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Merrill Lynch Profit Up 30% for Quarter

October 14, 1987

Merrill Lynch & Co. announced Tuesday that its third-quarter earnings rose 30% on gains from investment banking and real estate transactions.

The investment firm said it earned $195.1 million, compared to $93.7 million in the third quarter of 1986.

The latest quarter results include a $100.3-million after-tax gain from the sale of Merrill Lynch's right to acquire a partnership interest in a building in the World Financial Center in Manhattan and from related transactions.

Merrill Lynch reported third-quarter revenue of $3.02 billion, against $2.33 billion a year earlier.

The company said its investment banking revenue was up 21% on gains in corporate bond and stock underwritings and private placements. Revenue from principal transactions--those carried out for Merrill Lynch's own account--fell 5% because of losses throughout the fixed-income markets.

Chairman William A. Schreyer expressed satisfaction with Merrill Lynch's performance, noting that the company's earnings would have been ahead of 1986 levels even without the gain from the World Financial Center sale.

For the first nine months of the year, Merrill Lynch reported earnings of $387.1 million, up 43% from $271.6 million in the first three quarters of 1986.

Revenue for the period totaled $8.16 billion, compared to $6.84 billion a year earlier.

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