MetLife Drops Its ’08 Forecast

Source: NYTimes.com

MetLife, the life insurance company, withdrew its 2008 earnings forecast and said third-quarter operating profit fell to a range of $600 million to $675 million as investment income declined.

The company plans to sell 75 million shares.

Operating earnings for the quarter ended June fell to a range of 83 cents to 93 cents a share, the company said.

“Given the current volatility, the company is withdrawing its 2008 earnings guidance,” MetLife said. The company will report full results on Oct. 29.

MetLife was hurt by losses related to investments in hedge funds and private equity firms as well as its stakes in failed companies including Lehman Brothers Holdings and Washington Mutual.

Variable-investment income will be about $117 million below expectations, MetLife said.

The company announced plans to sell 75 million shares in a public offering to raise capital amid the financial crisis. The offering may be priced on Wednesday, MetLife said in a statement.

MetLife fell $7.45, or 17 percent, to $36.87 on the New York Stock Exchange as credit concerns pushed the Standard & Poor’s 500-stock index to its lowest since 2003. MetLife shares have fallen 48 percent in the last year.

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