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ALLEGHANY CORPORATION REPORTS RESULTS

 ALLEGHANY CORPORATION REPORTS RESULTS
 NEW YORK, Oct. 28 /PRNewswire/ -- Net earnings of Alleghany


Corporation (NYSE: Y) were $2.68 per share of common stock in the third quarter of 1992 compared with $3.22 in the third quarter of 1991, John J. Burns Jr., president and chief executive officer of Alleghany, announced today. For the nine months ended Sept. 30, net earnings were $7.72 per share in 1992 compared with $5.42 per share in 1991.
 Alleghany's 1992 earnings from continuing operations before income taxes exceeded the 1991 levels in both the third quarter and the first nine months. These year-to-year increases reflect improved operating results at Alleghany's title insurance/investment management subsidiary (Chicago Title and Trust Company) and the earnings contribution of Alleghany's new industrial minerals subsidiary (World Minerals Inc.), which more than offset a slight decrease in earnings at Alleghany's retail banking subsidiary (Sacramento Savings Bank).
 Highlights are as follows (in millions, except for shares and per share amounts):
 ALLEGHANY CORPORATION
 Periods ended Quarter Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenues $437.7 $402.0 $1,314.4 $1,007.3
 Earnings from cont. opers.,
 before income taxes 30.0 27.5 100.7 46.3
 Earns. from cont. opers., net 17.5 18.2 50.4 29.6
 Earnings from discontinued
 operations (A) -- 2.8 -- 5.7
 Net earnings $ 17.5 $ 21.0 $ 50.4 $ 35.3
 Per share of com. stock (B):
 Continuing operations $2.53 $2.70 $7.05 $3.67
 Gains on investment
 transactions 0.15 0.08 0.67 0.87
 Discontinued operations 0.00 0.44 0.00 0.88
 Net earnings $2.68 $3.22 $7.72 $5.42
 Average number of
 outstanding shares
 of common stock (B) 6,531,778 6,522,486 6,528,616 6,520,077
 (A) -- Operations of the Shelby Insurance Company, which was sold on Dec. 31, 1991.
 (B) -- Adjusted to reflect dividends of common stock declared in March 1991 and 1992.
 Chicago Title's contribution to Alleghany's pre-tax earnings was $67.9 million in the first nine months of 1992 compared with $24.2 million a year earlier. The improvement was driven by the large number of mortgage refinancings in 1992, as well as by inclusion of the operations of Ticor Title Insurance Company of California, which was acquired in March 1991. Chicago Title's Financial Services Group performed strongly relative to 1991; however, the earnings from Chicago Title's investment portfolio were below 1991 levels owing to lower yields. Chicago Title's contribution in the 1992 nine-month period also includes $22.6 million reflecting its share of a recovery in litigation against California Canadian Bank. In the third quarter of 1992, Chicago Title's contribution to Alleghany's pre-tax earnings was $19.9 million, compared with $16.5 million in the 1991 quarter.
 Sacramento Savings' contribution to pre-tax earnings was $28.8 million in the first nine months of 1992 compared with $29.3 million a year earlier. In the 1992 third quarter, Sacramento contributed $10.1 million compared with $11.1 million in the 1991 quarter. In the 1992 periods, Sacramento's net interest margin continued to benefit from a lower cost of funds, including lower interest rates on deposits. The bank's operating expenses were also lower in 1992 than in the comparable 1991 periods. Offsetting these positive factors were monthly additions to reserves for foreclosed property and non-performing loans; these additions totalled $10.0 million and $4.2 million in the first nine months and the third quarter of 1992, respectively, compared with $5.0 million and $1.4 million, respectively, in the year-earlier periods.
 In the 1992 third quarter, World Minerals contributed pre-tax earnings of $3.6 million, compared with $2.6 million in the 1991 third quarter. Since World Minerals was acquired on July 31, 1991, its 1991 third-quarter results reflected only two months of operations. In the first nine months of 1992, World Minerals contributed $10.3 million. Sales in the 1991 and 1992 periods have been adversely affected by the slowdown in industrial markets caused by the recession. In 1992, cooler summer weather than normal contributed to reduced beverage consumption, which decreased demand for World Minerals' filtration products.
 Under generally accepted accounting principles, Alleghany has been unable to tax-effect Sacramento Savings' monthly additions to reserves for foreclosed property and non-performing loans. Alleghany has also made additions to its provision for current and possible other tax liabilities. These factors have resulted in a higher tax rate in 1992.
 On a pro forma basis, Alleghany common stockholders' equity per share, adjusted to reflect marketable securities at market and dividends paid in common stock, was $122.52 at Sept. 30, 1992, compared with $107.33 a year earlier.
 -0- 10/28/92
 /CONTACT: T. E. Somerville of Alleghany, 212-752-1356/
 (Y) CO: Alleghany Corporation ST: New York IN: FIN SU: ERN


GK-OS -- NY106 -- 6207 10/28/92 16:18 EST
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Date:Oct 28, 1992
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