April 30 Asset manager Legg Mason Inc on
Tuesday said its profit fell sharply in the three months ended
March 31, driven down by real estate losses.
The results are the first the Baltimore-based company has
reported since its board named Joseph Sullivan as its permanent
chief executive in February. Previously Legg Mason's sales chief
and interim CEO, Sullivan must reverse a long record of net
quarterly withdrawals by customers tied to past performance
Outflows continued in the quarter, totaling $1.8 billion,
Legg Mason said. Assets under management rose to $664.6 billion
at March 31, up from $648.9 billion at Dec. 31, driven mainly by
the rising value of investments that added $12.1 billion.
Legg Mason's net income was $29.2 million, or 23 cents per
share, for its fourth fiscal quarter, compared with $76.1
million, or 54 cents per share, for the same period a year
The latest results included real estate losses of $52.8
million, or 27 cents per share, Legg Mason said.
Analysts surveyed by Thomson Reuters I/B/E/S on average had
expected Legg Mason to earn 20 cents per share in the latest