Form: 8-K

Current report filing

October 15, 1996

8-K: Current report filing

Published on October 15, 1996





SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


-----------------------------------


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): October 15, 1996
----------------------------

Merrill Lynch & Co., Inc.
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(Exact Name of Registrant as Specified in 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)



World Financial Center, North Tower, New York, New York 10281-1332
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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

Filed herewith are the Preliminary Unaudited Earnings Summaries, as contained in
a press release dated October 15, 1996, for Merrill Lynch & Co., Inc. ("ML &
Co.") for the three- and nine-month periods ended September 27, 1996. The
results of operations set forth therein for such periods are unaudited. All
adjustments, consisting only of normal recurring accruals, that are, in the
opinion of management, necessary for a fair presentation of the results of
operations for the periods presented have been included. The nature of ML &
Co.'s business is such that the results for any interim period are not
necessarily indicative of the results for a full year.

Total stockholders' equity, long-term borrowings, and book value per common
share as of September 27, 1996 were approximately $6.6 billion, $24.1 billion,
and $36.40, respectively.


ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

(c) EXHIBITS.

(99) Additional Exhibits

(i) Preliminary Unaudited Earnings Summaries for the three-
and nine-month periods ended September 27, 1996.


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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/ Joseph T. Willett
--------------------------
Joseph T. Willett
Senior Vice President,
Chief Financial Officer


Date: October 15, 1996


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EXHIBIT INDEX



Exhibit No. Description Page
- ----------- ----------- ----

(99) Additional Exhibits

(i) Preliminary Unaudited Earnings
Summaries for the three- and
nine-month periods ended
September 27, 1996. 5-6


4









EXHIBIT 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY


For Three Months Ended Percent Inc/(Dec)
September 27, June 28, September 29 3Q96 vs. 3Q96 vs.
[In millions, except per share amounts] 1996 1996 1995 2Q96 3Q95
-------------- --------- ------------- --------- ---------

Revenues:
Commissions $ 860 $ 970 $ 829 (11.3)% 3.7 %
Interest and Dividends 3,357 3,040 3,004 10.4 11.7
Principal Transactions 818 908 663 (9.9) 23.4
Investment Banking 471 580 354 (18.8) 33.1
Asset Management and Portfolio
Service Fees 570 553 484 3.1 17.8
Other 125 139 97 (10.2) 28.4
------- ------ ------

Total Revenues 6,201 6,190 5,431 0.2 14.2

Interest Expense 3,108 2,810 2,749 10.6 13.1
------- ------ ------

Net Revenues 3,093 3,380 2,682 (8.5) 15.3
------- ------ ------

Non-Interest Expenses:
Compensation and Benefits 1,612 1,741 1,392 (7.4) 15.8
Communications and Equipment Rental 141 137 123 3.0 15.2
Occupancy 116 113 113 2.8 2.5
Depreciation and Amortization 104 98 93 5.4 11.6
Professional Fees 152 140 114 8.3 33.4
Advertising and Market Development 125 124 102 0.3 22.3
Brokerage, Clearing, and Exchange Fees 103 101 89 2.4 16.5
Other 218 228 171 (4.1) 27.4
------- ------ ------

Total Non-Interest Expenses 2,571 2,682 2,197 (4.2) 17.0
------- ------- ------

Earnings Before Income Taxes 522 698 485 (25.2) 7.5

Income Tax Expense 191 265 185 (27.7) 3.3
------- ------- ------

Net Earnings $ 331 $ 433 $ 300 (23.6) 10.2
------- ------- ------
------- ------- ------

Preferred Stock Dividends $ 12 $ 11 $ 11 - -
------- ------- ------

Net Earnings Applicable to Common
Stockholders $ 319 $ 422 $ 289 (24.3) 10.7
------- ------- ------
------- ------- ------

Earnings per Common Share:

Primary $1.69 $2.19 $1.47 (22.8) 15.0
Fully Diluted $1.68 $2.19 $1.46 (23.3) 15.1

Average Shares:

Primary 189.2 192.9 196.4 (1.9) (3.7)
Fully Diluted 190.6 192.9 197.2 (1.2) (3.3)



Note: Percentages are based on actual numbers before rounding.


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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY

For Nine Months Ended
September 27, September 29, Percent
[In millions, except per share amounts] 1996 1995 Inc/(Dec)
-------- -------- ---------
Revenues:
Commissions $ 2,819 $ 2,279 23.7 %
Interest and Dividends 9,407 9,329 0.8
Principal Transactions 2,709 1,952 38.8
Investment Banking 1,428 938 52.4
Asset Management and Portfolio
Service Fees 1,661 1,397 18.9
Other 386 325 18.8
------- ------

Total Revenues 18,410 16,220 13.5

Interest Expense 8,675 8,568 1.3
------- -------

Net Revenues 9,735 7,652 27.2
------- -------

Non-Interest Expenses:
Compensation and Benefits 5,044 3,971 27.0
Communications and Equipment Rental 409 351 16.4
Occupancy 345 333 3.7
Depreciation and Amortization 300 266 12.1
Professional Fees 422 318 32.8
Advertising and Market Development 364 284 27.9
Brokerage, Clearing, and Exchange Fees 310 267 16.5
Other 650 533 22.1
----- -----

Total Non-Interest Expenses 7,844 6,323 24.0
----- -----

Earnings Before Income Taxes 1,891 1,329 42.3

Income Tax Expense 717 519 38.5
----- -----
Net Earnings $ 1,174 $ 810 44.8
----- -----
----- -----

Preferred Stock Dividends $ 35 $ 35 -
----- -----

Net Earnings Applicable to Common
Stockholders $ 1,139 $ 775 47.0
----- -----
----- -----
Earnings per Common Share:
Primary $5.91 $3.95 49.6
Fully Diluted $5.89 $3.90 51.0

Average Shares:
Primary 192.6 196.3 (1.9)
Fully Diluted 193.3 198.8 (2.8)

Note: Percentages are based on actual numbers before rounding.

6