Amex investors seek revenue boost after changes

New York

AMERICAN Express Co's (Amex) US$1 billion cost-cutting target and management changes announced on Wednesday did little to reverse its stock rout as investors and analysts wait to see whether the moves will succeed in boosting revenue.

The measures - creating and reshaping units while reassigning more than a half dozen senior managers - mark chief executive officer Ken Chenault's most sweeping overhaul yet to rejuvenate earnings growth and end a share slide that began in late 2014. The stock, down 23 per cent this year, gained 0.8 per cent on Wednesday. That lagged behind the 1.6 per cent advance of the Dow Jones Industrial Average.