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Blackrock 1Q profit rises 10 pct on new business

NEW YORK (AP) -- Blackrock Inc. said Tuesday its first-quarter net income rose 10 percent, helped by market growth, new business and an increase in performance fees.

The New York-based investment manager earned $632 million, or $3.62 per share, up from $572 million, or $3.14 per share, in the same quarter the year before. Excluding one-time charges, including restructuring and launch costs for a new closed-end fund, the company posted an adjusted profit of $3.65 per share.

Revenue increased 9 percent to $2.45 billion from $2.25 billion.

Analysts, on average, expected a profit of $3.58 per share on $2.44 billion in revenue, according to FactSet.

The company's assets under management increased 7 percent to $3.94 trillion as of March 31. Net inflows for long-term products totaled $39.4 billion for the quarter, with $33.7 billion of that in the form of equities.

Performance fees increased 35 percent to $108 million, helped by a customer shift toward higher-fee products.

Blackrock shares rose $4.61, just short of 2 percent, to $258.50 in premarket trading. The stock has traded between $160.25 and $265.57 in the past 52 weeks, and is up about 23 percent since the start of the year.