KKRs Fourth-Quarter Profit More Than Doubles on Holdings

KKR & Co. (KKR), the private-equity firm run by Henry Kravis and George Roberts, said fourth-quarter profit more than doubled as appreciation in its buyout holdings fueled paper gains and its funds sold investments at a profit.

Economic net income after taxes, a measure of profit excluding some costs, increased to $773.6 million, or $1.08 a share, from $337 million, or 48 cents, a year ago, New York-based KKR said in a statement today. Analysts had expected earnings of 89 cents a share on that basis, according to the average of 14 estimates in a Bloomberg survey. KKR said it will pay stockholders a dividend of 48 cents a share on March 4.

KKR was the most active private-equity firm in 2013, according to research firm Dealogic, investing more than $17 billion in 34 companies. The firm agreed to buy landscape-maintenance company Brickman Group Ltd., insurance-technology company Mitchell International Inc. and a pair of industrial-lifting businesses from Melrose Industries Plc (MRO), all in deals valued at more than $1 billion.

KKR had a strong quarter on the back of very good returns, Christopher Harris, an analyst at Wells Fargo & Co. in Baltimore, wrote in a note to clients today. With ENI and the dividend both above expectations, we see the stock doing well.

KKR sold its remaining stake in retailer Dollar General Corp., a 2007 buyout that... Read More

KKR sold its remaining stake in retailer Dollar General Corp., a 2007 buyout that returned more than 4.5 times KKRs money for one of its most profitable investments. Close

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KKR sold its remaining stake in retailer Dollar General Corp., a 2007 buyout that returned more than 4.5 times KKRs money for one of its most profitable investments.

KKR rose 2.9 percent to $23.89 in New York. The stock has declined 1.8 percent so far this year as the Standard & Poors 500 index of large U.S. companies has fallen 4.1 percent.

Among KKRs dispositions in the quarter were share sales of hospital operator HCA Holdings Inc., European broadcaster ProSiebenSat.1 Media AG, NXP Semiconductor NV (NXPI) and French floor maker Tarkett SA. (TKTT) KKR also sold its remaining stake in retailer Dollar General Corp. (DG), a 2007 buyout that returned more than 4.5 times KKRs money for one of its most profitable investments.

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KKRs Fourth-Quarter Profit More Than Doubles on Holdings