Loews Corporation (L) – Differentiated Operations, Profit Good not Great

by lydia on February 8, 2010

Loews operates many different fields including: drilling services, hotels and gas-pipeline operations. Yet it is in these areas that Loews earned $403 million, or 94 cents per share, in the fourth quarter; however despite this increase wall street investors were expecting 95 cents per share or $ 410 million.

The profit this quarter is in direct contrast with last year’s quarter which included a smaller profit at Diamond Offshore Inc., a contract drilling business which Loews owns 50.4 percent of.  Diamond Offshore’s profit fell 7 percent to $128 million from $137 million. Another company Loews owns is HighMount Exploration & Production, recorded a $35 million profit after recording a $717 million loss last year. This company alone was responsible of Loews’ impairment charges last quarter.

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