Goldman Earnings Fall Less Than Forecast

Goldman Sachs Group Inc. reported a smaller-than-expected 32% drop in first-quarter earnings and said business is beginning to pick up after a year and a half of declining profit.

Net income in the quarter ended Feb. 22 fell to $524 million, or 98 cents a share, from $768 million, or $1.40, a year earlier, as the company lost money trading Vivendi Universal shares.

Chief Executive Henry Paulson cut expenses by 21%, helping the No. 1 stock underwriter beat analyst estimates.

Goldman’s result may signal a second-half rebound for the securities industry, which last year had its biggest annual profit drop in seven years.

Shares of Goldman rose $1.85, or 2%, to $91.05 on the NYSE.