The net income for T. Rowe Price, the Baltimore-based mutual funds company, slid 14 percent in the third quarter because of increased administrative and staff expenses.
The third quarter net income was $6.7 million, or 45 cents a share, compared to $7.7 million, or 52 cents a share, for the 1989 third quarter. However, revenues for the quarter increased by 11 percent to $44.6 million compared to $40.3 million for the previous third quarter.
President George J. Collins said revenues for Price were up because total average assets under management were higher and administrative service volume continued to increase.
However, compensation and related costs, which include salaries, jumped from $15.3 million in the 1989 third quarter to $17.5 million in the current quarter.
Likewise, administration and general costs increased from $9.4 million a year ago to $11.5 million this quarter.
For the first nine months, Price had a net income of $17 million, or $1.15 per share, a 31 percent drop from the same period a year ago when the company earned $22.3 million, or $1.51 per share.
Revenues for the first nine months were $95.7 million compared to $87.6 million for the same period a year ago.
Included in the nine-month figures was a $4 million after-tax charge to earnings made in a pervious quarter. The charge related to acquiring debt securities of Mortgage and Realty Trust from funds managed by the company.