Alex. Brown earnings down 3% in 2nd quarter

July 19, 1994|By David Conn | David Conn,Sun Staff Writer

The stock market's recent troubles have finally weighed on Alex. Brown Inc., the Baltimore-based investment banking firm, which yesterday reported its first quarterly earnings decline in two years.

The company's profits fell 3 percent in the three months that ended June 24, to $14.5 million, or 93 cents a share, from $15.0 million, or 95 cents a share a year ago.

Compared with the first quarter of this year, earnings fell 37 percent.

The decline came despite an increase in revenues in the second quarter. Revenues of nearly $144 million were 11 percent higher than $130 million a year ago. But revenues fell 9 percent in securities transactions in which Alex. Brown takes an ownership position, and fell slightly in money management activities, primarily because of a $2 million drop in value in a merchant banking investment the company made.

Also, Alex. Brown failed to keep a lid on expenses, which rose 14 percent, to $119.5 million, led by an 18 percent increase in compensation expenses, by far the largest category.

"Second-quarter results reflected adequate performance during a period in which significant declines were experienced in various segments of the equity and fixed-income markets," said Alvin B. Krongard, the company's chairman and chief executive officer. Former Chairman Benjamin Griswold IV stepped down and took the title of chairman emeritus after the company's annual stockholders meeting in April.

Alex. Brown's board of directors softened the earnings news with an increase in the dividend.

The new quarterly dividend is 17.5 cents a share, to be paid Aug. 10 to stockholders of record on July 29. The old dividend was 15 cents a share.

Alex. Brown Inc. ... ... ... ... Ticker ... ... ... Yesterday's

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

... ... ... ... ... ... ... ... ... AB ... ... ... ... 26 .. .. -Period ended

6/24/94 ... ... ... ... 1st qtr. ... ... ... Year ago ... ... Chg.

Revenue ... ... ... ... $143,875 ... ... ... $130,016 ... ... +10.7%

Net Income .. .. .. ... $14,488 ... .. .. .. $15,001 .. .. .. -3.4%

Primary EPS ... ... ... $0.93 ... ... ... .. $0.95 ... ... .. -2.1%

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

Revenue ... ... ... ... $306,287 .. .. ... $269,755 ... ... ... +13.5%

Net Income ... .. .. .. $37,510 ... .. ... $35,084 .. .. .. ... +6.9%

Primary EPS .. .. .. .. $2.39 ... .. .. .. $2.23 ... ... .. ... +7.2%

Figures in thousands (except per share data.)

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.