DO Diamond Offshore Drilling Inc

   By Joshua Jamerson 
 

Loews Corp. (L) swung to a surprise loss in the latest period amid a large asset write down at its contract driller company, but each of its three main units reported better-than-expected core earnings.

Loews owns the majority of CNA Financial Corp. (CNA), which typically accounts for most of the conglomerate's top-line. Revenue from the segment edged up 0.3% in the period.

CNA Financial reported operating income of 74 cents a share, compared with 49 cents a year ago. Analysts, polled by Thomson Reuters, expected 71 cents a share. CNA's Chief Executive Thomas F. Motamed said although results from its international segment were disappointing, all of its North American businesses produced solid results.

Diamond Offshore recorded $680 million in impairment charges and related taxes to write down the carrying value of eight drilling rigs. Without the charge, Diamond Offshore's earnings declined due to a substantial reduction in the number of rigs operating compared with in the year-ago period, offset in part by lower depreciation expense resulting from asset impairment charges recorded in 2015.

Revenue slid 39% at Diamond Offshore and it recorded a loss of $4.30 a share. But the company said excluding the impairment charge and other items, it earned 16 cents a share on an adjusted bases. Analysts expected 4 cents a share.

Over all, Loews reported a loss of $65 million compared to a $170 million profit a year ago. On a per share basis, the loss was 19 cents compared to 46 cents in profit in the year-earlier period.

Revenue at Loews slid 3.7% to $3.31 billion. Revenue from insurance premiums, its largest top line contributor, edged down 0.3 % to $1.73 billion.

Loews' other big holding is Boardwalk Pipeline Partners LP. All three holdings and the parent company are publicly traded. At Boardwalk Pipeline, operating revenue increased to $306.3 million from $298.6 million a year earlier, and earnings were 26 cents a share. Analysts expected 20 cents.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

August 01, 2016 07:34 ET (11:34 GMT)

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