Legg Mason Profit Up 10 Percent After Cost-Cutting

Legg Mason Inc's quarterly earnings rose 10 percent, the Baltimore asset manager said on Tuesday, as it finished a streamlining plan that cut expenses.

For the fourth quarter ended on March 31, Legg Mason reported net income of $76.1 million, or 54 cents per share, compared with $69 million, or 45 cents per share, a year earlier.

The results also included nonoperating gains such as the sale of a wealth manager and a bankruptcy claim.

Under the streamlining plan begun in 2010, the company said it had saved $35 million in expenses during the quarter, up from a savings of $8 million a year earlier.

Assets under management stood at $643.3 billion at the end of March, up from $627 billion at the end of December, but lower than the $677.6 billion the company had at March 31, 2011.

Clients continued to withdraw money from Legg Mason's funds during the quarter. Net client outflows were $4.9 billion, although the figure was more than offset by $24.4 billion in market appreciation.

Legg Mason last reported companywide inflows in the quarter that ended in September 2007. Like several other asset managers, it has struggled with mixed performances in some of its mutual funds, driving away investors.

With reduced assets from a year earlier, revenue fell 9 percent to $648.6 million,

Chief Executive Officer Mark Fetting in 2010 began a cost-cutting program that the company says met its goal of saving $140 million annually.

In a statement Fetting also cited what he called a "strong investment performance." Of Legg Mason's long-term U.S. mutual fund assets, two-thirds were beating their Lipper category averages over one and three years.

The company also said it had raised its quarterly dividend to 11 cents per share, payable July 9, from 8 cents. (Reporting By Ross Kerber in Boston; Editing by Lisa Von Ahn)