2014

Loews Corporation Reports Net Income Of $269 Million For The Second Quarter Of 2013

NEW YORK, July 29, 2013 /PRNewswire/ -- Loews Corporation (NYSE: L) today reported net income for the 2013 second quarter of $269 million, or $0.69 per share, compared to $56 million, or $0.14 per share, in the 2012 second quarter. Net income for the second quarter of 2012 includes an after tax non-cash impairment charge of $142 million at HighMount Exploration & Production LLC related to the carrying value of its natural gas and oil properties. Excluding this impairment charge, net income (non-GAAP) for the second quarter of 2012 was $198 million

Net income for the six months ended June 30, 2013 was $511 million, or $1.31 per share as compared to $423 million, or $1.06 per share in the prior year period. Net income for the six months ended June 30, 2013 and 2012 includes after tax non-cash ceiling test impairment charges of $92 million and $170 million at HighMount. Excluding these non-cash impairment charges, net income (non-GAAP) for the six months ended June 30, 2013 and 2012 was $603 million and $593 million

Book value per share excluding Accumulated other comprehensive income (AOCI) increased to $49.26 at June 30, 2013 from $47.42 at June 30, 2012 and $47.94 at December 31, 2012.

CONSOLIDATED HIGHLIGHTS

(In millions, except per share data)

June 30,

Three Months

Six Months

2013

2012

2013

2012






Income before net investment gains (losses) and impairment charges

$ 277

$ 186

$ 597

$ 562

      Non-cash ceiling test impairment charges


(142)

(92)

(170)

      Net investment gains (losses)

(8)

12

6

31

Net income attributable to Loews Corporation

$ 269

$ 56

$ 511

$ 423






Net income per share

$ 0.69

$ 0.14

$ 1.31

$ 1.06



June 30,

Year Ended
December 31, 2012


2013

2012

Book value per share

$ 49.36

$ 49.31

$ 49.67

Book value per share (excluding AOCI)

49.26

47.42

47.94

Three Months Ended June 30, 2013 Compared to 2012 

Income before net investment gains (losses) and impairment charges increased in 2013 as compared to 2012. This increase is primarily due to higher earnings at CNA and improved investment income at the parent company. These increases were partially offset by lower earnings at Diamond Offshore Drilling, Inc.  

CNA's earnings increased primarily from higher net investment income due to increased limited partnership results and improved non-catastrophe current accident year underwriting results. These increases were partially offset by lower favorable net prior year development and reduced results from the Life & Group Non-Core segment as a result of unfavorable morbidity in the long term care business. 

Diamond Offshore's earnings decreased primarily as a result of a prior year gain of $23 million (after tax and noncontrolling interests) from the sale of five jack-up rigs partially offset by higher dayrates and utilization as well as lower contract drilling expense in 2013, primarily reflecting reduced mobilization costs.

Six Months Ended June 30, 2013 Compared to 2012

Income before net investment gains and impairment charges increased in 2013 as compared to 2012. The increase is primarily due to the reasons discussed in the three month comparison above for CNA and the parent company. Diamond Offshore's earnings decreased primarily as a result of a prior year gain of $32 million (after tax and noncontrolling interests) from the sale of six jack-up rigs and lower utilization in 2013 partially offset by higher dayrates. 

SHARE REPURCHASES

At June 30, 2013, there were 388.0 million shares of Loews common stock outstanding. During the three and six months ended June 30, 2013, the Company purchased 1.9 million and 4.0 million shares of its common stock at an aggregate cost of $85 million and $177 million. From July 1, 2013 to July 25, 2013, the Company repurchased an additional 0.8 million shares of its common stock at an aggregate cost of $37 million. Depending on market conditions, the Company may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market or otherwise.

CONFERENCE CALLS

A conference call to discuss the second quarter results of Loews Corporation has been scheduled for 11:00 a.m. ET, today. A live webcast of the call will be available online at the Loews Corporation website at www.loews.com. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 11582722. An online replay will also be available on the Loews Corporation's website following the call.

A conference call to discuss the second quarter results of CNA has been scheduled for 10:00 a.m. ET, today. A live webcast will be available at http://investor.cna.com. Those interested in participating in the question and answer session should dial (888) 427-9376, or for international callers, (719) 457-2645. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software.

A conference call to discuss the second quarter results of Boardwalk Pipeline has been scheduled for 9:00 a.m. ET, today. A live webcast will be available at www.bwpmlp.com. Those interested in participating in the question and answer session should dial (866) 515-2908 or for international callers, (617) 399-5122. The conference ID number is 64121897. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software.

A conference call to discuss the second quarter results of Diamond Offshore was held on Thursday, July 25, 2013. An online replay is available on Diamond Offshore's website at www.diamondoffshore.com.

ABOUT LOEWS CORPORATION 

Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA), a 90% owned subsidiary; Diamond Offshore Drilling, Inc. (NYSE: DO), a 50.4% owned subsidiary; Boardwalk Pipeline Partners, LP (NYSE: BWP), a 53% owned subsidiary; HighMount Exploration & Production LLC, a wholly owned subsidiary; and Loews Hotels, a wholly owned subsidiary.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website at www.loews.com. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

 



Loews Corporation and Subsidiaries




Selected Financial Information 



















June 30,


(In millions)

Three Months

Six Months 




2013

2012

2013

2012


Revenues:






CNA Financial

$            2,507

$            2,224

$            4,986

$            4,593


Diamond Offshore (a)

760

793

1,492

1,589


Boardwalk Pipeline

304

277

633

591


HighMount

66

69

134

145


Loews Hotels

101

94

195

174


Investment income (loss) and other

1

(89)

9

(12)




3,739

3,368

7,449

7,080


Investment gains (losses):






      CNA Financial

(14)

22

10

54


      Corporate and other 


(2)


(2)




(14)

20

10

52


      Total

$            3,725

$            3,388

$            7,459

$            7,132









Income (Loss) Before Income Tax:






CNA Financial

$               292

$               211

$               632

$               545


Diamond Offshore (a)

257

246

462

498


Boardwalk Pipeline

67

66

166

158


HighMount 






      Operations

9

5

15

15


      Ceiling test impairment charge


(222)

(145)

(266)


Loews Hotels 

2

11

2

18


Investment income (loss), net

1

(85)

8

(9)


Other (b)

(33)

(38)

(57)

(56)




595

194

1,083

903


Investment gains (losses):






CNA Financial

(14)

22

10

54


Corporate and other 


(2)


(2)




(14)

20

10

52


      Total

$               581

$               214

$            1,093

$               955









Net Income (Loss) Attributable to Loews Corporation:






CNA Financial 

$               183

$               138

$               395

$               345


Diamond Offshore (a)

87

94

169

181


Boardwalk Pipeline (c)

22

25

55

60


HighMount 






      Operations

5

3

9

9


      Ceiling test impairment charge 


(142)

(92)

(170)


Loews Hotels 

1

6

1

10


Investment income (loss), net

1

(56)

6

(6)


Other (b)

(22)

(24)

(38)

(37)




277

44

505

392


Investment gains (losses):






      CNA Financial 

(8)

13

6

32


      Corporate and other


(1)


(1)




(8)

12

6

31


Net income attributable to Loews Corporation

$               269

$                 56

$               511

$               423









(a)

Includes a $51 million gain ($23 million after tax and noncontrolling interests) and a $76 million gain ($32 million after tax and noncontrolling interests) for the three and six months ended June 30, 2012 related to the sale of jack-up rigs.






(b)

Consists primarily of corporate interest expense and other unallocated expenses.


(c)

Represents a 54.3% , 61.2%, 54.9% and 61.5% ownership interest in Boardwalk Pipeline for the respective periods.  



 



Loews Corporation and Subsidiaries



Consolidated Financial Review





















June 30,



(In millions, except per share data)

Three Months

Six Months 





2013

2012

2013

2012



Revenues:







Insurance premiums

$       1,800

$       1,668

$       3,564

$       3,317



Net investment income

579

386

1,220

1,112



Investment gains (losses)

(14)

20

10

52



Contract drilling revenues

745

726

1,445

1,481



Other

615

588

1,220

1,170



      Total

3,725

3,388

7,459

7,132











Expenses:







Insurance claims & policyholders' benefits 

1,521

1,348

2,950

2,729



Contract drilling expenses

369

405

744

802



Other (a)

1,254

1,421

2,672

2,646



      Total

3,144

3,174

6,366

6,177











Income before income tax 

581

214

1,093

955



Income tax expense

(169)

(16)

(283)

(238)











Net income

412

198

810

717



Amounts attributable to noncontrolling interests

(143)

(142)

(299)

(294)



Net income attributable to Loews Corporation

$          269

$            56

$          511

$          423



















Diluted income per share attributable to Loews Corporation

$         0.69

$         0.14

$         1.31

$         1.06











Weighted diluted number of shares

389.62

397.13

390.88

397.30










(a)

Includes non-cash impairment charges of $222 million ($142 million after tax) for the three months ended June 30, 2012 and $145 million and $266 million ($92 million and $170 million after tax) for the six months ended June 30, 2013 and 2012 related to the carrying value of HighMount's natural gas and oil properties.


 

SOURCE Loews Corporation



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