Wesco Financial Corporation Issues Third Quarter 2010 Earnings
November 05 2010 - 06:12PM
Business Wire
Unaudited consolidated net income of Wesco Financial Corporation
(NYSE AMEX:WSC) and its subsidiaries for the third quarter of 2010
amounted to $17,748,000 compared with $9,882,000 for the third
quarter of 2009. Unaudited consolidated net income for the first
nine months of 2010 was $61,345,000 compared with $42,771,000 for
the first nine months of 2009. The 2010 figures included realized
after-tax net investment gains of $2,600,000 for the third quarter
and $2,432,000 for the first nine months. No investment gains or
losses were realized in the 2009 periods.
Consolidated earnings before realized net investment gains
improved for each of the 2010 periods due mainly to a reduction in
operating expenses of Wesco’s CORT furniture rental business as
well as increased investment income of Wesco’s insurance
businesses. The operations of CORT and Precision Steel, although
improved, continue to reflect the effects of weak economic
conditions.
Following is a breakdown of consolidated net income into useful
business components. All figures are on an after-tax basis and are
in thousands except for per-share amounts, which are based on
7,119,807 shares outstanding.
Quarter Ended September 30, Nine
Months Ended September 30, 2010 2009 2010
2009 Wesco-Financial and Kansas Bankers insurance businesses
-- Underwriting $ (2,421 ) $ (2,035 ) $ 1,578 $ 1,074 Investment
income 15,200 12,284 46,668 42,322 CORT furniture rental business
2,936 18 11,339 592 Precision Steel businesses 69 (186 ) 306 (859 )
Other (636 ) (199 ) (978 ) (358 ) Realized net investment
gains 2,600 --- 2,432 --- Consolidated net income $ 17,748 $
9,882 $ 61,345 $ 42,771 Per share $ 2.49 $ 1.39 $ 8.61 $ 6.01
Wesco’s Form 10-Q for the quarter ended September 30, 2010 was
filed electronically with the Securities and Exchange Commission
today, and we invite shareholders, the financial media and others
to access it through the SEC’s website (www.sec.gov). The Form 10-Q
contains unaudited condensed consolidated financial statements,
management’s discussion and analysis of financial condition and
results of operations, and other information.
On September 1, 2010, Wesco’s Board of Directors received a
formal written proposal from Berkshire Hathaway Inc. (“Berkshire”)
to acquire the remaining 19.9% of the shares of Wesco’s common
stock that it does not presently own in exchange for shares of
Berkshire’s Class B common stock and/or cash at the election of the
shareholder (the “Berkshire proposal”). In response, Wesco’s Board
of Directors has formed a special committee of independent
directors (the “Special Committee”), which is evaluating the
Berkshire proposal with the assistance of financial and legal
advisors. There can be no assurance that an agreement on terms
satisfactory to the Special Committee or Wesco’s Board of Directors
will result or that any transaction will be completed. Reference is
made to a Current Report on Form 8-K filed by Wesco with the
Securities and Exchange Commission on September 2, 2010, for a
press release filed by Wesco in connection with the Berkshire
proposal.
Certain statements contained in this press release are “forward
looking” statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guaranties
of future performance and actual results may differ materially from
those forecasted.
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