25 jul: Hess CEO: Up to $2 Billion in Asset Sales 'Well Underway..
25 jul: ArcelorMittal Committed To Keeping Credit Rating Despite Low Cost..
25-07-2012 17:36:00

UPDATE: Piper Jaffray 2nd Quarter Net Falls 36%; Bank To Exit Hong Kong Market

Relateret indhold

--Piper Jaffray to exit Hong Kong capital-markets business by selling or shutting down the unit

--Firm expects to realize a $13 million to $18 million in net cash proceeds from the exit

--The move "will remove a substantial drag on earnings," analyst says

(Adds information on Hong Kong business exit, comments from CEO and analyst throughout.)

By Brett Philbin

Piper Jaffray Cos. (PJC) said Wednesday it would close its Hong Kong business as mounting losses from the mid-sized brokerage's Asia operations contributed to a 36% plunge in its second-quarter profit.

Piper Jaffray said it would sell or shutter by Sept. 30 its Hong Kong capital-markets unit. The business, in which the company buys and sells securities for clients, generated an after-tax loss of $3.9 million , or 21 cents a share, during the period ended June 30.

The firm said it expects to realize $13 million to $18 million in net cash proceeds from its exit of the business, primarily related to a U.S. tax benefit.

"Losses through the second quarter, year-to-date and in 2011 [in the Hong Kong business] have been significant," said Piper Jaffray Chairman and Chief Executive Andrew Duff on a conference call with analysts.

In 2011 alone, the firm posted a $10.9 million loss from its Asian operations as high market volatility and concerns about the global economy weighed on Piper Jaffray's ability to establish a strong foothold in the region.

Big banks, such as Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS), as well as smaller players such as Renaissance Capital Group Inc. (RNCG) and Asia-focused CLSA Asia-Pacific Capital Markets have all trimmed staffs in Asia, cutbacks that reflect somewhat tempered expectations for a market in which they had more immediate, higher hopes.

During the conference call, Mr. Duff said his firm "doesn't have the financial resources to build out the business [in Hong Kong] to a more sustainable platform." He said, however, that Asia presented a long-term growth opportunity.

The Minneapolis company posted a profit of $6.85 million, or 37 cents a share, down from a year-earlier profit of $10.7 million, or 55 cents a share. Investment-banking revenue fell 25% from a year earlier to $50.3 million. Piper Jaffray's institutional brokerage and asset-management businesses also sagged.

Sandler O'Neill + Partners analyst Devin Ryan said the decision to close the Hong Kong operations "will remove a substantial drag on earnings," although it was "a little bit of a black eye for Piper Jaffray."

Shares of Piper Jaffray climbed 5% to $20.54. The stock though, has fallen 35% over the past 12 months.

On the call, Duff said the Hong Kong exit will allow the firm to "significantly reduce risk, immediately improve our financial performance" and allow the company to focus on higher-margin, higher-return businesses, such as asset management, public finance and corporate advisory.

Like its larger Wall Street peers, Piper Jaffray has faced choppy demand for investment-banking transactions in recent quarters as clients have pulled back their activities amid economic turmoil.

--Saabira Chaudhuri contributed to this report.

Write to Brett Philbin at brett.philbin@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 25, 2012 11:36 ET (15:36 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
18 apr
GS
Goldman sachs har indset at kontrollen er blevet indskærpet ved elektoniske handler, og de har derme..
3
18 apr
GS
Når kriminaliteten bliver for åbenlys, og myndighederne kommer tæt på, så skifter man de vante græsg..
2
18 apr
GS
Det gør det da i allerhøjeste grad, hvis vi skal den form for kriminalitet til livs Så er det da nød..
1
18 apr
GS
Så må du lige definere tidliger, NYSE blev pålagt tilbage i 2008-9 at stramme gevaldigt op og der ko..
1
18 apr
GS
En række medier beretter om at Goldman Sachs er igang med at sælge deres mæglerselskab på Wall Stree..
1

Fondsbørsmeddelelser

Danske/dir: Har indskærpet reglerne for vores handlere

16-04-2014 15:01:39
I lyset af den bøde, Danske Bank har fået for brud på børsens regler, har banken indskærpet handelsreglerne for sine mange handlere. Det fortæller Henrik Voetma..

Danske Bank får bøde på 410.000 kr. af børsen - NY

16-04-2014 13:11:16
Danske Bank har fået en bøde på 500.000 skr., eller 410.500 kr., af selskabet bag fondsbørsen i København, Nasdaq OMX.Bøden er givet, fordi banken angiveligt ha..

Aktier/middag: Nervøse smil præger fortsat markedet

16-04-2014 11:32:27
Investorerne ser ud til at ville fylde aktiedepoterne op, før kursen sættes mod røget laks, snaps og påskeferie. I hvert fald er de danske aktier i glimrende fo..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
Ingen data fundet.

Relaterede aktiekurser

Morgan Stanley 30,76 2,9% Stigning i aktiekurs
Goldman Sachs Group Inc 157,44 0,1% Stigning i aktiekurs
Piper Jaffray Companies 42,03 2,3% Stigning i aktiekurs

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Relaterede selskaber
Få adgang til information og anbefalinger af relaterede selskaber med PLUS pakken.

Du får adgang til 7 værdifulde investorværktøjer til investering.

Klik her og læs mere om PLUS pakken.
Euroinvestor i andre lande: Euroinvestor.com | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
19. april 2014 21:35:32
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20140324.1 - EUROWEB3 - 2014-04-19 21:35:32 - 2014-04-19 21:35:32 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x