Amex Reports Profit, Cites T&E Growth, Promotes DiLeo

American Express said corporate spending on travel and entertainment grew in the final quarter of 2003 at a year-over-year rate of 10 percent, compared with 7 percent in the third quarter and no growth during the first half of the year. "The month of December was stronger than the first two months of the quarter," added Amex CFO Gary Crittenden, speaking late yesterday with analysts on a conference call. "Corporations are increasing their T&E-related expenditures, after three years of working to contain them."

Amex reported record quarterly net earnings of $763 million, with its Travel Related Services division clocking 10 percent higher net earnings of $606 million. Effects of the acquisition of Rosenbluth International included an increase of 21 percent in travel revenues--also driven by what Crittenden called "an improving sales environment"--and an offsetting 2 percent lower headcount with the addition of 2,700 Rosenbluth employees. Overall human resources expenses in TRS rose 18 percent. The acquisition, as well as "higher business and service-volume related costs," drove 10 percent higher "other operating expenses" for Amex.

Meanwhile, Amex yesterday announced that former Rosenbluth COO Ron DiLeo was named senior vice president and head of corporate travel in Europe. Amex cited DiLeo's 25 years of experience with Rosenbluth, including responsibilities for cross-border servicing. DiLeo will be based in London.