Conseco 2nd-Quarter Earnings Climb 78%

Conseco Inc. said its second-quarter profit surged 78% to $69.6 million, or 21 cents a share, driven by loans at its finance division and higher sales of fixed annuities. Results were a penny better than the average estimate of analysts polled by Thomson Financial/First Call.

Conseco is struggling to boost earnings as a slowing economy threatens to increase credit defaults at its lending unit and the slumping stock market curbs appetite for variable annuities.

Chief Executive Gary Wendt has closed five divisions of the finance unit and cut about 5,000 jobs since he was hired in June 2000 to turn around the company after write-offs at the finance unit triggered three straight quarters of losses.

Wendt has reduced Conseco’s debt to $6.1 billion from $8.24 billion, but analysts say he still has a ways to go to boost earnings to cover remaining debt.

The profit report sent shares of the Carmel, Ind.-based company up to $15.25 in extended trading, after closing unchanged at $14.20 on the NYSE.