Legg Mason's 2Q Earnings Up 38% to $156M

Legg Mason reported a 38% increase in earnings to $156 million, or $1.08 per share, in the quarter ended on June 30, its fiscal 2007 first quarter, compared to $112.8 million, or 93 cents per share, in the period a year ago.

Both revenue and income increased so strongly in the period, the company said, due to its acquisitions of Citigroup's asset management business and The Permal Group in the previous quarter.

Revenue more than doubled to $1.04 billion from $437.7 million a year ago. However, from the previous quarter ended March 31, revenue was down 1.3%, primarily due to the negative returning equity market and its impact on assets and performance fees.

"The process of integrating the business that we acquired in December 2005 from Citigroup is proceeding on schedule," noted Legg Mason Chairman and CEO Raymond "Chip" Mason. "During the quarter, we began to realize some meaningful cost savings that we had anticipated at the time of the transaction. We expect to continue to achieve additional savings as the year progresses and, we believe, into fiscal 2008."