Lehman expects 2.8 billion-dollar loss, to raise 6 billion in stock

WASHINGTON - Investment giant Lehman Brothers announced Monday it expects a second-quarter loss of some 2.8 billion dollars, citing ‘challenging market conditions,’ and said it would raise 6.0 billion dollars in stock offerings.

By (AFP)

Published: Mon 9 Jun 2008, 6:25 PM

Last updated: Sun 5 Apr 2015, 1:07 PM

The historic loss for the company compares to net income of 489 million dollars for the first quarter of fiscal 2008 and 1.3 billion dollars for the second quarter of fiscal 2007, the company said.

‘I am very disappointed in this quarter's results. Notwithstanding the solid underlying performance of our client franchise, we had our first-ever quarterly loss as a public company,’ said chairman and CEO Richard Fuld, Jr.

‘However, with our strengthened balance sheet and the improvement in the financial markets since March, we are well-positioned to serve our clients and execute our strategy,’ he said.

The company said it aims to rais a further 6.0 billion dollars ‘through offerings of common stock and Non-Cumulative Mandatory Convertible Preferred Stock.’

‘The proceeds from the offerings will be added to the Firm's capital and used for general corporate purposes,’ the company added.

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