NU Online News Service, Feb. 6, 5:04 p.m. – Principal Financial Group Inc., Des Moines, Iowa, is reporting $19 million in net income for the fourth quarter of 2001 on $2.3 billion in revenue, compared with $201 million in net income on $2.3 billion in revenue for the fourth quarter of 2000.
Net results for the latest quarter include $168 million in investment losses, including $89 million in losses related to the failure of Enron Corp., Houston, and $34 million in losses related to Argentina; Kmart Corp., Troy, Mich.; and Global Crossing Holdings Ltd., Hamilton, Bermuda.
Operating earnings, which exclude the investment losses and $4 million in restructuring charges, increased to $182 million, from $167 million, Principal says.
Earnings increased to $94 million, from $90 million, at the asset management unit, and to $50 million, from $23 million, at the life and health insurance unit, Principal says.
In related news, Principal says it will write off $300 million this quarter to adjust to a change in the way U.S. companies must account for goodwill obtained through acquisitions. Taking the charge will not require any cash expenditures.