Loews’ $1.4-Billion Net Loss Surprises Wall St.
- Share via
Loews Corp. reported a surprise net loss of $1.4 billion, or $7.18 a share, for its second quarter as its insurance affiliate, CNA Financial Corp., took massive charges of $2.1 billion to increase reserves to pay old asbestos, pollution and liability claims.
Wall Street, not expecting the charges and factoring out realized gains, had forecast a profit of $1.73 a share on average, according to First Call/Thomson Financial. New York-based Loews had a profit of $510.6 million, or $2.59 a share, in the year-ago quarter.
Loews’ results also were hurt as its affiliate Lorillard Tobacco took a charge of $121 million after taxes related to last year’s Engle case, in which a Miami jury awarded $145 billion in punitive damages to sick smokers.
CNA reported a net loss of $1.76 billion, or $9.61 a share, contrasted with a year-earlier profit of $330 million. CNA has been plagued by bigger-than-expected business insurance losses the last three years after cutting prices to gain market share.
Loews shares fell $5.71, or 10%, to close at $51.17, and CNA fell $4.17 to close at $33.97, both on the New York Stock Exchange.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
