MF Global's 4Q Loss Widens On Impairment Charge

NEW YORK (AP) — MF Global Ltd., a futures and options broker, said Thursday its fiscal fourth-quarter loss widened due to a goodwill impairment charge and declining revenue.

MF Global's net loss after paying preferred dividends grew to $119.4 million, or 98 cents per share, during the quarter ended March 31, compared with a loss of $83.1 million, or 69 cents per share, during the same quarter last year.

The company's adjusted loss, which excludes special items such as an $82 million non-cash goodwill impairment charge, totaled $17.4 million, or 5 cents per share, during the quarter.

Analysts polled by Thomson Reuters, on average, forecast earnings of 7 cents per share for the quarter. Analysts typically exclude special charges from their estimates.

Net revenue fell to $256.7 million from $407.9 million during the year-ago period. Analysts had forecast revenue of $300.2 million for the quarter.

Sharp declines in cleared commissions and interest income were the main factors behind the drop in revenue. Cleared commissions revenue fell 46 percent to $237.8 million during the fiscal fourth quarter. Interest income tumbled 84 percent to $99.8 million during the quarter, though some of that decline was offset by declining interest expense.