Alex. Brown has announced a third-quarter loss of $3.1 million, or 21 cents a share, primarily because of declining stock prices. In the 1989 third quarter,the Baltimore investment banking firm made $6.3 million, or 38 cents per share.
Revenues for the investment banking firm were $58 million compared to $79.6 million in the 1989 third quarter.
While revenues were off 27 percent for the quarter, President Donald B. Hebb Jr. characterized commissions as "strong" and investment banking revenue as "good." But the firm "experienced significant declines" because of the falling value of specific stocks held in its inventory, he said in a statement.
One of these stocks was from a recent offering where Alex. Brown was a managing underwriter. Alex. Brown did not disclose the name of the company involved in the offering.
Alex. Brown generally keeps about $80 million to $90 million in its stock inventory, according to Beverly L. Wright, the company's chief financial officer.
The pace of business slowed in the latter part of the quarter because of concerns about war with Iraq and a possible recession, Hebb said.
"Concerns about the strength of the securities market as a whole remain as we begin the fourth quarter, but we are confident that this market also provides significant investment opportunities," Hebb added.
For the first nine months, the company had a net income of $3.9 million, or 25 cents per share, compared to earnings of $4.3 million, or 26 cents a share, for the same period a year ago.
Revenues for the first nine months were $203 million compared to $210.5 million for the same period a year ago.
Alex. Brown also announced a quarterly dividend of 7 cents per share -- unchanged from the previous quarter -- payable on Nov. 14 to stockholders of record on Nov. 5.
The company said it repurchased about 600,000 shares of its common stock during the third quarter. Its stock repurchase program has been expanded and the company is authorized to buy back up to 1 million shares.