Diversified holding company Loews Corp. (L) Monday reported a sharp fall in second-quarter profit, reflecting an impairment loss recorded in the period. Earnings from continuing operations increased driven by higher earnings at its 90 percent owned property and casualty insurance unit CNA Financial Corp. (CNA), as well as increased investment income.
Loews' units Boardwalk Pipeline Partners, LP. (BWP) and Diamond Offshore Drilling, Inc. (DO) posted lower profits for the second quarter.
CNA's earnings increased mainly due to a curtailment gain of $50 million. Boardwalk Pipeline's profit was down amid weak revenue growth and a significant gain on asset sale last year. Diamond Offshore's earnings decreased as a result of lower utilization, higher contract drilling costs and increased interest expense.
For the second quarter, Loews posted net income attributable to the company of $116 million or $0.30 per share, significantly down from $269 million or $0.69 per share in the previous year.
Recent-quarter result included a loss from discontinued operations of $187 million mainly comprising an impairment loss of $167 million at HighMount Exploration & Production, LLC related to the excess carrying value over the estimated fair value, less costs to sell.
Earnings from continuing operations increased to $0.79 per share from $0.67 per share in the year-ago quarter.
On average, three analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
Parent company's net investment income surged to $30 million from $1 million a year ago.
Loews said its total revenues decreased to $3.59 billion from the prior-year figure of $3.62 billion.
CNA Financial's net income attributable to Loews Corp., increased to $244 million from $180 million in the prior year. Earnings per share improved to $0.98 from $0.72 in the same quarter last year.
Quarterly net operating income was $272 million and $1.00 per share, up from $199 million and $0.74 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.82 per share for the quarter.
CNA Financial also declared a quarterly dividend of $0.25 per share, payable September 3, 2014 to stockholders on record August 18, 2014.
Boardwalk Pipeline posted attributable net income of $17 million, down from $22 million in the preceding year. Net earnings were $0.23 per unit, compared to $0.28 per unit a year earlier.
On average, twelve analysts polled by Thomson-Reuters estimated the company's earnings to be $0.15 for the quarter. Analysts' estimates typically exclude one-time items.
Revenues increased by 2 percent to $293.4 million.
Boardwalk's board recommended a quarterly cash distribution of $0.10 per common unit, payable on August 21 to unitholders of record on August 14.
Diamond Offshore's net income attributable to Loews fell to $42 million from $87 million a year earlier.
L closed Friday's trading at $42.25 on the NYSE. CNA ended at $38.06, and BWP finished on Friday at $18.80.
For comments and feedback contact: editorial@rttnews.com
Business News