Tuesday, March 25, 2008

Merrill Lynch 2008 Profit Estimate Cut 45% at JPMorgan

Merrill Lynch 2008 Profit Estimate Cut 45% at JPMorgan

March 25 (Bloomberg) -- Merrill Lynch & Co. had its 2008 profit estimates cut by 45 percent at JPMorgan Chase & Co. on concern the third-largest U.S. securities firm may report further writedowns on subprime mortgages.

Analyst Kenneth Worthington lowered his earnings estimates for this year to $2.75 a share from the previous projection of $5 a share. For 2009, he now expects New York-based Merrill to earn $5.09 a share, down from the previous estimate of $5.57.

Merrill may report a total of $5 billion in additional losses on collateralized debt obligations, so-called Alt-A mortgages and commercial mortgages, the New York-based analyst said.

Merrill shares fell 1.8 percent to $47.50 before the official open of U.S. exchanges.

BLOOMBERG

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