SALOMON INC <SB> SAW REDUCTION IN REVENUES
Salomon Inc had a reduction in trading
revenue in April and May, managing director Robert Salomon said
in response to questions.
    Analysts have said they believe the lower second quarter
profit predicted by Salomon Inc was partially the result of
trading losses and lower revenues from low trading volume. They
said they believe the firm, like others on Wall Street,
suffered most from the turbulent weeks for the bond market in
April.
    Robert Salomon would not comment on whether the firm had
actual trading losses, but he said he would not "quarrel" with
a New York Times article that said the firm's losses could have
amounted to 100 mln dlrs.
    "We haven't acknowledged any trading losses other than to
say that April was a difficult month, and you can presume
anything you want from that. we don't have a quarrel with the
new york times article," Salomon said.
     "There cleary was a reduction in the amount of revenues
generated in April and May was a little bit better," he said.
    The New York times attributed the figure to analysts and
unnamed Wall Street officials it said were familiar with the
firm's activities.
    Salomon Chairman John Gutfreund today in a statement
reiterated that the firm expects a profit in the second quarter
but sees lower earnings than last year's second quarter.
Analysts lowered their estimates yesterday to about half of
last year's 75 cts per share.
    "We believe this showing is satisfactory within the
framework of existing market conditions," said Gutfreund in a
statement.
 Reuter
