Charles Schwab Inc. reported Tuesday that it expects its fourth-quarter earnings to be lower then what was previously expected, Reuters reports. The company projects that profits will be 14 cents per share, opposed to the expected 16 cent per share previously expected by Reuters Estimates.

The firm blamed the shortfall on fee cuts and the cost of a national advertising campaign, which it said would reduce earnings by $40 million before taxes, and severance charges, which it said would reduce earnings by another $10 million. In September, Schwab announced it would eliminate account service fees and order handling charges, its seventh price cut since May 2004.

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