LaBranche Warns on Earnings

Specialist trading firm LaBranche(LAB Quote) says it returned to its losing ways in the second quarter and expects to post a $23 million loss in the period.

The firm says the estimated loss includes a $5 million operating loss, or 8 cents a share. It also includes a noncash $17 million decline in the value of the firm's restricted shares in the NYSE Group(NYX Quote), the parent company of the New York Stock Exchange.

LaBranche, one of the largest and oldest specialist trading firms on the NYSE, says the operating loss stemmed from "adverse market conditions'' in May and June. During the quarter, the firm says principal trading revenue totaled about $20 million, down $47 million in the second quarter of 2005. ...