Loews Corp. (L) Posts Q4 Loss of 51c/Share

February 10, 2014 6:05 AM EST
Loews Corp. (NYSE: L) reported Q4 EPS of ($0.51), which may not compare with the analyst estimate of $0.71. Revenue for the quarter came in at $2.6 billion, versus $2.44 billion reported last year.

Results for the fourth quarter and full year of 2013 and 2012 include the following significant items (after tax and noncontrolling interests):

A ceiling test impairment charge at HighMount Exploration & Production LLC related to the carrying value of its natural gas and oil properties of $52 million and $186 million in the fourth quarter and full year of 2013, as compared to charges of $97 million and $433 million for the 2012 periods.

Goodwill impairment charges of $398 million in the fourth quarter and full year of 2013 primarily related to HighMount reflecting the continued low market prices for natural gas and natural gas liquids and recent history of negative reserve revisions.

A $111 million charge in the fourth quarter and full year of 2013 related to CNA Financial Corporation's retroactive reinsurance agreement to cede its legacy asbestos and environmental pollution liabilities to National Indemnity, a subsidiary of Berkshire Hathaway, Inc. (Loss Portfolio Transfer or LPT). Under retroactive reinsurance accounting, amounts ceded through the LPT in excess of the consideration paid result in a deferred gain that is recognized in income over future periods. During the fourth quarter of 2013, the cumulative amounts ceded under the LPT exceeded the consideration paid, resulting in the recognition of an accounting loss.

For earnings history and earnings-related data on Loews Corp. (L) click here.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings

Related Entities

Warren Buffett, Earnings