Diversified conglomerate Loews Corp. (L) Monday reported a sharp fall in profit for the second quarter, reflecting higher investment losses as well as the absence of prior year's hefty gain related to Lorillard separation. On a continuing operations basis, quarterly earnings per share declined 22%, and missed market projections, on lower revenues, impacted by poor segmental performance.
Net income for the second quarter plunged to $559 million from prior year's net income of $5.22 billion. Net income attributable to Loews common stock was $340 million or $0.78 per share, compared to $4.86 billion or $9.54 per share a year ago.
The latest quarter results included loss from discontinued operations of $1 million, while prior year's results included gain of $4.35 billion or $8.54 per share mainly related to the separation of Lorillard, Inc.
On a continuing operations basis, income was $560 million, down from prior year's $767 million. Income from continuing operations attributable to Loews common stock for the second quarter was $341 million or $0.78 per share, compared to $511 million or $1.00 per share in the 2008-second quarter.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.
Income from continuing operations in the second quarter included net investment losses of $178 million, compared to $64 million in the prior year. Before investment losses, income from operations for the second quarter was $519 million, compared to $575 million in the 2008-second quarter.
The company attributed the fall in income primarily to higher net investment losses, offset by an increase in net investment income at CNA Financial Corp. (CNA) and strong results at Diamond Offshore Drilling, Inc. (DO).
Total revenues for the quarter were $3.53 billion, compared to $3.92 billion in the prior year quarter.
In the preceding first quarter, Loews had reported a net loss of $647 million or $1.49 per share, the third straight loss recorded by the company, compared to a profit in the year-ago quarter, hurt by investment losses and a charge at its natural gas business, reflecting declines in commodity prices. The company's total revenues for the quarter were $3.02 billion.
Second-quarter revenues from insurance premiums declined to $1.66 billion from $1.77 billion last year. Net investment income was $735 million, up from $697 million a year ago. Contract drilling revenues dropped to $923 million from $937 million in the previous year, and other revenues declined to $517 million from $623 million last year.
On a segmental basis, CNA Financial Corp., a 90% owned subsidiary, recorded revenues of $2.39 billion, down from $2.43 billion last year.
In a separate statement, CNA Financial, a Chicago-based insurance company, posted a decline in net income for the second quarter to $105 million or $0.27 per share from $181 million or $0.67 per share last year, impacted by impairment losses.
Loews' deepwater oil drilling unit Diamond Offshore Drilling, Inc., a 50.4% owned subsidiary, generated revenues of $957 million, lower than last year's $970 million. Quarterly revenues from its wholly owned unit HighMount Exploration & Production LLC declined to $147 million from $201 a year ago. Loews' gas transportation division Boardwalk Pipeline Partners, LP's (BWP) second-quarter revenues edged down to $201 million from $206 million a year earlier. Loews Hotels' revenues fell to $73 million from last year's $105 million.
Among peers, property and casualty insurer American Financial Group Inc. (AFG) in late July reported that its second-quarter profit more than doubled to $127 million, or $1.09 per share, helped by improved underwriting results in the specialty property and casualty insurance operations as well as higher investment income. Excluding items, core net operating earnings for the latest quarter increased to $117 million or $1.01 per share from $111 million, or $0.96 per share in the prior-year period. Revenues for the quarter rose to $1.10 billion from $1.02 billion in the year-ago quarter.
For the first six months of fiscal 2009, Loews' net income plunged to $86 million from $6.08 billion last year. Net loss attributable to Loews common stock was $307 million or $0.70 per share, compared to prior year's net income of $5.41 billion or $10.41 per share. Loss from continuing operations was $306 million or $0.70 per share, compared to last year's income of $920 million or $1.77 per share. Total first-half revenues fell to $6.56 billion from $7.53 billion in the previous year.
L closed Friday's regular trading session at $30.02, up $0.39, on a volume of 2 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.