MERRILL LYNCH & CO., INC. Exhibit 99(i)
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)(2)
--------------------------------------------- ----------------------
September 25, June 26,(1) September 26,(1) 3Q98 vs. 3Q98 vs.
[in millions, except per share amounts] 1998 1998 1997 2Q98 3Q97
------- ------- ------- ------ ------
Revenues
Commissions $ 1,449 $ 1,463 $ 1,328 (1.0)% 9.2%
Interest and Dividends 5,079 5,010 4,447 1.4 14.2
Principal Transactions 279 989 964 (71.8) (71.1)
Investment Banking 711 898 724 (20.8) (1.8)
Asset Management and
Portfolio Service Fees 995 1,035 731 (3.9) 36.0
Other 199 186 144 6.8 38.4
------- ------- -------
Total Revenues 8,712 9,581 8,338 (9.1) 4.5
Interest Expense 4,863 4,726 4,196 2.9 15.9
------- ------- -------
Net Revenues 3,849 4,855 4,142 (20.7) (7.1)
------- ------- -------
Non-Interest Expenses
Compensation and Benefits 2,010 2,470 2,101 (18.6) (4.3)
Communications and Technology 487 431 328 13.0 48.7
Occupancy and Related Depreciation 227 217 188 4.6 20.7
Professional Fees 165 143 131 15.3 25.3
Advertising and Market Development 203 200 148 1.6 36.7
Brokerage, Clearing, and
Exchange Fees 186 167 143 11.7 30.5
Goodwill Amortization 55 55 16 (0.5) N/M
Provision for Costs Related to
Staff Reductions 430 - - N/M N/M
Other 292 254 298 14.8 (2.0)
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Total Non-Interest Expenses 4,055 3,937 3,353 3.0 20.9
------- ------- -------
Earnings (Loss) Before Income
Taxes and Dividends
on Preferred Securities Issued
by Subsidiaries (206) 918 789 (122.5) (126.2)
Income Tax Expense (Benefit) (75) 340 275 (122.1) (127.4)
Dividends on Preferred Securities
Issued by Subsidiaries 33 27 12 23.6 162.6
------- ------- -------
Net Earnings (Loss) $ (164) $ 551 $ 502 (129.8) (132.6)
======= ======= =======
Preferred Stock Dividends $ 9 $ 10 $ 9 - -
------- ------- -------
Net Earnings (Loss) Applicable
to Common Stockholders $ (173) $ 541 $ 493 (132.1) (135.2)
======= ======= =======
Earnings (Loss) per Common Share
Basic ($ 0.49) $ 1.52 $ 1.45 (132.2) (133.8)
Diluted ($ 0.49) $ 1.32 $ 1.24 (137.1) (139.5)
Average Shares
Basic 357.6 355.3 339.8 0.7 5.2
Diluted 357.6 411.4 396.9 (13.1) (9.9)
(1) Amounts have been restated to reflect the Midland Walwyn acquisition as
required under pooling-of-interests accounting.
(2) Percentages are based on actual numbers before rounding.
N/M Not meaningful
7
MERRILL LYNCH & CO., INC. Exhibit 99(i)
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Nine Months Ended
---------------------------------
September 25, September 26,(1) Percent(2)
[in millions, except per share amounts] 1998 1997 Inc / (Dec)
-------- -------- --------
Revenues
Commissions $ 4,375 $ 3,691 18.5%
Interest and Dividends 14,903 12,734 17.0
Principal Transactions 2,439 3,211 (24.0)
Investment Banking 2,440 2,015 21.1
Asset Management and Portfolio Service Fees 3,013 2,063 46.0
Other 511 474 7.8
------- -------
Total Revenues 27,681 24,188 14.4
Interest Expense 14,215 11,942 19.0
------- -------
Net Revenues 13,466 12,246 10.0
------- -------
Non-Interest Expenses
Compensation and Benefits 6,956 6,281 10.7
Communications and Technology 1,311 920 42.4
Occupancy and Related Depreciation 645 548 17.7
Professional Fees 459 398 15.2
Advertising and Market Development 580 456 27.3
Brokerage, Clearing, and Exchange Fees 509 383 32.8
Goodwill Amortization 165 47 N/M
Provision for Costs Related to Staff Reductions 430 - N/M
Other 809 837 (3.4)
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Total Non-Interest Expenses 11,864 9,870 20.2
------- -------
Earnings Before Income Taxes and Dividends
on Preferred Securities Issued by Subsidiaries 1,602 2,376 (32.6)
Income Tax Expense 605 875 (30.8)
Dividends on Preferred Securities Issued by Subsidiaries 82 35 134.8
------- -------
Net Earnings $ 915 $ 1,466 (37.6)
======= =======
Preferred Stock Dividends $ 28 $ 29 (3.2)
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Net Earnings Applicable to Common Stockholders $ 887 $ 1,437 (38.3)
======= =======
Earnings per Common Share
Basic $ 2.50 $ 4.24 (41.0)
Diluted $ 2.18 $ 3.64 (40.1)
Average Shares
Basic 354.1 339.2 4.4
Diluted 406.7 394.4 3.1
(1) Amounts have been restated to reflect the Midland Walwyn acquisition as
required under pooling-of-interests accounting.
(2) Percentages are based on actual numbers before rounding.
N/M Not meaningful
8