Wesco Financial Corporation Issues First Quarter 2008 Earnings

PASADENA, Calif.--(BUSINESS WIRE)--Unaudited consolidated net income of Wesco Financial Corporation (AMEX:WSC) and its subsidiaries for the first quarter of 2008 amounted to $20,717,000 compared with $22,583,000 for the first quarter of 2007.

The decrease in consolidated earnings resulted mainly from (1) an increase in operating expenses incurred by the furniture rental business, as CORT expands and redirects the marketing of its rental relocation services from targeting individuals to targeting corporate clients, and (2) a slight softening in underwriting and investment income of the 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,
			2008				2007
Wesco-Financial and Kansas Bankers
insurance businesses --
Underwriting		$	1,711,000			$	1,897,000
Investment income			15,321,000				15,574,000
CORT furniture rental business			3,533,000				4,716,000
Precision Steel businesses			296,000				361,000
Other			(144,000	)			35,000
Consolidated net income		$	20,717,000			$	22,583,000
Per share		$	2.91			$	3.17

Wesco’s Form 10-Q for the quarter ended March 31, 2008 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.