T. Rowe Price has record quarter as mutual fund assets balloon

July 30, 1993|By David Conn | David Conn,Staff Writer

T. Rowe Price Associates Inc., the Baltimore-based investment company, yesterday reported record quarterly revenues and profits, as the company benefited from a continuing flood of funds out of banks and into mutual funds.

"Fees earned on record assets under management were the primary contributor to the company's strong performance," President George J. Collins said in a statement.

Assets under management grew to $46.6 billion, from $38.4 billion in the first quarter. Of that amount, more than $29 billion was in the company's no-load mutual funds; the rest is managed for institutional and private accounts.

The stock market showed its enthusiasm for the earnings report by driving Price's shares up $4 yesterday, to close at $54, in trading on the Nasdaq system.

"T. Rowe and the industry have been blessed with unprecedented growth," said Geoff Bobroff, senior vice president in the Denver office of Lipper Analytical Services Inc., a mutual fund research and consulting company.

"We may be seeing signs of abating growth," Mr. Bobroff added, noting a slowdown in the rate of increase in new funds in the past few months. More than anything else that may reflect the success the industry has had in the last decade, he said.

T. Rowe Price

Associates Inc.

Ticker .. .. .. .. .. .. .. Yesterday's

Symbol .. .. .. .. .. .. .. Cls. .. .. .. Chg.

TROW .. .. .. .. .. .. .. .. 54 .. .. .. +4

Period ended

June 30 .. .. .. .. 2nd qtr. .. .. Year ago .. .. Chg.

Revenue .. .. .. .. $72,679 .. .. $59,010 .. .. +23.2%

Net Income .. .. .. $11,536 .. .. $8,388 .. .. ..+37.5%

Primary EPS . .. .. $0.76 .. .. .. $0.56 .. .. .. +35.7%

.. .. .. .. .. .. . 6 mos. .. .. . Year ago .. .. Chg.

Revenue .. .. .. . $141,395 .. . $117,558 .. .. +20.3%

Net Income .. .. . $21,757* .. . $15,829 .. .. +37.5%

Primary EPS .. .. . $1.43* .. .. . $1.05 .. .. .. +36.2%

Figures in thousands (except per share data.)

* Company earned $22.1 million, or $1.45 a share, excluding the effect of changes in accounting principles.

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