NYSE Euronext has reported a GAAP net loss of $182 million, or $0.70 per diluted share, for the second quarter of 2009, compared to net income of $195 million, or $0.73 per diluted share for the second quarter of 2008. Second quarter 2009 GAAP results include merger expenses and exit costs of $1.21 per diluted share, primarily related to severance and a one-time termination charge for NYSE Liffe Clearing. Second quarter 2008 GAAP results include a net $0.02 per diluted share negative impact from merger expenses and exit costs and the reversal of a litigation accrual. Pro forma non-GAAP diluted earnings per share excluding these items was $0.51 in the second quarter of 2009, compared to $0.75 in the second quarter of 2008.
Reportedly, pro forma non-GAAP net income for the second quarter of 2009 was $132 million, or $0.51 per diluted share, compared to net income of $199 million, or $0.75 per diluted share, for the second quarter of 2008. Pro forma non-GAAP results for the second quarter of 2009 exclude $442 million pre-tax, or $1.21 per diluted share negative impact from merger expenses and exit costs, consisting of a $355 million contract termination charge for NYSE Liffe Clearing, and $87 million primarily related to the anticipated headcount reduction in Europe and a voluntary resignation incentive program (VRIP) in the US. Pro forma non-GAAP results for the second quarter of 2008 exclude a $38 million pre-tax negative impact from merger expenses and exit costs, primarily related to the US VRIP initiated in the second quarter of 2008, as well as a $36 million positive impact from the reversal of a litigation accrual.
Duncan Niederauer, CEO of NYSE Euronext, said: “The launch of NYSE Liffe Clearing in Europe is expected to generate revenues in excess of $100 million annually and is anticipated to be accretive in 2009. Additionally, we announced a joint venture with DTCC to establish a new, innovative and capital efficient approach to clearing interest rate derivatives and we completed the roll-out of speed enhancements for NYSE, reducing latency to an average of five milliseconds.
Michael Geltzeiler, group executive vice president and CFO of NYSE Euronext, said: “The positive impact from our ongoing technology and non-technology cost saving initiatives continued in the second quarter with fixed costs down 6% year-over-year. Excluding the impact of foreign exchange rates and investment in new businesses, our underlying fixed expenses were down $50 million, or 12%, compared to the second quarter of 2008.”
