Carolina Group Reports Net Income and Pro Forma Results for 2002.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 13, 2003 Loews The name Loews can refer to several articles in the Wikipedia:
See: New York Stock Exchange :LTR LTR - Langage Temps-Réel. (French for "real-time language") A French predecessor to Ada, LTR is Modula-like with a set of special-purpose real-time constructs based on an event model. It was mentioned in the reference below. ["An Overview of Ada", J.G.P. ) reported today Carolina Carolina (kärōlē`nä), city (1990 pop. 177,806), Puerto Rico. Located 7 mi (11 km) SE of San Juan, it is a residential suburb of the capital, as well as a commercial and industrial center. Group net income for the 2002 fourth quarter of $160.3 million, compared to $197.3 million in 2001. Net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Loews Group intergroup in·ter·group adj. Being or occurring between two or more social groups: intergroup relations; intergroup violence. interest for the fourth quarter of 2002 amounted to $123.4 million. Net income attributable to Carolina Group Stock for the fourth quarter of 2002 was $36.9 million, or $0.92 per share of Carolina Group tracking stock (NYSE:CG). Carolina Group net income for the 2002 fourth quarter includes net investment gains of $2.2 million, compared to a loss of $0.6 million in the comparable period of the prior year. Net investment gains attributable to Carolina Group Stock in 2002 were $0.5 million. Carolina Group net income for the year ended 2002 was $681.5 million, compared to $672.7 million in the comparable period of the prior year. Net income attributable to the Loews Group intergroup interest for the year ended 2002 amounted to $540.8 million. Net income attributable to Carolina Group Stock for 2002 was $140.7 million, or $3.50 per share of Carolina Group tracking stock and reflects eleven months of actual results, commencing with the initial issuance of Carolina Group Stock by Loews Corporation in February February: see month. 2002. Carolina Group net income for the year ended 2002 includes net investment gains of $23.4 million, compared to $0.7 million in the comparable period of the prior year. Net investment gains attributable to Carolina Group Stock in 2002 were $5.3 million. Net income for the Carolina Group in 2001 included a $200.0 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge ($121.0 million after taxes) related to an agreement with the class in the Engle En´gle n. 1. A favorite; a paramour; an ingle. v. t. 1. To cajole or coax, as favorite. I 'll presently go and engle some broker. - B. Jonson. case. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the Carolina Group were $3.8 billion in 2002, compared to $3.9 billion in 2001. Net sales for 2001 have been restated for comparative purposes to reflect the adoption of new accounting principles related to the classification of certain sales incentives Noun 1. sales incentive - remuneration offered to a salesperson for exceeding some predetermined sales goal bonus, incentive - an additional payment (or other remuneration) to employees as a means of increasing output . On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, assuming the Carolina Group Stock had been issued at January January: see month. 1, 2001, net income attributable to Carolina Group Stock for the year ended 2002 was $154.7 million or $3.85 per share of Carolina Group Stock, compared to $127.6 million or $3.17 per share in the comparable period of the prior year. This pro forma information is based on the historical financial statements of the Carolina Group, adjusted to accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. interest expense at 8% per annum Per annum Yearly. on $2.5 billion of notional no·tion·al adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. intergroup debt and an adjustment to income taxes for the impact of the interest expense. Per share amounts are based on income available to Carolina Group shareholders. At December December: see month. 31, 2002, the outstanding balance of notional debt was $2.4 billion. 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 conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial information of Loews Corporation. As of December 31, 2002, there were 39,910,000 shares of Carolina Group Stock outstanding. During the year ended December 31, 2002, the Company purchased 340,000 shares of Carolina Group stock, for the account of the Carolina Group, at an aggregate cost of $7.7 million. 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. Loews Corporation has issued a separate press release reporting its consolidated results for the fourth quarter and full-year of 2002, which accompanies this press release. A conference call to discuss the fourth quarter and full-year results of Loews Corporation has been scheduled for 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , Thursday Thursday: see week. , February 13, 2003. The call can be accessed by dialing (877) 692-2592 or by visiting the Loews Corporation website (www.loews.com), where the Company will provide an online, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. broadcast of this call. Please go to the website at least 10 minutes before the event begins to register and to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. An online replay will be available at the Company's website for one week following the call.
Carolina Group
Financial Review
December 31,
--------------------------------
Three Months Years Ended
--------------------------------
2002 2001 2002 2001
--------------------------------
(Amounts in millions,
except per share data)
Net sales (a) $834.3 $912.9 $3,797.7 $3,868.1
Cost of sales (a) 445.5 500.0 2,172.4 2,234.6
Selling, advertising and
administrative (b) 92.6 104.7 409.3 612.5
--------------------------------
Total operating costs and expenses 538.1 604.7 2,581.7 2,847.1
--------------------------------
Operating income 296.2 308.2 1,216.0 1,021.0
Investment income (c) 13.5 14.0 83.0 84.0
Interest expense (49.4) (178.4)
--------------------------------
Income before income taxes 260.3 322.2 1,120.6 1,105.0
Income taxes 100.0 124.9 439.1 432.3
--------------------------------
Net income (b) 160.3 197.3 681.5 672.7
Earnings attributable to the Loews
Group intergroup interest (d) 123.4 197.3 540.8 672.7
--------------------------------
Income attributable to Carolina Group
shareholders (e) $36.9 $- $140.7 $-
================================
Per share of Carolina Group stock (f) $0.92 $3.50
================================
Weighted number of shares outstanding 39.91 40.15
================================
(a) Includes excise taxes of $149.6, $141.7, $667.6 and $618.1 for the
respective periods.
(b) Includes a $200.0 charge ($121.0 after taxes) related to an
agreement with the Engle class for the year ended December 31,
2001.
(c) Includes $3.4, $(1.0), $36.1 and $1.1 of investment gains (losses)
for the respective periods.
(d) Adjusted to reflect the Loews Group's intergroup interest in the
earnings of the Carolina Group after completion of the February 1,
2002 offering of 40,250,000 shares of Carolina Group stock. The
Loews Group's economic interest is expressed in share equivalents
amounting to 133,500,000 shares for a total of 173,750,000 shares
and share equivalents outstanding after the offering. As of
December 31, 2002, there were 39,910,000 shares of Carolina Group
stock outstanding.
(e) Represents 23.01% and 23.12% of the economic interest in the
Carolina Group for the three month and eleven month period ended
December 31, 2002.
(f) Earnings per common share-assuming dilution is not presented
because securities that could potentially dilute basic earnings
per share in the future would have been insignificant or
antidilutive for the periods presented.
Carolina Group
Pro Forma Financial Review
December 31,
--------------------------------
Three Months Years Ended
--------------------------------
2002 2001 2002 2001
--------------------------------
(Amounts in millions,
except per share data)
Net sales (a) $834.3 $912.9 $3,797.7 $3,868.1
Cost of sales (a) 445.5 500.0 2,172.4 2,234.6
Selling, advertising and
administrative (b) 92.6 104.7 409.3 612.5
--------------------------------
Total operating costs and expenses 538.1 604.7 2,581.7 2,847.1
--------------------------------
Operating income 296.2 308.2 1,216.0 1,021.0
Investment income (c) 13.5 14.0 83.0 84.0
Interest expense (d) (49.4) (50.0) (199.4) (200.0)
--------------------------------
Income before income taxes 260.3 272.2 1,099.6 905.0
Income taxes (d) 100.0 105.4 430.9 354.3
--------------------------------
Net income (b) 160.3 166.8 668.7 550.7
Earnings attributable to the Loews
Group intergroup interest (e) 123.4 128.1 514.0 423.1
--------------------------------
Income available to Carolina Group
shareholders $36.9 $38.7 $154.7 $127.6
================================
Per share of Carolina Group stock (f) $0.92 $0.96 $3.85 $3.17
================================
Weighted number of shares outstanding 39.91 40.25 40.15 40.25
================================
(a) Includes excise taxes of $149.6, $141.7, $667.6 and $618.1 for the
respective periods.
(b) Includes a $200.0 charge ($121.0 after taxes) related to an
agreement with the Engle class for the year ended December 31,
2001.
(c) Includes $3.4, $(1.0), $36.1 and $1.1 of investment gains (losses)
for the respective periods.
(d) Includes pro forma adjustment to accrue interest expense at 8% per
annum on $2,500.0 of notional intergroup debt and an adjustment to
income taxes for the impact of the interest expense for the
periods prior to the issuance of Carolina Group stock.
(e) Includes pro forma adjustment to reflect the Loews Group's
intergroup interest in the earnings of the Carolina Group after
completion of the offering of 40,250,000 shares of Carolina Group
stock. The Loews Group's economic interest is expressed in share
equivalents amounting to 133,500,000 shares for a total of
173,750,000 shares and share equivalents outstanding after the
offering. As of December 31, 2002, there were 39,910,000 shares of
Carolina Group stock outstanding.
(f) Pro forma earnings per share of Carolina Group stock assumes the
Carolina Group was a separate group as of January 1, 2001. Pro
forma earnings per common share- assuming dilution is not
presented because securities that could potentially dilute basic
earnings per share in the future would have been insignificant or
antidilutive for the periods presented.
Carolina Group
Supplemental Information
The following information regarding domestic U.S. unit volume shipped
by Lorillard Tobacco Company to its direct buying customers by brand
as follows (all units in billions):
December 31,
--------------------------
Three Months Years Ended
--------------------------
2002 2001 2002 2001
--------------------------
Full Price Brands
Total Newport 6.897 7.390 31.173 31.858
Total Kent Family 0.303 0.373 1.344 1.639
Total True 0.215 0.252 0.936 1.084
Total Max 0.015 0.017 0.066 0.074
Total Satin 0.003 0.003 0.014 0.017
Total Triumph 0.001 0.001 0.005 0.006
--------------------------
Total Full Price Brands 7.434 8.036 33.538 34.678
--------------------------
Price/Value Brands
Total Old Gold 0.281 0.341 1.297 1.631
Total Maverick 0.095 0.225 0.597 1.311
--------------------------
Total Price/Value Brands 0.376 0.566 1.894 2.942
--------------------------
Total Domestic Cigarettes 7.810 8.602 35.432 37.620
==========================
Notes:
1. This information is unaudited and 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.
Loews Corporation Reports Net Income for 2002 NEW YORK--Feb. 13, 2003--Loews Corporation (NYSE:LTR;CG) today reported consolidated net income (including both the Loews Group and Carolina Group) for the quarter ended December 31, 2002 of $290.2 million, compared to $191.0 million in 2001. Consolidated net income for the year ended December 31, 2002, was $940.9 million, compared to a net loss of $587.1 million in 2001. The 2001 results include a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of previously reported financial results related to the life settlement business of the Company's CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corporation subsidiary, as described below. The following table summarizes the revenues, net income (loss) and earnings per share information.
December 31,
--------------------------------------
Three Months Year Ended
--------------------------------------
(In millions, except per share
data) 2002 2001 (c) 2002 2001 (c)
--------------------------------------
Consolidated:
Revenues (a) $4,021.9 $4,999.0 $17,545.6 $18,769.6
Net income (loss) $290.2 $191.0 $940.9 $(587.1)
Per Share: (b)
Income (loss) per share of
Loews Common Stock:
Income (loss) from continuing
operations $1.37 $0.98 $4.65 $(2.79)
Discontinued operations-net 0.01 (0.17) 0.05
Cumulative effect of changes
in accounting
principles-net (0.21) (0.27)
--------------------------------------
Net income (loss) $1.37 $0.99 $4.27 $(3.01)
======================================
Net income per share of Carolina
Group Stock $0.92 $3.50
======================================================================
(a) Revenue for the three months and year ended 2001 has been restated for comparative purposes to reflect the adoption of new accounting principles related to the classification of certain sales incentives by Lorillard and reimbursements received by Diamond Offshore for "Out-of-Pocket out-of-pock·et adj. 1. Calling for the spending of cash: out-of-pocket expenses. 2. Lacking funds: hungry, cold, and out-of-pocket travelers. Adj. " expenses incurred. Revenue also includes premiums of $559.0 for the three months ended 2001, and $1,151.0 and $2,218.0 for the years ended 2002 and 2001, respectively, related to the National Postal Postal can refer to:
persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. contract at CNA (Certified NetWare Administrator) See Novell certification. which was transferred on July July: see month. 1, 2002. (b) The Company has two classes of common stock, Loews Common Stock and Carolina Group Stock, issued in February 2002. Earnings per share data are presented for each class of Common Stock for the periods they are outstanding. (c) Restated to reflect an adjustment to the Company's historical accounting for CNA's investment in life settlement contracts and the related revenue recognition. Quarter Ended December 31, 2002 compared with 2001 Consolidated net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 2002 fourth quarter, which excludes net investment gains and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , was $285.0 million, compared to a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $47.2 million in the fourth quarter of 2001. Net income attributable to Loews Common Stock for the 2002 fourth quarter was $253.3 million or $1.37 per share, compared to $191.0 million or $0.99 per share in the comparable period of the prior year. Net income in the 2002 fourth quarter includes net investment gains attributable to Loews Common Stock of $4.7 million, compared to $235.5 million in the comparable period of the prior year. Net operating income attributable to Loews Common Stock for the 2002 fourth quarter, which excludes net investment gains and discontinued operations, was $248.6 million, compared to a net operating loss of $47.2 million in the comparable period of the prior year. Net income attributable to Carolina Group Stock for the 2002 fourth quarter was $36.9 million or $0.92 per Carolina Group share. The Company is issuing a separate press release reporting the actual and pro forma results of the Carolina Group for the quarter and year ended December 31, 2002 and 2001. Year Ended December 31, 2002 compared with 2001 Net income for 2002 included a loss from discontinued operations at CNA of $31.0 million or $0.17 per share of Loews Common Stock, compared to income from discontinued operations of $9.4 million or $0.05 per share of Loews Common Stock in the comparable period of the prior year. Results for 2002 also included a charge for accounting changes of $39.6 million or $0.21 per share of Loews Common Stock, related to accounting for goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , compared to a charge of $53.3 million or $0.27 per share of Loews Common Stock in the comparable period of the prior year, related to accounting for derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. at CNA. Consolidated net operating income for the year ended December 31, 2002, which excludes net investment gains (losses), discontinued operations and the effects of accounting changes, was $1,099.3 million, compared to a loss of $1,333.1 million in the comparable period of the prior year. Net operating income attributable to Loews Common Stock for the year ended December 31, 2002, which excludes net investment (losses) gains, discontinued operations and the effects of accounting changes, was $963.9 million, compared to a loss of $1,333.1 million in the comparable period of the prior year. Net income attributable to Carolina Group Stock for the year ended December 31, 2002 was $140.7 million or $3.50 per Carolina Group share. CNA's Life Settlement Contract Accounting As a result of a periodic review of CNA's disclosure filings by the Division of Corporation Finance of the Securities and Exchange Commission, the Company is restating its financial statements as of and for the years ended December 31, 2001 to 2000 as well as its interim financial statements for the first three quarters of 2002. The restated financial statements reflect an adjustment to the Company's historical accounting for CNA's investment in life settlement contracts and the related revenue recognition. The SEC concluded that FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Technical Bulletin 85-4 "Accounting for Purchases of Life Insurance" should have been applied to CNA's investment in life settlement contracts. Under FTB FTB Franchise Tax Board (California; they collect income and sales tax) FTB Family Tax Benefit (Australian welfare assistance) FTB First Time Buyer (housing) 85-4, 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 CNA's investment in life settlement contracts is limited to the cash surrender To give up, return, or yield. The word surrender presupposes the possession or ownership of the thing that is to be returned or given up. It indicates a transfer of title as well as possession, but it does not express or in any way suggest the transaction of a sale or contract value of the underlying life insurance policy, and revenues related to life insurance death benefits are recognized on a cash basis. The Company's historical accounting was to record an asset for the full amount paid to acquire the life settlement contract along with other direct costs, and to recognize revenue over the period the contract is held. The adjustment related to life settlement contracts reduced both net operating income and net income in the fourth quarter and the full year of 2002 by $3.4 million and $8.3 million. The comparable impact in the prior period increased both net operating income and net income by $2.9 and $2.0 million for the fourth quarter and the full year of 2001. This restatement has reduced the Company's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at December 31, 2002 by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $228.3 million, which is expected to be recognized in operating income in the future as contracts mature. At December 31, 2002, the book value per share of Loews Common Stock was $61.68, compared to $49.24 at December 31, 2001. The increase in book value per share of Loews Common Stock is primarily due to proceeds from the issuance of the Carolina Group Stock in February 2002 and the net economic interest attributable to the Loews Common Stock in the notional intergroup debt receivable from the Carolina Group. At December 31, 2002, there were 185,441,200 shares of Loews Common Stock outstanding. During the year ended December 31, 2002, the Company purchased 6,065,600 shares of Loews Common Stock at an aggregate cost of $343.5 million. During the year ended December 31, 2002, the Company purchased 2,717,876 shares of CNA common stock at an aggregate cost of $73.1 million. The Company also purchased 340,000 shares of Carolina Group stock during the year ended December 31, 2002, for the account of the Carolina Group, at an aggregate cost of $7.7 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. In addition, in December 2002 the Company purchased $750.0 million of CNA series H cumulative preferred stock Cumulative preferred stock Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. . In February 2002 the Company created a second class of common stock, called 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, Inc., and in an initial public offering the Company issued shares of Carolina Group Stock representing a 23.17% interest in the economic performance of the Carolina Group. Loews Common Stock will continue to represent 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, 2002, the outstanding Carolina Group Stock represents a 23.01% economic interest in the economic performance of the Carolina Group. A conference call to discuss the fourth quarter and full-year results of Loews Corporation and its Carolina Group has been scheduled for 11:00 a.m. EST, Thursday, February 13, 2003. The call can be accessed by dialing (877) 692-2592 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. A conference call to discuss the fourth quarter and full-year results of CNA has been scheduled for 10:00 a.m. EST, Thursday, February 13, 2003. The call can be accessed by dialing (800) 289-0493 or by visiting the CNA website (http://investors.cna.com), where CNA will provide an online, real-time broadcast of its 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 CNA's website until the date of the next conference call or, until February 20, 2003, by dialing (888) 203-1112, passcode 671522.
Loews Corporation and Subsidiaries
Financial Review
December 31,
--------------------------------------
Three Months Years Ended
--------------------------------------
2002 2001 (g) 2002 2001 (g)
--------------------------------------
(Amounts in millions, except per share
data)
Revenues:
Insurance premiums and net
investment income (a) $2,740.7 $3,554.4 $11,918.3 $12,779.3
Manufactured products (b) 886.3 958.6 3,963.5 4,011.9
Other 394.9 486.0 1,663.8 1,978.4
--------------------------------------
Total 4,021.9 4,999.0 17,545.6 18,769.6
--------------------------------------
Expenses:
Insurance claims &
policyholders' benefits 1,849.6 2,513.9 8,392.0 11,279.8
Cost of manufactured products
sold (b) 465.1 516.8 2,226.5 2,282.9
Other (c) 1,241.0 1,610.7 5,229.8 6,029.1
--------------------------------------
Total 3,555.7 4,641.4 15,848.3 19,591.8
--------------------------------------
466.2 357.6 1,697.3 (822.2)
--------------------------------------
Income tax expense (benefit) 149.6 150.7 600.2 (176.0)
Minority interest 26.4 18.6 85.6 (103.0)
--------------------------------------
Total 176.0 169.3 685.8 (279.0)
--------------------------------------
Income (loss) from continuing
operations 290.2 188.3 1,011.5 (543.2)
Discontinued operations-net 2.7 (31.0) 9.4
Cumulative effect of change in
accounting principles-net (d) (39.6) (53.3)
--------------------------------------
Net income (loss) $290.2 $191.0 $940.9 $(587.1)
======================================
Net income (loss) attributable
to:
Loews Common Stock:
Income (loss) from continuing
operations $253.3 $188.3 $870.8 $(543.2)
Discontinued operations-net 2.7 (31.0) 9.4
Cumulative effect of change in
accounting principles-net (d) (39.6) (53.3)
--------------------------------------
Loews Common Stock 253.3 191.0 800.2 (587.1)
Carolina Group Stock (e) 36.9 140.7
--------------------------------------
$290.2 $191.0 $940.9 $(587.1)
======================================
Income (loss) per Loews common
stock (f):
Income (loss) from continuing
operations $1.37 $0.98 $4.65 $(2.79)
Discontinued operations-net 0.01 (0.17) 0.05
Cumulative effect of changes in
accounting principles-net (d) (0.21) (0.27)
--------------------------------------
Net income (loss) $1.37 $0.99 $4.27 $(3.01)
======================================
Net income per Carolina Group
common stock (f) $0.92 $3.50
======================================
Weighted number of shares
outstanding:
Loews Common Stock 185.44 191.49 187.59 195.33
Carolina Group Stock 39.91 40.15
(a) Includes investment (losses) gains of $(13.5), $326.6, $(158.5)
and $1,390.4 for the respective periods.
(b) Includes excise taxes of $149.6, $141.7, $667.6 and $618.1 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. 142, accounting for goodwill and other
intangible assets in 2002 and SFAS No. 133, accounting for
derivative instruments and hedging activities in 2001, at the CNA
subsidiary.
(e) Represents 23.01% and 23.12% of the economic interest in the
Carolina Group for the three month and eleven month period ended
December 31, 2002 from the February 2002 initial public offering
of Carolina Group Stock.
(f) 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 insignificant or
antidilutive for the periods presented.
(g) Restated to reflect an adjustment to the Company's historical
accounting for CNA's investment in life settlement contracts and
the related revenue recognition.
Loews Corporation and Subsidiaries
Additional Financial Information
December 31,
---------------------------------------
Three Months Years Ended
---------------------------------------
2002 2001(g) 2002 2001(g)
---------------------------------------
(In millions)
Revenues:
CNA Financial $2,856.2 $3,358.7 $12,538.8 $11,826.6
Lorillard (a) 843.8 928.2 3,843.8 3,955.3
Loews Hotels 75.7 74.7 305.3 321.8
Diamond Offshore 189.9 243.6 783.9 981.1
Investment income-net
and other (b) 69.8 67.2 232.3 294.4
---------------------------------------
4,035.4 4,672.4 17,704.1 17,379.2
---------------------------------------
Investment gains (losses):
CNA Financial (64.6) 323.9 (202.0) 1,262.0
Corporate and other 51.1 2.7 43.5 128.4
---------------------------------------
(13.5) 326.6 (158.5) 1,390.4
---------------------------------------
Total $4,021.9 $4,999.0 $17,545.6 $18,769.6
=======================================
Income (Loss) Before Taxes:
CNA Financial (c) $175.1 $(326.6) $607.6 $(3,560.4)
Lorillard (d) (e) 246.7 323.1 1,038.5 1,104.3
Loews Hotels 1.2 6.4 20.6 29.8
Diamond Offshore 9.6 52.4 54.2 228.1
Investment income-net
and other (b) (12.0) (24.3) (88.3) (14.4)
---------------------------------------
420.6 31.0 1,632.6 (2,212.6)
---------------------------------------
Investment gains (losses):
CNA Financial (64.6) 323.9 (202.0) 1,262.0
Corporate and other 50.3 2.7 35.3 128.4
---------------------------------------
(14.3) 326.6 (166.7) 1,390.4
---------------------------------------
Loews Common Stock 406.3 357.6 1,465.9 (822.2)
Carolina Group Stock (f) 59.9 231.4
---------------------------------------
Total $466.2 $357.6 $1,697.3 $(822.2)
=======================================
Net Income (Loss):
CNA Financial (c) $102.2 $(252.4) $363.4 $(2,088.7)
Lorillard (d) (e) 151.8 197.8 630.4 672.2
Loews Hotels 0.1 4.3 12.7 19.5
Diamond Offshore 0.9 15.8 14.1 71.0
Investment income-net
and other (b) (6.4) (12.7) (56.7) (7.1)
---------------------------------------
248.6 (47.2) 963.9 (1,333.1)
---------------------------------------
Investment gains (losses):
CNA Financial (27.2) 236.1 (104.1) 714.8
Corporate and other 31.9 (0.6) 11.0 75.1
---------------------------------------
4.7 235.5 (93.1) 789.9
---------------------------------------
Income (loss) from continuing
operations 253.3 188.3 870.8 (543.2)
Discontinued operations-net 2.7 (31.0) 9.4
Cumulative effect of changes in
accounting principles-net (39.6) (53.3)
---------------------------------------
Loews Common Stock 253.3 191.0 800.2 (587.1)
Carolina Group Stock (f) 36.9 140.7
---------------------------------------
Total $290.2 $191.0 $940.9 $(587.1)
=======================================
(a) Includes excise taxes of $149.6, $141.7, $667.6 and $618.1 paid on
sales of manufactured products for the respective periods.
(b) Consists primarily of corporate investment income, interest
expenses, watch and clock operations and other unallocated
expenses.
(c) Includes charges of $189.0, $79.5 and $76.0 ($110.8, $46.1 and
$61.2 after taxes and minority interest) for the three months 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 $1,809.8 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.
(d) Represents the Loews Group's intergroup interest in the earnings
of the Carolina Group.
(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) Represents 23.01% and 23.12% of the economic interest in the
Carolina Group for the three month and eleven month period ended
December 31, 2002 from the February 2002 initial public offering
of Carolina Group Stock.
(g) Restated to reflect an adjustment to the Company's historical
accounting for CNA's investment in life settlement contracts and
the related revenue recognition.
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