Legg Mason profits doubled during quarter WAR IN THE GULF

May 10, 1991|By Timothy J. Mullaney

Legg Mason Inc. said yesterday that its profits doubled during the first three months of 1991, which were the last three months of the Baltimore-based investment banking firm's fiscal year.

Legg Mason said it earned almost $3.8 million during its fiscal fourth quarter, or 41 cents a share, well above the $1.7 million, or 20 cents a share, it earned in the last part of fiscal 1990. The company said it was boosted by the resurrection of the stock market after the beginning of the Persian Gulf war.

But Legg Mason's announcement emphasized that the strong quarter followed a decent performance during the latter months of 1990, when New York-based securities firms were mostly losing money and other regional companies were only marginally profitable as a group.

"These [quarterly] results, while very strong, were consistent with the industry," said Geraldine Daly, a spokeswoman for Legg Mason.

"It was a great quarter for the industry. But for year, we were not in there with the industry. We were well ahead."

For the year, Legg Mason said it earned $1.43 a share, fully diluted, including $1.02 a share during the first three quarters.

In calendar 1990, which included most of the latest fiscal year for Legg Mason, the firm said that the $10.8 million it earned accounted for more than half the total net income of regional securities firms around the country.

Ms. Daly said that Legg Mason's fiscal 1991 results were boosted by gains on stock the company acquired in its investment banking operations, including shares of Environmental Elements Corp., a Baltimore company whose 1990 initial publicoffering was led by Legg Mason.

Three months ended 3/31/91

.... ....Revenue.... .... .... Net.... .... .... Share

'91.... ....$64,052,000 .... .... 3,756,000.. .... 0.41

'90.... ....58,666,000 .... .... 1,662,000.. .... 0.20

% change.... ......+9.2 .... .... ... +126.0.. ....+105.0

12 months ended 3/31/91

.... ....Revenue.... .... .... Net.... .... .... Share

'91.... ....242,723,000.... .... 12,913,000...... 1.43

'90.... ....243,676,000.... .... 11,845,000...... 1.32

% change.... .... ..+0.0.... .... .... ..+9.0....... +8.3

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