Knight Trading Swings to Profit

The company attributes the reversal to cost-cutting actions.
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Knight Trading Group


posted a profit for the second quarter, reversing a loss in the year-ago period, as increased trading activity and cost-cutting helped the company's turnaround efforts.

The company earned $14.8 million, or 13 cents a share, in the second quarter. For the second quarter of 2002, the company reported a loss of $23.5 million, or 19 cents a share.

Knight took losses of 2 cents a share for discontinued operations and severance costs in the quarter, before which the company would have earned 15 cents a share. Excluding discontinued operations in the year-ago quarter, the company would have lost 2 cents a share.

Revenue for the second quarter rose to $159.4 million from $129.9 million last year. The market maker executed 46.9 million trades in the quarter, up from 29.1 million in the second quarter last year.

Analysts polled by Thomson First Call expected Knight to earn 13 cents a share with revenue of $150.4 million in the quarter.

The company's asset management business segment generated $9.8 million in fees during the second quarter, up from $6.8 million a year ago. The asset management business had about $1.3 billion under management as of June 30.

Shares of Knight Trading were down 38 cents, or 4%, to $8.82 in recent