Grain News

CME Group Reports 1Q Net Income of $236 Million, Down From $267 Million in 1Q 2012

Date Posted: May 2, 2013

Chicago—CME Group Inc. (NASDAQ: CME) reported May 2 revenues of $719 million and operating income of $406 million for the first quarter of 2013.

Net income attributable to CME Group was $236 million and diluted earnings per share were $0.71.

First-quarter 2013 results included a $12 million expense due to foreign exchange transaction losses incurred during the quarter principally, related to cash held in British pounds within foreign entities whose functional currency is the U.S. dollar.

On a non-GAAP basis, first-quarter diluted EPS would have been $0.73.1

"We have made progress so far this year as we continue to implement our global strategy," said CME Group Executive Chairman and President Terry Duffy.

"Our overall average daily volume was 12.5 million in the first quarter compared with 10.5 million in the second half of last year, driven by strength in our interest rate, foreign exchange and equity products.

"As the over-the-counter market transitions, we are providing our clients with a variety of tools to help them manage risk.

"Looking ahead, we will keep investing in the company's growth while also continuing to consistently return capital to shareholders in the most efficient way."

"Our focus on expense discipline during the first quarter equated to stronger operating leverage," said CME Group Chief Executive Officer Phupinder Gill.

"At the same time, we are expanding our European presence with the anticipated launch of our European exchange this summer, along with new products to the CME Clearing Europe slate, such as the recently launched interest rate swaps.

"We also posted record trading volume and revenue from Asia, up 24 percent and 31 percent, respectively.

"Additionally, we are working with hundreds of customers and many intermediaries to ensure operational readiness ahead of the second wave of the OTC clearing mandate that will take place June 10."

First-quarter 2013 average daily volume was 12.5 million contracts, up 1 percent from first-quarter 2012, and was the highest quarterly average daily volume since third-quarter 2011.

Clearing and transaction fee revenues were $593 million, down 4 percent compared with the same period last year.

First-quarter total average rate per contract was $0.785 cents, down 3 percent compared with first-quarter 2012.

First-quarter 2013 operating expense was $313 million.

During the first quarter, the effective tax rate was 38.8 percent.

As of March 31, the company had $1.9 billion of cash and marketable securities and $2.9 billion of debt.

For more information, call 312-930-3434.

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