Loews Profit Falls 14%

Source from:  Tuesday April 29, By REUTERS NEW YORK (Reuters) 04/30/2008

Loews Corp said Monday first-quarter profit fell 14 percent as declining results from its insurance and tobacco units offset improved results from drilling operations. Net income at New York-based Loews, a conglomerate run by the billionaire Tisch family, fell to $662 million from $768 million a year earlier. Profit attributable to Loews shareholders declined 15 percent to $555 million, or $1.05 per share, from $650 million, or $1.20. Excluding investments and discontinued operations, profit was $503 million, or about 95 cents per share based on reported shares outstanding, Loews said. Analysts on average expected profit of $1.14 per share, according to Reuters Estimates. Revenue fell 2 percent to $4.54 billion. Results included an $82 million gain from the Jan. 10 sale of the Bulova Corp watch-making unit to Japan's Citizen Holdings Co. Loews' businesses include financial, tobacco, energy and hotel companies. The company is thus exposed to several areas of the U.S. economy, which many economists say may have slipped into a recession in the first quarter. Profit at Chicago-based CNA Financial Corp, a commercial insurer in which Loews owns a 90 percent stake, fell 37 percent to $187 million, or 69 cents per share. Operating profit fell 28 percent to $221 million, or 82 cents per share. Analysts on average expected profit of $1.01 per share. CNA said operating profit fell because of lower net investment income and weaker results in its core property and casualty operations. Enditem