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MONY Group Sees Fourth-Quarter Core Earnings Shortfall

Chris Frankie

MONY Group(MNY Quote) expects fourth-quarter earnings to fall short of its own projections, and well below Wall Street's expectations, because of an adjustment in assets backing certain employee benefits programs.

The life insurance, annuity and investment products provider said it expects core profits to fall up to 10 cents short of the 51 cents it expected to earn in the quarter. Eight analysts polled by First Call/Thomson Financial are calling for the MONY Group to earn 56 cents a share, well below the $1.99 the company earned in the year-ago period.

MONY Group, New York, also expects operating earnings to be reduced by an additional 30 cents to 35 cents because of mark-to-market losses in its venture capital portfolio. The company forecast earnings of $2.25 a share in 2001, well short of the $2.74 analysts are projecting.

Shares of MONY Group dropped $2.56, or 5%, in the regular New York Stock Exchange session to close at $48.25.