CME 2Q profit rises on CBOT deal

Futures exchange operator CME Group Inc. said Tuesday its second-quarter profit rose sharply, benefiting from the integration of last year's acquisition of the Chicago Board of Trade.

Separately, CME Group said it obtained committed financing for its planned acquisition of Nymex Holdings Inc., the operator of the New York Mercantile Exchange.

Chicago-based CME Group earned $201 million, or $3.67 per share, in the three months ended June 30 compared with $126 million, or $3.57 per share, a year earlier. Excluding costs related to the CBOT integration and other investments, CME said it earned $3.93 per share in the quarter.

Revenue rose to $563 million during the quarter from $329 million during the year-ago period.

Thomson Financial said analysts it surveyed expected earnings of $3.85 per share on sales of $568.5 million. The earnings estimates typically exclude one-time items.

Revenue from nearly all types of fees increased during the second quarter, largely due to the acquisition of CBOT.

Clearing and transaction fees at CME Group rose 81 percent to $458.5 million, from $252.7 million during the year-ago period. Quotation data fees more than doubled to $59.9 million in the second quarter, from $24.3 million during the second quarter in 2007.

Second-quarter expenses rose 61 percent to $219.7 million from $136.8 million during the year-ago period.

Last year's results do not include CBOT revenue and expenses.

CME Group said it expects full-year operating expenses to be closer to the bottom of its previously announced range of $855 million to $870 million, excluding any costs tied to the Nymex acquisition.

CME Group initially agreed to buy Nymex in March. It said Tuesday it will receive a combined $3.2 billion bridge loan from Bank of America Corp. and UBS AG.

Nymex shareholders will receive 0.1323 Class A shares of CME Group and $36 in cash for each share outstanding. Based on CME Group's closing price Monday, Nymex shareholders will receive about $79.07 per common share of Nymex they own.

The deal is scheduled to close during the third quarter, pending approval by Nymex members and shareholders as well as CME Group shareholders.

CME Group said during a conference call it plans to keep the Nymex trading floor in New York through 2012, regardless of profitability.

Shares of CME Group rose $40.74, or 12.5 percent, to $366.27 Tuesday.

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AP Business Writer Tim Paradis in New York contributed to this report.