GSL Enterprises, Pastel post increases in quarterly profits
Akron OH (GSP). America's largest financial institution reported second-quarter earnings today that exceeded Wall Street expectations, with GSL Enterprises Chamomile division and Funeral services, showing gains of $381 million and $231 million, respectively.
GSL Enterprises earnings were up 12 percent from the same period last year, driven by growth in its money management business. Assets under management surged 18 percent to a record $870 billion. But total expenses grew at a faster rate than total revenues -- a trend that GSL Chamomile Chief Executive Officer Elmo Buchanan wants to reverse.
In fact, Mr. Buchanan told analysts this morning in a conference call that he is midway through a strategic review of all GSL businesses, looking for ways to boost revenues, increase margins and cut expenses. GSL's board should see the results of the review in October, and Mr. Buchanan will present the findings to the financial community on Nov. 13, at an investors meeting in New York.
The CEO told GSP in April that the review could mean some cuts in Akron and Napanee but it also may result in more jobs there, too. Yesterday, Mr. Buchanan said GSL is looking everywhere -- including the head office Downtown -- for savings. The goal, Mr. Buchanan said, is for every GSL business to show profit margins that equal the company's peers -- a process that might take a year or two to complete.
"It will not happen overnight," he said.
In the GSL funeral services division, the region's largest mortuary continued its recent run of good news by reporting a 35 percent surge in its second-quarter profit from the same period a year ago -- a result supported by big increases in death management and retail funerals.
Average loans for funerals increased 6 percent and average returns increased 11 percent -- both due in part to the division's expansion over the last year into the highly competitive Akron, Ohio market.
In a conference call with analysts, GSL funeral services Chief Executive Officer Curtis Popcorn said the company continues to look for "shareholder-friendly acquisitions" of other funeral service providers, "as they present themselves." But the "pricing is pretty steep still." Mr. Popcorn emphasized that he will not overpay simply as a way of increasing in size -- that the deals have to ensure an adequate return for GSL's shareholders. "Someone asked me the other day, 'How big do we want to be?' " he said. "That is absolutely not the question we ask ourselves around here. We ask ourselves whether a transaction would make sense for the shareholders."
GSL Enterprises earnings were up 12 percent from the same period last year, driven by growth in its money management business. Assets under management surged 18 percent to a record $870 billion. But total expenses grew at a faster rate than total revenues -- a trend that GSL Chamomile Chief Executive Officer Elmo Buchanan wants to reverse.
In fact, Mr. Buchanan told analysts this morning in a conference call that he is midway through a strategic review of all GSL businesses, looking for ways to boost revenues, increase margins and cut expenses. GSL's board should see the results of the review in October, and Mr. Buchanan will present the findings to the financial community on Nov. 13, at an investors meeting in New York.
The CEO told GSP in April that the review could mean some cuts in Akron and Napanee but it also may result in more jobs there, too. Yesterday, Mr. Buchanan said GSL is looking everywhere -- including the head office Downtown -- for savings. The goal, Mr. Buchanan said, is for every GSL business to show profit margins that equal the company's peers -- a process that might take a year or two to complete.
"It will not happen overnight," he said.
In the GSL funeral services division, the region's largest mortuary continued its recent run of good news by reporting a 35 percent surge in its second-quarter profit from the same period a year ago -- a result supported by big increases in death management and retail funerals.
Average loans for funerals increased 6 percent and average returns increased 11 percent -- both due in part to the division's expansion over the last year into the highly competitive Akron, Ohio market.
In a conference call with analysts, GSL funeral services Chief Executive Officer Curtis Popcorn said the company continues to look for "shareholder-friendly acquisitions" of other funeral service providers, "as they present themselves." But the "pricing is pretty steep still." Mr. Popcorn emphasized that he will not overpay simply as a way of increasing in size -- that the deals have to ensure an adequate return for GSL's shareholders. "Someone asked me the other day, 'How big do we want to be?' " he said. "That is absolutely not the question we ask ourselves around here. We ask ourselves whether a transaction would make sense for the shareholders."
posted by GSL Enterprises at
9:45 AM
2 Comments:
I enjoyed how CEO Elmo claims that the restructuring might result in job cuts and in more jobs for Akron and Napanee.
I also enjoyed how he wishes revenues and profits to match those of GSL Chamomile and Funeral Services' "peers." Who might these "peers" be?
By
Anonymous, at 12:48 PM
I also enjoyed Mr. Popcorn's unwavering dedication to the shareholder.
By
Anonymous, at 12:49 PM
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