Bank One Cuts 1999 Earnings Forecast -- Again

After the stock market closed Wednesday, Bank One (ONE) cut its 1999 earnings forecast for a second time this year and postponed a meeting to explain the problems to analysts.

But Wall Street had already figured out something was awry.

Starting around 2 p.m. EST, shares of the Chicago-based bank's stock dropped 4 3/8, or more than 11%, to 34 5/8. The New York Stock Exchange cut off trading at 3:53 p.m., seven minutes before the closing bell. Over-the-counter trading was pre-empted four minutes later.

In after-hours trading, the stock fell another 2 1/2, to 32 1/2.

The meeting with analysts, scheduled for Nov. 15, won't take place until early January, the bank said.

Asked how word of the meeting cancellation got around before the official statement to investors was released, a bank spokesman blamed financial wire services. The wire services cited hotel employees where the meeting was scheduled, he said.

"I don't know if that's bellhops or what," said Tom Kelly, spokesman for the bank.

After the stock-price damage was done, the bank issued its statement at 4:38 p.m. Earnings after special charges will be only $3.45 to $3.55 a share, it said. Wall Street analysts had forecast $3.59.

The bank had already cut estimates once this year, on Aug. 24, when it said earnings would miss the $3.92 predicted at the time.

The troubles follow the company's purchase of First USA, the credit card issuer. In a recorded statement to analysts, Chairman and CEO John McCoy said the bank is still studying the problem.

The bank said the shareholder meeting will probably be held in early January.

"We've simply underestimated the time it is going to take to complete our work," McCoy said.

Bob Boardman, previously of the bank's merger and acquisitions division, took charge of First USA assets in September, when Dick Vague, who came to the bank from First USA, resigned.

Several bank officials have resigned in recent months.

"They're writing a history book on things we couldn't imagine a company doing," said Diana Yates, analyst for A.G. Edwards, which hasn't done underwriting for the bank. First USA "was really the promise of the future."

Yates rates the stock a hold.

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