American Express Takes $113M Charge

NEW YORK ( TheStreet) -- American Express ( AXP) announced Wednesday that the company would record a $113 million pre-tax charge in the fourth quarter as a result of a restructuring that would cost 550 employees their jobs, according to a company statement.

The pre-tax charge will translate to 6 cents per share, and consists of severance payments and costs associated with plans to consolidate operations in several locations, including closing a Greensboro, N.C., and Madrid centers. Over 3,500 employees will be affected by the changes, the statement said.

According to Amex, the credit card giant expects to report quarterly net income of $1.1 billion, or 88 cents per share for the fourth quarter when it reports earnings on Monday. That compares $716 million, or 60 cents per share, reported in then fourth quarter of 2009.

Excluding the charge, Amex said fourth quarter earnings per share would 94 cents, a penny less than the analysts polled by Thomson Reuters.

American Express shares were trading down $1.23 at $45.14.

--Written by Maria Woehr in New York.

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