Earnings drop for T. Rowe, Federated, Franklin

T. Rowe Price Group Inc. reported its first profit drop since 2003 today as weak credit conditions led to a steep decline in inflows. The Baltimore-based asset manager saw third-quarter net income fall 12.6% to $153 million, or 56 cents a share, from $175 million, or 63 cents a share, in the year-earlier period. Third-quarter net cash inflows fell 76% from a year earlier to $1.7 billion. Assets under management fell to 13% from the 2007 third quarter to $345 billion. In other earnings news, Federated Investors Inc. reported a 3% third-quarter profit drop yesterday of $56.2 million, or 56 cents a share, compared with $57.7 million, or 57 cents a share, a year earlier. The Pittsburgh-based investment manager’s total managed assets were up 25% from the 2007 third quarter to $344 billion. Franklin Resources Inc. reported a profit drop of 30% yesterday of $403.3 million, or $1.71 a share, compared with $436.9 million, or $1.76 a share, a year earlier. Assets under management at the San Mateo, Calif.-based fund manager fell 21% from a year earlier to $507.3 billion.