Alex. Brown earnings drop
Alex. Brown Inc., the Baltimore-based investment banking firm, reports a fourth quarter net income of $3.8 million, or 26 cents a share, a 40 percent drop from the previous fourth quarter when the company earned $6.4 million, or 39 cents a share.
Revenue in the fourth quarter was $68 million, a 15.2 percent decline from $80.2 million a year ago.
For the year, Alex. Brown had a net income of $7.8 million, or 50 cents a share, 27.2 percent less than 1989 earnings of $10.7 million, or 65 cents a share. Revenue last year was $271.7 million, a drop of 6.5 percent from 1989 revenue of $290.6 million.
The decline in the fourth quarter net income was due primarily to fewer public stock offerings handled by the company, which reflected the generally lower activity in the market, according to Beverly L. Wright, Alex. Brown's chief financial officer.
However, the firm maintained its ranking as the No. 1 underwriter of common-stock offerings during 1990, said Chairman Benjamin Griswold 4th.
Despite "difficult conditions" in the securities industry, Alex. Brown had some notable successes in 1990, according to Griswold.
Commission revenues increased by 8 percent to a record $68 million despite volume declines in major stock exchanges, he said. Also, assets under management increased by 21 percent to $6.4 billion, Griswold said.
The company yesterday declared a quarterly cash dividend of 7 cents a share of common stock payable Feb. 20 to stockholders of record as of Feb. 11.
Ryland 1990 earnings fall 62%
Facing a slump in the housing market, the Columbia-based Ryland Group saw its earnings drop 78 percent in the fourth quarter and 62 percent in 1990.
The company said yesterday that it earned $3.9 million, or 26 cents a share, on revenues of $335.6 million compared with $18 million, or $1.31 a share, on revenues of $397.7 million in the fourth quarter of 1989.
In 1990, the company earned $21.8 million, or $1.42 a share, on sales of $1.3 billion, compared with $58 million, or $3.94 a share, on sales of $1.4 billion.
Fourth-quarter net earnings included $3.7 million from land sales. Also included were charges of $7.3 million for forfeited funds and inventory write-downs, as well as operational closings and consolidations.
The company's financial-services segment reported revenues of $54 million for the year, up 8 percent from 1989.
Allied-Signal's profits rise
Allied-Signal's profits rise: Allied-Signal Inc. experienced a 7 percent decline in earnings in the fourth quarter, but nevertheless ended 1990 with increased profits.
The company, based in Morris Township, N.J., said yesterday that it earned $107 million, or 80 cents a share, on sales of $3.1 billion in the fourth quarter, compared with $115 million, or 78 cents a share, on about the same sales in 1989.
For the year, the company reported profits of $462 million, or $3.35 a share, on sales of $12.3 billion, compared with $505 million, or $3.39 a share, on sales of $11.9 billion.