Sanders Morris Harris posts earnings drop

Sanders Morris Harris Group Inc. posted a small drop in first-quarter earnings on an after-tax decline of $1.6 million in the income from its merchant portfolio and its ownership interest in limited partnerships net of minority interests. The Houston-based financial services holding company posted quarter earnings of $2.7 million or $0.11 per share, compared to $2.8 million or $0.14 in the first quarter of 2006. Excluding the tax decline, earnings from continuing operations would have shown a 26% increase. The Asset/Wealth Management Division revenues rose 26% in the first quarter and pretax earnings of $23.7 million, compared to $18.6 million during the year-ago period. After-tax earnings from the company's ownership interests in limited partnerships net of minority interests declined to a loss of $115,000 from a gain of $720,000 during the first quarter of 2006. Furthermore, the company's merchant portfolio posted realized and unrealized after-tax losses of $165,000 during the first quarter of 2007, compared to gains of $605,000 last year. Sanders Harris Morris Group manages more than $13 billion in assets.