Restructuring charges clip Northern Trust

Northern Trust Corp. reported fourth quarter net income of $130.2 million, or 53 cents per share, down from $157.1 million, or 64 cents per share, in the same period a year ago.
For the full fiscal year, the Chicago-based company, which has a branch in downtown Milwaukee, reported net income of $603.6 million, down from $669.5 million in the previous year.
Net income in the current period was impacted by restructuring, acquisition and integration-related charges that totaled $61.0 million ($39.8 million after tax, or 17 cents per common share).
Frederick Waddell, chairman and chief executive officer of Northern Trust, said, "Our results for the fourth quarter and the full year reflect strong new business but were impacted by the difficult conditions in which we currently operate. We have been actively analyzing various aspects of our businesses and technology to identify opportunities to deliver more value to our clients and shareholders. Through these efforts we have developed and begun to implement initiatives that we expect will sustainably improve productivity and profitability. These profit improvement initiatives are expected to benefit annual pre-tax income by approximately $250 million by the end of 2013. The restructuring charges recorded this quarter and earlier this year include the planned elimination of approximately 700 positions, and additional positions will be eliminated through attrition. However, we will continue to invest and hire to support the growth of our business."