Business news with words billion+cents+continues. 4 news.

CITIGROUP Inc, the biggest US bank, may cut its dividend by 40 percent to preserve capital and write down more fixed income securities than it has told investors to expect, according to Goldman Sachs Group Inc. The New York bank may write off US$18.7 billion in collateralized debt obligations such as subprime mortgages, up from its November 4 estimate of as much as US$11 billion, Goldman's William F. Tanona wrote in a note on Wednesday. Citigroup, which paid out 54 cents each quarter this year, will have to raise US$6.2 billion in extra capital to reach its target, they wrote. "It will be a couple of quarters before the current credit crisis is fully digested by the markets," wrote Tanona, who has a "sell" rating on the stock. "Given the magnitude of the writedowns we assume and Citi's remaining exposure, we believe the firm has a serious need to preserve or raise additional capital." Chief Executive Officer Charles O. "Chuck" Prince III

TEL AVIV (MarketWatch) -- American Tower Corp., the Boston developer of broadcast and wireless-communications sites, reported on Wednesday that third-quarter earnings jumped on 10% higher revenue. Earnings reached $59.6 million, or 14 cents a share, from $3.5 million, or 1 cent, in the year-earlier period. Revenue rose to $367.6 million from $333.5 million. A survey of analysts by Thomson Financial produced a consensus estimate of 7 cents of profit on $363 million of revenue. Demand for tower space continues "robust," Chief Executive Jim Taiclet said in a statement. AMT increased its estimate for total revenue in 2007, now pegging the figure at around $1.42 billion. Thomson's survey is looking for $1.44 billion. The company has $477 millon remaining on its stock-buyback plan and expects to complete the plan by the end of February.

NEWY YORK (MarketWatch) -- SPX Corp. on Wednesday said third-quarter net income rose to $92.9 million, or $1.75 a share, from a loss of $48.1 million, or 85 cents a share in the year-ago period. Income from continuing operations increased to $1.71 a share from 87 cents a share. Revenue climbed 19% to $1.23 billion from $1.03 billion. Analysts surveyed by Thomson Financial forecast earnings of $1.20 a share and revenue of $1.24 billion, on average. The Charlotte, N.C. manufacturer increased its 2007 profit forecast to $4.70 to $4.80 a share from $4.50 to $4.70 a share. "Our focus on power and energy infrastructure continued to drive strong organic growth in the third quarter, and we are pleased with the solid margin improvement in three of our four segments," the company said. "As expected, our Test and Measurement segment continues to experience difficulties related to the domestic automotive market."

LONDON (MarketWatch) -- Schlumberger Limited said that its third quarter net income rose 35% to $1.35 billion, or $1.09 a share, from $999.8 million, or 81 cents a share, a year ago. Analysts had been expecting the firm to post earnings per share of $1.07 a share, according to data compiled by Thomson Financial. Sales rose to $5.93 billion, from $5.64 billion a year ago. Schlumberger said that growth in the third quarter was driven by international markets particularly Latin America, Russia, China and Indonesia. "Global demand for oil remains strong while non-OPEC production continues to disappoint," the firm said.