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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported) September 8, 1999
J.P. MORGAN & CO. INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 1-5885 13-2625764
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
60 WALL STREET, NEW YORK, NEW YORK 10260-0060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 483-2323
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On September 8, 1999, the Registrant issued a press release announcing
that Lloyd D. Ward, Chairman and Chief Executive Officer of Maytag
Corporation, has been elected to the Board of Directors, effective
immediately. A copy of such press release is filed herein as exhibit
99a.
On September 9, 1999, the Registrant issued a press release announcing
that they had a planned update for the investment community covering
the firm's progress on strategic initiatives. The firm's asset
management and global markets activities as well as its productivity
efforts were areas of specific focus. A copy of such press release is
filed herein as exhibit 99b.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements
NONE.
(b) Pro Forma Financial Information
NONE.
(c) Exhibits
99a. Copy of press release of J.P. Morgan & Co. Incorporated
dated September 8, 1999.
99b. Copy of press release of J.P. Morgan & Co. Incorporated
dated September 9, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
J.P. MORGAN & CO. INCORPORATED
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(REGISTRANT)
/s/ Grace B. Vogel
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NAME: Grace B. Vogel
TITLE: Chief Accounting Officer
DATE: September 9, 1999
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J.P. Morgan & Co. Incorporated
News Release
Exhibit 99a.
News release IMMEDIATE September 8, 1999
J.P. Morgan elects Lloyd Ward as a new director
Lloyd D. Ward, Chairman and Chief Executive Officer of Maytag Corporation,
has been elected a director of J.P. Morgan & Co. Incorporated. His election is
effective immediately.
Mr. Ward, 50, assumed his current responsibilities at Maytag last month. He
joined the company in 1996 as executive vice president and president of Maytag
Appliances, and was elected president and chief operating officer of Maytag
Corporation and a member of its Board in 1998. Prior to joining Maytag, Mr. Ward
worked for eight years at PepsiCo, Inc., where he held a variety of executive
positions.
"We are very pleased that Lloyd Ward is joining J.P. Morgan's Board," said
Douglas A. Warner, chairman and CEO of Morgan. "Lloyd is an extraordinary leader
and marketing strategist. We will benefit greatly from his advice and
expertise," Mr. Warner added.
Mr. Ward is a member of the Executive Leadership Council in Washington D.C.
He formerly served as a board member of Central and South West Corporation, the
YMCA of Dallas, Paul Quinn College, Jimmy Johnson Foundation for Children,
Inroads of Southwest Ohio, and Ronald McDonald House.
Mr. Ward was born in Romulus, Michigan. He received a B.S. degree in
mechanical engineering from Michigan State University in 1970 and an M.B.A.
degree from Xavier University in Cincinnati, Ohio, in 1984. He and his wife have
two grown sons.
J.P. Morgan is a leading global financial firm that meets critical
financial needs for business enterprises, governments, and individuals. The firm
advises on corporate strategy and structure, raises capital, makes markets in
financial instruments, and manages investment assets. Morgan also commits its
own capital to promising enterprises and invests and trades to capture market
opportunities.
# # #
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Press contacts: J.P. Morgan Joseph Evangelisti 212-648-9589
Maytag Corporation James G. Powell 515-787-8392
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Exhibit 99b.
News release: IMMEDIATE September 9, 1999
J.P. Morgan briefs investors and analysts on strategic performance
At a briefing today in New York, executives of J.P. Morgan & Co.
Incorporated provided a planned update for the investment community covering the
firm's progress on strategic initiatives. Morgan's chairman, Douglas A. Warner
III, hosted the meeting. The firm's asset management and global markets
activities as well as its productivity efforts were areas of specific focus.
- - Ramon de Oliveira, head of Morgan's Asset Management Services group,
discussed Morgan's global money management franchise. He outlined operating
initiatives aimed at expanding margins as well as strategic initiatives to
both increase assets gathered through key distribution channels and expand
private banking activities in the affluent market. Total assets under
management grew 24% in 1998 and at a 16% annualized rate in the first half
of 1999. Pretax margin for the group rose to 17% at the end of the 1999
first half, compared with 7% last year. Revenues from private banking in
1998, approximately $600 million, represented half of total group revenues.
- - Bill Winters and Nick Rohatyn, who lead the firm's global markets
activities (comprising interest rate, foreign exchange, and credit markets)
described a diversified global business that is a consistently important
contributor to earnings. They highlighted growth potential in derivatives,
emerging markets, and selected origination and financing capabilities.
Revenues from the derivatives franchise totaled approximately $1.6 billion
in 1998 and $1 billion in the first half of 1999 (reported in the firm's
Global Finance sector), having grown at a compound annual rate of 14% in
recent years. Revenues from emerging markets for the same two periods were
approximately $400 million and $725 million, respectively. Winters and
Rohatyn stressed J.P. Morgan's client franchise in global markets as the
key driver of growth in this segment, as well as a record of profitability
sustained over time despite periodic market volatility. Client revenues
have accounted for approximately 85% of total global markets revenues from
January 1996 through June 1999.
- - Peter Hancock, chief financial officer, discussed Morgan's approach to
maximize long-term risk-adjusted returns and gave a progress report on
productivity initiatives. He said the firm was on track to achieve
productivity savings, before bonuses and investment, of $400 million in
1999 and was targeting a comparable level of productivity savings for next
year. He stressed the firm's commitment to continuous productivity and
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Press contact: Joseph Evangelisti 212-648-9589
Investor contact: Ann B. Patton 212-648-9446
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quality improvements. Ahead of schedule, the firm has substantially
achieved its goal of reducing the capital used in credit activities by
50%; broad-based efforts are now focused on generating improved returns on
capital employed across the firm.
Strong performance in Investment Banking and Equities was reviewed briefly
by Warner. These activities produced combined pretax income of nearly $400
million in the first half of 1999, reflecting gains in operating leverage
as well as market share.
Warner reported solid progress on strategic initiatives articulated at
the beginning of 1998 and reiterated the firm's performance goals: 15% to 20%
return on equity over the business cycle, and an efficiency ratio (the ratio of
expenses to revenues) in the mid-60s. For the first six months of 1999, J.P.
Morgan's return on equity was 20%, and its efficiency ratio was 64%.
J.P. Morgan is a leading global financial firm that meets critical
financial needs for business enterprises, governments, and individuals. The firm
advises on corporate strategy and structure, raises capital, makes markets in
financial instruments, and manages investment assets. Morgan also commits its
own capital to promising enterprises and invests and trades to capture market
opportunities.
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Estimates or targets may differ from actual results and are subject to risks and
uncertainties, as discussed in J.P. Morgan's 1998 Annual Report filed with the
Securities and Exchange Commission.
