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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): September 26, 1995
MORGAN STANLEY GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 1-9085 13-2838811
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation or Number)
organization)
1251 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices including zip code)
Registrant's telephone number, including area code: (212) 703-4000
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<PAGE>
Item 5. Other Events
Attached and incorporated herein by reference as Exhibit 99 is a
press release summarizing the financial results of Morgan Stanley
Group Inc. (the "Company") for the three-month and six-month
periods ended August 31, 1995 and July 31, 1994 and for the seven-
month period ended August 31, 1995 and announcing the declaration
by the Company's Board of Directors of a quarterly cash dividend
of 32 cents per share.
Item 7(c). Exhibits
99. Press release dated September 26, 1995 summarizing the financial
results of the Company for the three-month and six-month periods
ended August 31, 1995 and July 31, 1994 and for the seven-month
period ended August 31, 1995 and announcing the declaration by
the Company's Board of Directors of a quarterly cash dividend.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MORGAN STANLEY GROUP INC.
Registrant
/s/Patricia A. Kurtz
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Patricia A. Kurtz
Assistant Secretary
Date: September 26, 1995
<PAGE>
Index to Exhibits
Exhibit No. Description
- ---------- -----------
99. Press release dated September 26, 1995
summarizing the financial results of the
Company for the three-month and six-month
periods ended August 31, 1995 and July 31,
1994 and for the seven-month period ended
August 31, 1995 and announcing the
declaration by the Company's Board of
Directors of a quarterly cash dividend.
<PAGE>
Exhibit 99
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For Immediate Release
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Contact: Charles B. Hintz, Investor Relations
212/703-7178
Tracey Gordon, Media Relations
212/703-7618
MORGAN STANLEY GROUP INC. ANNOUNCES EARNINGS FOR THE
QUARTER ENDED AUGUST 31, 1995
NEW YORK, September 26, 1995 -- Morgan Stanley Group
Inc. (NYSE:MS) today announced financial results for
the quarter ended August 31, 1995./1/
Net income for the quarter ended August 31, 1995 was
$209 million, or $2.45 per common share on a primary
basis. This was an increase of 73% compared to the
$121 million, or $1.31 per share earned in the fiscal
1994 second quarter ended July 31, 1994. Net revenues
(total revenues less interest expense) for the August
quarter were $1,151 million versus $913 million for the
second quarter of 1994. Fully diluted earnings per
common share were $2.34 for the August quarter versus
$1.26 for the July 1994 quarter.
Net income for the six months (seven months) ended
August 31, 1995 was $375 million ($413 million), or
$4.36 per share ($4.80) on a primary basis and $4.16
($4.57) on a fully diluted basis. Net revenues for the
period were $2,162 million ($2,455 million). Results
for the first six months ended July 31, 1994 were net
income of $238 million, or $2.58 earnings per share on
a primary basis, and $2.48 on a fully diluted basis.
Net revenues for the first half of 1994 were $1,801
million.
Results for the quarter ended August 31, 1995 reflected
strong performances by Morgan Stanley's investment
banking, sales and trading, and asset management
businesses. Morgan Stanley's significant market share
in the mergers and acquisitions market, combined with
improved debt and equity underwriting volumes
contributed to the growth of Investment Banking
revenues. Sales and trading revenues also grew during
the quarter. Equity revenues benefited from strong
customer trading volumes and favorable market
conditions, especially in the United States and Japan.
Higher customer volumes combined with an improved
interest rate environment contributed to Fixed Income's
revenue growth. Asset Management's revenues expanded
as assets under management grew to $52 billion.
"Morgan Stanley's performance in the quarter reflects
not only an improved operating environment, but also
the benefits of our consistent focus on investing in
our business for the long-term" said Richard B. Fisher,
chairman, and John J. Mack, president, in a joint
statement.
"The strategic investment we made in Morgan Stanley
over the past few years, and most notably in 1994, is
yielding benefits. Our expanded ability to provide
financial services to our client's global needs is
contributing to improved market share and higher
profitability. Our commitment to serve our clients
across the business cycle continues to strengthen our
competitive position in all our major business lines."
During the quarter, the Firm announced that it had
reached an agreement to acquire Miller Anderson &
Sherrerd, LLP, an institutional asset manager with
approximately $33 billion in assets. The current pro
forma combination of Miller Anderson & Sherrerd with
Morgan Stanley Asset Management will increase assets
under management to $85 billion. The acquisition,
subject to certain customary conditions, is expected to
close by the end of the 1995 fiscal-year.
The Company also announced the declaration by its Board
of Directors of a quarterly dividend of 32 cents per
common share. The dividend is payable on October 26,
1995 to holders of record on October 9, 1995.
Total capital (stockholder's equity and long-term debt)
at August 31, 1995 was $13.1 billion, including $4.9
billion of common and preferred stockholders' equity.
Book value per common share was $52.67 based on quarter-
end shares and share-equivalents of 79,011,108.
Morgan Stanley Group Inc. is a global financial
services firm with offices in New York, London, Tokyo
and other principal financial centers around the world.
/1/ Morgan Stanley changed its fiscal year-end in 1995
from January to November. Fiscal 1995 consists
of three reporting periods, the four months ended
May 31, and the three months ended August 31 and
November 30.
--Table Follows--
<TABLE>
Morgan Stanley Group Inc.
Consolidated Statement of Income
(Unaudited)
(In millions, except share data)
<CAPTION>
SEVEN
MONTHS
THREE MONTHS ENDED SIX MONTHS ENDED ENDED
----------------------- ------------------------ -----------
AUG 31 JULY 31 AUG 31 JULY 31 AUG 31
1995 1994 1995 1994 1995
---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Revenues:
Investment banking $355 $211 $628 $471 $708
Principal transactions:
Trading 352 300 790 558 904
Investments 69 23 63 33 63
Commissions 130 112 261 231 298
Interest and dividends 1,899 1,525 3,641 3,086 4,229
Asset management and
administration 96 89 184 170 215
Other 1 2 2 5 3
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Total revenues 2,902 2,262 5,569 4,554 6,420
Interest expense 1,751 1,349 3,407 2,753 3,965
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Net revenues 1,151 913 2,162 1,801 2,455
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Expenses excluding interest:
Compensation and benefits 575 460 1,050 900 1,188
Occupancy and equipment 84 74 164 142 191
Brokerage, clearing and
exchange fees 64 59 130 117 150
Communications 31 28 65 57 76
Business development 30 41 64 80 78
Professional services 37 39 77 80 91
Other 32 30 63 59 74
---------- ---------- ---------- ----------- -----------
Total expenses excluding 853 731 1,613 1,435 1,848
interest
Income before income taxes 298 182 549 366 607
Provision for income taxes 89 61 174 128 194
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Net income $209 $121 $375 $238 $413
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Earnings applicable to
common shares * $192 $104 $342 $205 $375
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Average common and common equivalent
shares outstanding * 78,618,459 79,605,505 78,402,692 79,741,366 78,077,863
========== ========== ========== =========== ===========
Primary earnings per share $2.45 $1.31 $4.36 $2.58 $4.80
========== ========== ========== =========== ===========
Fully diluted earnings per share $2.34 $1.26 $4.16 $2.48 $4.57
========== ========== ========== =========== ===========
* For primary earnings per share
</TABLE>
