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Loews Corporation Reports Net Income for 2007

NEW YORK--(BUSINESS WIRE)--Feb. 11, 2008--Loews Corporation (NYSE:LTR;CG) today reported consolidated net income (including both the Loews Group and Carolina Group) for the 2007 fourth quarter of $512 million, compared to $746 million in the 2006 fourth quarter. Consolidated net income for the year ended December 31, 2007 was $2,489 million, compared to $2,491 million in the prior year.

Net income and earnings per share information attributable to Loews common stock and Carolina Group stock is summarized in the table below:


======================================================================
                                                December 31,
                                       -------------------------------
 (In millions, except per share data)   Three Months     Year Ended
                                       -------------------------------
                                        2007    2006    2007    2006
                                       -------------------------------

Net income attributable to Loews
 common stock:
   Income before net investment gains
    (losses)                           $  430  $  530  $2,015  $2,017
   Net investment gains (losses)          (53)     96     (67)     69
                                       -------------------------------
   Income from continuing operations      377     626   1,948   2,086
   Discontinued operations, net             7     (17)      8     (11)
                                       -------------------------------
 Net income attributable to Loews
  common stock                            384     609   1,956   2,075
 Net income attributable to Carolina
  Group stock                             128     137     533     416
                                       -------------------------------
 Consolidated net income               $  512  $  746  $2,489  $2,491
                                       ===============================

 Net income per share:
   Loews common stock:
     Income from continuing operations $ 0.71  $ 1.14  $ 3.64  $ 3.77
     Discontinued operations, net        0.01   (0.03)   0.01   (0.02)
                                       -------------------------------
     Net income                        $ 0.72  $ 1.11  $ 3.65  $ 3.75
                                       ===============================
   Carolina Group stock                $ 1.18  $ 1.26  $ 4.91  $ 4.46
======================================================================
 Book value per share of Loews common
  stock at:
   December 31, 2007                   $32.40
   December 31, 2006                   $30.14
======================================================================

Three Months Ended December 31, 2007 Compared with 2006

Net income attributable to Loews common stock for the fourth quarter of 2007 amounted to $384 million, or $0.72 per share, compared to $609 million, or $1.11 per share, in the comparable period of the prior year. The decrease in net income reflects reduced investment income and decreased results at the Company's 51% owned subsidiary, Diamond Offshore Drilling, Inc., primarily due to additional tax expense as a result of the repatriation of foreign earnings. Net income in 2007 reflects the July 31, 2007 acquisition, by the Company's newly formed subsidiary HighMount Exploration & Production LLC, of certain natural gas exploration and production assets from Dominion Resources, Inc.

Net income attributable to Loews common stock includes net investment losses of $53 million (after tax and minority interest) in the fourth quarter of 2007 compared to net investment gains of $96 million (after tax and minority interest) in the prior year. The net investment losses in the fourth quarter of 2007 were primarily driven by $167 million (after tax and minority interest) of other-than-temporary impairment losses at the Company's 89% owned subsidiary, CNA Financial Corporation.

Net income per share of Carolina Group stock for the fourth quarter of 2007 was $1.18 per share, compared to $1.26 per share in the prior year. The decrease in net income is primarily due to a charge of $46 million, after taxes, related to litigation, partially offset by a lower effective tax rate as compared to 2006.

Consolidated revenues in the fourth quarter of 2007 amounted to $4.6 billion, compared to $4.8 billion in the comparable period of the prior year.

Year Ended December 31, 2007 Compared with 2006

Net income attributable to Loews common stock in 2007 amounted to $1,956 million, or $3.65 per share, compared to $2,075 million, or $3.75 per share, in the prior year. The decrease in net income reflects reduced investment income, reduced results at CNA and a decrease in the share of Carolina Group earnings attributable to Loews common stock, due to the sale of Carolina Group stock in August and May of 2006, partially offset by higher results from Lorillard, Inc.

Net income attributable to Loews common stock includes net investment losses of $67 million (after tax and minority interest) in 2007 compared to net investment gains of $69 million (after tax and minority interest) in the prior year. The net investment losses in 2007 were primarily driven by $428 million (after tax and minority interest) of other-than-temporary impairment losses at CNA which were partially offset by a gain of $93 million (after tax) related to a reduction in the Company's ownership interest in Diamond Offshore from the conversion of Diamond Offshore's 1.5% convertible debt into Diamond Offshore common stock.

Net income per share of Carolina Group stock for 2007 was $4.91 per share, compared to $4.46 per share in the prior year. The increase in net income is primarily due to higher effective unit prices resulting from price increases in December 2006 and September 2007, lower sales promotion expenses and a lower effective tax rate, partially offset by an increase in expenses for the State Settlement Agreements and a charge related to litigation.

Consolidated revenues in 2007 amounted to $18.4 billion, compared to $17.7 billion in the prior year.

At December 31, 2007, there were 529,683,628 shares of Loews common stock outstanding and 108,459,141 shares of Carolina Group stock outstanding. During the year ended December 31, 2007, the Company purchased 14,789,949 shares of Loews common stock at an aggregate cost of $672 million. Depending on market conditions, the Company from time to time purchases shares of its, and its subsidiaries', outstanding common stock in the open market or otherwise.

The Company has two classes of common stock: (i) Carolina Group stock, a tracking stock intended to reflect the economic performance of a group of the Company's assets and liabilities, called the Carolina Group, principally consisting of the Company's subsidiary Lorillard; and (ii) Loews common stock, which represents the economic performance of the Company's remaining assets, including the interest in the Carolina Group not represented by Carolina Group stock. At December 31, 2007, the outstanding Carolina Group stock represented a 62.4% interest in the economic performance of the Carolina Group.

On December 17, 2007, the Company announced that its Board of Directors has approved a plan to spin-off its entire ownership interest in Lorillard to holders of Carolina Group stock and Loews common stock in a tax-free transaction, as a result of which the Carolina Group, and all of the Carolina Group stock, would be eliminated and Lorillard would become a separate publicly traded company.

The transaction would be accomplished by the Company through its (i) redemption of all outstanding Carolina Group stock in exchange for shares of Lorillard common stock, with holders of Carolina Group stock receiving one share of Lorillard common stock for each share of Carolina Group stock they own, and (ii) disposition of its remaining Lorillard common stock in an exchange offer for shares of outstanding Loews common stock, or as a pro rata dividend to the holders of Loews common stock.

Completion of the proposed transaction is subject to a number of conditions, as described in the Loews press release, dated December 17, 2007, a copy of which is posted on the Company's website.

CONFERENCE CALLS

A conference call to discuss the fourth quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Monday, February 11, 2008. A live webcast of the call will be available online at the Loews Corporation website (www.loews.com). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session of the conference call should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 31845147.

A conference call to discuss the fourth quarter results of CNA has been scheduled for 10:00 a.m. EST, Monday, February 11, 2008. A live webcast will be available online at http://investor.cna.com. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (888) 277-7138, or for international callers, (913) 981-5542.

A conference call to discuss the fourth quarter results of Boardwalk Pipeline Partners, LP has been scheduled for 9:00 a.m. EST, Monday, February 11, 2008. A live webcast of the call will be available online at the Boardwalk Pipeline website (www.boardwalkpipelines.com). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (866) 543-6411, or for international callers, (617) 213-8900. The PIN number to access the call is 47472032.

A conference call to discuss fourth quarter results of Diamond Offshore was held on Thursday, February 7, 2008. An online replay is available at the Diamond Offshore website (www.diamondoffshore.com).

ABOUT LOEWS CORPORATION

Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA); Lorillard, Inc.; Diamond Offshore Drilling, Inc. (NYSE: DO); HighMount Exploration & Production LLC; Boardwalk Pipeline Partners, LP (NYSE: BWP); and Loews Hotels.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company, CNA, Diamond Offshore and Boardwalk Pipeline. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Important factors that could cause actual events to differ from those described include, but are not limited to, satisfaction of the conditions to completion of the proposed spin-off transaction noted herein. Therefore, no assurance can be given that the spin-off will be consummated on the current terms or otherwise. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Loews Corporation and Subsidiaries
Financial Review
                                               December 31,
                                     ---------------------------------
                                       Three Months     Years Ended
                                     ---------------------------------
                                       2007    2006    2007     2006
                                     ---------------------------------
                                     (Amounts in millions, except per
                                                share data)
Revenues:
   Insurance premiums and net
    investment income (a)            $ 2,414 $ 2,925  $10,241 $10,614
   Manufactured products (b)             957     937    3,969   3,755
   Other                               1,196     949    4,170   3,333
                                     ---------------------------------
          Total                        4,567   4,811   18,380  17,702
                                     ---------------------------------

Expenses:
   Insurance claims & policyholders'
    benefits                           1,513   1,601    6,009   6,047
   Cost of manufactured products
    sold (b) (c)                         535     522    2,307   2,160
   Other                               1,572   1,350    5,489   5,047
                                     ---------------------------------
          Total                        3,620   3,473   13,805  13,254
                                     ---------------------------------

                                         947   1,338    4,575   4,448
                                     ---------------------------------

Income tax expense                       311     412    1,481   1,442
Minority interest                        131     163      613     504
                                     ---------------------------------
          Total                          442     575    2,094   1,946
                                     ---------------------------------

Income from continuing operations        505     763    2,481   2,502
Discontinued operations, net               7     (17)       8     (11)
                                     ---------------------------------

Net income                           $   512 $   746  $ 2,489 $ 2,491
                                     =================================

Net income attributable to:
Loews common stock:
     Income from continuing
      operations                     $   377 $   626  $ 1,948 $ 2,086
     Discontinued operations, net          7     (17)       8     (11)
                                     ---------------------------------
Loews common stock                       384     609    1,956   2,075
Carolina Group stock (d)                 128     137      533     416
                                     ---------------------------------
                                     $   512 $   746  $ 2,489 $ 2,491
                                     =================================

Income per share of Loews common
 stock:
     Income from continuing
      operations                     $  0.71 $  1.14  $  3.64 $  3.77
     Discontinued operations, net       0.01   (0.03)    0.01   (0.02)
                                     ---------------------------------
     Diluted net income              $  0.72 $  1.11  $  3.65 $  3.75
                                     =================================

Diluted net income per share of
 Carolina Group stock                $  1.18 $  1.26  $  4.91 $  4.46
                                     =================================

Weighted diluted number of shares:
   Loews common stock                 530.94  548.37   536.00  553.54
   Carolina Group stock               108.61  108.44   108.57   93.47

(a)  Includes investment gains (losses) of $(91), $155, $(132) and
      $101 for the respective periods. The year ended December 31,
      2007 includes a gain of $143 ($93 after tax) related to a
      reduction in the Company's ownership interest in Diamond
      Offshore from the conversion of Diamond Offshore's 1.5%
      convertible debt into Diamond Offshore common stock.
(b)  Includes excise taxes of $165, $172, $688 and $699 paid on sales
      of manufactured products for the respective periods.
(c)  Includes charges of $247, $215, $1,048 and $911 ($172, $134, $680
      and $560 after taxes) to accrue obligations at Lorillard under
      the State Settlement Agreements for the respective periods.
(d)  Represents 62.4%, 62.3%, 62.4% and 54.8% of the economic interest
      in the Carolina Group for the respective periods.
Loews Corporation and Subsidiaries
Additional Financial Information

                                               December 31,
                                     ---------------------------------
                                      Three Months      Years Ended
                                     ---------------------------------
                                      2007    2006     2007     2006
                                     ---------------------------------
                                               (In millions)
Revenues:
  CNA Financial                      $2,509  $2,689  $10,196  $10,290
  Lorillard (a)                         976     969    4,075    3,859
  Diamond Offshore                      682     596    2,617    2,102
  HighMount                             174              274
  Boardwalk Pipeline                    181     176      671      618
  Loews Hotels                           99      91      384      371
  Investment income, net                 32     135      295      349
  Other and eliminations (b)              5                        12
                                     ---------------------------------
                                      4,658   4,656   18,512   17,601
                                     ---------------------------------
Investment gains (losses):
  CNA Financial                         (93)    154     (310)      92
  Corporate and other (c)                 2       1      178        9
                                     ---------------------------------
                                        (91)    155     (132)     101
                                     ---------------------------------
          Total                      $4,567  $4,811  $18,380  $17,702
                                     =================================

Income Before Taxes:
  CNA Financial                      $  308  $  346  $ 1,544  $ 1,575
  Lorillard (d)                         120     157      560      667
  Diamond Offshore                      295     293    1,239      960
  HighMount                              62               92
  Boardwalk Pipeline                     73      65      229      198
  Loews Hotels                           13       8       60       48
  Investment income, net                 32     135      295      349
  Other (b)                             (48)    (41)    (132)    (127)
                                     ---------------------------------
                                        855     963    3,887    3,670
                                     ---------------------------------
Investment gains (losses):
  CNA Financial                         (93)    154     (310)      92
  Corporate and other (c)                 2              176        9
                                     ---------------------------------
                                        (91)    154     (134)     101
                                     ---------------------------------

Loews common stock                      764   1,117    3,753    3,771
Carolina Group stock (e)                183     221      822      677
                                     ---------------------------------
          Total                      $  947  $1,338  $ 4,575  $ 4,448
                                     =================================

Net Income:
  CNA Financial                      $  201  $  224  $   950  $   979
  Lorillard (d)                          84      98      363      410
  Diamond Offshore (f)                   76     110      396      352
  HighMount                              38               57
  Boardwalk Pipeline (g)                 32      35      106      103
  Loews Hotels                            7       3       36       29
  Investment income, net                 22      88      194      228
  Other (b)                             (30)    (28)     (87)     (84)
                                     ---------------------------------
                                        430     530    2,015    2,017
                                     ---------------------------------
Investment gains (losses):
  CNA Financial                         (54)     96     (180)      63
  Corporate and other (c)                 1              113        6
                                     ---------------------------------
                                        (53)     96      (67)      69
                                     ---------------------------------

Income from continuing operations       377     626    1,948    2,086
Discontinued operations, net              7     (17)       8      (11)
                                     ---------------------------------
Loews common stock                      384     609    1,956    2,075
Carolina Group stock (e)                128     137      533      416
                                     ---------------------------------
          Total                      $  512  $  746  $ 2,489  $ 2,491
                                     =================================

(a)Includes excise taxes of $165, $172, $688 and $699 paid on sales of
    manufactured products for the respective periods.
(b)Consists primarily of corporate interest expense and other
    unallocated expenses.
(c)Includes a gain of $143 ($93 after tax), for the year ended
    December 31, 2007, related to a reduction in the Company's
    ownership interest in Diamond Offshore from the conversion of
    Diamond Offshore's 1.5% convertible debt into Diamond Offshore
    common stock.
(d)The Loews Group's intergroup interest in the earnings of the
    Carolina Group declined from 46.3%, in 2006 to 37.6% in 2007 due
    to the sales of Carolina Group stock by Loews in August and May of
    2006.
(e)Represents 62.4%, 62.3%, 62.4% and 54.8% of the economic interest
    in the Carolina Group for the respective periods.
(f)Includes additional tax expense of approximately $30 million, after
    minority interest, related to the repatriation of foreign
    earnings.
(g)Represents 72.1%, 83.2%, 75.2% and 84.9% ownership interest in
    Boardwalk Pipeline for the respective periods. Boardwalk Pipeline
    issued 6.9 million common units in the fourth quarter of 2006, 8.0
    million common units in the first quarter of 2007 and 7.5 million
    common units in the fourth quarter of 2007.

Carolina Group Reports Net Income for 2007

Loews Corporation (NYSE:LTR) today reported Carolina Group net income for the 2007 fourth quarter of $206 million, compared to $220 million in the 2006 fourth quarter. The decrease in net income is primarily due to a charge of $46 million, after taxes, related to litigation, partially offset by a lower effective tax rate as compared to 2006 due primarily to the statutory increase in the tax benefit related to the manufacturer's deduction and resolution of certain state tax uncertainties.

Net income per share of Carolina Group stock (NYSE:CG) for the fourth quarter of 2007 was $1.18, compared to $1.26 in the comparable period of the prior year. Carolina Group stock represented a 62.4% and 62.3% economic interest in the Carolina Group for the three months ended December 31, 2007 and 2006, respectively.

Net sales for the Carolina Group were $957 million in the fourth quarter of 2007, compared to $937 million in the 2006 fourth quarter. Domestic unit volume decreased 4.3% in the 2007 fourth quarter compared to the 2006 fourth quarter. The fourth quarter of 2006 was favorably impacted by increased wholesale purchases in anticipation of an industry price increase.

Carolina Group net income for the year ended 2007 was $855 million, compared to $760 million for the year ended 2006. The increase in net income is primarily due to higher effective unit prices resulting from price increases in December 2006 and September 2007 and lower sales promotion expenses, and a lower effective tax rate, partially offset by an increase in expenses for the State Settlement Agreements and the fourth quarter charge related to litigation. The effective tax rate was lower in 2007, as compared to 2006, due to the statutory increase in the tax benefit related to the manufacturer's deduction and resolution of certain state tax uncertainties.

Net income per share of Carolina Group stock for the year ended 2007 was $4.91, compared to $4.46 in the prior year. Carolina Group stock represented a 62.4% and 54.8% economic interest in the Carolina Group for the years ended December 31, 2007 and 2006, respectively.

Net sales for the Carolina Group were $3.969 billion in 2007, compared to $3.755 billion in the prior year. Domestic unit volume decreased 0.8% in 2007 compared to 2006, whereas the industry declined by approximately 5%.

Results of operations of the Carolina Group include interest expense on notional intergroup debt of $9 million, $16 million, $48 million and $71 million, net of taxes, for the three months and years ended December 31, 2007 and 2006, respectively. At December 31, 2007, $424 million principal amount of notional intergroup debt was outstanding.

The Carolina Group stock, commonly called a tracking stock, is intended to reflect the economic performance of a defined group of the Company's assets and liabilities, referred to as the Carolina Group, principally consisting of the Company's subsidiary Lorillard, Inc. The Carolina Group, a notional group, is not a separate legal entity. The purpose of this financial information is to provide investors with additional information to use in analyzing the results of operations and financial condition of the Carolina Group, and this financial information should be read in conjunction with the consolidated financial information of Loews Corporation.

As of December 31, 2007 there were 108,459,141 shares of Carolina Group stock outstanding, representing a 62.4% economic interest. Depending on market conditions, the Company, for the account of the Carolina Group, from time to time may purchase shares of Carolina Group stock in the open market or otherwise.

On December 17, 2007, Loews announced that its Board of Directors has approved a plan to spin-off its entire ownership interest in Lorillard to holders of Carolina Group stock and Loews common stock in a tax-free transaction, as a result of which the Carolina Group, and all of the Carolina Group stock, would be eliminated and Lorillard would become a separate publicly traded company.

The transaction would be accomplished by Loews through its (i) redemption of all outstanding Carolina Group stock in exchange for shares of Lorillard common stock, with holders of Carolina Group stock receiving one share of Lorillard common stock for each share of Carolina Group stock they own, and (ii) disposition of its remaining Lorillard common stock in an exchange offer for shares of outstanding Loews common stock or as a pro rata dividend to the holders of Loews common stock.

Completion of the proposed transaction is subject to a number of conditions, as described in the Loews press release dated December 17, 2007, a copy of which is posted on Loews's website.

A separate press release reporting Loews Corporation's consolidated results for the fourth quarter and full year of 2007 is being issued contemporaneously with this report.

A conference call to discuss the fourth quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Monday, February 11, 2008. A live webcast of the call will be available online at the Loews Corporation website (www.loews.com). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session of the conference call should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 31845147.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual events to differ materially from those described. Important factors that could cause actual events to differ from those described include, but are not limited to, satisfaction of the conditions to completion of the proposed spin-off transaction noted herein. Therefore, no assurance can be given that the spin-off will be consummated on the currently proposed terms or otherwise. Loews expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Carolina Group
Financial Review


                                               December 31,
                                    ----------------------------------
                                      Three Months       Year Ended
                                    ----------------------------------
                                      2007     2006     2007      2006
                                    ----------------------------------
                                    (Amounts in millions, except per
                                                share data)


Net sales (a)                       $   957  $   937  $ 3,969  $3,755

Cost of sales (a) (b)                   535      522    2,307   2,160
Selling, advertising and
 administrative (c)                     142       69      388     354
                                    ----------------------------------

Total operating costs and expenses      677      591    2,695   2,514
                                    ----------------------------------

Operating income                        280      346    1,274   1,241
Investment income and other (d)          21       35      118     112
Interest expense                         (8)     (26)     (74)   (116)
                                    ----------------------------------

Income before income taxes              293      355    1,318   1,237
Income taxes                             87      135      463     477
                                    ----------------------------------

Net income                              206      220      855     760
Earnings attributable to the Loews
 Group intergroup interest (e)           78       83      322     344
                                    ----------------------------------

Income attributable to Carolina
 Group shareholders (f)             $   128  $   137  $   533  $  416
                                    ==================================

Per share of Carolina Group stock   $  1.18  $  1.26  $  4.91  $ 4.46
                                    ==================================

Weighted diluted number of shares    108.61   108.44   108.57   93.47
                                    ==================================

Notional, intergroup debt owed by the Carolina Group to the
 Loews Group
   December 31, 2007                $   424
   December 31, 2006                  1,230

(a)Includes excise taxes of $165, $172, $688 and $699 for the
    respective periods.
(b)Includes charges of $247, $215, $1,048 and $911 ($172, $134, $680
    and $560 after taxes) to accrue obligations under the State
    Settlement Agreements for the respective periods.
(c)Includes a $66 charge for the three months and year ended December
    31, 2007 related to litigation, and restructuring costs of $4 and
    $20 for the three months and year ended December 31, 2006 related
    to early retirement and curtailment charges for Lorillard's
    pension and other post-retirement benefit plans.
(d)Includes income from limited partnership investments of $3, $9, $34
    and $26 ($2, $6, $22 and $16 after taxes) for the respective
    periods.
(e)The Loews Group's intergroup interest in the earnings of the
    Carolina Group reflected share equivalents amounting to 65.45
    million shares of 173.90 million share and share equivalents
    outstanding as of December 31, 2007 and share equivalents
    amounting to 65.45 million shares of 173.77 million share and
    share equivalents outstanding as of December 31, 2006. As of
    December 31, 2007, there were 108.46 million shares of Carolina
    Group stock outstanding.
(f)Represents 62.4%, 62.3%, 62.4% and 54.8% of the economic interest
    in the Carolina Group for the respective periods.
Carolina Group
Supplemental Information


The following information regarding unit volume shipped by Lorillard
 Tobacco Company to its direct buying customers by brand follows (all
 units in thousands):

                                           December 31,
                             -----------------------------------------
                                Three Months          Year Ended
                             -----------------------------------------
                               2007      2006       2007       2006
                             -----------------------------------------

Full Price Brands

Total Newport                7,716,510 8,148,465 32,838,856 33,105,422
Total Kent Family              111,024   140,499    481,842    600,519
Total True                     100,494   120,600    435,407    509,831
Total Max                        6,992     8,172     29,012     33,723
Total Satin                                  993         72      4,887
                             -----------------------------------------

Total Full Price Brands      7,935,020 8,418,729 33,785,189 34,254,382
                             -----------------------------------------

Price/Value Brands

Total Old Gold                 147,162   196,010    616,640    803,669
Total Maverick                 433,331   283,884  1,440,339  1,072,811
                             -----------------------------------------

Total Price/Value Brands       580,493   479,894  2,056,979  1,876,480
                             -----------------------------------------

Total Domestic Cigarettes    8,515,513 8,898,623 35,842,168 36,130,862

Total Puerto Rico and U.S.
 Possessions                   201,882   224,196    794,676    813,576
                             -----------------------------------------

Grand Total                  8,717,395 9,122,819 36,636,844 36,944,438
                             =========================================

Notes:

1.This information is not adjusted for returns.
2.Domestic unit volume includes units sold as well as promotional
   units, and excludes volumes for Puerto Rico and U.S. Possessions.
3.Unit volume for a quarter is not necessarily indicative of unit
   volume for any subsequent period.
4.Unit volume is not necessarily indicative of the level of revenues
   for any period.

CONTACT: Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Darren Daugherty, 212-521-2788
Investor Relations
or
Candace Leeds, 212-521-2416
Public Affairs

SOURCE: Loews Corporation