Profits Fall 25% for Federated Investors

As it set aside more money for an anticipated settlement over its mutual fund trading practices, Federated Investors reported that its second-quarter net income fell by 25%, according to a Pittsburgh Post-Gazette report.

Net income for the firm fell to $37.8 million, or 36 cents per share, from $50.6 million, or 47 cents per share, in the second quarter of 2004.

According to the report, the results included a pretax charge of $6.6 million, including an increase of $5 million to the estimated cost of a settlement the firm expects to reach with government agencies over its trading practices.

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