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American Express Posts 32% Rise in Net Income

October 18, 1985

American Express, a leading provider of financial and travel services, said its profit jumped 32% in the third quarter as its revenue climbed 14%.

The company reported a profit of $245.2 million for the three months ended Sept. 30, compared to $185.2 million a year ago. Its revenue rose to $3.8 billion from $3.3 billion a year earlier.

James D. Robinson III, chairman and chief executive, said the company achieved "substantial gains" in both the growth of its longstanding businesses such as travel-related services and through newer earnings streams, such as its IDS Financial Services.

Net income for the company's travel-related services rose 19% to $140 million in the quarter.

Its credit card charge volume rose 19% to $14.1 billion in the quarter, while sales of its travelers checks rose 7.8% to $5.6 billion.

Its international banking services division reported that its earnings rose 10% to $40 million in the third quarter, while the investment services division posted a 20% earnings gain to $36 million.

Its IDS Financial Services net income was up 28% to $20 million, while insurance services net income was up 144% to $34 million.

Warner Amex Cable Communications posted a profit for the quarter, American Express said, although it did not specify how much.

American Express owns 50% of Warner Amex, but it has agreed to sell its share to its partner, Warner Communications, for $450 million. The cash transaction is expected to be completed next year.

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