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.
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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 problems.
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 before.
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 quarter.