Conglomerate Loews Corp reported a decrease in profits Monday, citing a 44% drop in profits at subsidiary CNA Financial, a commercial insurer, and investment losses. Net income for attributable to Loews shares fell to $410.0 million ($0.77/share) compared to $517.2 million ($0.94/share) a year ago. Analysts were looking for $0.90/share. Revenue increased 3% to $4.65 billion (full earnings call transcript later today). Loews owns 89% of CNA Financial, which took a $104 million charge associated with a settlement connected to four reinsurance contracts with John Hancock Life Insurance. Profits at the Carolina Group, a wholly owned subsidiary that produces tobacco, jumped 15%, beating estimates. Loews businesses include financial, tobacco, natural gas, hotel, and watch-making companies. Before today, shares of the conglomerate were up 21% for the year. However, off the miss, shares of the company traded down 1.9% to $49.10 in pre-market action Monday.
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Stocks to watch: LTR, CG, CNA, MFC. ETFs: IAK, PFI
Earnings call transcript: Loews Q2 2007