NEW YORK, May 4, 2015 /PRNewswire/ -- Loews
Corporation (NYSE: L) today reported net income for the three
months ended March 31, 2015 of
$109 million, or $0.29 per share, compared to $59 million, or $0.15 per share, in the prior year period. Net
income in 2014 included a loss from discontinued operations of
$206 million reflecting the
disposition of both HighMount Exploration & Production, LLC and
CNA Financial Corporation's annuity and pension deposit
business.
Income from continuing operations for the three months ended
March 31, 2015 was $109 million, or $0.29 per share, compared to $265 million, or $0.68 per share, in the 2014 first quarter.
Excluding asset impairment charges of $158
million (after tax and noncontrolling interests) in 2015 at
Diamond Offshore Drilling, Inc. and $55
million (after tax and noncontrolling interests) in 2014 at
Boardwalk Pipeline Partners, LP, income from continuing operations,
as adjusted, in 2015 was $267 million
as compared to $320 million in the
prior year period.
Book value per share excluding accumulated other comprehensive
income (AOCI) increased to $51.18 at
March 31, 2015 from $50.95 at December 31,
2014 and $49.43 at
March 31, 2014.
CONSOLIDATED HIGHLIGHTS
|
Three Months Ended
March 31,
|
(In millions, except
per share data)
|
2015
|
2014
|
|
|
|
Income before net
investment gains
|
$ 101
|
$ 241
|
Net investment
gains
|
8
|
24
|
Income from continuing
operations
|
109
|
265
|
Discontinued
operations, net
|
|
(206)
|
Net income attributable
to Loews Corporation
|
$ 109
|
$
59
|
Net income per
share:
|
|
|
Income from continuing operations
|
$ 0.29
|
$ 0.68
|
Discontinued operations, net
|
|
(0.53)
|
Net income per
share
|
$ 0.29
|
$ 0.15
|
|
March 31,
|
Year Ended
December 31, 2014
|
|
2015
|
2014
|
Book value per
share
|
$ 51.98
|
$ 50.89
|
$ 51.70
|
Book value per
share excluding AOCI
|
51.18
|
49.43
|
50.95
|
Income from continuing operations decreased primarily due to
lower earnings at Diamond Offshore and less favorable performance
of the parent company trading portfolio.
CNA's earnings increased primarily due to higher investment
income driven by limited partnerships and improved current accident
year underwriting results including lower catastrophe losses,
partially offset by lower realized investment gains.
Diamond Offshore's earnings decreased primarily due to a
$158 million (after tax and
noncontrolling interests) asset impairment charge related to the
carrying value of eight drilling rigs as well as lower rig
utilization and increased depreciation expense.
Boardwalk Pipeline's earnings increase stemmed from the impact
in 2014 of a $55 million charge
(after tax and noncontrolling interests) related to the write off
of all capitalized costs associated with the Bluegrass project.
Absent this charge, earnings decreased primarily due to the
unusually cold and sustained winter of 2014 as compared to the
relatively normal 2015 winter season and lower natural gas storage
revenues.
Loews Hotels' earnings increased primarily due to improved
performance of recently acquired properties and higher equity
income from joint venture properties.
Discontinued operations in 2014 included an impairment charge
related to the sale of CNA's annuity and pension deposit business
and a ceiling test impairment charge at HighMount.
SHARE REPURCHASES
At March 31, 2015, there were
371.4 million shares of Loews common stock outstanding. During the
first quarter of 2015, the Company repurchased 1.8 million shares
of its common stock at an aggregate cost of $71 million. During the first quarter of 2015,
the Company also purchased 0.9 million shares of Diamond Offshore's
common stock at an aggregate cost of $24
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 first quarter results of Loews
Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be
available online at the Loews Corporation website (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 20554874. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the first quarter results of CNA
has been scheduled for today at 10:00 a.m.
ET. A live webcast will be available at www.cna.com. Those
interested in participating in the question and answer session
should dial (888) 551-9020, or for international callers, (719)
457-2638.
A conference call to discuss the first quarter results of
Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at
www.bwpmlp.com. Those interested in participating in the question
and answer session should dial (855) 793-3255 or for international
callers, (631) 485-4925. The conference ID number is 21218946.
A conference call to discuss the first quarter results of
Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at
www.diamondoffshore.com. Those interested in participating in the
question and answer session should dial (800) 247-9979, or for
international callers, (973) 321-1100. The conference ID number is
22913137.
ABOUT LOEWS CORPORATION
Loews Corporation is a diversified company with three
publicly-traded subsidiaries: CNA Financial Corporation (NYSE:
CNA), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk
Pipeline Partners, LP (NYSE: BWP); and one wholly owned subsidiary,
Loews Hotels & Resorts. For more information please visit
www.loews.com.
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 (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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(In
millions)
|
2015
|
2014
|
|
Revenues:
|
|
|
|
CNA
Financial
|
$
2,342
|
$
2,421
|
|
Diamond
Offshore
|
627
|
710
|
|
Boardwalk Pipeline
|
330
|
357
|
|
Loews
Hotels
|
139
|
105
|
|
Investment income and other
|
30
|
53
|
|
|
|
3,468
|
3,646
|
|
Investment gains - CNA Financial
|
10
|
42
|
|
Total
|
$
3,478
|
$
3,688
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
CNA
Financial
|
$
304
|
$
259
|
|
Diamond
Offshore (a)
|
(287)
|
168
|
|
Boardwalk Pipeline (b)
|
77
|
23
|
|
Loews
Hotels
|
10
|
5
|
|
Investment income, net
|
29
|
51
|
|
Other
(c)
|
(38)
|
(34)
|
|
|
|
95
|
472
|
|
Investment gains - CNA Financial
|
10
|
42
|
|
Total
|
$
105
|
$
514
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
CNA
Financial
|
$
202
|
$
176
|
|
Diamond
Offshore (a)
|
(126)
|
69
|
|
Boardwalk Pipeline (b)
|
25
|
(18)
|
|
Loews
Hotels
|
5
|
3
|
|
Investment income, net
|
19
|
34
|
|
Other
(c)
|
(24)
|
(23)
|
|
|
|
101
|
241
|
|
Investment gains - CNA Financial
|
8
|
24
|
|
Income
from continuing operations
|
109
|
265
|
|
Discontinued operations, net (d)
|
|
(206)
|
|
Net
income attributable to Loews Corporation
|
$
109
|
$
59
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes an asset
impairment charge of $359 million ($158 million after tax and
noncontrolling interests) for the three months ended March 31, 2015
related to the carrying value of eight drilling rigs.
|
|
(b)
|
Includes a loss of
$94 million ($55 million after tax and noncontrolling interests)
for the three months ended March 31, 2014 to write off all
capitalized costs associated with the Bluegrass project.
|
|
(c)
|
Consists primarily of
corporate interest expense and other unallocated
expenses.
|
|
(d)
|
See table on page six
for a summary of items comprising discontinued operations for
2014.
|
|
Loews Corporation
and Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(In millions, except
per share data)
|
2015
|
2014
|
|
Revenues:
|
|
|
|
Insurance premiums
|
$
1,687
|
$
1,806
|
|
Net
investment income
|
588
|
577
|
|
Investment gains
|
10
|
42
|
|
Contract
drilling revenues
|
600
|
685
|
|
Other
|
593
|
578
|
|
Total
|
3,478
|
3,688
|
|
|
|
|
|
|
Expenses:
|
|
|
|
Insurance claims & policyholders' benefits
|
1,339
|
1,446
|
|
Contract
drilling expenses
|
351
|
370
|
|
Other
(a) (b)
|
1,683
|
1,358
|
|
Total
|
3,373
|
3,174
|
|
|
|
|
|
|
Income before income
tax
|
105
|
514
|
|
Income tax
expense
|
(56)
|
(103)
|
|
Income from
continuing operations
|
49
|
411
|
|
Discontinued
operations, net of income tax
|
|
(227)
|
|
Net
income
|
49
|
184
|
|
Amounts attributable
to noncontrolling interests
|
60
|
(125)
|
|
Net income
attributable to Loews Corporation
|
$
109
|
$
59
|
|
|
|
|
|
|
Net income
attributable to Loews Corporation:
|
|
|
|
Income
from continuing operations
|
$
109
|
$
265
|
|
Discontinued operations, net (c)
|
|
(206)
|
|
Net
income
|
$
109
|
$
59
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
Income
from continuing operations
|
$
0.29
|
$
0.68
|
|
Discontinued operations, net
|
|
(0.53)
|
|
Diluted
income per share attributable to Loews Corporation
|
$
0.29
|
$
0.15
|
|
|
|
|
|
|
Weighted diluted
number of shares
|
373.19
|
388.07
|
|
|
|
|
|
(a)
|
Includes an asset
impairment charge of $359 million ($158 million after tax and
noncontrolling interests) for the three months ended March 31, 2015
related to the carrying value of eight drilling rigs.
|
|
(b)
|
Includes a loss of
$94 million ($55 million after tax and noncontrolling interests)
for the three months ended March 31, 2014 to write off all
capitalized costs associated with the Bluegrass project.
|
|
(c)
|
See table on page six
for a summary of items comprising discontinued operations for
2014.
|
|
Loews Corporation
and Subsidiaries
|
|
Discontinued
Operations Review
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
(In
millions)
|
March 31,
2014
|
|
CNA
Financial
|
|
|
Continental Assurance Company (῝CAC῞) operations
|
$
7
|
|
Impairment loss on sale of CAC
|
(193)
|
|
CNA Financial -
Discontinued operations, net
|
(186)
|
|
|
|
|
HighMount
|
|
|
Operations
|
(1)
|
|
Ceiling
test impairment
|
|
(19)
|
|
HighMount -
Discontinued operations, net
|
(20)
|
|
|
|
|
|
Discontinued
operations, net
|
$
(206)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-109-million-for-the-first-quarter-of-2015-300076186.html
SOURCE Loews Corporation