American Express Sliding Off the Rails

The American Express (AXP Quote) looks to be running out of steam.

The financial giant Monday reported second-quarter earnings that exceeded estimates, but the company also sounded an unnerving note of caution on full-year 2002 profits.

New York-based American Express said it might not exceed the Wall Street consensus earnings estimate, which is currently $2.01 per share. In explaining the forecast, the company didn't cite any specific business deterioration. Instead, it said it's planning to take money generated through cost savings and restructuring efforts and reinvest it, rather than letting those benefits boost profits now. The outlook incorporates the impact from the recent stock market meltdown, Amex CFO Gary Crittenden said on a conference call after the close of regular trading Monday. ...