8-K: Current report filing
Published on June 26, 2001
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 26, 2001
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Merrill Lynch & Co., Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-7182 13-2740599
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(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
4 World Financial Center, New York, New York 10080
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 449-1000
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
In a press release dated June 26, 2001, Merrill Lynch & Co., Inc. said weak
market conditions will result in second-quarter 2001 revenues lower than the
first-quarter 2001, particularly in equity and debt trading. As a result,
earnings for the second quarter are expected to be significantly lower than
analysts' current estimates. Earnings per diluted share are expected to be
between 52 cents and 57 cents, compared with earnings of 87 cents per diluted
share in the first-quarter 2001 which excluded a five-cent gain on the sale of
certain energy trading assets as previously disclosed.
The most significant drivers of results are as follows:
o Equity-trading revenues will be lower than the first-quarter 2001 due to
reduced trading volumes, lower volatility and the impact of decimalization on
trading spreads ___ in ___ the ___ Nasdaq ___ market. ___ The ___ secondary ___
equity ___ and equity-derivatives businesses are significant components of
Merrill Lynch's business mix and comprised 22% of total net revenues in 2000. In
addition, equity-market conditions affect revenues across other Merrill Lynch
businesses, including private client and investment management.
o Debt-trading revenues will also be lower than the first-quarter 2001,
which included the gain on the sale of certain energy-trading assets and
reflected a particularly favorable interest-rate environment. Merrill Lynch does
not derive significant revenues from trading commodities or energy.
o In investment banking, Merrill Lynch has increased market share in equity
and equity-linked origination and maintained a leading position in announced
mergers and acquisitions. However, industry volume is substantially lower than
last year's record levels.
o The U.S. private client business is making significant headway in
operating results and margin improvement.
o The firm has continued to reduce expenses across all businesses.
In April 2001, the company noted that business conditions in the first
quarter were difficult and generally became more challenging as the quarter
progressed, and if the level of revenues seen in March persisted, it would be
difficult to sustain earnings at the first-quarter level.
Market conditions have weakened further since March, with the past four
weeks being the weakest of the quarter. As a result, second-quarter net revenues
are expected to be approximately 15% lower than the $6.4 billion reported in the
first-quarter 2001. Although the outlook for third-quarter revenues remains
weak, the ___ company ___ is making ___ progress ___ on ___ resource ___
allocation ___ and expense-reduction initiatives.
Merrill Lynch may make or publish forward-looking ___ statements about
management's expectations, strategic objectives, business prospects, anticipated
financial performance and other similar matters. A variety of factors, many of
which are beyond our control, affect the operations, performance, business
strategy and results of Merrill Lynch and could cause actual results and
experiences to differ materially from the expectations and objectives expressed
in these statements. These factors include, but are not limited to, the factors
described in the company's 2000 Annual Report on Form 10-K and subsequent
reports on Form 8-K and Form 10-Q, which are available at the SEC's website,
www.sec.gov. Merrill Lynch undertakes no responsibility to update or revise any
forward-looking statements.
Item 9. Regulation FD Disclosure
David H. Komansky, chairman and chief executive officer of Merrill Lynch,
and Thomas H. Patrick, chief financial officer, hosted a conference call on June
26, 2001 to discuss the press release. A live audio webcast of the conference
call was available to the general public at www.ir.ml.com and by telephone.
Replay of the webcast will be available at the same web address.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MERRILL LYNCH & CO., INC.
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(Registrant)
By: /s/ Andrea L. Dulberg
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Andrea L. Dulberg
Corporate Secretary
Date: June 26, 2001