Principal Financial reports 4Q profit

(AP) — Principal Financial Group Inc., an insurance, retirement and financial services company, reported a profit Monday, saying cost-cutting reduced its expenses and it lost half what it did a year earlier on its investments.

The Des Moines, Iowa, company reported net income of $141.9 million, or 44 cents per share, compared with a loss of $7.5 million, or 3 cents per share a year ago.

Revenue slipped to $2.23 billion from $2.28 billion a year ago.

Expenses fell to $2.06 billion from $2.34 billion.

Net realized capital losses fell to $59.1 million from $188.98 million a year ago.

Excluding the capital losses of 18 cents per share, the company reported profit of 62 cents per share.

Analysts surveyed by Thomson Reuters expected profit of 65 cents per share, also excluding one-time items.

Principal earned $589.7 million, or $1.97 per share, for the year — up from $425.1 million, or $1.63 per share in 2008.

Excluding one-time charges, the company reported annual profit of $2.69 per share. Analysts expected $2.72.

Annual revenue fell to $8.85 billion from $9.94 billion a year earlier.

The results were in part the result of improved market conditions and tough decisions including the cost-cutting, CEO Larry Zimpleman said in a statement.

"We took the necessary actions to align expenses with revenues; we enhanced liquidity through the crisis; and we strengthened our capital position with our equity and debt capital raises," he said.

Shares fell 27 cents, or 1.2 percent, to close at $22.19. They lost another 3 cents in aftermarket trading.

The company reported results after the market closed for the day.