BlackRock 2Q earnings rise sharply

BlackRock reported net income of $274.1 million, or $2.05 per share, compared with $222.2 million or $1.69 per share a year earlier. Revenue rose to $1.39 billion from $1.10 billion a year earlier.

Analysts polled by Thomson Financial expected earnings per share of $1.97 for the quarter on revenue of $1.32 billion.

BlackRock said assets under management rose 5 percent in the quarter to $1.43 trillion. Included in net new business of $63.2 billion was $43.6 billion in what BlackRock called "long-term portfolio liquidation assignments." The firm has been tapped by the Federal Reserve to manage and liquidate a portfolio of Bear Stearns securities, among other such deals.

BlackRock also said it has reached an agreement with Merrill Lynch to strengthen their relationship. Merrill owns a major stake in BlackRock, which some thought it would try to sell as a means to raise capital amid the credit crisis.

"Market conditions remain highly unstable as the credit crunch and sharply deteriorating global equity markets continue to take a toll on investors worldwide. Investing in this environment is as challenging as I have ever experienced," BlackRock Chief Executive Laurence Fink said in a statement.