Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)(3)
---------------------------------------------------- ----------------------
December 25, September 25,(1) December 26,(2) 4Q98 vs. 4Q98 vs.
(in millions, except per share amounts) 1998 1998 1997 3Q98 4Q97
------------ ---------------- --------------- ---------- ----------
REVENUES
Commissions $1,424 $1,449 $1,304 (1.7) % 9.2 %
Interest and dividends 4,411 5,079 4,565 (13.1) (3.4)
Principal transactions 211 279 615 (24.3) (65.7)
Investment banking 824 711 862 15.9 (4.4)
Asset management and portfolio service fees 1,046 1,043 809 0.3 29.3
Other 256 151 156 69.2 63.7
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TOTAL REVENUES 8,172 8,712 8,311 (6.2) (1.7)
Interest expense 4,091 4,863 4,301 (15.9) (4.9)
------ ------ ------
NET REVENUES 4,081 3,849 4,010 6.0 1.8
------ ------ ------
NON-INTEREST EXPENSES
Compensation and benefits 2,218 2,009 2,052 10.4 8.1
Communications and technology 438 487 335 (10.1) 31.0
Occupancy and related depreciation 222 227 187 (2.2) 18.5
Advertising and market development 107 203 158 (47.2) (32.1)
Brokerage, clearing, and exchange fees 174 186 142 (6.6) 22.6
Professional fees 93 165 121 (43.7) (23.8)
Goodwill amortization 61 55 19 9.6 N/M
Provision for costs related to staff reductions - 430 - N/M N/M
Other 249 292 261 (14.8) (4.5)
------ ------ ------
TOTAL NON-INTEREST EXPENSES 3,562 4,054 3,275 (12.2) 8.8
------ ------ ------
EARNINGS (LOSS) BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 519 (205) 735 N/M (29.4)
Income tax expense (benefit) 119 (75) 254 N/M (53.4)
Dividends on preferred securities issued by subsidiaries 41 33 12 27.7 235.3
------ ------ ------
NET EARNINGS (LOSS) $ 359 $ (163) $ 469 N/M (23.4)
====== ====== ======
Preferred stock dividends $ 10 $ 10 $ 10 - -
------ ------ ------
NET EARNINGS (LOSS) APPLICABLE TO COMMON STOCKHOLDERS $ 349 $ (173) $ 459 N/M (23.9)
====== ====== ======
EARNINGS (LOSS) PER COMMON SHARE
Basic $ 0.97 $(0.48) $ 1.34 N/M (27.6)
Diluted $ 0.86 $(0.48) $ 1.15 N/M (25.2)
AVERAGE SHARES
Basic 359.9 357.6 342.7 0.6 5.0
Diluted 404.9 357.6 400.1 13.2 1.2
(1) Amounts have been restated to reflect the early adoption of a change in
accounting principle related to distribution costs for closed-end mutual
funds.
(2) Amounts have been restated to reflect the Midland Walwyn Inc. merger as
required under pooling-of-interests accounting.
(3) Percentages are based on actual numbers before rounding.
Note: Certain revenues have been reclassified to conform to the current
presentation.
N/M Not meaningful.
7
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Year Ended
---------------------------------
December 25, December 26,(1) Percent(2)
(in millions, except per share amounts) 1998 1997 Inc / (Dec)
------------ --------------- -----------
REVENUES
Commissions $ 5,799 $ 4,995 16.1 %
Interest and dividends 19,314 17,299 11.6
Principal transactions 2,651 3,827 (30.7)
Investment banking 3,264 2,876 13.5
Asset management and portfolio service fees 4,202 3,002 40.0
Other 623 500 24.6
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TOTAL REVENUES 35,853 32,499 10.3
Interest expense 18,306 16,243 12.7
------- -------
NET REVENUES 17,547 16,256 7.9
------- -------
NON-INTEREST EXPENSES
Compensation and benefits 9,191 8,333 10.3
Communications and technology 1,749 1,255 39.4
Occupancy and related depreciation 867 736 17.9
Advertising and market development 687 613 12.1
Brokerage, clearing, and exchange fees 683 525 30.0
Professional fees 552 520 6.1
Goodwill amortization 226 65 246.0
Provision for costs related to staff reductions 430 - N/M
Other 1,057 1,098 (3.7)
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TOTAL NON-INTEREST EXPENSES 15,442 13,145 17.5
------- -------
EARNINGS BEFORE INCOME TAXES, DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES, AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 2,105 3,111 (32.4)
Income tax expense 717 1,129 (36.5)
Dividends on preferred securities issued by subsidiaries 124 47 161.1
------- -------
EARNINGS BEFORE CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 1,264 1,935 (34.7)
Cumulative effect of change in accounting principle 5 - N/M
------- -------
NET EARNINGS $ 1,259 $ 1,935 (34.9)
======= =======
Preferred stock dividends $ 39 $ 39 (2.4)
------- -------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 1,220 $ 1,896 (35.6)
======= =======
EARNINGS PER COMMON SHARE
Basic $ 3.43 $ 5.57 (38.4)
Diluted $ 3.00 $ 4.79 (37.4)
AVERAGE SHARES
Basic 355.6 340.1 4.6
Diluted 406.3 395.9 2.6
(1) Amounts have been restated to reflect the Midland Walwyn Inc. merger as
required under pooling-of-interests accounting.
(2) Percentages are based on actual numbers before rounding.
Note: Certain revenues have been reclassified to conform to the current
presentation.
N/M Not meaningful.
8