Financial services at Fidelity
are looking good, but other businesses are a different story. That's the main thrust of an article in yesterday's Boston Globe
. Todd Wallack reports
, according to S&P analyst Charles Rauch
, Fidelity's "noncore businesses" are "a drag on the company's consolidated profitability."
Fidelity's operating income rose from $2.4 billion in 2008 to $2.5 billion in 2009, thanks to solid results in its core financial services businesses and a reduction in headcount. Yet ProBuild Holdings
, a building materials supplier, cost Fidelity $345 million in losses over six months last year, and European telecoms firm Colt Technology Group
forced Fidelity to take a $410 million hit.
Neil Anderson, Managing Editor
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