Alleghany announces earnings.NEW YORK--(BUSINESS WIRE)--April 23, 1997--Net earnings of Alleghany Corporation (NYSE-Y) were $1.77 per share of common stock in the first quarter of 1997 compared with $2.28 per share in the first quarter of 1996, John J. Burns, Jr., President and chief executive officer of Alleghany, announced today. Net earnings in the first quarter of 1997 included a pre-tax contribution Pre-tax contribution Payment to an account made with funds from a worker's paycheck before federal income taxes are deducted. of $12.0 million at Alleghany's Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. Title and Trust operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , reflecting strong activity in commercial real estate markets and a larger contribution from agency operations (as distinguished from company-owned offices), offsetting weakness in residential real estate markets, including a 31% decrease in home mortgage refinancings from 1996 levels. In the first quarter of 1996, Chicago Title and Trust recorded pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings of $14.8 million, reflecting improved conditions in real estate markets from the previous year's level, including an increase in home mortgage refinancings, and the benefits of expense reductions. Chicago Title and Trust's 1996 first quarter results also included a $4.2 million pre-tax charge to write down the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of title plants and goodwill in connection with the implementation of Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No.121, and pre-tax income of $8 million in respect of a reduction in title claims reserves. Disregarding dis·re·gard tr.v. dis·re·gard·ed, dis·re·gard·ing, dis·re·gards 1. To pay no attention or heed to; ignore. 2. To treat without proper respect or attentiveness. n. these items, Chicago Title and Trust would have recorded pre-tax earnings of $11.0 million in the first quarter of 1996. In the first quarter of 1997, Alleghany's Underwriters Re Group operating unit recorded higher revenues and earnings as compared with the first quarter of 1996, and its World Minerals operating unit recorded higher revenues but lower earnings as compared with the first quarter of 1996. Highlights are as follows (in millions, except for shares and per share amounts): Three Months Ended March 31 1997 1996 Revenues $504.7 $468.1 Earnings before taxes $ 18.4 $ 24.7 Net earnings $ 12.9 $ 16.8 Net earnings per share of $ 1.77 $ 2.28 common stock(a) Average number of outstanding 7,283,242 7,361,428 shares of common stock(a) (a) Adjusted to reflect dividends of common stock declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. in March of 1996 and 1997. The comparative contributions to earnings before taxes, made by Alleghany's operating units Chicago Title and Trust Company (title insurance and investment management), Underwriters Re Group, Inc. (reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and insurance businesses) and World Minerals Inc. (industrial minerals), as well as by Alleghany's parent-company and other operations, were as follows (in millions): Quarter Ended March 31 1997 1996 Chicago Title $12.0 $14.8 Underwriters Re Group $ 7.0 $ 6.9 World Minerals $ 2.9 $ 4.6 Parent company and other $(3.5) $(1.6) On a per-share, after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , the foregoing earnings contributions may be broken down as follows (adjusted to reflect dividends of common stock declared by Alleghany in March of 1996 and 1997): Quarter Ended March 31 Chicago Underwrites World Parent co. Total Title Re Group Minerals and other 1997 Operations $1.10 $ .75 $ .16 $(.17) $1.84 Security transactions .01 .01 --- (.09) (.07) Total $1.11 $ .76 $ .16 $(.26) $1.77 1996 Operations $1.28 $ .71 $ .37 $(.11) $2.25 Security transactions .03 --- --- --- .03 Total $1.31 $ .71 $ .37 $(.11) $2.28 As of March 31, 1997, Alleghany beneficially owned approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 7.43 million shares, or 4.8 percent of the outstanding common stock of Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. Northern Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Corporation, which had an aggregate market value on that date of approximately $549.9 million, or $74.00 per share, compared with a market value on December December: see month. 31, 1996 of $641.9 million, or $86.375 per share. The aggregate cost of such shares is approximately $253.7 million, or $34.15 per share. Alleghany common stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. per share as of March 31, 1997 was $183.32, a 5.0 percent decrease from common stockholders' equity per share of $192.69 as of December 31, 1996, and a 1.0 percent increase from common stockholders' equity per share of $182.02 as of March 31, 1996 (as adjusted to reflect dividends of common stock declared by Alleghany in March of 1996 and 1997). The decline in common stockholders' equity from 1996 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. is principally attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the decline in the market price of Burlington Northern. ALLEGHANY CORPORATION AND SUBSIDIARIES COMBINING STATEMENTS OF EARNINGS (dollars in thousands) (unaudited) QUARTER ENDED MARCH 31, 1997 UNDER- under- pref. 1. Beneath or below in position: underground. 2. Inferior or subordinate in rank or importance: undersecretary. 3. CHICAGO WORLD WRITERS RE CORPORATE TITLE MINERALS GROUP ACTIVITES COMBINED Revenues Title premiums, escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. and trust fees $310,637 $0 $0 $0 $310,637 Net reinsurance premiums earned 0 0 97,191 0 97,191 Interest, dividend and other income 15,902 (205) 17,966 16,651 50,314 Net mineral and filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids sales 0 47,265 0 0 47,265 Net gain (loss) on investment transactions 155 0 109 (1,000) (736) Total revenues 326,694 47,060 115,266 15,651 504,671 Costs and expenses Commissions and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. expenses 114,400 0 23,280 0 137,680 Salaries, administrative and other operating expenses 177,709 9,559 8,320 12,534 208,122 Provision for title losses and other claims 21,463 0 0 0 21,463 Property and casualty losses & LAE 0 0 72,637 0 72,637 Cost of mineral and filtration sales 0 33,123 0 0 33,123 Interest expense 1,156 1,454 4,004 2,378 8,992 Corporate administration 0 0 0 4,266 4,266 Total costs and expenses 314,728 44,136 108,241 19,178 486,283 Earnings (loss) before income taxes $11,966 $2,924 $7,025 ($3,527) 18,388 Income taxes 5,480 Net earnings $12,908 ALLEGHANY CORPORATION AND SUBSIDIARIES COMBINING STATEMENTS OF EARNINGS (dollars in thousands) (unaudited) QUARTER ENDED MARCH 31, 1996 UNDER- CHICAGO WORLD WRITERS RE CORPORATE TITLE MINERALS GROUP ACTIVITES COMBINED Revenues Title premiums, escrow and trust fees $291,122 $0 $0 $0 $291,122 Net reinsurance premiums earned 0 0 82,976 0 82,976 Interest, dividend and other income 15,049 (27) 13,718 17,257 45,997 Net mineral and filtration sales 0 47,582 0 0 47,582 Net gain (loss) on investment transactions 369 0 47 0 416 Total revenues 306,540 47,555 96,741 17,257 468,093 Costs and expenses Commissions and brokerage expenses 105,885 0 23,254 0 129,139 Salaries, administrative and other operating expenses 170,391 10,034 7,243 12,362 200,030 Provision for title losses and other claims 14,014 0 0 0 14,014 Property and casualty losses & LAE 0 0 58,518 0 58,518 Cost of mineral and filtration sales 0 31,449 0 0 31,449 Interest expense 1,460 1,522 788 2,400 6,170 Corporate administration 0 0 0 4,069 4,069 Total costs and expenses 291,750 43,005 89,803 18,831 443,389 Earnings (loss) before income taxes $14,790 $4,550 $6,938 ($1,574) 24,704 Income taxes 7,893 Net earnings $16,811 CONTACT: R.M. Hart (212) 752-1356 |
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