NYSE Euronext (NYX) reports net income of USD104 million, or USD0.40 per diluted share, for the first quarter of 2009, compared to net income of USD230 million, or USD0.87 per diluted share for the first quarter of 2008. Included in these GAAP results are USD23 million of pre-tax merger expenses and exit costs for the first quarter of 2009, and USD17 million for the first quarter of 2008.
Pro forma non-GAAP net income for the first quarter of 2009 was USD112 million, or USD0.43 per diluted share, compared to net income of USD240 million, or USD0.90 per diluted share, for the first quarter of 2008. Pro forma non-GAAP results exclude activity assessment and Section 31 fees, merger expenses and exit costs, as well as favorable discrete tax credits. A full reconciliation of these non-GAAP results is included in the attached tables.
Operating income was USD182 million, compared to USD354 million in the first quarter of 2008 and includes a negative impact of (USD29) million for currency fluctuations. Diluted earnings per share in the first quarter of 2009 declined by USD0.47, or 52%, compared with the prior year period. The decline includes a (USD0.07) per share negative impact for currency fluctuations.
Since we reported record results in the first quarter of 2008, the financial services landscape has undergone a significant transformation, says Duncan L. Niederauer, CEO, NYSE Euronext. Despite adverse market conditions, we have stayed focused on executing our two pronged strategy, to broaden and diversify our streams of revenue, and at the same time, reduce our costs and make us more efficient, streamlined and agile. With each new quarter, we continue to make steady progress on both fronts, and I am confident that as market conditions stabilize we will be well positioned for growth.
In the first quarter, we accelerated our cost efficiency initiatives, which resulted in a USD51 million decline in fixed costs compared to the fourth quarter of 2008, says Michael S. Geltzeiler, group executive vice president and chief financial officer, NYSE Euronext.
Furthermore we achieved our USD120 million first quarter target for run-rate technology savings, we already achieved the USD120 million in cost savings related to our acquisition of Amex, and we have significantly increased the pace of our restructuring plans in the U.S. and Europe. Based on our first quarter results and an accelerated company-wide focus on expense rationalization efforts, we are increasing our cost savings guidance by an incremental USD100 million to be realized in 2009.
L.D.