Printer Friendly

ALLEGHANY CORPORATION REPORTS RESULTS

 NEW YORK, Oct. 21 /PRNewswire/ -- Net earnings of Alleghany Corporation (NYSE: Y) were $3.06 per share of common stock in the third quarter of 1993 compared with $2.78 per share in the third quarter of 1992, John J. Burns Jr., president and chief executive officer of Alleghany, announced today. In the first nine months of 1993, Alleghany's net earnings per share were $11.26, compared with $9.27 in the first nine months of 1992.
 Highlights are as follows:
 ALLEGHANY CORPORATION
 (In millions, except for shares and per-share amounts)
 Periods ended Quarter Nine Months
 Sept. 30 1993 1992(A) 1993 1992(A)
 Revenues $480.7 $437.3 $1,350.4 $1,316.0
 Earnings before income taxes 31.1 29.8 85.6 102.1
 Earnings before cumulative effect
 of a change in accounting
 for income taxes 20.4 18.5 75.0 52.6
 Cumulative effect of a change in
 accounting for income taxes -- -- -- 9.1
 Net earnings 20.4 18.5 75.0 61.7
 Per share of common stock:(B)
 Operations $3.06 $2.78 $11.26 $7.90
 Cumulative effect of change in
 accounting for income taxes -- -- -- $1.37
 Net earnings 3.06 2.78 11.26 9.27
 Average number of outstanding
 shares of common stock(B) 6,663,009 6,662,414 6,666,514 6,659,188
 (A) -- Restated to reflect the adoption of the Financial Accounting Standards Board's Statement No. 109, Accounting for Income Taxes.
 (B) -- Adjusted to reflect dividends of common stock declared in March of 1992 and 1993.
 Commenting on Alleghany's results in the most recent quarter, Mr. Burns stated: "Chicago Title had another strong quarter, benefiting not only from a continued high level of refinancing transactions but also from a good level of real estate sales and restructurings. Sacramento Savings was adversely affected by lower net interest margins, reflecting both slower-than-anticipated loan production volume and lower interest rates on its mortgage portfolio, but it has also experienced a welcome improvement in the overall quality of its assets. Overall, World Minerals had another slow quarter, characterized by slower sales and high costs; a marked improvement was achieved however in the final month of the quarter."
 The comparative contributions to earnings before income taxes made by Alleghany's operating units Chicago Title and Trust Company (title insurance and investment management), Sacramento Savings Bank (consumer banking) and World Minerals Inc. (industrial minerals), as well as by Alleghany's parent-company operations, were as follows:
 Periods ended Quarter Nine Months
 Sept. 30 1993 1992 1993 1992
 (In millions)
 Chicago Title $23.6 $20.1 $61.3 $68.5
 Sacramento Savings 7.7 9.7 23.4 29.7
 World Minerals 2.3 3.7 6.6 10.3
 Parent company (2.5) (3.7) (5.7) (6.3)
 On a per-share, after-tax basis, these contributions may be broken down as follows:
 Quarter ended Chicago Sacramento World Parent
 Sept. 30 Title Savings Minerals company Total
 1993
 Operations $2.41 $0.56 $0.20 $(0.67) $2.50
 Security transactions 0.15 0.07 -- 0.34 0.56
 Total 2.56 0.63 0.20 (0.33) 3.06
 1992
 Operations $1.90 $0.78 $0.36 $(0.40) $2.64
 Security transactions 0.02 0.08 -- 0.04 0.14
 Total 1.92 0.86 0.36 (0.36) 2.78
 Nine months ended Chicago Sacramento World Parent
 Sept. 30 Title Savings Minerals company Total
 1993
 Operations $5.64 $1.83 $0.59 $(1.61) $6.45
 Security transactions 0.68 0.15 -- 0.98 1.81
 FASB 109 -- -- -- -- --
 Adjustment of tax
 reserves -- -- -- 3.00 3.00
 Recovery in lawsuit -- -- -- -- --
 Total 6.32 1.98 0.59 2.37 11.26
 1992
 Operations $4.34 $2.43 $1.01 $(2.51) $5.27
 Security transactions 0.15 0.11 -- 0.39 0.65
 FASB 109 0.67 0.14 -- 0.56 1.37
 Adjustment of tax
 reserves -- -- -- -- --
 Recovery in lawsuit 1.98 -- -- -- 1.98
 Total 7.14 2.68 1.01 (1.56) 9.27
 Comparative earnings in the nine-month periods were affected by three significant first- and second-quarter items that have been explained previously: in the 1992 first quarter, a credit of $9.1 million, or $1.37 a share, reflecting the cumulative effect of a change in accounting for income taxes brought about by Alleghany's adoption of the Financial Accounting Standards Board's Statement No. 109; in the 1992 second quarter, a credit of $22.6 million, or $1.98 a share, representing Chicago Title's share of a recovery in a lawsuit against California Canadian Bank; and in the 1993 first quarter, a credit of $20 million, or $3.00 a share, resulting from adjustment of Alleghany's tax reserves.
 On a pro forma basis, adjusted to reflect marketable securities at market as well as dividends paid in common stock, Alleghany common stockholders' equity per share as of the end of the 1993 third quarter was $136.91, compared with $120.70 a year earlier.
 ALLEGHANY CORPORATION AND SUBSIDIARIES
 Combining Statements of Earnings
 (Unaudited, dollars in thousands)
 Nine Months Ended Sept. 30 1993
 Corporate
 Activities &
 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations
 Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $980,377 $0 $0 $0 $980,377
 Interest on loans
 receivable 0 130,802 0 (566) 130,236
 Interest, dividend
 and other income 40,533 27,269 46 44,355 112,203
 Net mineral and
 filtration sales 0 0 108,929 0 108,929
 Net gain on investment
 transactions 7,056 1,762 0 9,845 18,663
 Total revenues 1,027,966 159,833 108,975 53,634 1,350,408
 Costs and Expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 688,883 20,806 0 149 709,838
 Administrative,
 selling and
 other
 operating
 expenses 181,823 29,185 19,757 37,152 267,917
 Provision for
 title losses
 and other claims 88,918 0 0 0 88,918
 Cost of mineral
 and filtration
 sales 0 0 78,549 0 78,549
 Interest on deposits 0 86,300 0 (207) 86,093
 Interest expense 7,038 141 4,102 9,530 20,811
 Corporate
 administration 0 0 0 12,704 12,704
 Total costs and
 expenses 966,662 136,432 102,406 59,328 1,264,830
 Earnings/(loss)
 before income
 taxes 61,304 23,401 6,567 (5,694) 85,578
 Income taxes -- -- -- -- 10,544
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes -- -- -- -- 75,034
 Cumulative effect
 on prior years
 of a change
 in accounting
 for income taxes -- -- -- -- 0
 Net earnings -- -- -- -- 75,034
 Nine Months Ended Sept. 30 1992(A)
 Corporate
 Activities &
 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations
 Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $896,289 $0 $0 $0 $896,289
 Interest on loans
 receivable 0 156,493 0 (439) 156,054
 Interest, dividend
 and other income 76,499 28,809 501 44,683 150,492
 Net mineral and
 filtration sales 0 0 106,549 0 106,549
 Net gain on investment
 transactions 1,467 1,152 0 3,980 6,599
 Total revenues 974,255 186,454 107,050 48,224 1,315,983
 Costs and Expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 627,597 19,084 0 120 646,801
 Administrative,
 selling and
 other
 operating
 expenses 189,193 33,411 19,831 33,865 276,300
 Provision for
 title losses
 and other claims 80,876 0 0 0 80,876
 Cost of mineral
 and filtration
 sales 0 0 73,428 0 73,428
 Interest on deposits 0 102,417 0 (351) 102,066
 Interest expense 8,098 1,839 3,527 11,118 24,582
 Corporate
 administration 0 0 0 9,814 9,814
 Total costs and
 expenses 905,764 156,751 96,786 54,566 1,213,867
 Earnings/(loss)
 before income
 taxes 68,491 29,703 10,264 (6,342) 102,116
 Income taxes -- -- -- -- 49,522
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes -- -- -- -- 52,594
 Cumulative effect
 on prior years
 of a change
 in accounting
 for income taxes -- -- -- -- 9,145
 Net earnings -- -- -- -- 61,739
 Three Months Ended Sept. 30 1993
 Corporate
 Activities &
 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations
 Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $359,432 $0 $0 $0 $359,432
 Interest on loans
 receivable 0 41,750 0 (184) 41,566
 Interest, dividend
 and other income 13,713 9,707 14 15,185 38,619
 Net mineral and
 filtration sales 0 0 35,203 0 35,203
 Net gain on investment
 transactions 1,633 823 0 3,437 5,893
 Total revenues 374,778 52,280 35,217 18,438 480,713
 Costs and Expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 251,987 6,852 0 30 258,869
 Administrative,
 selling and
 other
 operating
 expenses 63,686 9,046 6,311 12,957 92,000
 Provision for
 title losses
 and other claims 33,129 0 0 0 33,129
 Cost of mineral
 and filtration
 sales 0 0 25,183 0 25,183
 Interest on deposits 0 28,645 0 (69) 28,576
 Interest expense 2,377 18 1,437 3,107 6,939
 Corporate
 administration 0 0 0 4,952 4,952
 Total costs and
 expenses 351,179 44,561 32,931 20,977 449,648
 Earnings/(loss)
 before income
 taxes 23,599 7,719 2,286 (2,539) 31,065
 Income taxes -- -- -- -- 10,701
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes -- -- -- -- 20,364
 Cumulative effect
 on prior years
 of a change
 in accounting
 for income taxes -- -- -- -- 0
 Net earnings -- -- -- -- 20,364
 Three Months Ended Sept. 30 1992(A)
 Corporate
 Activities &
 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations
 Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $314,025 $0 $0 $0 $314,025
 Interest on loans
 receivable 0 49,491 0 (198) 49,293
 Interest, dividend
 and other income 13,909 9,487 187 14,576 38,159
 Net mineral and
 filtration sales 0 0 34,393 0 34,393
 Net gain on investment
 transactions 186 850 0 406 1,442
 Total revenues 328,120 59,828 34,580 14,784 437,312
 Costs and Expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 218,974 6,479 0 46 225,499
 Administrative,
 selling and
 other
 operating
 expenses 58,786 10,678 6,470 11,609 87,543
 Provision for
 title losses
 and other claims 27,452 0 0 0 27,452
 Cost of mineral
 and filtration
 sales 0 0 23,150 0 23,150
 Interest on deposits 0 32,282 0 (81) 32,201
 Interest expense 2,798 673 1,295 3,564 8,330
 Corporate
 administration 0 0 0 3,341 3,341
 Total costs and
 expenses 308,010 50,112 30,915 18,479 407,516
 Earnings/(loss)
 before income
 taxes 20,110 9,716 3,665 (3,695) 29,796
 Income taxes -- -- -- -- 11,255
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes -- -- -- -- 18,541
 Cumulative effect
 on prior years
 of a change
 in accounting
 for income taxes -- -- -- -- 0
 Net earnings -- -- -- -- 18,541
 (A) -- Restated to reflect the adoption of FASB Statement No. 109, "Accounting for Income Taxes."
 -0- 10/21/93
 /CONTACT: T.E. Somerville of Alleghany, 212-752-1356/
 (Y)


CO: Alleghany Corporation ST: New York IN: INS SU: ERN

CS -- NY066 -- 5333 10/21/93 14:32 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:1889
Previous Article:HANNAFORD REPORTS INCREASED SALES AND EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS
Next Article:ONEOK DECLARES REGULAR DIVIDENDS, SCHEDULES ANNUAL SHAREHOLDERS' MEETING

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters