charge. The bank said it plans to reduce its workers by 8% and expects to lay off 9,000 workers in the next 18 months and hire 1,500.

Earnings at Chase, the No. 1 U.S. bank, rose 17%, led by a 24% jump in non-interest revenue, especially trading profit and fees for corporate finance and syndication. The bank said profit from operations rose to $1.03 billion, or $2.27 a share, from $878 million, or $1.85 a share, in the year-ago quarter. The results exclude costs related to its merger with Chemical Banking Corp.

Banc One’s third-quarter earnings rose 4.9% to $433.2 million, or 73 cents a share, from $412.8 million, or 69 cents, a year earlier.

Bank of New York’s earnings gained 9.6% to $433.2 million, or 73 cents a share, from $412.8 million, or 69 cents, a year earlier.

At a Glance:

Oil companies reported third-quarter gains from refining gasoline and other petroleum products. Exxon Corp., the No. 1 U.S. oil company, said profit rose to a record $1.82 billion, or 74 cents a share, from $1.56 billion, or 62 cents, a year earlier. No. 3 Texaco said profit rose to $490 million, or 91 cents a share, from $434 million, or 80 cents a share, a year earlier.

Amoco said profit of $635 million, or $1.30 per share, held steady with a year ago, when earnings included a gain.

Lucent Technologies said fiscal fourth-quarter profit rose 45%, before charges for a recent acquisition, to $369 million, or 57 cents a share, from $255 million, or 40 cents, a year earlier.

Lockheed Martin said its third-quarter earnings rose 6% to $331 million, or $1.51 per share, compared with $311 million, or $1.38, during the same period last year.

Salomon Inc. said its third-quarter profit rose 84% to $206 million, or $1.77 per share, compared with $112 million, or 88 cents, a year ago.

Goodyear Tire & Rubber Co. said its third-quarter earnings rose 14% to $194.1 million, or $1.25 a share, from $170.2 million, or $1.09 a share, a year earlier.

Waste Management Inc. reported third-quarter profit of $172.1 million, or 38 cents a share, down from $245.2 million, or 49 cents, in 1996.

Kimberly-Clark reported third-quarter earnings fell 16% to $316 million, or 57 cents a share, down from $377 million, or 67 cents, a year ago, which included a one-time gain.

Monsanto Co. lost $133 million in the third quarter as it absorbed a one-time research and development charge, losing 23 cents per share, compared with earnings of $170 million, or 28 cents, a year ago.

Allstate Corp. reported its third-quarter profit jumped 182%, which included a gain, to $824 million, or $1.89 a share, from $292 million, or 65 cents a share, a year earlier.

Tricon Global Restaurants, recently spun off from PepsiCo, reported third-quarter profit from operations of $54 million, or 35 cents per share, compared with $52 million, or 34 cents a share, a year ago.

Northwest Airlines said third-quarter profit, boosted by strong travel demand in the U.S., rose more than 14% to $290.3 million, or $2.75 a share, up from $253.9 million, or $3.15, in the year-ago period, which included a gain.

Hershey Foods Corp. said third-quarter earnings rose 6.8% to $100.7 million, or 68 cents share, from $94.3 million, or 61 cents, a year earlier.