• January 29, 2008

American Express, which told investors several weeks ago that it would take a $438 million charge against card delinquencies, says its fourth-quarter profits fell 10% to $831 million for the quarter. Consolidated revenues rose 10%, to $7.4 billion.

"Results for the year met or exceeded all of our long-term financial targets, even though we saw clear signs of a weakening economy and business environment in December," the company says. It also added 8.5 million cards. "Marketing and related investments remained focused on premium segments of the market."

Still, it says it remains cautious in its outlook for 2008, "and we continue to expect slower earnings growth in the year ahead. We are not immune from further deterioration in the economic and credit environment, but we believe our focus on the premium sector should help us to weather the current conditions better than many competitors."

--Sarah Mahoney