BlackRock Inc.'s (BLK) fourth-quarter profit slipped 16% as the
world's largest money manager by assets booked lower investment
advisory fees and securities lending revenue.
Though U.S. equity markets improved toward the end of the year
after a deeply turbulent 2011, some investors have chosen to stay
on the sidelines due to ongoing worries over the European sovereign
debt crisis and other macro issues.
Market declines driven by swiftly changing sentiment over the
European debt crisis and other macroeconomic concerns have put
pressure on the firm's managed assets in recent months.
Assets under management fell to $3.513 trillion as of Dec. 31
versus $3.561 trillion a year earlier, although rose from $3.35
trillion in the third quarter.
BlackRock reported a profit of $555 million, or $3.05 a share,
down from $657 million, or $3.35 a share, a year earlier. The
latest results included $32 million in restructuring charges.
Excluding items, earnings fell to $3.06 a share from $3.42 a year
earlier.
Revenue decreased 11% to $2.23 billion as the largest top-line
contributor--investment advisory, administration fees and
securities lending revenue--dropped 4.5%.
Analysts polled by Thomson Reuters expected earnings of $2.99 a
share on $2.24 billion in revenue.
Shares closed Wednesday at $187.80 and were inactive premarket.
The stock is down 2% in the past 12 months.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com