Old News Rattles Wash Mutual Stock

Washington Mutual Inc.'s stock momentarily shuddered Tuesday after a wire service reported as new an earnings warning that merely reiterated what the company had said a month before.

Reuters quoted Washington Mutual's chief financial officer, William A. Longbrake, as saying Tuesday, "We've encouraged analysts to be somewhat more conservative in their outlook for the rest of 1998."

Investors reacted strongly to the report, driving down Washington Mutual's stock to $43.75 from $46.75, before closing at $44.6875, down $1.4375.

But the announcment was "old news," said Thomas O'Donnell, of Salomon Smith Barney.

Analysts said Washington Mutual had informed them last month that cost cuts would be delayed because the staff that handled the company's recent merger with Great Western Financial Corp. would be retained to do the same work with H.F. Ahmanson & Co.