- The Washington Times - Wednesday, July 19, 2000

Freddie Mac, the McLean, Va.-based mortgage financier, reported second-quarter profits rose 14 percent despite a slowdown in mortgage lending due to the Federal Reserve's recent interest-rate increases.

The company reported net income of $631 million (84 cents per diluted share) for its second quarter ended June 30, up from $552 million (74 cents) for the like quarter last year.

The company benefited from overall growth in the mortgage market, increasing its portfolio of mortgages and mortgage securities by $14 billion in the quarter to $348 billion. Lenders are expected to make $1 trillion in mortgages this year, still a historically high number even after the record $1.5 trillion made in 1998 and the $1.3 trillion made in 1999.

"Solid portfolio growth, stable margins and continued credit strength contributed to our strong second quarter," said David Glenn, vice chairman and president of the company.

Among other Washington-area companies reporting earnings yesterday:

• Nextel Communications Inc., the Reston, Va., wireless company, reported net losses for its second quarter fell 10 percent to $241 million (38 cents) from $268 million (52 cents) for the like quarter last year.

• Legg Mason Inc., the Baltimore brokerage, reported net income for its first quarter ended June 30 rose 16 percent to $40.4 million (60 cents) from $34.7 million (52 cents) for the like quarter last year.

• Life Technologies Inc., a Rockville, Md., biotechnology firm, said net income for its second quarter ended June 30 rose 4 percent to $10.2 million (40 cents) from $9.8 million (39 cents) for the like quarter last year.

• Owens & Minor Inc., a Richmond distributor of medical supplies, reported net income for its second quarter ended June 30 increased 24 percent to $8 million (23 cents) from $6.5 million (19 cents) for the like quarter last year.

• SAGA Systems Inc., a Reston provider of electronic business software, reported net income for its second quarter ended June 30 fell 29 percent to $3.6 million (12 cents) from $5.1 million (16 cents) for the like quarter last year.

• Newport News Shipbuilding reported net income for its second quarter rose 20 percent to $24 million (74 cents) from $20 million (55 cents) for the like quarter last year.

• This article was based in part on wire service reports.

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