Loews 3Q Profit Up 59%
Loews (NYSE:L) said Monday its profit soared 59% in the third quarter, led by revenue growth at subsidiary CNA Financial (NYSE:CNA).
CNA Financial, 90% of which is owned by Loews, usually accounts for almost two-thirds of the holding company’s revenue. Loews also owns its namesake hotel chain and about half of Diamond Offshore.
In the latest period, Loews logged a $282 million profit, up from $177 in the year-ago period. Per-share earnings checked in at 73 cents versus 45 cents. Excluding impairment charges, income rose to $324 million from $343 million.
Revenue slid 0.3% to $3.7 billion. Insurance premium revenue, the company’s largest top-line contributor, climbed 2.5% to $1.83 billion.
CNA Financial said its profit was $272 million, or $1.01 a share, compared to last year’s $221 million, or 82 cents a share.
Diamond Offshore, a drilling contractor that serves the energy industry, reported earlier this month a 47% decline in its quarterly earnings amid an unexpected drop in revenue. The company also said its customers were experiencing cash-flow issues.
Loews said Boardwalk Pipeline Partners posted flat earnings year-over-year. Lower transportation revenue was offset by the contribution of Louisiana Midstream, acquired in October 2012, and the sale of storage gas in 2013.
Loews shares jumped 4.4% to $50.95 in early trading and CNA edged higher by 0.3% to $39.80.