Hamilton, Bermuda-based XL Capital reported net income of $79.9 million, or 23 cents a share, for the three months ended June 30. In the same period in 2008, the company said it earned $237.9 million, or $1.33 a share.
Revenue fell 18.8 percent to $1.73 billion from $2.12 billion a year ago.
Analysts surveyed by Thomson Reuters expected earnings of $217 million, or 62 cents per share, on revenue of $1.71 billion.
"This was another turbulent quarter for foreign exchange markets," Chief Executive Officer, Michael S. McGavick, said in a statement.
The U.S. Dollar Index lost more than 6 percent during the second quarter, sapping the buying power of companies that do business overseas. XL Capital, the parent company for numerous commercial insurance businesses in 27 countries, said the weaker dollar resulted in an after-tax loss of $132.6 million.
The company also said its profit was hit by a drop in net investment income of $112 million, compared with the second quarter of 2008.
XL Capital reported its earnings after the market closed. Its stock increased 41 cents, or 3 percent, to $14 in aftermarket trading. In the regular session, the stock fell 23 cents to close at $13.59.
0 comments:
Post a Comment