In the July to September 2003 period, operating income climbed to $39.3 million from $20.0 million in the third quarter of 2002. Revenues also increased in the third quarter, rising 20 percent to $104.4 million, compared with $86.9 million during the same period the prior year.
Net income after income taxes and limited partners' interest in the Ceres Limited Partnership was $6.3 million in the third quarter of 2003. No limited partners' interest was recorded in the similar 2002 period.
Ceres Limited Partnership was formed in 1992 by the CBOT for the purpose of developing and maintaining an electronic trading system. The CBOT holds a 10 percent interest in Ceres, and members of the CBOT hold the remaining interest in the partnership.
Growth in revenues was primarily driven by a 29 percent increase in trading volume in the third quarter, when CBOT reached a quarterly volume record of 128.5 million contracts, versus turnover of 99.9 million contracts during the third quarter of 2002.
CBOT Chairman Charles P. Carey said, "Our strong financial results are a testimony to the strength of the CBOT. We provide the world with unparalleled trading opportunities, and market participants are increasingly taking advantage of our highly liquid, transparent markets. CBOT's earnings, and record volume, well position the exchange for future growth."
CBOT President/CEO Bernard W. Dan said, "We are extremely pleased with our third-quarter results. Our success is directly linked to our business model, which focuses on providing customers with the technology, trading capabilities and open markets that they require. The CBOT has a 155-year track record of driving change in the derivatives industry, and our earnings speak to the continuation of our rich history."
For the nine months ended September 30, 2003, operating income, rose 71 percent to $94.1 million, compared with operating income of $55.1 million in the same period the prior year. After recording income taxes and the limited partners' interest in Ceres, net income was $30.9 million in the first nine months of 2003. There was no limited partners' interest recorded in 2002.
Revenues also rose in the first three quarters of 2003, increasing 20 percent to $282.1, from $235.7 million during the same period the prior year.
Volume jumped 34 percent in the first nine months of the year to 339.3 million contracts, compared with 253.0 million contracts for the same period in 2002. On October 6, the CBOT broke its all-time annual volume record and continues to build on that record.
As of September 30, 2003, the CBOT had an unrestricted cash balance of $113.1 million, compared to $83.5 million as of December 31, 2002. Net current assets as of September 30, 2003 were $96.3 million compared to $53.4 million on December 31, 2002.
