Mr. Donaldson also said he expected cost-cutting measures to save $100 million to $150 million before taxes this year.
Timothy D. Anderson, an analyst for Sanford C. Bernstein, said he expected cost-cutting to be closer to $6 billion.
While analysts expect cost-cutting to drive the stock price, they also warn that J.P. Morgan may need to reserve as much as $3 billion to cover litigation over its involvement in the Enron and WorldCom bankruptcies.
But it said it would benefit from recent falls in raw material prices and expected a cost cutting programme to bring in £12m of annual savings by 2015.
Cost cutting is expected to hit oil services companieslike Haliburton hal and Schlumberger slb particularly hard, reviving merger rumors that have sent those stocks higher recently.
At its sugar business, it expected to benefit from price increases and from cost cutting.
Expected costs: $4.4 billion.
Cost cutting helped, too.
You mentioned cost cutting.
It blamed "cost cutting" for the reduction.
