Grain News

CME Group Reports 4Q Net Income of $193 Million, Up From $167 Million in 4Q 2012

Date Posted: February 4, 2014

Chicago—CME Group Inc. (NASDAQ: CME) today reported revenues of $687 million and operating income of $323 million for the fourth quarter of 2013.

Net income attributable to CME Group was $193 million and diluted earnings per share was $0.58.

Excluding the items noted in the reconciliation, adjusted earnings per share would have been $0.64.

"This was a year of progress," said CME Group Executive Chairman and President Terry Duffy.

"Throughout 2013 we faced many challenges as we worked with regulators and industry participants to successfully navigate the three waves of the Dodd-Frank clearing mandate.

"Our response to a dynamically changing landscape inside and outside the U.S. has been exceptional.

"In addition, the economy showed signs of incremental improvement and the Federal Reserve began taking steps to reduce quantitative easing.

"We have been successful at not only building our own business for the future, but also in contributing to the regulatory process and laying the groundwork for our customers to move their businesses forward under the new and evolving market structure debate."

"I am very pleased with fourth-quarter results, highlighted by double-digit average daily volume growth in our futures and options complex when compared with last year," said CME Group Chief Executive Officer Phupinder Gill.

"This strong performance was driven by a 29 percent increase in interest rate volume.

"Innovative new interest rate futures and options product extensions launched in the last few years represented 4 percent of the total interest rate volume in the fourth quarter.

"The new year is off to a good start, with increased volatility in interest rate, equity, and energy markets resulting in an increase of 13 percent in average daily volume in January.

"Looking ahead, we will continue to build on the most extensive product offering available today to deliver innovative solutions to meet our customers' needs."

Fourth-quarter 2013 average daily volume was 11.3 million contracts, up 11 percent from fourth-quarter 2012, and included 29 percent growth in interest rate volume.

Clearing and transaction fee revenues were $577 million, up 6 percent compared with the same period last year.

Fourth-quarter total average rate per contract was 78.0 cents, up from 76.2 cents in third-quarter 2013, driven primarily by a higher proportion of total volume coming from energy and agricultural products, which have higher average fees.

As of December 31, 2013, the company had $2.5 billion of cash and marketable securities and $2.9 billion of debt.

The company declared dividends associated with 2013 of $1.5 billion, including the annual variable dividend for 2013 which was paid in January 2014.

The annual variable dividend associated with 2013 totaled approximately $870 million and was twice the size of the annual variable dividend associated with 2012.

For more information, call 312-930-3434.

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