BlackRock’s Merrill acquisition pays off
BlackRock Inc. posted a whopping 176% jump in first-quarter net income as demand for its products has improved following its merger with Merrill Lynch & Co. Inc.'s asset management unit last year.
BlackRock Inc. posted a whopping 176% jump in first-quarter net income as demand for its products has improved following its merger with Merrill Lynch & Co. Inc.’s asset management unit last year.
The New York-based investment management company said net income for the quarter was $195.4 million, or $1.48 per share, up from $70.9 million, or $1.06 per share, during the first quarter of 2006.
Excluding certain expenses, earnings were $1.59 per share.
Revenues for the quarter were $1.019 billion, up 158% from $395.7 million in the first quarter of 2006.
Analysts surveyed by Thomson Financial expected average earnings of $1.62 per share on $1.03 billion in revenue.
Operating expenses for the quarter rose sharply to $733.1 million from $295.6 million in the first quarter of 2006. The larger expenses were attributed to a larger employee base, which grew 1,800 to 5,000.
Assets under management totaled $1.154 trillion, up $29.5 billion, or 2.6%, since the close of the fourth quarter and 7.4% since the merger with Merrill Lynch Asset Management closed on Sept. 29.
“Since we announced our merger with Merrill Lynch Asset Management, our combined assets under management has increased by more than $160 billion,” said Laurence D. Fink, chairman and chief executive of BlackRock, in a statement.
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