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| Home>Newsroom>September 2001 |
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| Media Release - 17-09-2001 |
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| Newsroom |
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| Citigroup Estimates Impact of September 11th Disaster on Third Quarter Earnings |
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| Sydney, 18 June 2002: |
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| New York, NY, September 17, 2001 - Citigroup announced today that it expects earnings for the third quarter of 2001 to exceed the First Call consensus estimate of $0.75 by $0.02 per share, excluding the financial impact of the September 11th terrorist attack. Citigroup anticipates that losses related to the payment of insurance claims, including claims on property in lower Manhattan, business interruption insurance claims, workers compensation exposure and life insurance claims could total $500 million, after tax, or approximately $0.10 per share. In addition, the company expects that the impact of the closing of the stock exchange as well as a number of our branches for much of last week would reduce earnings by $100 million to $200 million after tax, or $0.02 to $0.04 per share. |
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| "No monetary costs can compare with the human tragedy that our country experienced last week. However, as we begin to assess the damage incurred and the ensuing costs, we felt it important to give our shareholders an initial estimate of the financial impact on our company," said Sanford I. Weill, Chairman and CEO of Citigroup. "I also want to commend the efforts of our employees, whose dedication and hard work have enabled our company to continue to operate effectively, despite the fact that we evacuated five of our buildings, causing us to relocate thousands of people to disaster relief sites. Our systems have been fully functioning throughout this crisis, and where necessary, we have quickly transitioned businesses to back-up facilities to maintain continuity. |
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| "Our results across the company for July and August were strong, reflecting the diversity of our operations around the world. Our company's long-term earnings strength and our solid capital base remain unchanged. Our focus will continue to be on assisting our employees, customers and country in recovering from this unspeakable tragedy. To help in this effort, we have established a $15 million scholarship fund to be further enhanced by contributions from employees for all families who suffered losses as a result of the attack on the World Trade Center." |
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| Statements made today may include forward-looking information subject to risks, uncertainties and other factors that could materially affect actual results. For further information please see Citigroup's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (www.sec.gov). |
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| For media enquiries: |
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| Please E-mail: newsroom.australia@citigroup.com |
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| Citigroup (NYSE: C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com |
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