American Express Profit Climbs Sharply

American Express Co. said second-quarter profit more than tripled from the same period a year ago, when the travel and credit card giant’s earnings were reduced by write-offs.

Shares of American Express fell $2.68 to $28.97 on the New York Stock Exchange. The 8.5% drop was the biggest decline since Sept. 18, after Chief Executive Ken Chenault said American Express probably wouldn’t beat analysts’ profit forecasts for 2002.

The largest U.S. travel agency and fourth-largest U.S. credit card issuer said net income rose to $683 million, or 51 cents a share, from $178 million, or 13 cents, in the same period last year. Revenue climbed 16% to $5.7 billion.

The jump in earnings stemmed from the company’s decision to reduce junk-bond holdings that in the second quarter of 2001 lowered profit by $537 million. American Express also scaled back personnel costs by cutting 14,500 jobs last year.