Loews Swings to Surprise Loss on Asset Write Downs
August 01 2016 - 7:49AM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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