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December 2, 2008 8:55:42 PM CST

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Goldman Profit Drops 70%, Still Beats Estimates

Posted Sep 16, 08 8:37 AM CDT in Business 

(Newser) – Amid the financial industry's meltdown, survivor Goldman Sachs reported that third-quarter profit plunged by 70% —the sharpest decline in its history as a public company, but still enough to beat estimates of $1.71 per share. The bank dipped 7% in New York trading, Bloomberg reports, after reporting an income decline of $1.81 per share to $845 million. Year-earlier income was $2.85 billion.

Goldman’s shares dipped 12% yesterday after the Lehman Brothers and Merrill Lynch shakeups. Although in better financial health than those banks, Goldman has watched shares drop 37% this year as the sector reels from the mortgage crisis. Along with Morgan Stanley, Goldman is one of two large independent investment banks left, and still needs to unload some of its non-liquid assets to boost investor confidence.

Source Bloomberg

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The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs is shown in this June 12, 2007 file photo.   (AP Photo/Richard Drew, file)
Goldman Sachs provided this undated file photograph of CEO Lloyd Blankfein.   (AP Photo/Goldman Sachs)
A man walks out of Goldman Sachs headquarters Tuesday, Sept. 16, 2008 in New York. Goldman Sachs says third-quarter profit surpassed projection but fell 71 percent from a year ago.   (AP Photo/Mark Lennihan)
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs, Tuesday, June 12, 2007.   (AP Photo/Richard Drew)
Lloyd Blankfein, CEO of Goldman Sachs, participates in a plenary session during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Thursday, Jan 24, 2008.   (AP Photo/Keystone, Alessandro della Valle)
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We remain well-positioned to meet the needs of our clients and identify and act on the right market opportunities - Lloyd Blankfein, Goldman Sachs CEO

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