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Tuesday, September 19, 2000

Strong trading helps
Goldman net rise 29%

Bloomberg News

NEW YORK - Goldman Sachs Group Inc., this year's top stock underwriter, said third-quarter earnings rose 29 percent as revenue from trading surged.

Goldman Sachs earned $824 million, or $1.62 a share, for the three months ended Aug. 31, up from $638 million, or $1.32 a share, a year ago. Net revenue rose 33 percent to $4.53 billion.

The company's earnings results beat estimates for earnings of $1.51 a share, according to 13 analysts surveyed by First Call Corp.

Goldman shares rose $1.38 to $119.94. The shares have risen about 27 percent this year, compared to a 44 percent gain in the American Stock Exchange's Broker Dealer Index.

(Hawaii's Kamehameha Schools owns nearly 5 percent of Goldman Sachs' outstanding stock.)

Revenue from trading stocks and bonds and from its own investments jumped 46 percent to $2.1 billion. Investment banking rose 15 percent from the year ago to $1.32 billion, sliding 17 percent from the second quarter, partly reflecting a summer lull.

"Given that they had a very small window to get business done it, these are very good results," said Dean Eberling, an analyst at Keefe Bruyette & Woods.

The firm led most investment-banking businesses, including high-yield underwriting, stock offerings and merger advice, and extended its lead in some of those categories. Still, revenue from underwriting fell 27 percent from the second quarter to $648 million.

David Viniar, Goldman's chief financial officer, said underwriting is poised to rise. "Our underwriting backlog right now is very strong and continues to grow," he said.

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