Goldman drops less than expected

Goldman Sachs Group Inc, the world's biggest securities firm, said second-quarter profit fell a less-than-estimated 11 percent as gains in commodities, prime brokerage and asset management offset fixed-income losses.

Net income declined to $2.09 billion, or $4.58 a share, in the three months ended May 30 from $2.33 billion, or $4.93, a year earlier, the New York-based company said. The average estimate of 19 analysts surveyed by Bloomberg was for $3.42 a share.

Chief Executive Officer Lloyd Blankfein reported Goldman's second straight quarterly profit drop as losses on mortgage- related securities spread to other debt. Goldman has fared better than most of its rivals in the credit crunch. Lehman Brothers Holdings Inc, the fourth-biggest US securities firm by market value, reported a $2.8 billion second-quarter loss on Monday, its first as a public company.