Citigroup Global Markets Holdings Inc. – ‘8-K’ for 1/23/96 – EX-99

As of:  Tuesday, 1/23/96   ·   For:  1/23/96   ·   Accession #:  200245-96-3   ·   File #:  1-04346

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3      7K 
 2: EX-99       Miscellaneous Exhibit                                  4     22K 

EX-99   —   Miscellaneous Exhibit

EX-99
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Contact: Robert F. Baker                                                        
212-783-6299                                

For immediate release:                                                          

SALOMON INC REPORTS QUARTERLY NET INCOME OF $168 MILLION      

New York,  January 23, 1996 -- Salomon Inc today  announced  fourth  quarter net
income of $168 million. Net income for the second half of 1995 was $436 million,
among the most profitable six month periods in Salomon's history. Primary return
on equity for the six months ended December 31, 1995 was 22%. For the year ended
December 31, 1995, the Company recorded net income of $457 million,  compared to
a net loss of $399 million in the same period a year ago. Fully diluted earnings
per share  were  $1.32 and $3.50 for the three and twelve  month  periods  ended
December 31, 1995, respectively.  Chairman and Chief Executive Officer Robert E.
Denham said,  "Salomon Inc's very strong  performance in the second half of 1995
provides a good base for our efforts to become increasingly profitable in 1996."

Revenues net of interest  expense for Salomon  Brothers,  the  Company's  global
investment banking and securities  business,  were just under $3 billion for the
full year, reflecting a broad-based  recovery.  Salomon Brothers recorded pretax
income of $704 million in 1995,  including  $207 million in the fourth  quarter.
Deryck C. Maughan,  Chairman and Chief  Executive  Officer of Salomon  Brothers,
said  "Salomon  Brothers  has good  momentum  and our goal is to show  continued
progress in 1996. Our revenues of nearly $3 billion were almost triple the level
of 1994."                                                                       

Fixed  income  sales and trading net  revenues  for the year  increased  to $1.6
billion, from $644 million in 1994, reflecting a return to strong performance in
customer  sales and trading,  favorable  market  conditions  and good results in
trading for the Firm's  account.  Equity  sales and trading net revenues for the
year increased to $828 million from $157 million in 1994, reflecting substantial
progress in building our global equity  capability,  favorable market conditions
and a strong trading performance.                                               

Investment  banking  revenues for the year were $472  million,  compared to $486
million in 1994.  The 1995 results  reflect a $68 million loss on Latin American
underwriting  positions  reported in the first quarter.  For the fourth quarter,
Salomon  Brothers  ranked  second  in U.S.  corporate  debt and  equity  capital
raising.                                                                        

As planned,  Salomon Brothers' headcount at the end of 1995 was 6,400, down over
500 on the year. Despite very competitive  market conditions,  Salomon Brothers'
full year ratio of compensation to revenues,  net of interest expense,  was 54%,
which was close to industry-wide levels.  Noncompensation  expenses for the year
of $645 million were 22% of revenues,  net of interest  expense,  which compares
favorably to our major competitors.                                             

Phibro, the Company's  commodities  trading business,  recorded pretax income of
$56 million in the fourth quarter  compared to $68 million in the third quarter.
Phibro recorded pretax income of $85 million in 1995,  compared with $81 million
in 1994.                                                                        

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Phibro USA, the Company's oil refining and marketing business, recorded a pretax
loss of $32 million in the fourth  quarter of 1995  compared to a pretax loss of
$9 million in the third  quarter.  Weak refining  margins in the fourth  quarter
were  compounded  by a  lengthier  than  normal  turnaround  at the  Texas  City
refinery,  which  involved  modifying  certain  existing units to connect to the
almost  complete  Residfiner/ROSE  complex.  For the full  year,  Phibro USA had
pretax losses of $91 million,  compared with pretax  earnings of $18 million for
1994.  Phibro USA's 1995 results were adversely  affected by depressed  refining
margins,  which were at an eight year low in 1995, and reduced throughput due to
the  completion of major planned  turnarounds  for each of its Texas  refineries
during  the  year.  In order to  establish  a  distinct  identity  from  Phibro,
effective  April  1,  1996,  Phibro  USA  will be  changing  its  name to  Basis
Petroleum, Inc.                                                                 

Other expenses in the fourth  quarter were reduced by $23 million,  which is the
amount to be received by the Company in settlement of the Shareholder Derivative
Action against certain former  executives in connection  with Salomon  Brothers'
1991 Treasury Auction matter.  The fourth quarter 1995 effective tax rate of 28%
includes an  adjustment  necessary to bring the full year  effective tax rate to
35%.                                                                            

Book value per common share was $35.84 at December 31, 1995 up from $32.65 at   
the end of 1994.  Average assets for the fourth quarter were $184 billion.      

Salomon  Inc  selected  financial  information  and the  Unaudited  Consolidated
Statement of Income follow:                                                     

EX-99
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                                                                           SALOMON INC AND SUBSIDIARIES                           
                                                                  Selected Financial Information (unaudited)                      
                                                                 (Dollars in millions, except per share data)                     

                                                                   Quarter ended                             Year ended           
                                                    December 31,   September 30,    December 31,     December 31,    December 31, 
                                                       1995            1995            1994              1995            1994     
                                                                                                                                  
SUMMARY OF OPERATING RESULTS BY BUSINESS:                                                                                         
Income (loss) before income taxes:                                                                                                
   Salomon Brothers                             $         207   $        381   $        (416)   $          704   $          (963) 
   Phibro                                                  56             68             (24)               85                81  
   Phibro USA                                             (32)            (9)              5               (91)               18  
   Corporate and other                                      3             (1)             14                10                33  
Income (loss) before income taxes               $         234   $        439   $        (421)   $          708   $          (831) 

Salomon Brothers' revenues, net of interest expense:                                                                              
       Fixed income sales and trading           $         379   $        733   $         269    $        1,603   $           644  
       Equity sales and trading                           185            196             (64)              828               157  
       Global investment banking                          168            128             109               472               486  
       Asset management                                    11              9               9                39                38  
       Unallocated charges and other                        -              -            (267)                6              (247) 
           Total Salomon Brothers' revenues,                                                                                      
            net of interest expense             $         743   $      1,066   $          56    $        2,948   $         1,078  

RETURN ON AVERAGE COMMON STOCKHOLDERS' EQUITY:                                                                                    
   Primary                                               16.4%          28.0%          (19.2)%            10.8%            (11.7)%
   Fully diluted*                                        15.1           24.6           (19.2)             10.3             (11.7) 

PER COMMON SHARE:                                                                                                                 
     Cash dividends                             $        0.16   $       0.16   $        0.16     $        0.64   $          0.64  
     High market price                                 40 5/8         41 1/8              42            43 1/4            52 3/4  
     Low market price                                  33 7/8         34 3/4              35            32 1/4                35  
     Ending market price                               35 3/8         38 1/2          37 1/2                                      
     Book value at quarter-end*                         35.84          34.49           32.65                                      

AT QUARTER-END (in billions):                                                                                                     
     Average assets for the quarter            $          184   $        163   $         175                                      
     Common equity                                        3.8            3.7             3.5                                      
     Convertible preferred equity                         0.6            0.7             0.7                                      
     Perpetual preferred equity                           0.3            0.3             0.3                                      

<FN>                                                                                                                              
*Assumes conversion of convertible notes and redeemable  preferred stock, unless                                                  
  such  assumptions  result in higher  returns  on  equity  or book  value  than                                                  
  determined under the primary method.                                                                                            
</FN>                                                                                                                             

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                                                                    SALOMON INC AND SUBSIDIARIES                                    
                                                            Consolidated Statement of Income(unaudited)                             
                                                           (Dollars in millions, except per share data)                             

                                                           Quarter ended                                    Year ended              
                                        December 31,        September 30,     December 31,        December 31,       December 31,   
                                           1995                1995               1994               1995                1994       

                                                                                                                                    
Revenues:                                                                                                                           
     Interest and dividends          $         1,859    $         1,611    $          1,635    $         7,022    $           5,902 
     Principal transactions                      268                691                (326)             1,077                 (560)
     Investment banking                          168                128                 109                472                  486 
     Commissions                                  80                 82                  79                332                  336 
     Other                                         -                 24                  31                 30                  114 
           Total revenues                      2,375              2,536               1,528              8,933                6,278 
     Interest expense                          1,549              1,355               1,432              5,782                4,892 
 Revenues, net of interest expense               826              1,181                  96              3,151                1,386 

Noninterest expenses:                                                                                                               
     Compensation and employee-related           425                557                 332              1,737                1,486 
     Technology                                   60                 64                  65                252                  255 
     Professional services and business                                                                                             
          development                             53                 45                  46                178                  167 
     Occupancy                                    45                 45                  32                173                  165 
     Clearing and exchange fees                   15                 15                  17                 63                   70 
     Other                                        (6)                16                  25                 40                   74 
           Total noninterest expenses            592                742                 517              2,443                2,217 

Income (loss) before income taxes                234                439                (421)               708                 (831)
Income tax expense (benefit)                      66                171                (264)               251                 (432)
Net income (loss)                    $           168    $           268    $           (157)   $           457    $            (399)

EARNINGS AVAILABLE FOR FULLY                                                                                                        
DILUTED EARNINGS PER SHARE           $           163    $           263    $           (175)   $           437    $            (461)

EARNINGS (LOSS) PER SHARE:                                                                                                          
Primary                              $          1.42    $          2.36    $          (1.65)   $          3.64    $           (4.31)
Fully diluted*                                  1.32               2.10               (1.65)              3.50                (4.31)

WEIGHTED AVERAGE SHARES OF                                                                                                          
COMMON STOCK OUTSTANDING (in thousands):                                                                                            
For primary earnings per share               106,600            106,600             105,800            106,500               106,800
For fully diluted earnings per share         123,000            125,400             105,800            124,700               106,800

<FN>                                                                                                                                
* Assumes conversion of convertible notes and redeemable preferred stock, unless                                                    
  such assumptions result in higher earnings per share than determined under the                                                    
  primary method.                                                                                                                   
</FN>                                                                                                                               

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
		4/1/96		2					10-K405,  DEF 14A
Filed on / For Period End:		1/23/96		1
		12/31/95		1		2			10-K405
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