UPDATE 1-Legg Mason estimates 3rd-qtr earnings above analyst expectations
Jan 13 (Reuters) - Legg Mason Inc estimated third-quarter earnings above analysts' expectations as assets under management grew by about $30 billion from the same quarter the year before.
The fifth-largest U.S. asset manager said it expects net earnings of between $79 million and $83 million, or 65-68 cents per share, for the quarter ended Dec. 31.
Analysts on average had expected earnings of 60 cents per share, according to Thomson Reuters I/B/E/S.
Legg Mason said on Monday its third-quarter results were expected to be lower than those of the second-quarter, mainly due to a higher tax rate and severance charges.
The company earned $86 million, or 70 cents per share, in the second quarter.
Legg Mason made Monday's announcement in connection with a potential bank term-loan refinancing.
Legg Mason began a round of cost-cutting in 2010 and cut jobs to reinvigorate the company and stanch the outflow of investor money from its funds.
Chief Executive Joseph Sullivan has shed smaller operating units, expanded Legg Mason's product lineup and worked to revamp relations with its network of investment affiliates.
The company said its third-quarter assets under management grew by $14 billion from the second quarter to $680 billion as stock prices hit record highs.
Legg Mason is expected to announce quarterly results at the end of the month.
The company's shares, which have risen 64 percent in the past year, closed at $43.85 on Friday on the New York Stock Exchange.
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