Unaudited consolidated net income of Wesco Financial Corporation (AMEX:WSC) and its subsidiaries for the first quarter of 2009 amounted to $19,959,000 compared with $20,717,000 for the first quarter of 2008.
The decreasein consolidated earnings resulted mainly from (1) weaknesses in CORT’s furniture rental and Precision Steel’s businesses due significantly to the recessionary economic environment, and (2) increases in CORT’s operating expenses attributable principally to an acquisition made in the fourth quarter of 2008, significantly offset by (3) improved underwriting results and investment income of Wesco-Financial Insurance Company’s insurance businesses.
Following is a breakdown of consolidated net income into useful business components. All figures are on an after-tax basis. Per-share amounts are based on 7,119,807 shares outstanding.
 |  |  |  |  | Quarter Ended March 31, | |||||||||||
2009 | Â | Â | Â | Â | Â | 2008 | ||||||||||
Wesco-Financial and Kansas Bankers insurance businesses -- | ||||||||||||||||
Underwriting | $ | 5,049,000 | $ | 1,711,000 | ||||||||||||
Investment income | 16,216,000 | 15,321,000 | ||||||||||||||
CORT furniture rental business | (956,000 | ) | 3,533,000 | |||||||||||||
Precision Steel businesses | (388,000 | ) | 296,000 | |||||||||||||
Other | 38,000 | (144,000 | ) | |||||||||||||
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Consolidated net income | $ | 19,959,000 | $ | 20,717,000 | ||||||||||||
Per share | $ | 2.80 | $ | 2.91 |
Wesco’s Form 10-Q for the quarter ended March 31, 2009 will be filed electronically with the Securities and Exchange Commission next week, and we invite shareholders, the financial media and others to access it through the SEC’s website (www.sec.gov). The Form 10-Q will contain unaudited condensed consolidated financial statements, management’s discussion and analysis of financial condition and results of operations, and other information.
Contacts:
Wesco Financial Corporation
Jeffrey L. Jacobson, 626-585-6700