Lower Costs, Higher Volume Drive MasterCard Profit

STEPHEN BERNARD

NEW YORK (AP) — MasterCard Inc. said Tuesday its third-quarter profit was bolstered by continued cost-cutting measures and an increase in the number of transactions it processed.

However, worldwide purchase volume grew only 0.4 percent on a local currency basis during the quarter, providing further evidence that a global economic recovery is likely to be slow. Volume fell in the U.S.

"The economic downturn has continued to affect consumer and business spending during the quarter," Robert Selander, MasterCard's CEO, said during a conference call with investors. "We don't expect any global economic improvement until sometime in 2010."

But, Selander did note that there have been some signs of stabilization in recent months and the worst of the downturn is likely over.

Shares of MasterCard fell $6.79, or 3.1 percent, to $215.85 in afternoon trading as the broader market declined.

The credit card and global payments processor earned $452.2 million, or $3.45 per share, during the quarter ended Sept. 30. It lost $193.6 million, or $1.48 per share, during the same quarter last year.