Analysts applauded the gesture because profits generated by the company's financial services group lagged revenues stemming from its main business offerings.

American Express Financial Advisors, which yielded $7 billion of revenue in 2004, is scheduled to become an independent entity sometime in the third quarter. American Express netted $22 billion from credit card and travel services during the same period.

The financial group, which manages $410 billion for at least 2.5 million customers, is considered a heavyweight in the asset management industry. Company officials declined to say if or when the unit will jettison its American Express moniker.

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New American Express 401(k) Seen Late: Some companies have a two-year head start on American Express, but the company says there's plenty of demand in the market.
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