Ouch! That may be investors' reaction to the earnings report issued by T. Rowe Price Group. The fund firm reported a 19 drop in net income for the fourth quarter and $196 million in full-year earnings on $1.0 billion of revenues. The firm also revealed a $34 million drop in expenses after its institution of cost cutting efforts.

For the full year, 2001 turned out to be one of the toughest in the Baltimore firm's industry. As one of the only public fund firms, the results at T. Rowe may offer insight to the rest of the industry. Bigger than the hit on earnings was the decline in revenue. Revenue fell by $50 million to $241.3 million from $291.6 million for the quarter. For the year the $1.0 billion in revenues was down from $1.2 billion in 2000.

Still, the asset base at the firm held up. Assets under managed dropped six percent during the year to close at $156.3 billion. This was a gain of 11 percent in the third quarter.  

See the list of all the 2002 Most Influential People



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