FCStone Group's Fiscal 4Q Profit Surges

In the quarter ended Aug. 31, FCStone Group earned $12 million, or 42 cents per share, compared with income of $3.9 million, or 18 cents per share, in the year-ago quarter. Analysts expected profit of 21 cents per share, according to a Thomson Financial survey.

Revenue, which the company collects by charging fees for advice and trading services, plunged to $75.6 million from $317.1 million. The year-ago period included $269.3 million in revenue from sales of commodities. Analysts expected revenue of $61.3 million in the recent quarter.

Income rose in the recent quarter in part because the company recorded $264.5 million in cost of commodities sold in the 2006 quarter.

FCStone, using options and futures contracts, helps clients shield themselves from swings in prices for commodities like oil and grain. During the fiscal fourth quarter, clients needed more help because these markets were volatile, the company said.

For fiscal 2007, profit more than doubled to $33.3 million, or $1.30 per share, from $15.3 million, or 70 cents per share. Revenue rose 3 percent to $1.34 billion from $1.29 billion.

Shares of FCStone Group rose 56 cents to $38.87 in morning trading.