And Lorillard, acquired by the New York-based company in a friendly takeover in 1968, is part of the reason. The nation's fourth-largest cigarette maker saw its sales rise 5.3 percent in 1995, even while overall industry sales dropped 1.7 percent. Top brands include Newport and Kent. It also controls CNA, one of the nation's largest property and casualty insurance providers. And it owns the Loews Hotel chain, Diamond Offshore Drilling company, and Bulova, the watchmakers.
Management knows a good value on the market.
They tend to buy things cheaply and sell at a profit. They haven't made many mistakes. Last year offered a good illustration, and it helps explain the astounding increase in net income. Sara Lee is seen as gradually bouncing back from some sluggish years in the early 1990s. Earnings and dividends have been increased each year since before 1980.