Leucadia’s Earnings

Yesterday, Leucadia National (LUK) reported its earnings results. I almost have to place an asterisk next to Leucadia. The company is, shall we say, reserved about corporate communications. If you want to see what I mean, this is the company’s website. Yes, that’s the whole thing.
Let me back up and explain. Leucadia is very similar to Warren Buffett’s Berkshire Hathaway except it’s about one-thirtieth the size. The stock has done about as well as Berkshire over the last few decades. The big difference is that the owners, Ian Cumming and Joseph Steinberg, are extremely media shy. The company owns a grab bag of companies involves in several industries. It’s not an easy stock to evaluate. Leucadia has no analyst coverage and the earnings reports are celebrated by very thin press releases.
This is what they had to say yesterday:

Leucadia National Corporation today announced its operating results for the three month period ended March 31, 2010. Net income attributable to Leucadia National Corporation common shareholders for the three month period ended March 31, 2010 was $191,479,000 or $.78 per diluted common share as compared to net loss attributable to Leucadia National Corporation common shareholders for the three month period ended March 31, 2009 of $(140,007,000) or $(.59) per diluted common share.

If you want to check out the details of their business, you can read the latest 10-Q. It’s fairly detailed. I’m pleased to note that Leucadia has a stake in AmeriCredit (ACF) which is in the lucrative field of financing for used cars.
Here’s a Barron’s article on Leucadia from 2008.

Posted by Eddy Elfenbein on May 6th, 2010 at 9:04 am

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