EARNINGS

Richmond-area firms: LandAmerica Financial

LandAmerica Financial Group Inc., which last week said it agreed to be acquired, yesterday reported that its third-quarter loss widened on noncash charges and the deterioration in the mortgage market.

The Henrico County-based title insurer and real estate services company reported a loss of $599.6 million, or $39.45 per share, for the third quarter, compared with a loss of $20.8 million, or $1.28 per share, in the same period a year ago.

The company said the results include noncash write-down of good will, other intangible assets, certain investments and deferred tax assets of $462 million.

Revenue declined 30 percent to $632 million because of lower residential mortgage originations and lower commercial real estate activity.

LandAmerica announced Friday that it had agreed to be sold to Jacksonville, Fla.-based Fidelity National Financial Inc. for stock valued about $128.4 million. Shareholders of LandAmerica would receive 0.993 shares of Fidelity National Financial common stock for every share of LandAmerica they hold.

LandAmerica shares declined 9.2 percent, or 80 cents, to $7.90 on the New York Stock Exchange yesterday. -- John Reid Blackwell

Star Scientific

The losses at Star Scientific Inc., a Petersburg-based tobacco company, narrowed in the third quarter as sales improved and operating expenses declined.

The company, a maker of smokeless-tobacco products, reported a loss of about $4.4 million, or 5 cents per share, for the quarter that ended Sept. 30, compared with a loss of $4.96 million, or 6 cents per share, in the same period of 2007.

Revenue rose 164 percent to $136,725. The revenue growth was driven by a 40 percent increase in unit sales of the company's dissolvable smokeless-tobacco products, and by decreases in product promotion costs.

Star, which is pursuing a patent-infringement lawsuit against cigarette maker R.J. Reynolds Tobacco Co., said the U.S. District Court in Maryland has scheduled a jury trial for the case between April 20 and May 29. -- John Reid Blackwell

Companies of interest: AIG

American International Group Inc., once the world's largest insurer, said yesterday that continued financial market turmoil resulted in a steep third-quarter loss.

New York-based AIG said it lost $24.47 billion, or $9.05 per share, after a profit of $3.09 billion, or $1.19 per share, a year ago. Revenue declined 97 percent to $898 million from $29.84 billion in the third quarter 2007.

The latest results include $7.05 billion in unrealized losses at AIG Financial Products, the source of credit-default swaps, and pre-tax losses of $18.31 billion tied to the declining value of AIG's investment portfolio.

The results come as the U.S. government announced a restructuring of a bailout plan for the troubled insurer, boosting aid to the company to about $150 billion.

Shares of AIG rose 17 cents to $2.28. -- The Associated Press

Fannie Mae

Fannie Mae yesterday posted a $29 billion loss in the third quarter as it took a massive tax-related charge and and warned that its $100 billion lifeline from the government may not be sufficient for its solvency should it continue to lose money.

The mortgage-finance company, seized by federal regulators more than two months ago, posted a loss of $13 per share for the July-September quarter, mainly due to a $21.4 billion noncash charge to reduce the value of tax assets. That compares with a loss of $1.4 billion, or $1.56 a share, in the year-ago period.

Analysts surveyed by Thomson Reuters had expected a loss of $1.60 per share.

Washington-based Fannie Mae's net worth -- the value of its assets minus the value of its liabilities -- fell to $9.4 billion at the end of September, down from $44.1 billion at the end of last year. If that number turns negative, Fannie Mae would be forced to obtain funding from the Treasury Department. Shares fell 2 cents to 72 cents. -- The Associated Press