Legg Mason profits plummet more than 33% in soft market

July 21, 1994|By David Conn | David Conn,Sun Staff Writer

Legg Mason Inc. yesterday reported that its profits fell by more than a third in the quarter that ended June 30, as stock market turbulence contributed to the company's third consecutive quarter of declining earnings.

The company earned $5 million during its first fiscal quarter, or 40 cents a share, down 38.5 percent from earnings of $8.1 million, or 68 cents a share a year ago.

Legg Mason's profits have eroded during each of the last three quarters compared with the prior period. But yesterday's report marked the first time since 1991 that earnings failed to match the year-earlier numbers, a comparison that excludes seasonal factors.

Revenues also were lower during the latest period, falling 1.7 percent to $89.8 million.

"Legg Mason's earnings in the June quarter declined from levels in the corresponding quarter a year ago principally because of lower securities brokerage commission and municipal finance revenues, as well as increased expenses," said Raymond A. Mason, chairman and chief executive officer in a prepared statement.

Revenues from the company's investment advisory unit continued to increase, earning $19.5 million in fees from managing $17.3 billion in clients' assets. The revenues were almost a third higher than last year.

But commissions from securities trades fell to $29.2 million during the quarter, from $33.8 million a year ago, and investment banking revenues were more than 25 percent lower than last year.

Legg Mason Inc. ... ... ... Ticker ... ... ... Yesterday's

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

... ... ... ... ... .. ... ... LM ... ... ... ... 19 3/8 ... -3/8

Period ended

6/30/94 ... ... ... ... ... 1st qtr. .. .. ... Year ago ... ... Chg.

Revenue ... ... ... ... ... $89,835 ... .. ... $91,348 .. .. .. -1.7%

Net Income ... ... .. .. .. $5,003 ... ... ... $8,132 ... .. .. -38.5%

Primary EPS ... ... ... ... $0.40 ... .. .. .. $0.68 ... ... .. -41.2%

Figures in thousands (except per share data.)

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