Countrywide's Earnings Flat

Countrywide Financial Corp., Calabasas, Calif., has reported net income of $648 million in the third quarter, up from $634 million a year earlier.Countrywide's diluted earnings per share were flat at $1.03, the same as in the third quarter of 2005. But the company pointed out that EPS through the first nine months of 2006 reached a record of $3.29, up 7% from the same period last year. Countrywide chief executive Angelo Mozilo said that a "transitional market" put pressure on the company's mortgage earnings, which declined 40% from the level recorded a year earlier. Falling interest rates depressed loan servicing performance, and loan production earnings also declined. Moreover, Mr. Mozilo said the home loan industry continues to face challenges, saying Countrywide expects that "margins will remain under pressure and that pricing will remain competitive" in the fourth quarter. Countrywide can be found online at http://www.countrywide.com.