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Loews Corporation Reports Results for 2001
NEW YORK, Feb 14, 2002 (BUSINESS WIRE) --

Loews Corporation
(NYSE:LTR) today reported net income for the quarter ended December
31, 2001 of $188.1 million or $.98 per share, compared to $502.9
million or $2.55 per share in 2000.
	   Net investment gains amounted to $236.7 million in the fourth
quarter of 2001, compared to gains of $172.6 million in the fourth
quarter of 2000.
	   Net operating loss, which excludes net investment gains and
losses, for the fourth quarter was $48.6 million or $.26 per share,
compared to net operating income of $330.3 million or $1.67 per share
in 2000. The lower results in the current quarter are primarily due to
charges of $110.8, $46.1 and $61.2 million, after taxes and minority
interest, at CNA related to restructuring and other related charges,
Enron related losses, and reserve strengthening primarily for the
current accident year, respectively.
	   Net loss for the year ended 2001 was $589.1 million or $3.02 per
share, compared to net income of $1,876.7 million or $9.44 per share
in 2000. The net loss was primarily attributable to CNA's second
quarter reserve charge of $1.8 billion and net losses of $264.6
million at CNA related to the World Trade Center attack and related
events, as well as the fourth quarter restructuring and other charges
at CNA, and a charge of $121.0 million after taxes at Lorillard in the
second quarter related to the agreement with the Engle class.
	   The net loss in 2001 includes net investment gains of $792.2
million or $4.06 per share compared to gains of $577.1 million or
$2.90 per share in the prior year. The net loss also includes a charge
for accounting changes of $53.3 million or $.27 per share, related to
the adoption by CNA of a new accounting standard for derivative
instruments.
	   Revenues in the fourth quarter of 2001 amounted to $5.2 billion
compared to $5.5 billion in the comparable 2000 quarter. Revenues for
the year ended 2001 were $19.4 billion, compared to $21.3 billion in
2000. Revenues for the year ended 2001 declined due primarily to lower
earned premiums for CNA's Property-Casualty business.
	   On January 4, 2002 the shareholders of the Company authorized and
approved the creation of a new class of common stock of the Company,
called Carolina Group stock and on February 6, 2002 in an initial
public offering the Company issued 40,250,000 shares of Carolina Group
stock for net proceeds of approximately $1.1 billion. Reported results
for the quarter and year ended December 31, 2001 do not reflect the
issuance in February 2002 of Carolina Group stock. The Company is
issuing a separate press release reporting the pro forma results of
the Carolina Group for the year ended December 31, 2001.
	   As of December 31, 2001, there were 191,493,300 shares of Loews
common stock outstanding. During 2001, the Company purchased 5,746,600
shares of its outstanding common stock at an aggregate cost of $282.2
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.
	   A conference call to discuss the fourth quarter results of Loews
Corporation has been scheduled for 11:00 a.m. EST, Thursday, February
14, 2002. The call can be accessed by dialing (888) 307-7192 or by
visiting the Loews Corporation website (www.loews.com), where the
Company will provide an online, real-time broadcast of this call.
Please go to the website at least 10 minutes before the event begins
to register and to download and install any necessary audio software.
An online replay will be available at the Company's website for one
week following the call.
	   CNA has also scheduled a conference call to discuss its fourth
quarter results. CNA's call will take place at 10:00 a.m. EST on
Thursday, February 14, 2002, and can be accessed by dialing (888)
855-5428 or via the Internet at www.cna.com/cna/html/investor.html. A
replay of this conference call will be available until February 21,
2002 at the aforementioned web address or by dialing (888) 203-1112,
passcode 780212.
                  Loews Corporation and Subsidiaries
                           Financial Review
                                            December 31,
                   ---------------------------------------------------
                               Three Months            Years Ended
                   ---------------------------------------------------
                               2001       2000       2001        2000
                   ---------------------------------------------------
                        (Amounts in millions, except per share data)
Revenues: Insurance premiums and net

investment income (a) $ 3,582.7$ 3,930.2 $ 12,900.0 $ 15,086.6 Manufactured products (b) 1,097.1 1,083.8 4,584.1 4,383.6 Other 474.0 510.2 1,933.1 1,781.0

                              ----------------------------------------
    Total                       5,153.8  5,524.2   19,417.2   21,251.2
                              ----------------------------------------
Expenses: Insurance claims & policyholders'

benefits 2,536.5 2,675.0 11,382.8 9,830.8 Cost of manufactured

products sold (b) 506.6 523.8 2,237.1 2,251.1 Other (c) 1,754.4 1,465.7 6,610.4 5,963.4

                              ----------------------------------------
    Total                       4,797.5  4,664.5   20,230.3   18,045.3
                              ----------------------------------------
                                  356.3    859.7     (813.1)   3,205.9
                              ----------------------------------------
Income tax expense (benefit) 149.6 312.7 (175.4) 1,106.9 Minority interest 18.6 44.1 (101.9) 222.3

                              ----------------------------------------
    Total                         168.2    356.8     (277.3)   1,329.2
                              ----------------------------------------
Income (loss) before

cumulative effect of

changes in accounting

principles 188.1 502.9 (535.8) 1,876.7 Cumulative effect of change

 in accounting
  principles-net (d)                                  (53.3)
                              ----------------------------------------
Net income (loss)               $ 188.1  $ 502.9   $ (589.1) $ 1,876.7
                              ========================================
Income (loss) per common share-basic (e):
Income (loss) before cumulative
 effect of changes in
  accounting-principles          $ 0.98   $ 2.55     $ (2.75)   $ 9.44
Cumultive effect of changes in
 accounting principles-net (d)                         (0.27)
                            ------------------------------------------
Net income (loss)                $ 0.98   $ 2.55     $ (3.02)   $ 9.44
                            ==========================================
Book value per share                                 $ 50.39   $ 56.74
Weighted number of shares
 outstanding (in millions)        191.5    197.2       195.3     198.7
                            ==========================================
    (a) Includes investment gains of $328.2, $279.3, $1,393.7 and
        $1,021.1 for the respective periods.
    (b) Includes excise taxes of $141.7, $159.5, $618.1 and $667.9
        paid on sales of manufactured products for the respective
        periods.
    (c) Includes a $200.0 charge related to an agreement with the
        Engle class for the year ended December 31, 2001.
    (d) Adoption of SFAS No. 133, accounting for derivative
        instruments and hedging activities at the CNA subsidiary.
    (e) Earnings per common share-assuming dilution is not presented
        because securities that could potentially dilute basic
        earnings per common share in the future would have been
        antidilutive or insignificant for the periods presented.
Loews Corporation and Subsidiaries

Additional Financial Information

December 31,

------------------------------------------

Three Months Years Ended

------------------------------------------

2001 2000 2001 2000

------------------------------------------

(In millions, except per share amounts) Revenues: CNA Financial $ 3,382.4 $ 3,772.1 $ 11,937.5 $ 14,499.1 Lorillard (a) 1,067.1 1,075.0 4,528.5 4,342.4 Loews Hotels 74.7 89.8 321.8 338.5 Diamond Offshore (b) 234.5 205.6 942.3 723.6 Bulova (c) 46.1 45.2 146.1 160.1 Investment income-net

and other (d) 20.8 57.2 147.3 166.4

------------------------------------------

4,825.6 5,244.9 18,023.5 20,230.1

------------------------------------------ Investment gains (losses):

CNA Financial 325.5 118.9 1,265.3 1,028.5

Corporate and other 2.7 160.4 128.4 (7.4)

------------------------------------------

328.2 279.3 1,393.7 1,021.1

------------------------------------------

Total $ 5,153.8 $ 5,524.2 $ 19,417.2 $ 21,251.2

========================================== Income (Loss) Before Taxes & Minority Interest

and Cumulative Effect of Changes in Accounting

Principles:

CNA Financial (f) $ (329.5) $ 188.2 $ (3,554.6) $ 800.4

Lorillard (e) 323.1 318.1 1,104.3 1,223.9

Loews Hotels 6.4 12.7 29.8 47.6

Diamond Offshore (b) 52.4 42.5 228.1 107.7

Bulova (c) 7.5 7.0 17.8 27.1

Investment income-net and

other (d) (31.8) 11.9 (32.2) (21.9)

------------------------------------------

28.1 580.4 (2,206.8) 2,184.8

------------------------------------------ Investment gains (losses):

CNA Financial 325.5 118.9 1,265.3 1,028.5

Corporate and other 2.7 160.4 128.4 (7.4)

------------------------------------------

328.2 279.3 1,393.7 1,021.1

------------------------------------------

Total $ 356.3 $ 859.7 $ (813.1) $ 3,205.9

========================================== Net Income (Loss):

CNA Financial (f) $ (253.8) $ 106.2 $ (2,083.6) $ 486.1

Lorillard (e) 197.8 194.6 672.2 753.9 Loews Hotels 4.3 4.3 19.5 26.8 Diamond Offshore (b) 15.8 12.8 71.0 32.0 Bulova (c) 4.4 3.9 10.1 15.0 Investment income-net

and other (d) (17.1) 8.5 (17.2) (14.2)

------------------------------------------

(48.6) 330.3 (1,328.0) 1,299.6

------------------------------------------ Per share (0.26) 1.67 (6.81) 6.54

------------------------------------------ Investment gains (losses):

CNA Financial 237.3 68.3 717.1 581.9

Corporate and other (0.6) 104.3 75.1 (4.8)

------------------------------------------

236.7 172.6 792.2 577.1

------------------------------------------

Per share 1.24 0.88 4.06 2.90

------------------------------------------ Cumulative effect of changes in accounting

      principles-net                                  (53.3)
                            ------------------------------------------
              Per share                               (0.27)
                            ------------------------------------------
              Total           $ 188.1    $ 502.9   $ (589.1) $ 1,876.7
                            ==========================================
              Per share        $ 0.98     $ 2.55    $ (3.02)    $ 9.44
                            ==========================================
    (a) Includes excise taxes of $141.7, $159.5, $618.1 and $667.9
        paid on sales of manufactured products for the respective
        periods.
    (b) Includes a gain from the sale of a drilling rig of $13.9 ($4.7
        after taxes and minority interest) for the year ended December
        31, 2000.
    (c) Includes a gain of $5.5 from settlement of a contract dispute
       ($3.0 after taxes and minority interest) for the year ended
        December 31, 2000.
    (d) Consists primarily of corporate investment income, interest
        expenses and other unallocated expenses.
    (e) Includes a $200.0 charge ($121.0 after taxes) related to an
        agreement with the Engle class for the year ended December 31,
        2001.
    (f) Includes charges of $189.0, $79.5 and $76.0 ($110.8, $46.1 and
        $61.2 after taxes and minority interest) for the quarter and
        year ended December 31, 2001 related to restructuring and
        other related charges, Enron related losses, and reserve
        strengthening primarily for the current accident year,
        respectively, and $467.7 and $3,200.0 ($264.6 and $1,810.5
        after taxes and minority interest) for the year ended December
        31, 2001 related to the World Trade Center attack and a change
        in estimate of prior year net loss and allocated loss
        adjustment expense reserves and retrospective premium
        accruals, respectively.
CONTACT:          Loews Corporation, New York                                                                      
                  Peter W. Keegan, 212/521-2950 
                  Public Affairs: 
                  Candace Leeds, 212/521-2416                                                                  
                  Investor Relations:                                                                   
                  Joshua E. Kahn, 212/521-2788 

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