|
September 17, 2001 ~ 8:24 am EST
NEW YORK, NY -- Citigroup announced today that it expects earnings for the
third quarter of 2001 to exceed the First Call consensus estimate of $0.75 by $0.02 per share, excluding the
financial impact of the September 11th terrorist attack.
Citigroup anticipates that losses related to the payment of insurance claims, including claims on property in
lower Manhattan, business interruption insurance claims, workers compensation exposure and life
insurance claims could total $500 million, after tax, or approximately $0.10 per share. In addition, the
company expects that the impact of the closing of the stock exchange as well as a number of our branches
for much of last week would reduce earnings by $100 million to $ 200 million after tax, or $0.02 to $0.04 per
share.
"No monetary costs can compare with the human tragedy that our country experienced last week. However,
as we begin to assess the damage incurred and the ensuing costs, we felt it important to give our
shareholders an initial estimate of the financial impact on our company," said Sanford I. Weill, Chairman
and CEO of Citigroup. "I also want to commend the efforts of our employees, whose dedication and hard
work have enabled our company to continue to operate effectively, despite the fact that we evacuated five of
our buildings, causing us to relocate thousands of people to disaster relief sites. Our systems have been
fully functioning throughout this crisis, and where necessary, we have quickly transitioned businesses to
back-up facilities to maintain continuity.
"Our results across the company for July and August were strong, reflecting the diversity of our operations
around the world. Our company's long-term earnings strength and our solid capital base remain
unchanged. Our focus will continue to be on assisting our employees, customers and country in recovering
from this unspeakable tragedy. To help in this effort, we have established a $15 million scholarship fund to
be further enhanced by contributions from employees for all families who suffered losses as a result of the
attack on the World Trade Center."
Statements made today may include forward-looking information subject to risks, uncertainties and other
factors that could materially affect actual results. For further information please see Citigroup's reports filed
with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website
(www.sec.gov).
Citigroup (NYSE: C), the preeminent global financial services company, provides some 120 million
consumers, corporations, governments and institutions in over 100 countries with a broad range of financial
products and services, including consumer banking and credit, corporate and investment banking,
insurance, securities brokerage and asset management. Major brand names under Citigroup's trademark
umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers under Citigroup's
trademark red umbrella. Additional information may be found at www.citigroup.com
CONTACT: Citigroup, New York
Press:
Leah Johnson, 212/559-9446
Christina Pretto, 212/793-8217
Investors:
Sheri Ptashek, 212/559-4658
08:24 EDT SEPTEMBER 17, 2001
|
