(Adds analysts' estimates, details; updates share price)
Aug 4 Hotel, energy and financial services
conglomerate Loews Corp reported a lower-than-expected
quarterly profit, hurt by a drop in profit at its second-biggest
subsidiary, Diamond Offshore Drilling Inc.
Net income attributable to Loews, controlled by New York's
Tisch family, fell 57 percent to $116 million, or 30 cents per
share, in the second quarter ended June 30.
Loews earned an adjusted profit of 66 cents per share, lower
than the average analysts estimate of 67 cents, according to
Thomson Reuters I/B/E/S.
Revenue fell to $3.59 billion from $3.62 billion.
Higher earnings at insurer CNA Financial Corp,
Loews's largest subsidiary, and increased investment income were
partially offset by lower earnings at Diamond Offshore, Loews
Late last month, Diamond Offshore, one of the world's top
five offshore rig contractors, reported a 52 percent fall in
quarterly profit, mainly due to lower utilization, higher
contract drilling costs and increased interest expense as a
result of higher debt levels.
Insurer CNA said on Monday net income rose to $267 million,
or 98 cents per share, in the quarter from $194 million, or 72
cents per share, a year earlier.
Over the years, Loews has trimmed CNA's operations by hiving
off its life insurance, personal automobile insurance, health
insurance and reinsurance businesses.
The latest major sale was in February when CNA said it would
sell its life and group insurance business to focus on property
and casualty insurance.
Loews is also considering the sale of its natural gas
subsidiary HighMount Exploration & Production LLC due to
sustained low natural gas prices and grim price outlook for the
fuel caused by a shale boom.
Loews's two other subsidiaries are Boardwalk Pipeline
Partners LP and Loews Hotels & Resorts.
Loews's shares were trading down 0.4 percent at $42.08 in
morning trading on Monday. Up to Friday's close, they have lost
about 5 percent since April, when the company last reported
CNA's shares were down almost 1 percent at $37.69 on Monday.
Up to Friday's close, they have lost about 7 percent since CNA
reported results in April.
(Reporting by Amrutha Gayathri in Bangalore; Editing by Savio