DOW JONES NEWSWIRES
Leucadia National Corp.'s (LUK) second-quarter profit more than
doubled on the rebounding stock prices of Jefferies & Co. (JEF)
and AmeriCredit Corp. (ACF).
Leucadia recorded a combined $606.5 million increase in the fair
value of its stakes in the companies. It owns about 28% of
Jefferies, an investment bank, and 25% of AmeriCredit, an
auto-finance provider. Shares of both companies have rebounded
sharply from the first quarter, along with many financial-related
stocks.
Moody's Investors Service lowered its ratings on the diversified
holding company in June, saying its long history of acquiring,
developing and ultimately profitably selling companies and real
estate may remain disrupted in the near term. Leucadia engages in a
variety of businesses, including manufacturing, telecommunications,
property management and insurance.
The company posted income of $411 million, or $1.67 a share, up
from $186.8 million, or 76 cents a share, a year earlier. Revenue
declined 16% to $284.3 million.
The company's telecommunications segment, its largest by
revenue, saw revenue rise 4.8% as income slid 32%. Its domestic
real-estate segment's revenue fell 38% as its loss widened
sharply.
Shares were recently up 1.2% at $25.99 amid a broad market
rally. The stock is up 37% in the last month but is still off 40%
in the last year.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com