Northern Trust Corp (NASDAQ:NTRS) reported lack luster fourth quarter earnings and announced plans to cut approximately 700 jobs across its operations. This will be the company’s first substantial round of layoffs in years. About half of the 700 jobs to be cut are located in Europe and the other half in the United States. The cost cutting is likely to enhance Northern Trust’s annual pretax earnings by roughly $250 million by the end of 2013.
Net income in Northern’s fourth quarter was $130.2 million (53 cents a share) compared to $157.1 million (64 cents a share) in the previous year. Earnings were after a charge of $61 million towards restructuring, acquisition, and integration charges.
Here’s how Northern Trust shares reacted to the news:
Northern Trust Corporation (NASDAQ:NTRS): NTRS shares recently traded at $41.08, down $0.85, or 2.03%. They have traded in a 52-week range of $33.20 to $54.90. Volume today was 2,374,297 shares versus a 3-month average volume of 1,954,610 shares. The company’s trailing P/E is 15.98, while trailing earnings are $2.57 per share.