Legg Mason posts 2Q profit, topping Street

posted: 36 DAYS 1 HOUR AGO

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BALTIMORE -Asset manager Legg Mason Inc. on Thursday posted a profit for the second quarter in contrast to a year-ago loss as it cut costs and took smaller charges.

But the company also reported significant drop in revenue and assets under management.

Legg Mason earned $45.8 million, or 30 cents per share, in the quarter ended Sept. 30, versus a loss of $108.7 million, or 77 cents per share, in the 2008 quarter.

Revenue dropped 32 percent to $659.9 million from $966.1 million last year.

Analysts polled by Thomson Reuters, on average, expected a profit of 21 cents per share, on revenue of $651.9 million.

Legg Mason slashed expenses 22 percent to $582 million, from $745.9 million last year. The company also booked just $2.9 million in charges, compared with $388.1 million last year, most of which related to shoring up money market funds amid the market meltdown.

Assets under management slid 17 percent to $702.7 billion from $841.9 billion a year-ago, but up 7 percent from the prior quarter.

The company said during the quarter it re-branded and simplified its retail-oriented fund families and launched two new funds. At quarter's end, 81 percent of its long-term U.S. fund assets were beating category averages for the past year, it said.

Legg Mason shares were up 49 cents at $32.20 in premarket trading.

2009-10-22 09:09:13