Goldman Sachs, one of Wall Street's top firms, said today its fiscal first-quarter profits fell 13 per cent as plummeting stock markets led companies to curtail their plans to sell new stock, though the fall beat reduced Wall Street estimates.
Goldman, the top seller of new stock offerings in 2000 and 1999, reported net income of $768 million, or $1.40 a diluted share, for the quarter. That compared with profits of $887 million, or $1.76 a share, in last year's first quarter.
"There is no question that current economic and market activity have slowed considerably," chief executive Mr Henry Paulson said in a statement.
Initial public offerings (IPOs), once one of the stock market's most lucrative segments, have stalled. By last Friday, 63 companies had withdrawn or postponed their IPOs this year, compared with only 21 withdrawn IPOs between January and March 2000.
Goldman shares closed at $90.93 trading on the New York Stock Exchange yesterday, down from their 52-week high of $133.63. The shares are off about 13 per cent since the beginning of the year.