) first-quarter 2014 operating earnings of 68 cents per share
failed to meet the Zacks Consensus Estimate by 9.3% and fell
short of year ago earnings by 18%.
Including ceiling test impairment charges of $19 million, net
investment gains of $24 million and discontinued operations of
loss from discontinued operations of $186 million, Loews reported
net income of $59 million or 15 cents per share, comparing
unfavorably with $242 million or 62 cents per share earned in the
The quarter witnessed higher parent company investment income
resulting from better performance of the trading portfolio as
well as lower ceiling test impairment charges at HighMount. Loews
also incurred charges in the quarter for the write-off of all
previously capitalized costs incurred by it and Boardwalk
Pipeline for the Bluegrass project.
Loews' total revenue inched up 0.9% year over year to $3.701
billion in the quarter. An increase in insurance premiums largely
aided the upside.
Total expenses increased 2.2% year over year to $3.26 billion.
The increase was mainly due to higher Insurance claims &
policyholders' benefits in the reported quarter.
During the reported quarter,
CNA Financial Corporation
) revenues declined 0.6% over the prior-year period to $2.42
billion. It reported net income attributable to Loews Corp. of
$176 million, down 14.6% year over year.
Lower net investment income, higher catastrophe losses and lower
favorable net prior-year development induced the year-over-year
decline. However, improved non-catastrophe current accident year
underwriting results and higher realized investment gains limited
The Boardwalk Pipeline's revenues increased 8.5% to $357 million
from the prior-year level. The segment incurred loss of $18
million, comparing unfavorably with the year-ago earnings of $33
Loews Hotels' revenues improved about 12% year over year to $105
million. Earnings were $3 million in the reported quarter.
Diamond Offshore Drilling, Inc
) revenues declined 3.0% year over year to $710 million. Earnings
decreased 16% to $69 million in the quarter. The decline was
primarily attributable to lower utilization and increase in
interest expense due to increased debt levels. Nonetheless,
higher dayrates earned were a partial offset.
HighMount's revenues declined 19% year over year to $105 million
in the quarter. The segment incurred loss of $1 million, compared
with $4 million profit generated in the year-ago quarter.
Book value as of March 31, 2014 was $49.43 per share, up 1.9%
from $48.48 as of March 31, 2013.
During the first quarter of 2014, Loews spent $24 million to buy
back 0.5 million shares. Subsequent to the first quarter, through
April 24, the company spent another $22 million to repurchase 0.6
Loews remains on track to strengthen its hotel business - results
are exhibiting improvement. Continued share repurchases
also enhance shareholders value.
However, sustained soft performance at Diamond Offshore and
HighMount continues to weigh on Loews' results.
Loews currently carries a Zacks Rank #4 (Sell).
), another multi-line insurer, reported fourth-quarter earnings
of $1.68 per share that was ahead of the Zacks Consensus Estimate
ASSURANT INC (AIZ): Free Stock Analysis
CNA FINL CORP (CNA): Free Stock Analysis
DIAMOND OFFSHOR (DO): Free Stock Analysis
LOEWS CORP (L): Free Stock Analysis Report
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