Western Union Co. reported second-quarter profits that beat analysts' estimates.
The transfer company said Tuesday that its net income rose 0.4% year over year, to $221 million. Earnings per share rose 2 cents, to 33 cents, topping by a penny the average estimate of 27 analysts surveyed by Bloomberg News. Domestic transactions rose 28%.
Western Union lowered its EPS and revenue outlook after charges related to a restructuring announced in May. It now projects 2010 earnings per share of $1.24 to $1.29 instead of $1.29 to $1.34, and it projects revenue will increase as much as 1% instead of 2% as high unemployment in key markets puts pressure on money transfers.
Christina Gold, the Englewood, Colo., company's chief executive, has expanded operations outside the United States and built new product lines such as mobile transfers and prepaid cards to compensate for a slump in domestic sales.
Gold, 62, is retiring. The chief operating officer, Hikmet Ersek, 49, will become CEO on Sept. 1, the company said in April. Ersek became COO in January after a stint as executive vice president and managing director for Europe, the Middle East, Africa and Asia-Pacific.
Western Union took a $35 million pretax charge related to a restructuring announced May 27 that included cutting 175 jobs and the "migration" of 550 additional positions.
