Sanders Morris Harris ( SMHG) fell 11% in after-hours trading following the announcement of second-quarter setbacks. Sanders Morris set plans to close a unit and to take a $4.5 million goodwill-impairment charge for the decline of a shrinking money-management operation. The Houston-based asset manager plans to close most of the fixed-income activities it staffed with former Advest bond-department employees at the end of 2005. Sanders will exit the mortgage-backed agency and high-grade corporate bond businesses in New York. The company estimates its second-quarter operating losses in the New York Fixed Income Division were approximately $2.2 million, or 7 cents a diluted share. The company also says assets at its Charlotte Capital small-cap value money-management affiliate have fallen to $173 million from $429 million at the end of 2004. As a result, SMHG will take a goodwill-impairment charge of $4.5 million, or 14 cents per diluted share. It will take the noncash goodwill-impairment charge as part of its second-quarter results. The core high-yield and syndicate activities will continue, as will the profitable Houston Fixed Income Division. Sanders Morris says its primary operating businesses, asset/wealth management and capital markets, did well in the second quarter. It expects to release earnings, including the impact of the closed or impaired activities, around Aug. 9. Shares fell $1.66 late Friday to $13.