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CME achieves strongest quarterly performance of 2009 in Q4

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CME Group has reported fourth quarter GAAP revenues of USD667m and GAAP operating income of USD402m. 

Fourth quarter net income on a GAAP basis was USD203m and diluted earnings per share on a GAAP basis were USD3.04.

The 2009 GAAP results reflect the operations of Chicago Mercantile Exchange, Board of Trade of the City of Chicago and New York Mercantile Exchange and include reductions in net income of USD22m, consisting of an impairment charge of USD24m on its investment in the Dubai Mercantile Exchange and net favourable impacts to net income of USD2m related to the ERP settlement. 

The 2008 GAAP results reflect the operations of both CME and CBOT, as well as the results of Nymex after 22 August 2008, when the acquisition closed.

Fourth quarter pro forma non-GAAP diluted earnings per share were USD3.37, down six per cent compared with the prior-year period. All pro forma results reflect the operations of both CME Group and Nymex as if they were combined for all periods reported, and fourth quarter 2009 pro forma non-GAAP results exclude the impairment charge, ERP adjustment and other merger-related items. 

Despite challenging market conditions that persisted throughout 2009, the fourth quarter represented the company’s best quarterly revenue of the year. Total pro forma revenues decreased four per cent from the prior year to USD667m, but increased USD17m from third quarter 2009 revenues. 

Pro forma operating expenses decreased two per cent to USD258m compared with the same period last year.

Fourth quarter pro forma results also included the highest quarterly operating income and net income of the year. Fourth quarter operating income of USD409m decreased five per cent from USD430m for the year-ago period, but increased USD3m from third quarter 2009. 

Fourth quarter 2009 operating margin was 61 per cent, down slightly from the same period last year. 

Fourth quarter 2009 net income decreased six per cent to USD225m, compared with fourth-quarter 2008, but increased USD2m from third-quarter 2009.

"Despite lingering market stress and a cyclical year-end slowdown, CME Group finished the fourth quarter with the strongest quarterly performance all year," says CME Group executive chairman Terry Duffy. "We achieved the highest quarterly revenue, operating income and net income as some of our major markets began to rebound. For example, we saw more than 55 per cent growth in FX and metals, and approximately 20 per cent growth in interest rates and energy. Additionally, 2010 is off to a great start, reflected in January volume – our second highest volume month since the credit crisis began – and accompanied by a 21 per cent rise in open interest versus this time last year."

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