Prudential issues profit warning for 2008, 2009

NEWARK, N.J. - Prudential Financial Inc. on Thursday issued earnings guidance below Wall Street's estimates for this year and next as it withstands ongoing challenges in the financial markets.

The insurer announced at its Investor Day conference in New York that it expects earnings of between $3.35 and $3.55 per share in 2008, excluding the impact of certain one-time charges. Analysts polled by Thomson Reuters, on average, are expecting full-year earnings of $5.89 per share. Analyst estimates typically exclude unusual items.

The Newark, N.J.-based company also issued 2009 earnings guidance below estimates. Prudential expects a profit of $5.25 to $5.65 per share next year, based on after tax, adjusted operating income of the financial services businesses. Analysts forecast earnings of $7.10 per share next year.

Many insurers, including Prudential, have suffered in recent quarters from investment losses linked to the disruptions in the stock market.

Prudential previously withdrew its forecast for the remainder of the year in October, when it reported a third-quarter loss due to financial market turmoil.

Prudential also said Thursday it plans to sell its minority stake in retail brokerage Wachovia Securities to Wells Fargo & Co., and confirmed that it applied for an investment under the government's capital purchase program.

Prudential shares are down 78 percent year to date. In afternoon trading Thursday, its shares rose $1.91, or 9.5 percent, to $22.49.

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