Citing strong fund sales, T. Rowe Price reported Tuesday that net income for the first quarter of 2004 was $77.3 million, or $0.58 per diluted share, compared to $38.8 million, or $0.31 per diluted share for the same period last year.

The average of analyst estimates of earnings per share was $0.56, according to data from First Call/Thomson.

Assets under management rose to $201 billion at the end of the first quarter, up 6 percent from $190 billion at the quarter ended December 31, 2003, and up 43 percent from $140 billion at the quarter ended March 31, 2003.

Net inflows for the first quarter were $4.7 billion in mutual funds and $1.7 in managed portfolios including separately managed accounts, sub-advised funds, sponsored mutual funds offered to non-U.S. investors, and variable annuity portfolios. The remaining $4.7 billion increase in AUM was due to appreciation.

"We continue to be encouraged by net cash inflows into our mutual funds and managed accounts during the first quarter, including strong net cash flows from our third party distribution efforts. Our target-date Retirement Funds continued to draw interest from investors, and recently topped $1 billion in total assets. During the quarter, the firm also enhanced its lineup of these funds by adding four additional portfolios and implementing a new asset allocation strategy within this group of funds" said George A. Roche, T. Rowe Price's chairman and president. 

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