Lehman Reports 32% Decline in Profit

Lehman Bros. Holdings Inc. said profit fell 32% in the third quarter to $309 million, or $1.14 a share, as strong bond operations failed to offset a decline in investment banking and stock trading revenue.

The results exceeded the $1.08-a-share average estimate of analysts polled by Thomson Financial/First Call.

The firm, which was forced out of its lower Manhattan headquarters because of the Sept. 11 terrorist attacks, said insurance will cover related expenses.

Lehman’s total net revenue for the quarter dropped 21% to $1.63 billion as investment banking revenue fell 16% and capital markets revenue declined 25%.

Lehman shares rose 85 cents to $52.40 on the NYSE.