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Stock plunges for Nevada bank operator

Monday, Dec. 6, 1999 | 11:09 a.m.

Shares of Minneapolis-based U.S. Bancorp plunged more than 25 percent this morning after the company warned it would not meet quarterly and annual earnings expectations because of heavy "strategic investment" costs.

The company, operator of U.S. Bank in Nevada and other states, said earnings per share would be between 52 cents and 54 cents for the quarter ending Dec. 31. Analysts had expected 58 cents to 59 cents per share.

Earnings for 1999 would be between $2.30 and $2.35, the company said, below expectations of $2.45.

In a statement, U.S. Bancorp blamed the poor results on flat net interest income, lower than expected growth in consumer loans and higher expenses in sales and service, technology and marketing. The company has been adding more live and telephone tellers, as well as in-branch technology and Internet offerings.

In early afternoon trading, U.S. Bancorp had fallen $9.38 to $25.75, a drop of more than 26 percent.

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