A significant portion of J.P. Morgan & Co.'s earnings will "vaporize" over the next couple years as overseas turmoil buffets key operating areas, a widely followed analyst said Monday.

Judah S. Kraushaar of Merrill Lynch & Co. cut profit projections for the New York banking company to $4.75 per share, from $6.75, for this year and to $7.15, from $9.05, for 1999, citing a "harsh operating environment" for the once seemingly invincible institution.

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