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Loews Corporation Reports Net Income Of $282 Million For The Third Quarter Of 2013



Loews Corporation Reports Net Income Of $282 Million For The Third Quarter Of
                                     2013

PR Newswire

NEW YORK, Oct. 28, 2013

NEW YORK, Oct. 28, 2013 /PRNewswire/ -- Loews Corporation (NYSE: L) today
reported net income for the 2013 third quarter of $282 million, or $0.73 per
share, compared to $177 million, or $0.45 per share, in the 2012 third
quarter. Net income for the third quarter of 2013 and 2012 includes after tax
non-cash ceiling test impairment charges of $42 million and $166 million at
HighMount Exploration & Production LLC related to the carrying value of its
natural gas and oil properties. Excluding these non-cash impairment charges,
adjusted net income (non-GAAP) for the third quarter of 2013 and 2012 was $324
million and $343 million.

Net income for the nine months ended September 30, 2013 was $793 million, or
$2.03 per share, compared to $600 million, or $1.51 per share, in the prior
year period. Net income for the nine months ended September 30, 2013 and 2012
includes after tax non-cash ceiling test impairment charges of $134 million
and $336 million at HighMount. Excluding these non-cash impairment charges,
adjusted net income (non-GAAP) for the nine months ended September 30, 2013
and 2012 was $927 million and $936 million.

Book value per share excluding accumulated other comprehensive income (AOCI)
increased to $49.94 at September 30, 2013 from $47.96 at September 30, 2012
and $47.94 at December 31, 2012.

CONSOLIDATED HIGHLIGHTS

                                        September 30,
 (In millions, except per share data)   Three Months        Nine Months
                                        2013      2012      2013     2012
Income before net investment gains and  $     322 $     339 $    919 $     901
impairment charges
   Non-cash ceiling test impairment     (42)      (166)     (134)    (336)
charges
   Net investment gains                 2         4         8        35
Net income attributable to Loews        $     282 $     177 $    793 $     600
Corporation
Net income per share                    $   0.73  $   0.45  $  2.03  $   1.51

 

                                        September 30,     Year Ended
                                        2013      2012    December 31, 2012
  Book value per share                  $   49.99 $ 50.41 $    49.67
  Book value per share (excluding AOCI) 49.94     47.96   47.94

 

Three Months Ended September 30, 2013 Compared to 2012

Income before net investment gains and non-cash ceiling test impairment
charges after tax decreased in 2013 as compared to 2012. This decrease is
primarily due to lower earnings at Diamond Offshore Drilling Inc. and lower
investment income at the parent company. These decreases were partially offset
by higher earnings at CNA Financial Corporation.

CNA's earnings increased primarily from improved non-catastrophe current
accident year underwriting results and higher favorable net prior year
development. These increases were partially offset by higher catastrophe
losses 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 due to lower utilization and
$35 million (after tax and noncontrolling interests) of lost revenue and bad
debt write-offs relating to termination of rig contracts due to payment
defaults by two customers. The decrease in utilization during 2013 is
primarily due to downtime for scheduled surveys and shipyard projects. These
decreases were partially offset by higher dayrates.

Boardwalk Pipeline Partners, LP's earnings were flat as compared with the
prior year. The contribution of results from Louisiana Midstream, acquired in
October of 2012, and the sale of storage gas in 2013 were substantially offset
by lower transportation revenues as a result of unfavorable contract renewal
conditions.     

Nine Months Ended September 30, 2013 Compared to 2012

Income before net investment gains and non-cash ceiling test impairment
charges after tax increased in 2013 as compared to 2012. This increase is
primarily due to higher earnings at CNA partially offset by the reasons
discussed in the three month comparison above for Diamond Offshore as well as
a prior year gain of $32 million (after tax and noncontrolling interests) from
the sale of six jack-up rigs in 2012.

CNA's earnings increased primarily from improved non-catastrophe current
accident year underwriting results and higher investment income. These
increases were partially offset by a lower level of favorable net prior year
development in 2013 as compared to 2012 and higher catastrophe losses and
reduced results from the Life & Group Non-Core segment as a result of
unfavorable morbidity in the long term care business.

SHARE REPURCHASES

At September 30, 2013, there were 387.2 million shares of Loews common stock
outstanding. During the three and nine months ended September 30, 2013, the
Company purchased 0.9 million and 4.9 million shares of its common stock at an
aggregate cost of $41 million and $218 million.

CONFERENCE CALLS

A conference call to discuss the third 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
74466046. An online replay will also be available on the Loews Corporation's
website following the call.

A conference call to discuss the third 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) 287-5563, or for international callers, (719)
325-2494. 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 third 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 (877) 703-6106 or for international callers, (857)
244-7305. The conference ID number is 76857337. 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 third quarter results of Diamond Offshore was
held on Thursday, October 24, 2013. An online replay is available on Diamond
Offshore's website at www.diamondoffshore.com.

ABOUT LOEWS CORPORATION

Loews Corporation is one of the largest diversified companies 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 
                               September 30,
(In millions)                  Three Months            Nine Months
                               2013        2012        2013        2012
Revenues:
CNA Financial                  $           $           $           $          
                               2,499       2,457       7,485       7,050
Diamond Offshore (a)           706         730         2,198       2,319
Boardwalk Pipeline             288         271         921         862
HighMount                      62          74          196         219
Loews Hotels                   95          98          290         272
Investment income and other    50          78          59          66
                               3,700       3,708       11,149      10,788
Investment gains (losses):
CNA Financial                  5           8           15          62
Corporate and other            (1)         (1)         (1)         (3)
                               4           7           14          59
Total                          $           $           $           $        
                               3,704       3,715       11,163      10,847
Income (Loss) Before Income
Tax:
CNA Financial                  $           $           $           $          
                                  373         306      1,005          851
Diamond Offshore (a)           131         234         593         732
Boardwalk Pipeline             60          58          226         216
HighMount 
Operations                     6           13          21          28
Ceiling test impairment charge (65)        (261)       (210)       (527)
Loews Hotels                   (2)         (1)                     17
Investment income, net         50          79          58          70
Other (b)                      (37)        (26)        (94)        (82)
                               516         402         1,599       1,305
Investment gains (losses):
CNA Financial                  5           8           15          62
Corporate and other            (1)         (1)         (1)         (3)
                               4           7           14          59
Total                          $           $           $           $          
                                  520         409      1,613       1,364
Net Income (Loss) Attributable
to Loews Corporation:
CNA Financial                  $           $           $           $          
                                  244         195         639         540
Diamond Offshore (a)           44          83          213         264
Boardwalk Pipeline (c)         19          20          74          80
HighMount 
Operations                     5           8           14          17
Ceiling test impairment        (42)        (166)       (134)       (336)
charge 
Loews Hotels                   1           (1)         2           9
Investment income, net         33          53          39          47
Other (b)                      (24)        (19)        (62)        (56)
                               280         173         785         565
Investment gains (losses):
CNA Financial                  3           5           9           37
Corporate and other            (1)         (1)         (1)         (2)
                               2           4           8           35
Net income attributable to     $           $           $           $          
Loews Corporation                 282         177         793         600

    Includes a $76 million gain ($32 million after tax and noncontrolling
(a) interests) for the nine months ended September 30, 2012 related to the
    sale of jack-up rigs.
(b) Consists primarily of corporate interest expense and other unallocated
    expenses.
(c) Represents a 52.6%, 59.2%, 54.1% and 60.7% ownership interest in Boardwalk
    Pipeline for the respective periods.  

 

 

Loews Corporation and Subsidiaries
Consolidated Financial Review
                                       September 30,
(In millions, except per share data)   Three Months        Nine Months
                                       2013      2012      2013      2012
Revenues:
Insurance premiums                     $         $         $         $      
                                       1,825     1,781     5,389     5,098
Net investment income                  647       682       1,867     1,794
Investment gains                       4         7         14        59
Contract drilling revenues             691       714       2,136     2,195
Other                                  537       531       1,757     1,701
Total                                  3,704     3,715     11,163    10,847
Expenses:
Insurance claims & policyholders'      1,414     1,435     4,364     4,164
benefits 
Contract drilling expenses             420       358       1,164     1,160
Other (a)                              1,350     1,513     4,022     4,159
Total                                  3,184     3,306     9,550     9,483
Income before income tax               520       409       1,613     1,364
Income tax expense                     (136)     (99)      (419)     (337)
Net income                             384       310       1,194     1,027
Amounts attributable to noncontrolling (102)     (133)     (401)     (427)
interests
Net income attributable to Loews       $         $         $         $        
Corporation                             282       177       793       600
Diluted income per share attributable  $         $         $         $        
to Loews Corporation                   0.73      0.45      2.03      1.51
Weighted diluted number of shares      388.14    395.29    389.96    396.64

    Includes non-cash impairment charges of $65 million and $261 million ($42
    million and $166 million after tax) for the three months ended September
(a) 30, 2013 and 2012 and $210 million and $527 million ($134 million and $336
    million after tax) for the nine months ended September 30, 2013 and 2012
    related to the carrying value of HighMount's natural gas and oil
    properties.

 

SOURCE Loews Corporation

Website: http://www.loews.com
Contact: Peter W. Keegan, Chief Financial Officer, (212) 521-2950; or Mary
Skafidas, Investor and Public Relations, (212) 521-2788
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