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United Airlines parent loses $537 million in 1Q, makes cuts
Tuesday April 22, 10:06 am ET
By Dave Carpenter, AP Business Writer
UAL Corp. posts $537 million 1Q loss on fuel costs, plans cuts to capacity and 1,100 jobs
http://biz.yahoo.com/ap/080422/earns_ual.html?.v=7
Yes, the rev's should be huge considering POG and Pt, etc. Yee haw.
Does anyone know why Gordon does not pay off the $6.6+ int to BoA? He should have enough money from iStar to complete the transaction. Did iStar stop paying? Where did the money go? TIA.
How Coloradans can avenge Frontier Airlines
by DP Opinion on April 20, 2008
Re: “First Data’s demand turns fears to reality,” April 13 Al Lewis column.
Thanks to Al Lewis for exposing the skulduggery of Michael Capellas, First Data Corp., and its parent company, KKR, in causing the bankruptcy of Frontier Airlines. As I read this horror story, I thought about what we Coloradans can do.
First, we should communicate to KKR’s corporate assassin, Michael Capellas, that he would feel more welcome with his reptilian friends at KKR on Wall Street than with folks in Colorado. This could be done by e-mail, phone, fax or even bumper stickers. How about “Take a Hike, Mike”?
Second, we should e-mail the governor, attorney general and secretary of state to oppose any further acquisitions in Colorado by KKR. We need to keep out these scoundrels who suck the life out of Colorado corporations.
Third, we should fly Frontier whenever possible. Homegrown is always better. If you wanna get away or need to get away, why not fly Frontier’s shiny, clean planes, rather than some other airlines’ decrepit, old planes with cracked fuselages.
Wesley D. Smits, Denver
http://blogs.denverpost.com/eletters/2008/04/20/how-coloradans-can-avenge-frontier-airlines/
We are updating the ticker symbol for the board, thanks.
San Jose, CA (PRWEB) April 21, 2008 -- Thermometers for clinical application have come a long way since their introduction. Concerns regarding the use of mercury in thermometers, and the subsequent phase out of mercury thermometers in several developed markets led to the advent of a completely new set of innovative thermometers. Newer varieties including digital, electronic, and infrared thermometers are taking the market to new heights and driving future growth.
Thermometers are usually rated based on features such as automatic memory, accuracy, and ease of use. Several alternatives have emerged for clinical and mercury thermometers. In addition to electronic and electrical thermometers, new glass thermometers are available that contain gallium/indium/tin alloy. Digital thermometers are currently preferred over mercury-in-glass thermometers as they are faster, economical, and record temperature with greater precision. Replacement of conventional mercury-based thermometers is one of the principal factors driving growth in the digital thermometers market.
Temperature Monitoring Devices: A Global Strategic Business Report
Europe and the United States represent the leading regional markets with an estimated 64% share of the temperature monitoring devices market for 2008, as stated by Global Industry Analysts, Inc. United States represents the largest market for Temperature Monitoring Devices in the world. digital thermometers market in the region is projected to reach $112 million by 2010. Demand for sophisticated thermometers has been fuelled by advancements in the medical, clinical and scientific research sectors of the US. Preference is given to temperature measurement devices, which provide accurate reading and are easy to handle. Intense competition in the industry has forced several manufacturers to strengthen their marketing efforts.
In Europe, France, Germany, Italy, and United Kingdom represent the leading markets, accounting for 75% share of total sales. infrared thermometers market in Germany is estimated at $17 million for 2008. Growing concern for personal health has intensified the demand for thermometers in Asia. Glass (mercury) thermometers market in Asia-Pacific represents the largest segment with a significant share in the total market. However, sales are projected to register a decline over 2005-2010 owing to mounting concerns over the use of mercury in thermometers.
Major players profiled in the report include A&D Medical, Alaris Medical Systems, American Diagnostic Corporation, Becton Dickinson and Company, Kaz Incorporated, Microlife Corporation, Omron Healthcare, and Terumo Corporation. The report enumerates recent developments, mergers, acquisitions and other strategic industry activities.
The report titled "Temperature Monitoring Devices: A Global Strategic Business Report" published by Global Industry Analysts, Inc., analyzes the market over the 2000-2015 period. The market is analyzed across five major product segments: Digital Thermometers, Infrared Ear Thermometers, Glass (Mercury) Thermometers, Electronic Temperature Monitors, and Temperature Strips. Analysis is presented for major markets including United States, Canada, Japan, Europe Asia-Pacific, and Latin America.
For more details of this research report please visit http://www.strategyr.com/Temperature_Monitoring_Devices_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press(at)StrategyR.com
Web Site www.StrategyR.com
http://pdfserver.emediawire.com/pdfdownload/873144/pr.pdf
Renova denies plans to acquire Victory's Oerlikon stake
April 21, 2008: 07:37 AM EST
ZURICH, Apr. 21, 2008 (Thomson Financial delivered by Newstex) -- OC Oerlikon Corp (OOTC:OERLF) AG. shareholder Renova, owned by Russian investor Viktor Vekselberg, has denied it has plans to make a bid for major shareholder Victory Indstriebeteiligungs AG's stake in the Swiss technology group.
'This is not true. We have no such plans,' Renova spokesman Markus Blume told Thomson Financial News.
According to market rumours in London, Renova is planning to make a joint 450 Swiss francs per share bid together with a German industrialist family for Victory's stake of just below 50 percent.
Renova, holds a stake of about 25 percent.
On Friday, OC Oerlikon said it will submit a proposal at its AGM to abolish the so-called 'opting out' clause, which currently says a shareholder who purchases more than a third of its shares is not obliged to make a public takeover offer in compliance with the Swiss stock exchange regulations.
andrew.ge.thompson@thomsonreuters.com
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24647970.htm
TECH & YOU: Photoshop's Little Online Brother
http://www.businessweek.com/magazine/content/08_17/b4081000478911.htm?campaign_id=yhoo" target="_blank">http://us.rd.yahoo.com/finance/editorial/xbizwk/SIG=127a5qkcf/*http://www.businessweek.com/magazine/content/08_17/b4081000478911.htm?campaign_id=yhoo
April 16, 2008, 5:14PM EST
Photoshop's Little Online Brother
With Adobe's new Web 2.0 offering, you can easily smarten up pictures for Internet display
by Stephen H. Wildstrom
If you are in newspapers, magazines, movies, or the software business, creating Web-based versions of your products may be central to your mission. It's true for Adobe (ADBE), whose graphics and presentation software is used to prepare much of the content on the Web. Now Adobe is offering a free online version of its popular Photoshop.
The new service, Photoshop Express, doesn't try to replicate desktop Photoshop, with its hundreds of tools, filters, and effects. Instead, Express is designed simply to improve the looks of photos intended for online display. It competes mostly with fairly primitive tools offered by photo-sharing sites as well as online editing services such as Picnik and FotoFlexer. Officially, Express is still a beta, or test, program and has some rough edges to show for it. But it offers useful, exclusive features that draw on the heritage of its big brother Photoshop.
Express works entirely within a browser—no download is required—and all you need to run it is the latest version of Adobe Flash. I was able to use Express in Internet Explorer, Firefox, and Safari on Windows (MSFT), Mac (AAPL), and Linux systems.
How It Works
You start by uploading photos you want to work with, either directly from your computer or by linking to your online account at Facebook, Photobucket, or Picasa (GOOG). (Support for Flickr (YHOO) is expected soon, and links to other photo-sharing sites are in the works.) You can use up to 2 gigabytes of storage, but if you are uploading high-resolution pictures, you may be reminded of how painfully slow uploads are on most Internet connections.
Opening one of your photos for editing also can take a surprisingly long time, but once the picture is ready, work zips along. A basic set of tools performs such functions as cropping, rotating, or straightening the image, removing red-eye, and adjusting the exposure. The niftiest feature is Touchup, a version of the "healing" tool in desktop Photoshop. It cleverly blends a region with its surroundings to make blemishes disappear. With careful use, you can get rid of anything from a pimple to a distracting ceiling light.
A set of more advanced tools lets you change white balance to get rid of off-color tinges, adjust the lighting, and sharpen or soften the focus. And there's an assortment of special effects, including black-and-white conversion, tinting, and the ability to distort parts of the picture. Most of these functions work by presenting you with eight thumbnails showing suggested changes. Hovering over a thumbnail with your cursor temporarily applies the change to the full picture. It's almost impossible to mess up, because you can move back step by step and revert instantly to any previous edit just by picking it from a strip of thumbnails.
For Online Use Only
For now, at least, the only thing you can do with pictures you have edited right on the Photoshop Express site—other than e-mail them—is share them in galleries or slide shows the software sets up for you. There's no direct way to send them off for printing, although that capability will doubtless arrive as Adobe strikes deals with other services. I believe you are generally better off linking to a Picasa or Photobucket account and taking advantage of those sites' sharing, printing, and download features. You simply give Express your user name and password, and your pictures appear as an Express album.
The serious amateur photographer looking for a digital darkroom will want one of the more capable desktop products, either the professional $649 Photoshop CS3 or the consumer-oriented Photoshop Elements 5.0, a great value at $100. Photoshop Express is an excellent promotional tool for those products, and it also demonstrates that Adobe really understands how to build Web-based applications.
Wildstrom is Technology & You columnist for BusinessWeek. You can contact him at techandyou@businessweek.com .
http://biz.yahoo.com/cc/9/92329.html
PerkinElmer Earnings Conference Call (Q1 2008)
Scheduled to start Thu, Apr 24, 2008, 4:30 pm Eastern
The Company recorded a net loss of $328 million in the first quarter of 2008 compared to net earnings of $81 million in the same period last year. The Company's loss reflects a dramatic year-over-year increase in fuel prices from an average of $1.85 per gallon in the first quarter 2007 to an average of $2.74 per gallon in the first three months of 2008. Fuel expense is the Company's largest single expense category and the price increase resulted in $665 million in incremental year-over-year fuel expense in the first quarter 2008 (based on the year-over-year increase in the average price per gallon multiplied by gallons consumed).
The significant rise in fuel price was partially offset by higher unit revenues (passenger revenue per available seat mile). Mainline passenger unit revenues increased 6.5 percent for the first quarter due to a one point load factor increase and a 5.1 percent increase in passenger yield (passenger revenue per passenger mile) compared to the same period in 2007. Although load factor performance and passenger yield showed year-over-year improvement, passenger yield remains low by historical standards and below the Company's peak yield set in the year 2000. The Company believes this is the result of a fragmented industry with numerous competitors and excess capacity, increased competition from low cost carriers and from carriers that have recently reorganized under the protection of Chapter 11, pricing transparency resulting from the use of the Internet, and other factors. We believe that our reduced pricing power could persist indefinitely.
As of March 31, 2008, the Company had commitments to acquire 25 Boeing 737-800s in 2009, three Boeing 737-800s in 2010 and an aggregate of 26 Boeing 737 aircraft and seven Boeing 777 aircraft in 2013 through 2016 as a part of its fleet replacement strategy. On April 1, 2008, AMR committed to acquire two incremental Boeing 737-800s to be delivered in 2009. See subsection entitled "Significant Indebtedness and Future Financing" under Item 2. Management's Discussion and Analysis and Note 3 to the condensed consolidated financial statements for more information.
On April 16, 2008, the Company announced that it has reached a definitive agreement for the sale of American Beacon. See Note 12 to the condensed consolidated financial statements for more information.
The Company's ability to become consistently profitable and its ability to continue to fund its obligations on an ongoing basis will depend on a number of factors, many of which are largely beyond the Company's control. Certain risk factors that affect the Company's business and financial results are referred to under "Forward-Looking Information" above and are discussed in the Risk Factors listed in Item 1A (on pages 11-17) in the 2007 Form 10-K. In addition, four of the Company's largest domestic competitors and several smaller carriers have filed for bankruptcy in the last several years and have used this process to significantly reduce contractual labor and other costs. In order to remain competitive and to improve its financial condition, the Company must continue to take steps to generate additional revenues and to reduce its costs. Although the Company has a number of initiatives underway to address its cost and revenue challenges, the ultimate success of these initiatives is not known at this time and cannot be assured.
www.sec.gov
Eli Lilly & Co. Q1 2008 Earnings Call Transcript
...
John Lechleiter - President and Chief Executive Officer
Thanks Phil, good morning. The overarching purpose of our call this morning is to summarize our financial results for the quarter and their good results. So, let me start by reiterating three of my top priorities as CEO. First, speeding the flow of innovative new products through our development pipeline; second, more effectively engaging our customers, patients, healthcare providers, and payers alike; and third improving quality and productivity across the board. Many successes in the years to come will be based on our ability to execute on these priority, and I intend to see that we do. These mandates are so important that I will begin each of our earnings call this year by giving you an update on our progress. After my update, we'll review financial performance and take your questions.
Let's start with advancing of pipeline. On slide 2, you'll find a summary of our achievements in the first quarter. After advancing a record 16 new molecular entities into the clinic in 2007, Steve Paul and his team set their sites on moving another 15 NMEs into the clinic in 2008. They are on pace to achieve with ambitious goal with three molecules having begun Phase I testing in the first quarter.
In addition to stocking the pipeline with innovative molecules we must move these molecules through clinical testing at a pace that enables us to effectively meet the challenge posed by our patent explorations in the next decade. During the first quarter, we moved two molecules into Phase II clinical trails and we moved one our gamma-secretase inhibitor for Alzheimer's disease into Phase III. We also continue to supplement our own innovation with collaboration, including the recently announced agreements with Transition Therapeutics, for their gastrin-based therapies for type 2 diabetes. In addition, we closed the deal with BioMS Medical giving Lilly exclusive rights to a molecule already in Phase III testing for secondary progressive multiple sclerosis.
Furthermore, we had a number of successes on the regulatory front. The FDA approved Cialis for once daily use. In the first quarter, European regulators gave a positive opinion for Alimta for first-line non-small cell lung cancer, and in early April we received marketing authorization. We also received marketing authorization in Europe for Forsteo for GIOP of steroid induced osteoporosis, and we received an approvable letter Forsteo in the U.S. for the syndication. We launched Cymbalta in Canada and France. Australian regulatory authorities approved Cymbalta, and Cymbalta was submitted in Japan by our partner Shionogi. We launched the Humalog KwikPen in the U.S. We received notice that the FDA granted priority review the prasugrel and we submitted prasugrel in the EU.
Finally along with Amylin, we submitted the application for a monotherapy indication for Byetta. We remain very excited about the prospects for this first-in-class molecule and are working closely with Amylin to maximize its value to patients. In Phase III, development of Arzoxifene continues for the indications of prevention and treatment of osteoporosis, and risk reduction in Invasive breast cancers. While we are still blind to the Phase III data in the ongoing five year generations trial, the overall event rate for invasive breast cancer is lower than expected. Consequently, we will defer the primary analysis for submission to a slightly later date allowing additional events to occur. As a result, we now expect to submit Arzoxifene in the fourth quarter of 2009 rather than earlier in the year.
Running out of pipeline will remind it that there is risk in developing first-in-class, best-in-class medicine they've shown on slide 3. We terminated development of AIR insulin and received a not-approvable letter for Zyprexa long-acting injection. Despite these challenges, our pipeline especially the mid-stage is as strong as ever. As I did this update each quarter, I expect there will be variability in the progress, some quarters will almost certainly be better than others. For example, our plans indicate that movement of molecules into the clinic will be weighted to the back-half of the year. But I can assure you there is clarity throughout Lilly for advancing the pipeline as priority one.
Moving to slide 4, the second priority is more effectively engaging our customers on all fronts: patients, healthcare providers and payers; again there is much to report here. In the quarterly results, you will see continued improvement in Humalog performance. Our solutions based approach integrates Humalog therapy, patient support and tools to improve patient outcome. Some examples: our nutrition in the best lean [ph] series to enable more sensible choices in fast food, the small steps videos outlining the little things that patients with diabetes can do to improve their control and our engagement with efficacy groups to build disease awareness and improve patient outcomes.
In a more traditional example in the first quarter, we announced the partnership with Sanofi-Aventis to expand Cialis promotion to urologists, especially for the new once daily, indication. For Forteo, we've made significant progress in gaining improved access in part D plans with reasonable co-pays and sensible prior authorization requirement. I work in collaboratively with the part D plan; we now have 75% access. In our U.S. operations, we continue to measure effectiveness in engaging our customers using an approach called customer value metrics or CVM.
Through CVM, we systematically collect feedback from our customers to understand Lilly's performance versus the competition in delivering value. Using this approach, we better understand the evolving needs of customers and how we can improve. As a result we have improved several of our sales and marketing practices, and we are seeing results; as one example our CVM scores has significantly increased with psychiatrists showing they now perceive Lilly as a leader in answering product related questions effectively, tailoring our communications to their needs, and providing relevant information to enable them to treat their patients in the most appropriate way.
I'll now turn the call over to Derica, who will recap our strong financial results for the quarter, beginning with a review of progress on a third priority, productivity. Derica?
Derica Rice - Senior Vice President and Chief Financial Officer
Thanks John. Let me begin on slide 5 by focusing on our productivity and flexibility agendas. We continue to make good progress on both fronts. Starting with productivity, let me begin with this chart that shows the trends and sales growth versus operating expense growth and the growth margin percentage. As shown here, operating expenses represents the sum of R&D and SG&A. Furthermore, sales and operating expense growth is on a pro forma basis as if we own ICOS as of January 1st, 2007.
The line represents the gross margin percentage overtime. The bars represent the spread between sales growth and OpEx growth. During the period in which sales are going faster than OpEx, the bars are positive and vice versa. One of the ways we have highlighted the benefits of our productivity initiatives is through the operating leverage on our income statement, growing sales at a faster rate than cost and expenses. For Q1, the 12% growth and pro forma sales is 3 percentage points higher than the growth in pro forma operating expenses.
While this shows substantial leverage on operating expenses, the Q1 growth and cost of sales was 18%, well above the sales growth. Consequently, the gross margin percentage declined slightly from 2007. Now on the surface, these results may appear inconsistent with our productivity objective; however, I like to provide some perspective on the effect of foreign exchange rates in these results. When we consider exchange rate, a different picture emerges as shown on slide 6. This analysis is particularly relevant this quarter given a movement in rate. If we remove the impact of exchange rate, sales grew 7%, almost entirely from volume. Cost of sales grew in a low single digit, and operating expense grew less than sales. Thus as you can see the underlying performance continues to show, operating the leverage and the positive effect of our productivity initiative. In addition, our bottom line is largely hedged against movements in currency exchange rates.
Our productivity efforts continue to drive decreases in our infrastructure and headcount. We have reduced onboard headcount by over 5,500 people or 12% since the peak in mid-2004. Last week, we announced a further stream lining of our manufacturing operations in selected areas of research and development in Indianapolis. We expect the voluntary exit program we are offering will reduce headcount by up to 500 people. This announcement continues to trend a headcount reduction already achieved. Going forward, we will continue to undertake productivity initiatives across the entirety of our business. Along recruiting management of working capital, these productivity improvements are also producing robust cash flow.
In addition, we continue to implement programs to increase our flexibility as shown on slide 7. In the sales force, we are using a number of tools to increase our flexibility. John already summarized our collaboration with the Sanofi-Aventis by the promotion of Cialis. We have discussed our use of contract sales organization supporting Cymbalta and insulin products. We are also expanding the use of a variety of flexible staffing arrangements, including contractors and fixed duration employees. These approaches provide a greater level of flexibility to adjust the sales staff and broader work force to match the needs of the business during a time of significant change.
In R&D, we recently announced expanded collaboration with Nicholas Piramal and Suven Life Sciences, adding molecule...adding additional molecules to these developmental arrangement. As part of our fitness[ph] strategy, these arrangements increase our flexibility and reach enabling us to develop more molecules without expanding Lilly Infrastructure. These are just some of the examples of how we are improving productivity and flexibility throughout Lilly.
Now, let's move to slide 8 and the specific results for the quarter. The Q1 results met our expectation, and we are tracking to our EPS guidance for the year. The solid business fundamental continue. The 12% growth in pro forma sales reflects 6% from volume, 5% from exchange rate and 1% from price. This slide summarize price in volume trends back to the year 2000. The volume growth of 6% in Q1 continues solid volume performance. This volume growth was achieved despite the drag from generic Zyprexa entries in Canada and Germany.
Furthermore, on slide 9, you can see how our major products contribute to their overall volume growth. Led by Cymbalta, all of our growth products are contributing positively to volume growth. You will notice that Zyprexa shows a volume decline, reflecting both the impact of generic entries in Canada and Germany as well as the inventories build in the U.S. during Q4 2007, that depress Zyprexa volume in the first quarter of this year.
Moving to slide 10; before Jim provides the detailed results for each product, let me comment on operating expense trends for the quarter. R&D grew 4% and SG&A grew 13%, though a couple of factors are to consider in these results. For R&D, the growth in Q1 of this year is affected by the conclusion last year of TRITON study of prasugrel, as well as targets in Q1 of 2007, related to Arxxant. These factors there to understate the underlying trends and R&D spend.
For SG&A, the Q1 growth rate was elevated by several factors. First, we continue to make significant investments in Q1 behind our key products including Cymbalta, Cialis, and Humalog. We believe these investments are a key to drive a continued growth of these products. Second, foreign exchange rates added significantly to SG&A growth. Compared to R&D, the geographic distribution of our SG&A costs makes it more acceptably to changes in currency exchange rates. Finally, increased legal costs also contributed to year-on-year growth and SG&A. These costs include the $50 million settlement with the state of Alaska.
Now let me the turn the call to Jim to give a more in-depth review of result. Jim?
Jim Greffet - Manager, Investor Relations
Thanks Derica. Moving on to review financial results for the quarter; worldwide pro forma sales grew 12% to $4.808 billion. We will begin with a review of the sales performance of selected products and then discuss the other lines of the income statement. Slide 11 shows worldwide Zyprexa sales increased 1% to $1.12 billion. Sales in the U.S. decreased 5% to $499 million due primarily to lower demand. International sales increased 6% to $621 million due to the favorable impact of exchange rate. International demand decreased slightly as the impact of generic entries in Germany and Canada more than offset increased demands in other markets.
Moving to slide 12, Cymbalta sales in the first quarter were $605 million, up 37% compared with the first quarter 2007. U.S. sales increased 32% to $511 million due to increased demands. International sales totaled $94 million, an increase of 69% over the prior year. Slide 13 shows worldwide Byetta sales for the quarter for $169 million, a 15% increase driven by demand. Lilly reports half of the gross margin from U.S. sales of Byetta, plus sales of pen to Amylin and 100% of international sales. Total Byetta revenue recognized in Lilly's income statements was $83 or 16% increase. Neither Lilly nor Amylin is satisfied with the performance of Byetta and a number of efforts are being implemented to sustain and improve Byetta performance, particularly in the U.S.
First, sales territories are being aligned to improve accountability and coordination across the Lilly and the Amylin team, and to improve the reach and frequency of customer contact. Second, messaging between the clients is better addressed and is accessible and finalizes their position. Market research indicates their perception of Byetta's efficacy, particularly with binary care position are less than what has been demonstrated. Reinforcing Byetta's efficacy and glycemic control these two [ph]. Third, due to fields domain will help to reinforce glycemic control efficacy.
Both Lilly and Amylin continue to play significant resources behind this first-in-class product to address performance that is inconsistent with what we believe to be is true potential. On slide 14, Humalog sales grew 20% to $407 million. U.S. sales increased 13% to $239 million driven by higher demand and increased prices. Sales outside the U.S. increased 31% to $169 million, driven by increased demand and the favorable impact of foreign exchange rate.
Slide 15 shows growth trends in Humalog new prescriptions and total prescription since 2006. Two trends on this graph are particularly encouraging as we continue the efforts to reaccelerate Humalog performance. First, overall Humalog volume grew for the full year 2007, which was the first time annual Humalog volume grew since 2004. Second, through the first quarter of 2008, we see accelerating growth in both new and total prescription. These trends reflect the sustained efforts behind Humalog, the introduction of several new pen devices and more effective engagement of our customers on all fronts.
On slide 16, Humulin sales for the quarter were up 14% to 258 million. U.S. sales increased 9% to 93 million driven by higher prices. International sales increased 17% due to the favorable impact of foreign exchange rate and increased demand partially offset by lower prices. Slide 17 shows worldwide Cialis sales. The global sales were up 27% in the quarter reaching 337 million. Sales in the U.S. were up 25% to 123 million due to higher prices and increased demand while sales outside the U.S. increased 28% to $214 million driven by increased demand and the favorable impact of foreign exchange rate.
Moving to slide 18, Alimta sales in the first quarter were $247 million, an increase of 32% over Q1 2007. U.S. sales increased 17% to $122 million due primarily to increased demand. Sales outside the U.S. were up 50% to $125 million due to increased demand and the favorable impact of foreign exchange rate, partially offset by lower prices. Slide 19 shows quarterly Forteo sales of $185 million, up 21% over Q1 of last year. U.S. sales were up 10% to $118 million, primarily due to increased volume caused by variations in wholesale or buying pattern and higher prices. International sales of Forteo were up 45% to $67 million due to higher demand and the favorable impact of foreign exchange rate.
Slide 20 shows the revenues from the products Lilly has launched this decade: Alimta, Byetta, Cialis, Cymbalta, Forteo, Strattera, Symbyax, Xigris, and Yentreve. On a pro forma basis, these products grew 26% reaching $1.7 billion or 35% of our sale. On a reported basis, sales of these products grew 33% in the quarter. Before looking at the rest of the income statement, let's look at the impact of price, exchange rates, and volume on the sales result; a summary by geography on a pro forma basis is shown on slide 21.
For the quarter, Lilly sales growth of 12% was driven by a volume impact of 6% and a favorable impact of 5% from exchange rate, and 1% from price. For your information, slide 22 shows the impact of price rate and volume on a reported basis. For the quarter, Lilly's reported sales growth of 14% was driven by a volume impact of 8%, a favorable exchange rate impact of 5% and a favorable price impact of 1%.
Now let's look at the rest of the income statement. Slide 23 shows the pro forma income statements. Gross margin as a percentage of sales in the first quarter was 76.9%, a decrease of 130 basis points compared to Q1 2007. As discussed earlier, this decrease was due to the impact of foreign exchange rate offset impart by manufacturing expenses growing at a slower rate than sale and by price. Operating expenses including marketing, selling and administrative and research and development expenses increased 9% in the quarter or 3% less than sale.
Marketing, selling, and administrative expenses were up 13% to $1.6 billion. This increase was primarily driven by increase marketing expenses in support of key products, including Cymbalta, Cialis and Humulin; the effect of foreign exchange rate and the increased legal cost including the settlement with the state of Alaska. R&D expense grew 4% to $877 million or 18% of sale. The increase was primarily due to increases in discovery, research, and late stage clinical trial cost offset by lower prasugrel clinical trial costs. In the first quarter 2007, write off of Arxxant inventory as a result of the U.S. FDA's approval decision and the withdrawal of the Arxxant application in Europe.
Other significant items decreased from $451 million in Q1 2007 to $233 million in Q1 2008. The 2008 amount includes the $145.7 million charge, primarily related to the decision to terminate the development of their influence and the $87 million charge related to acquired in-process R&D, associated with the BioMS Medical in licensing transaction.
The 2007 amount includes $123 million charge, primarily related to manufacturing site closures and the $328.5 million charge related to acquired in-process R&D, associated with the ICOS acquisition and the OSI in-licensing transaction. The Q1 2008 effective income tax rate reflects a discreet benefit of $210.3 million, resulting from the conclusion of the substantial portion of an IRS audit for the years 2001 through 2004.
For your information, we have provided a reported earnings statement on slide 24. Slide 25 shows fourth quarter... shows first quarter other income and deductions, which contributed $20 million, an increase of $3 million. Slide 26 shows the significant items affecting net income. These items include the $210.3 million after tax benefit or $0.19 per share from the resolution of the companies IRS tax audit for the years 2001 trough 2004.
The $145.7 million pre-tax charge or $0.09 per share for asset impairments and restructuring primarily related to certain wind down costs associated with the termination of the AIR Insulin program, and the $87 million pretax charge or $0.05 per share for acquired in-process research and development for a compound acquired from BioMS Medical. You can see the impact of these items on earnings per share for this quarter in the table. The table also shows the impact of similar items from 2007 for comparison purposes.
Now, let me turn the call back over to Derica to update you on our financial guidance. Derica?
Derica Rice - Senior Vice President and Chief Financial Officer
Thanks, Jim. As shown on slide 27, our 2008 earnings guidance is now $3.90 to $4.05 per share. The change from earlier guidance results from a tax benefit of $0.19 per share resulted from the resolution of the IRS tax audit. A $0.09 per share charge related to the asset impairments and restructuring primarily related to the termination of the AIR Insulin program, and a $0.05 per share charge related to the end licensing transaction with BioMS Medical. After these items, our expected 2008 earnings per share would have remained in the range of $3.85 to $4.00 per share. Note also that this guidance does not reflect potential charges related to the recently announced voluntary exit program.
Slide 28, shows our line item financial guidance. Excluding the effect of the resolution of the IRS tax audit, the estimated effective tax rate has been revised to approximately 22% from the previously stated 23%. This reduction is the result of a more favorable forecast of the mix of income between domestic and international operations, and the alignment of practices with conclusion of the IRS tax audit. No other elements of our previously issued line item guidance have been changed. As discussed on past earnings call, we no longer provide quarterly financial guidance. We realize that financial estimates will be produced by those following our stock. However, we will not comment on the accuracy of these estimates.
This concludes our review for the first quarter, and we will now be happy to take your questions. Operator, first caller please?
Question And Answer
Operator
Our first question will come from the line Jim Kelly from Goldman Sachs. Please go ahead.
James Kelly - Goldman Sachs
Thank you, and good morning. I have a question about the impact in volumes, just taking a look at the comparison from the last quarterly report, where volumes whether it was done in a pro forma or reported basis were slightly higher on a full year basis for 2007. I am really focusing on some markets like Japan, rest of world and animal health. Could you give us some color on those markets, where we don't often see a lot IMS data and other third party sources? Thank you.
Unidentified Company Representative
Perfect way to ask a question, Jim? [ph]
Derica Rice - Senior Vice President and Chief Financial Officer
Good morning, Jim. When you look at our volume growth and especially if you were to look at Q4 2007 or even Q1 '08, there are a number of factors. First of all, overall we still continue to see strong volume growth; the 6% is more than half of our total revenue growth is focused on a pro forma basis and that is a net that 6% is the negative impact of generic Alimta scheme [ph] entrance in Canada and Germany, which we have been able to offset. You also had some wholesaler de-stocking in the U.S. in both the retail channel as well as the wholesale channel. And then you also had some unusual buying patterns in Elanco Animal Health business Q4 '07, but if you were to take those out, you would actually see a fairly solid and pretty much continued sustained effort of volume growth in the business.
John Lechleiter - President and Chief Executive Officer
Jim, this is John Lechleiter. I think in Japan, we also have the impact of the by annual price decrease, which goes into effect April 1. So, it's going to have the impact of depressing volume in the first quarter somewhat there.
Derica Rice - Senior Vice President and Chief Financial Officer
We continue by the way, just to make the point on Japan to move up in the table, where we are now, I think either number 22 or number 23 based on our growth relative to others in that market employees to move into the top 20 by the turn of the decade.
James Kelly - Goldman Sachs
Thank you.
Phil Johnson - Executive Director of Investor Relations
Next caller, please.
Operator
Roopesh Patel from UBS. Your line is open.
Roopesh Patel - UBS
Hi, thanks a lot. Just a couple of questions; first on prasugrel, I was just wondering if you could comment on whether or not based on your discussions with the FDA to date you still expect approval by the June 26th PDUFA date and any light you can shed it on your expectations relative to an advisory committee or panel meeting? And then separately if you could also kindly just comment on the flattishness we've seen in Cymbalta trends and what we should expect going forward? Thanks.
Unidentified Company Representative
Okay, Roopesh, we'll have John handle your first two questions on prasugrel and then Deirdre on Cymbalta.
John Lechleiter - President and Chief Executive Officer
Roopesh we are very much engaged with the FDA as they continue their review of prasugrel toward the June26 action date. It would be impossible for me to speculate on what that action is going to be except to say that there has been considerable amount of back and forth between the FDA and Lilly's. One would expect in a priority review period that shortened down to six months; we still at this point have no indication if there is going to be an advisory committee.
Deirdre Connelly - President, Lilly USA
Good morning, and in terms of Cymbalta; first of all, we continue to see Cymbalta growing faster than any other branded entity present in the marketplace, which makes us obviously very pleased. Those parts of that product that is pen related, as you know, the PNP [ph]. And we've seen a slow down of that part of our business with the recent launch. Now we have every expectation given the many opportunities fibromyalgia offers or pen offers in the future to recapture all part of that business and when we launch our fibromyalgia indication.
Phil Johnson - Executive Director of Investor Relations
Next caller, please.
Operator
David Risinger from Merrill Lynch. Please go ahead.
David Risinger - Merrill Lynch
Yes, thanks very much. I have a couple of questions. First, could you please update us on the Zyprexa Depo formulation, just provide a little bit more detail following your discussions with the FDA in terms of how we should think about that product on a go-forward basis? Second, could you please provide an update on Byetta LAR manufacturing and whether that product is being used in the current clinical trials from the new facility yet? And then finally on Evista; if you could just walk us through the patent challenge situation with Evista, so that we have the appropriate framework for that. Thank you.
Phil Johnson - Executive Director of Investor Relations
Okay. I would ask John to go ahead and handle the Zyprexa Depo and the LAR manufacturing question and Jim handle the second question.
John Lechleiter - President and Chief Executive Officer
Good morning David. When we received the non-approval letter in March, we immediately contacted FDA obviously in effort to really understand the root of their concerns. That has to do with these inadvertent intravascular administration issues that tend to cause or have caused among... about 1% the patients in clinical trials that essentially profound sedation. So, we need to understand that better; we do have a meetings scheduled. It's not yet taken place, and once that meeting is complete and we have a better idea how we might proceed forward, we'll communicate that.
With respect to Byetta LAR, we are just... Amylin is really just bringing up the plant that's going to manufacture the commercial commodities online now. So, our goal is in the intervening March is to really make sure that the material risks that coming out of that plan is in fact equivalent to material that was made using the same process, but on a smaller scale, and that's one of the things we'll need to complete before we file, and the date that we've given remains before the second half... before the first half of 2009.
Jim Greffet - Manager, Investor Relations
And on the specific use in clinical trials, Dave, we've not yet put that commercial scale material from the facility in Ohio into our clinical trials. That may happen this year, but has not happened to-date. On your question for the Evista litigation and challenge from those given bars [ph], we have essentially a couple of dates you want to keep in mind. One is the expiration of a 30 month stay for Teva in November of this year, and then we also have a court date with them in early March here in the southern district of Indiana. The... as you are copying from some of our past comments, the status with bar is frankly on hold; you can say we've not yet provided any actual description of or physical samples of material. I do believe that well it's actually worthy, first filer in this case. So, the status of payments that just recently announced tentative approval for this generic Evista is I think a little bit unclear at this point of time for that reason.
Phil Johnson - Executive Director of Investor Relations
One other thing, just to be absolutely clear on the Byetta once weekly submission timing, it is by the end of the first half of 2009. John, I think you said by the first half of 2009; so, to be clear that timing hasn't changed.
David Risinger - Merrill Lynch
Great; thanks, gentlemen.
Phil Johnson - Executive Director of Investor Relations
Next caller, please.
Operator
Rob Hazlett from BMO Capital market. Your line is open.
Robert Hazlett - BMO Capital Markets
Yes, thanks. Good morning everyone; just a couple of quick ones. Regarding prasugrel, could you discuss any efforts you have made so far to construct the sales effort and the status there? Secondly regarding gross margin, the Zyprexa Canada and Germany generics have an effect in gross margin and maybe you did state that there... but could you just discuss the potential for gross margin effects for the remainder of the year? And third, was there stocking during the quarter of KwikPen... Humalog KwikPen and/or Cialis QD? Thanks.
Phil Johnson - Executive Director of Investor Relations
Okay, I'm going to ask Deirdre to go ahead and take your question on the prasugrel sales effort as well as maybe your last piece on if we can take an initial stocking for Cialis once daily as well as Humalog KwikPen.
Deirdre Connelly - President, Lilly USA
Thank you, Phil. First, thank you very much for the question. Yes, we are absolutely ready for the eventual launch if the FDA... after their review allow us to launch prasugrel, which grows. We all are looking forward to and our preparations consist of and hospital sales division that has been in place now for two quarters, so ready to go when we get the product in our bag. And a primary care division that we have been building in the last few months.
Robert Hazlett - BMO Capital Markets
And in terms of the initial sales as for Cialis once a day as well as the Humalog KwikPen, Deirdre.
Deirdre Connelly - President, Lilly USA
Yes,in terms of KwikPen like John and Jim mentioned previously, the result that we see was our share market with Humalog, we believe reflects the great reception of the marketplace of our KwikPen. So, it has been launched very effectively; in terms of Cialis?
John Lechleiter - President and Chief Executive Officer
Yes, the Cialis daily is 700,000 stocking and then the KwikPen is a little bit of stocking, but with the decline in regular pen.
Deirdre Connelly - President, Lilly USA
Thank you.
Phil Johnson - Executive Director of Investor Relations
Jim, do you want to go forward?
Jim Greffet - Manager, Investor Relations
Sure. On the gross margin, you saw gross margin for the quarter declined 1.3 percentage points, but if you were to exclude the impact of exchange rate, we actually saw gross margin improvement in the quarter and in terms of outlook for the year, I feel while we cannot predict what will happen when exchange rates. In terms of the underlying business fundamentals, we still expect to grow our manufacturing expenses at a slower rate in sales than we should see on a fundamental basis gross margin improvement excluding the impact of exchange rates.
Phil Johnson - Executive Director of Investor Relations
Okay. Next caller, please.
Operator
Tony Butler from Lehman Brothers. Your line is open.
Tony Butler - Lehman Brothers
Just again on the same question on KwikPen; was it also wanted internationally. And then second, Derica could you provide some range for what FX, the FX contribution for SG&A was in the quarter? Thank you.
Phil Johnson - Executive Director of Investor Relations
Well, John will take your question KwikPen and Derica on the SG&A.
John Lechleiter - President and Chief Executive Officer
Totally, we've not yet launched, we had a few... actually a few early pilot countries that we launched in a year or two ago. We have not had a major rollout in another market outside the U.S. We did get approval this quarter in Japan for the pen called MirioPen in Japan, and we have a sequence of rollout that will initiate later this year that outside U.S.
Tony Butler - Lehman Brothers
Okay.
Derica Rice - Senior Vice President and Chief Financial Officer
And Tony regards to the FX impact on SG&A, essentially if you look at the 13% SG&A growth, over half of that was due to the impact of exchange rates and then also a small impact of also the impact of increased litigation costs.
Phil Johnson - Executive Director of Investor Relations
Next caller, please.
Operator
From the line is Steve Scala from Cowen. Please go ahead.
Steve Scala - Cowen And Company
Thank you, I have two questions. What was the first quarter tax rate without the tax benefit and the one time charges? Was it 22%, which would be consistent with the full year guidance? And secondly, given that the 30-month span, GEMZAR expires in July and Teva had extended approval. What are your range of options here? Would you say now that you absolutely will not settle this litigation or would you consider that as one of your options? Thank you.
Unidentified Company Representative
Let me take your first question and I'll have Jim take the second one.
Steve Scala - Cowen And Company
Sure.
Unidentified Company Representative
In regards to the tax rate tax, if you would our reported tax rate if you were to exclude the... or did not have the impact of the tax settlement, we would be in the range of approximately 22% for the quarter.
Jim Greffet - Manager, Investor Relations
Regarding GEMZAR, so we... this has been a frequent topic of conversation. So, we talked with our patent folks and have spent some time with them. And they have really sized up our patent to stay with GEMZAR in comparison to what we've seen in the marketplace with Protonix and others. And at the bottom line, we feel very strong about our protection. We think we will prevail if we did get to the point, where we are looking at an at risk launch, we feel confident in our ability to get a preliminary injunction and the patent folks have looked through the forecast that the court would do for preliminary injunction including the likelihood of wining ultimately a trial. So, their status is we believe that are putting and sound if it... if push came to shall so to speak, we would be successful in getting FDI.
Phil Johnson - Executive Director of Investor Relations
Next caller, please.
Operator
From the line of Catherine Arnold from Credit Suisse. Please go ahead.
Catherine Arnold - Credit Suisse
Hi, thanks. I have a couple of questions; first of all on Byetta. I just want to clarify my understanding was at the timing was the fine by the end of the second... first half '09; however there was an expectation that was it either going to be reaffirm or updated, because there were some strategies in mind that might bring some up side to that. And if I got that wrong, are you really going to hear from you to list that changes? And then on expenses, I wonder if you could just give any color to what you expect in the three quarters of the year, are there unique expense that we should be looking out for in terms of SG&A cost or R&D that would prevent sort of the mistiming of expenses by street estimates?
Phil Johnson - Executive Director of Investor Relations
Thanks Catherine; we'll have Jim handle your first question on the Byetta timing and then Derica the second on the expenses?
Jim Greffet - Manager, Investor Relations
So, you are right Catherine. The affirmative statement we have made on the filing timings for exenatide once weekly as by the end of the first half of 2009, I think in Amylin's analyst meeting late last year, they provided a sort of a continue of options. Remember that one of the key factors influencing the timing is the reconciliation that we will do with the FDA from the lower scale manufacturing that was done in the clinical trial to full commercial scale. The timing that we have given by the end of the first half of '09 really assumes the most robust reconciliation is done. In the event, we are able to get a more streamlined reconciliation agreed to with the FDA that timing could conceivably be sooner. We realized that this is an important question; so for the time being, that's really the state of play as we have more definitive timing to provide based on the developments with GSK [ph], we will give it to you.
Derica Rice - Senior Vice President and Chief Financial Officer
Okay. And Catherine on the expense side, are you not aware of any other unusual expense items now and the next nine months? We... if you recall, when we gave our guidance for the year, I clearly stated that we expect operating leverage both in terms of our gross margins improvements as well as expenses in SG&A and R&D growth in total at a sole rate than revenue growth. As you saw when I took out the FX impact, I think I made it very clear we thought Q1 result that we were able to achieve that leverage and I fully expect that we will continue to drive for the same kind of leverage in the last nine months as well. Once again, knowing where the exchange rates will go. I think that's also consistent with the guidance we gave for the year and when I look at our first quarter results, which I think is very solid in our minds, we are very much on track to achieve the range that we gave for the year as well in the bottom line.
Phil Johnson - Executive Director of Investor Relations
Catherine, it's not in issue for 2008 necessarily. As Derica is mentioning, when you get to the year-on-year compare, Q4 of this year compared to Q4 of '07, you should see a significant step-down what's likely in the FX impact. As well as the fact that in Q4 2007, we had a confluence of quite a number of investment opportunities that raise the SG&A expense in particular in that particular quarter.
Next caller, please.
Operator
Seamus Fernandez from Leerink Swann. Your line is open.
Seamus Fernandez - Leerink Swann LLC
Thanks very much. I have a few questions. First, can you just help me better understand if the mix came in better than your anticipated than your expectations. Can you help me better understand the gross margin percentage printed in the quarter? It seems to have missed my expectations by a substantial amount. And I am just wondering why that would occur, where their accruals booked last year that simply were not booked this quarter that would have come in at 100% gross margin or what really is the impact in the quarter there? Then secondly animal health, three companies or at least two companies have reported so far on the animal health businesses and those are coming in below at least my expectations. Just wondering if there is some buying patterns in the animal health businesses that we should anticipate on a quarter-over-quarter or year-over-year basis or is there something structural in the animal health business that would suggest an economic slowdown would have impact there. And I'll go offline. Thanks.
Phil Johnson - Executive Director of Investor Relations
Thanks very much. I'll have Derica addressable to your question.
Derica Rice - Senior Vice President and Chief Financial Officer
Okay, in regards to the mix impact that was what we saw was driving our gross margin and I think I can cover the mix question as well as if we had booked any charges in this response. Our gross margin declined was entirely driven by the impact of foreign exchange rate. If you were to exclude that the impact of foreign exchange rate, we simply saw substantial gross-margin improvement in the first quarter alone. If you look, there were no special charges in gross margin and so forth; it was all exchange rates. We also... if you look back... by the time you get to the bottom line, we have a natural hedge for the most part in our P&L. For a while, we've had a positive impact on sales; it has a negative effect on gross margin in terms of positives as well as our expense base. So, when you get to the bottom-line, pretty much naturally hedged.
In regards to animal health, we did see some buying patterns in the fourth quarter in U.S. of 2007, but for the most part, our underlying trends have been very solid that we think. And we've also had the continued positive effect of the expansion of our companion animal business most recently with the launch of Comfortis in the U.S.
Phil Johnson - Executive Director of Investor Relations
Seamus,one other comment on the manufacturing expenses and gross margin as a percent of sales, as Derica mentioned, excluding the impact of foreign exchange rates, we actually would have seen an expansion in the gross margin as a percent of sales. That really is not due to mix, it's due to the fact of our manufacturing expenses are growing much slower than sales. We talked in the past year or so about actions we've taken at a plant over in the UK at Basingstoke, also down in Virginia, Prince William County as well as up in Central Indiana at Lafayette, Indiana. We are obviously looking to continue our productivity efforts in this area. We still have a strong gross margin going forward as evidenced by some of the announcements that we talked about just a week ago on restructuring our Indianapolis bulk manufacturing operations.
Next caller, please.
Operator
John Boris from Bear Stearns. Your line is open.
John Boris - Bear Stearns
Okay, thanks for taking the questions. First question on prasugrel; can you just chat about where both manufacturing is coming from and full unfinished and whether the FDA has inspected both of those facilities and whether they have signed off on your CMC section of your NDA? And secondly, have you built large quantities and did launch quantities include five mix, 7.5 and 10 milligram tablets? Second question on Alimta, can you just characterize the EU rollout in first line, non-small cell lung cancer and whether you view that as a material or significant opportunity and when we might be seeing some contribution from that and what the rollout might look like. And then just third on at least a question for John on pricing and rebating at the government level. I think in March there is a bill passed to House Bill 1424, met the whole parody, where they are actually looking for an extra claw back of 5% from the 15.1% to 20.1% price level. I think there was a little executive that was quoted to saying that that looked like price control or form of a price control was looking to be put into effect. Just your thoughts on that going into '09 and where do you see that potentially being more broader... broadly applied to other therapeutic categories going forward? Thanks.
Phil Johnson - Executive Director of Investor Relations
All right, thanks John. I'll handle your first three questions and have John handle your last one on the piping rebating here in the U.S. For prasugrel, the bulk will be coming from Kobe in Japan as the full finish will be done here at our Indianapolis facility. Neither those two facilities yet have been scheduled for the FDA pre-approval inspections are still yet to come. Large qualities, we need to get back to you. We don't have information right now on the status of the actual stocking and inventory build for the product launch. And then for EU for Alimta, it's too early tell right now what kind of uptake that we will see, but clearly this is an important indication for us and the one that we think can get an important advancement particularly if you look to go ahead and have more tailored medicines the physicians have more surety if they are going to get the intended benefit when they prescribe their use, given the fact that they have honed in on [ph] these are the products based of histology. John?
John Lechleiter - President and Chief Executive Officer
John, your question about the mental healthcare and legislation [ph] there is a House version and a Senate version; and the House version includes the pay for provision that wouldn't effect the increase rebates and we are close to that. But certainly within that legislation it's very much that we would support. So, we are really trying to see if there is a way to give the right kind of legislation through that has... that doesn't have this provision in it that you referred to.
Phil Johnson - Executive Director of Investor Relations
We'll take one more call.
Operator
That will come from the line of Ira Dan from Bear Stearns [ph]. Please go ahead.
Unidentified Analyst
Hi, this is... I am speaking for Tim Anderson. I have three questions. First what is the status of Zyprexa Depo internationally, and should we expect similar outcome in terms of safety concerns. The second question is do you have any thoughts on why FDA advisory committee has not been set up for capacity growth? And third the PDUFA Cymbalta and FMA [ph] is approaching and is this could be meaningful what do you expect in terms of regulatory clearance for this product and the syndication? Thank you.
Phil Johnson - Executive Director of Investor Relations
Thanks, Ira. We'll go ahead; I think John is going try both the Cymbalta... I am sorry the Zyprexa Depo question, the FDA outcome on why there may not be accessed to prasugrel and the Cymbalta for fibromyalgia if not we'll have Jim have that as well.
John Lechleiter - President and Chief Executive Officer
Okay Zyprexa Depo is currently under review in Europe; and at this point in time, it has not been the subject of BHMT [ph] decision. That's still in progress and we're still actively prosecuting that filing in Europe. With respect to the FDA advisory committee for prasugrel, we are really not provide the FDA would decide or would not decide to have an advisory committee, but what's very clear at this point is we have no indication from FDA that they will at this point require one.
Jim Greffet - Manager, Investor Relations
Ira, it's Jim. Regarding the fibro PDUFA date upcoming for Cymbalta in the U.S., so you are right, we are looking toward a June timeframe that would put us to the ten month clock from when we had submitted. As Deirdre has mentioned earlier part of the explanation in Cymbalta performance today is the up tick that Lirica [ph] has had from their approval for that indication. So, we are excited about the prospects that this will provide to Cymbalta. Furthermore if you think about the continue of efficacy that we have already shown with Cymbalta with the bonafiding and allergic [ph] effects with ET&T as well as the emotional effects with major depressive indication, we think that's particularly sitting in a space such as fibromyalgia. So, we feel good about the submission package; we provide one dialogue with the agency. We are hopeful for approval on things that will be meaningful benefits for the patients and to the products.
Phil Johnson - Executive Director of Investor Relations
All right. Great, thank you. Let me turn the call now back to John to wrap up the meeting.
John Lechleiter - President and Chief Executive Officer
Thank all of you for your time this morning. And let me summarize a few of our key points. We are delivering on our priorities; we concluded 2007 with accelerating sales growth, solid fundamentals, robust cash flow, and earnings at the top end of our guidance range, bringing positive momentum into 2008. This strong performance is broad based across products and geographies. We have a number of important events in 2008, including U.S. launches now in progress of Cialis for once daily use and Humalog KwikPen plus ongoing all U.S. launches of Cymbalta and Byetta; FDA action on prasugrel, Cymbalta for fibromyalgia and Alimta for first line non-small cell lung cancer; submission for prasugrel in the EU and Byetta monotherapy now completes plus Cialis for pulmonary arterial hypertension and Cymbalta for chronic pain; and the initiation of Phase III studies for our Alzheimer's candidates, plus others to come in 2008 and 2009.
In my new role of CEO, chief among my priorities are increasing the flow of innovative new therapies from our pipeline, engaging our customers in fundamentally new ways by focusing on improved outcomes for individual patients and continuing to reduce our cost base and improve quality and productivity. As already today, we have a sense of urgency to deliver strong results while also reshaping the company to win for the benefit of patients and shareholders alike.
Thank you for joining us this morning, and I look forward to continuing minor actions with our investors.
http://seekingalpha.com/article/73150-eli-lilly-co-q1-2008-earnings-call-transcript?source=yahoo
Chancicleer recently purchased two dozen (approx) Hooters restaurants for $2M each. Using that data as a reference point, it seems CPKI is fairly valued or slightly undervalued if one considers the other business elements such as frozen entrees. JMHO, DYODD, GLTA.
Kemet Earnings Conference Call (Q4 2008)
Scheduled to start Tue, May 13, 2008, 9:00 am Eastern
http://biz.yahoo.com/cc/3/91963.html
Thanks. One thing Dr. Choe mentioned on the call: TTCM has always been profitable. He also stated that he owns shares and has a stake in the company.
Great, feel free to post live updates or such. Thanks.
The new CEO seems like a great fit. JMHO, GLTA.
Hooters ..
Tuesday, March 11, 2008
Chanticleer Holdings to buy 22 Hooters restaurants
Charlotte Business Journal
A local investment company has agreed to buy 22 Hooters restaurants for $55.1 million in stock from Hooters Inc. and Hooters Management Corp.
Charlotte-based Chanticleer Holdings Inc. (OTCBB:CEEH) will have to convert from its status as a business-development company to an operating company before closing the transaction.
The closing is subject to Chanticleer raising the necessary debt and equity financing, the company says in a written statement.
Hooters was founded in 1983. In 1984, the company licensed Neighborhood Restaurants of America, now known as Hooters of America Inc., owned by a separate group of shareholders, to be its exclusive licensee in the development and expansion of its restaurant business.
In 2001, Hooters sold most of the Hooters trademarks and other related proprietary rights to Hooters of America. Florida-based Hooters, though, held on to certain rights, including a perpetual irrevocable license agreement with greatly reduced royalties. It also operated restaurants in certain territories. Chanticleer will buy those rights as a part of the transaction.
Chanticleer has an existing relationship with Hooters of America as the lead investor in a $5 million, 6 percent convertible three-year promissory note to Robert Brooks, the former chairman of Hooters of America.
Chanticleer was also granted a right of first refusal and a right to match any equity financing proposed to or sought by Hooters of America. Chanticleer holds an option agreement with Hooters of America to open Hooters franchises in the Republic of South Africa.
The entire Hooters system has 433 restaurants in 28 countries. The transaction does not include the Hooters Casino Hotel in Las Vegas.
Chanticleer Holdings is based in the SouthPark area off Barclay Downs. The company is a closed-end investment firm that that targets privately held or small- or micro-cap publicly traded companies.
--- --- --- --- ---
Hooters sold assets for ~$2M per restaurant therefore BUCA with 89 restraurants should be worth ~$180M. If we discount for debt and other obligations, BUCA should still be worth at least $95M or approx $4.50 per share. All imho, dyodd, glta.
Hi dragon man, I did not know you were following CEEH. What is your outlook? Do you think the company is overpaying for the restaurants (~$2M each)? TIA & GL
Gaining some traction lately.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24646048.htm
Thanks for the update. Will you be in on the call?
Mississippi Gaming Commission approves Penn National buyout
Thursday April 17, 5:25 pm ET
Mississippi Gaming Commission approves Penn National Gaming takeover by investment companies
WYOMISSING, Pa. (AP) -- Penn National Gaming Inc., which operates casinos and racetracks, said Thursday it received Mississippi Gaming Commission approval for its pending takeover by two investment groups.
Fortress Investment Group LLC and Centerbridge Partners LP agreed to buy the company for $67 per share in June.
The deal is expected to close late in the second quarter. If the transaction is not complete by June 15, the offer will increase by about a penny per share per day.
Shares rose 31 cents to close at $40.36.
Novellus First Quarter 2008 Earnings Conference Call
Scheduled to start Mon, Apr 21, 2008, 4:30 pm Eastern
http://biz.yahoo.com/cc/0/92380.html
Top Five Large-Cap Stocks: April 16
http://www.thestreet.com/_yahoo/newsanalysis/ratings/10412133.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA" target="_blank">http://us.rd.yahoo.com/finance/external/tsmfe/SIG=124caukhv/*http://www.thestreet.com/_yahoo/newsanalysis/ratings/10412133.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Brush Engineered Materials First Quarter 2008 Earnings Conference Call Scheduled to start Thu, Apr 24, 2008, 10:00 am Eastern
http://biz.yahoo.com/cc/9/92119.html
http://www.reuters.com/article/marketsNews/idINDEL3297520080417?rpc=44
NEW DELHI, April 17 (Reuters) - India's leading drug makers
should report rises in quarterly earnings on strong generic
drugs sales, with the exception of Dr Reddy's Laboratories
(REDY.BO: Quote, Profile, Research) whose profit is seen falling sharply due to one-time gains in last year's earnings. Cheaper generic drugs are becoming increasingly popular as
governments around the world battle to contain soaring
healthcare costs, but export-driven Indian pharmaceutical firms
are facing challenges of stiff pricing pressure in the United
States. Analysts are upbeat about the outlook for the sector as
drugs with annual U.S. sales of $50 billion are expected to go
off patent by 2010, creating more opportunities for Indian
firms to sell generic versions or cheap copies of branded
products. "We believe that the worst is over for Indian generic
companies and expect gradual improvement in their performance
over the next two years," Motilal Oswal Securities said in a
report. An increased focus on the domestic market, which is
expected to maintain the 12-14 percent growth rate of recent
years, should help drug makers in the long term, Prabhudas
Lilladher said. Ranbaxy Laboratories (RANB.BO: Quote, Profile, Research), India's top drug maker by sales, is expected to post a 15.5 percent rise in March quarter sales when it reports on Tuesday, but higher interest costs and lower other income mean its profit will rise by just 2.3 percent on year to 1.32 billion rupees, according to a Reuters poll. (See bottom of story for company valuation, share price movement and a table of forecasts) Goldman Sachs, which maintains a strong outlook for the sector in the financial year that began on April 1, estimates
average industry sales growth to be 21 percent from a year
earlier, more than its previous forecast of 16 percent. The Indian rupee weakened by 1.7 percent against the dollar in the March quarter, after rising more than 12 percent in 2007, which could have led to some foreign exchange hedging losses, analysts said. New York-listed Dr Reddy's (RDY.N: Quote, Profile, Research) is expected to report a 64 percent fall in net profit, as earnings a year earlier were boosted by one-time gains from a 180-day exclusivity period for the generic version of GlaxoSmithKline's (GSK.L: Quote, Profile, Research) anti-nausea
drug Zofran. The company also faces pressure on its business in Germany, where it acquired Betapharm for $572 million in 2006. The acquisition has been a drag on earnings because of supply
constraints and the appreciation of the rupee. Sun Pharmaceuticals (SUN.BO: Quote, Profile, Research), India's most valuable drug maker, is expected to report its net profit rose 15 percent to 2.65 billion rupees, buoyed by sales of oxcarbazepine tablets, a generic form of Novartis AG's (NOVN.VX: Quote, Profile, Research) epilepsy drug Trileptal. Sun shares exclusive U.S. marketing rights with Indian peer Glenmark Pharmaceuticals (GLEN.BO: Quote, Profile, Research) for the drug. Cipla Ltd (CIPL.BO: Quote, Profile, Research) is expected to report a 39.4 percent rise in net profit on revenue growth of 9.6 percent, helped by higher exports. Pharmaceutical stocks outperformed the main index in a falling market during the January-March quarter, with the BSE healthcare index falling 13 percent, versus a 23 percent drop in the benchmark index .BSESN.
continued....
American Dairy Files Lawsuit Against Former Auditors
Friday April 18, 4:01 pm ET
BEIJING, April 18 /PRNewswire-FirstCall/ -- American Dairy, Inc. (NYSE: ADY - News), one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, announced today that it has filed a lawsuit against its former auditors Murrell, Hall, Mcintosh & Co, LLP ("MHM") and Henny Wee & Co. ("HW").
As previously reported, in the third quarter of 2007, American Dairy received a letter from the Division of Enforcement of the Securities and Exchange Commission (the "Commission") indicating that the Commission is conducting an informal investigation and requesting that the Company produce certain documents and information. Substantially all of these requests related to the individuals and entities that provided accounting or certain advisory services to American Dairy, including MHM and HW. In performing its audits of the Company's year end financial statements, MHM relied on the audit field work of HW, an affiliated firm in Hong Kong. The Company dismissed MHM as its independent registered public accountants in December of 2007.
The complaint, filed in United States District Court in the Western District of Oklahoma, alleges that MHM breached its duties of due care and professional competence by failing to perform its audits of American Dairy in accordance with professional standards of care, in that MHM improperly and negligently (i) accepted HW's representation that it was independent and otherwise failed to make sufficient inquiries concerning HW's independence, and (ii) permitted HW to perform such a significant and material part of the audit work such that MHM should have evaluated whether it could act as principal auditor and report on the Company's financial statements.
The suit seeks to recover compensatory damages of no less than $10.0 million.
About American Dairy, Inc.
American Dairy, Inc. conducts operations in The People's Republic of China ("China") through its wholly owned subsidiary, Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of branded, premium infant formula, milk powder and soybean, rice and walnut products in China. Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Shanxi, and Langfang. http://www.americandairyinc.com or http://www.feihe.com.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Potential risks and uncertainties are set forth in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
CONTACT
In the U.S.:
Integrated Corporate Relations, Inc.
Ashley Ammon MacFarlane and Wei-Jung Yang
203-682-8200
Sector Snap: Chip makers waver after weak AMD results
Friday April 18, 1:15 pm ET
Shares of semiconductor stocks waver after weak AMD results, worrying equipment sales data
NEW YORK (AP) -- Semiconductor stocks wavered Friday, missing the technology sector boost provided by strong Google Inc. results as Advanced Micro Devices Inc. reported a weak quarter.
Furthermore, an industry trade group published discouraging data on sales of semiconductor manufacturing equipment.
The chip sector, as measured by the Philadelphia Semiconductor Index, slid 2.74 points to 368.28 in midday trading, while the Nasdaq Composite Index rose 2.3 percent.
Oppenheimer & Co. analyst Rick Schafer said in an investor note that AMD's results point to continued market share los for the chip maker. He advocated a cautious stance on AMD, noting "strong momentum from a revitalized Intel."
AMD shares slipped 4 cents to $6.15, while shares of leading chip maker Intel rose 43 cents to $22.54.
Elsewhere, shares of Emcore Corp. lost 2 cents to $6.97 following the chip maker's analyst day.
Oppenheimer & Co. analyst Sam Dubinsky said in an interview that the stock is now in "show me mode" and that it's time for the company to delivery on numbers, particular in its solar sector.
Meanwhile, trade association Semiconductor Equipment and Materials International reported that in the three months ended in March, orders for North American chip manufacturing equipment fell 18 percent year over year amid economic uncertainty.
Shares of the world's largest supplier of chip manufacturing equipment, Applied Materials Inc., edged up 15 cents to $19.32. KLA-Tencor Corp. added 29 cents to $42.84 and Novellus Systems Inc. rose 36 cents to $22.49.
Sierra Bancorp Declares Quarterly Cash Dividend
Friday April 18, 6:37 am ET
PORTERVILLE, Calif., April 18 /PRNewswire-FirstCall/ -- Sierra Bancorp (Nasdaq: BSRR - News), parent of Bank of the Sierra, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.17 per share, which is the same as the dividend paid last quarter but represents a 13% increase relative to the $0.15 quarterly dividend paid a year ago. The dividend will be paid on May 15, 2008 to shareholders of record as of May 1, 2008.
Sierra Bancorp is the holding company for Bank of the Sierra (http://www.bankofthesierra.com), which is in its 31st year of operations and is the largest independent bank headquartered in the South San Joaquin Valley. The Company has over $1.2 billion in total assets and currently maintains 21 branch offices, an agricultural credit center, an SBA center, and an online "virtual" branch. In January 2008, Sierra Bancorp was recognized as the 2nd best performing mid-tier bank in the nation and the 6th bank overall by U.S. Banker magazine, based on return on equity.
The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the bank's ability to maintain current dividend payments or increase dividend payouts to shareholder, its ability to continue to generate record financial results, changes in economic conditions, interest rates and loan portfolio performance, and other factors detailed in the Company's SEC filings. Sierra Bancorp undertakes no responsibility to update or revise any forward-looking statements.
--------------------------------------------------------------------------------
Source: Sierra Bancorp
Micrel shareholder plans to nominate board members
Friday April 18, 1:48 pm ET
Obrem Capital Management sends Micrel notice it plans to nominate candidates to board
SAN JOSE, Calif. (AP) -- Micrel Inc., a producer of circuits, said Friday its has received notice from an outside shareholder of its plans to nominate directors for the company's board.
Micrel received a notice from Obrem Capital Management LLC that it plans to nominate directors for election during the company's 2008 annual shareholders meeting.
Obrem Capital is one of Micrel's two largest shareholders, according to Thomson Financial.
Last month, Obrem called for a special meeting of shareholders as it looks to create better value for shareholders. That meeting is scheduled for May 20. Micrel has created a dedicated Web site to provide shareholders with details about the meeting and to ask shareholders to vote against Obrem Capital's proposals.
At that special meeting, Obrem will ask shareholders to expand the board to six members and elect its slate of candidates.
The board currently has five members.
Micrel said its nominating and corporate governance committee will review the request.
Micrel shares rose 45 cents, or 4.8 percent, to $9.84 in afternoon trading. The stock is down 25 percent in the past 52 weeks.
(This version CORRECTS the number of board members the company currently has to five.)
http://biz.yahoo.com/ap/080418/micrel_personnel.html?.v=3
Kimber re-commences exploration drilling at Monterde
Tuesday April 1, 8:40 am ET
VANCOUVER, April 1 /PRNewswire-FirstCall/ - Kimber Resources Inc. (AMEX:KBX, TSX:KBR) is pleased to report that diamond drilling has commenced on its Arimo target on Kimber's 100% owned Monterde property in the prolific Sierra Madre gold-silver belt of Mexico. The Arimo target, located approximately three kilometres southwest of Kimber's Carmen gold-silver deposit, is an 800 metre long zone of intensively silicified hydrothermal breccia. Arimo is located along the southwesterly dipping contact between overlying felsic volcanic rocks and underlying andesite flows and tuffs, an environment favourable for the discovery of gold-silver mineralization. A program of eight holes, totaling 1,550 metres, is planned on the Arimo structure. A similar, parallel structure (known as Cerro la Mina), located less than one kilometre to the northeast of Arimo will also be drill tested with three core holes totaling 1,000 metres once the initial drilling is completed at Arimo. Drills are being provided by Major Drilling de Mexico.
"We are delighted that drilling at Kimber's Monterde gold-silver project has re-started, ahead of schedule," said Gordon Cummings, President and CEO of Kimber Resources. "The drill targets at Arimo and Cerro la Mina exhibit anomalous geological features, are lower in the stratigraphy than the rhyolitic host rocks at Carmen (a setting favourable for the discovery of gold-silver mineralization based on other deposits in the prolific Sierra Madre gold-silver belt), and neither target has been drilled before. A second diamond drill is due to arrive at Monterde within the next three weeks to test the depth potential of the Carmen structure, by drilling at depths of 100 metres or more below any previous intersection. This is an exciting period for us at Kimber as we embark on an aggressive exploration program at Monterde aimed at expanding resources at our existing deposits and discovering entirely new ones."
About Kimber
With the recent addition of the new Setago concessions, Kimber owns mineral concessions covering in excess of 39,000 hectares in the prospective Sierra Madre gold-silver belt, including the Company's Monterde property, where three gold-silver deposits have already been identified. The most advanced of these, the Carmen deposit, has been extensively drilled and is currently undergoing detailed geologic modeling in order to evaluate the potential for a combined open pit and underground mining operation based on current resources. Further, reconnaissance exploration carried out in 2007 has identified a number of new exploration targets on Kimber's properties in the Sierra Madre. In addition, the Company has a 100% interest in the mineral concessions of its Pericones property, an 11,890 hectare property targeted for silver, located approximately 100 kilometres southwest of Mexico City.
Cautionary Statement
Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking statements and the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.
CONTACT: Matthew Hamilton, Manager of Investor Relations; Gordon Cummings CA, President and CEO, North America Toll Free: 1-866-824-1100, Tel: (604) 669-2251, Fax: (604) 669-8577; Website: http://www.kimberresources.com, Email: news@kimberresources.com
--------------------------------------------------------------------------------
Source: Kimber Resources Inc.
http://www.guardian.co.uk/business/2008/apr/18/commodities.oil
Oil price record triggers £1.6bn private equity buyout of UK specialist
Veteran oilman Pickens predicts $125 a barrel
Expro sold in crunch-defying takeover scramble
Larry Elliott and Terry Macalister The Guardian, Friday April 18 2008 About this articleClose This article appeared in the Guardian on Friday April 18 2008 on p29 of the Financial section. It was last updated at 00:23 on April 18 2008. Oil prices could hit $125 a barrel over the coming weeks amid fears of supply shortages and a continued fall in the value of the dollar, one leading investor said last night. The soaring price of crude, which reached another new record of $115 yesterday, has triggered a buyout scramble in the sector with oil services specialist, Expro International, announcing a £1.6bn takeover by Candover and other private equity groups.
T Boone Pickens, a veteran oilman who now heads the BP Capital hedge fund, said the cost of crude was moving to a substantially higher level after it touched $115.54 at one point in London trading.
Profit-taking later saw oil prices fall by a dollar to $114.53, but Pickens said the trend was for crude to go higher. "It will go up," he said.
The price of Brent crude rose for the third day as traders responded to reports from the US suggesting that low stocks of gasoline could affect the "summer driving season". Hedge funds have also been heavy buyers of oil and other commodities in response to the dollar's continued weakness on the foreign exchanges.
Crude prices are more than five times higher than they were even in 2002, with some analysts arguing that peak oil - the maximum rate of production - is close at hand. Reports this week have suggested that two big producers, Russia and Nigeria, may have reached their peak oil point although Brazil lightened the gloom by announcing that companies there had made a large oil discovery.
Both the oil cartel, Opec, and many traditional oil analysts say there is enough oil around to meet all eventualities. They blame hedge funds and other speculators for driving the price up to heights that no one expected.
The soaring value of oil services firms in the current high crude price environment was underlined by the Expro deal. Shares in the Reading-based company raced ahead 10% to 1,462 pence - a 55% premium to the closing price on February 28 when the company announced the approach. However, the City still anticipated that other parties may come in with a higher offer.
Candover said it had formed a new company, Umbrellastream, with Goldman Sachs Capital Partners and AlpInvest Partners to buy Expro, which provides well testing and other oil and gas production services to leading companies.
"Umbrellastream's cash offer provides Expro shareholders with certain value today and fairly reflects both the value that has been created during this period and the future potential of the group," said Chris Fay, the former Shell executive who is now chairman at Expro.
Earlier expressions of interest are reported to have been made by US buyout specialist Kohlberg Kravis Roberts (KKR) and a French oil services rival, Technip, which declined to comment but could yet come in with an attempt to break up the Candover deal.
Candover has previously bought and sold stakes in oil and gas services firms Vetco International, Wellstream and other companies.
Referring to the Expro share price, Craig Howie, analyst at Blue Oar Securities, said: "People are factoring in a competing offer being made." Keith Morris, at Evolution Securities, said that if Candover or KKR did succeed in buying Expro, the move could be expected to trigger more private equity firms switching into the buoyant oil and gas services sector at a time of a slump in other sectors due to the credit crunch and consumer downturns.
"It's a good place to be," he said.
http://www.independentfreepress.com/news/article/47085
Tough economy forces CPI job cuts
Friday April 18 2008
Tough economic conditions and the high value of the Canadian dollar are being blamed for a reduction of staff last week at CPI in Georgetown.
CPI president Joe Caldarelli said the high Canadian dollar is making CPI's products "less attractive."
He would not say how many employees have lost their jobs, but that it was less than 30, and that they were a combination of full and part-time and casual staff.
Caldarelli said the employees were from various areas at the company located on River Dr.
He said the company had been adding staff for most of the past 10 years and couldn't recall the last time there had been layoffs. He stressed CPI had no plans for any further cuts.
CPI manufactures and markets microwave communication products, millimeter-wave products, and x-ray generators for medical imaging.
Follow the Money
With the winning bid for the Hudson Rail Yards announced, the author takes a critical look at the flawed selection process.
By Stephen Zacks
Posted March 31, 2008
If architecture critics have any influence or intend to serve as advocates for public policy decisions or the choice of developers on public land, they pretty seriously missed the boat on the project planned for the Hudson Rail Yards, 26-acre section of the 350-acre Hudson Yards development between Penn Station and Hell’s Kitchen. Like most major projects in New York that involve public land, the development strategy was inevitably going to need to minimize the use of public funds through some kind of private investment. Nobody was suggesting that it was wrong for the MTA to leverage the land to offset the huge cost of a subway extension, a prerequisite to creating a new district in the city that has the added benefit of making the Javits convention center suddenly less remote from public transport. And the developers of the site were happy to kick in for the cost of building a platform over the functioning Long Island Railroad train yard—$2 billion by itself—and adding a gigantic park in the middle that would take up half of the site. The problem with West Side rail yard development, according to the critics, was scale. And by scale, they meant tallness.
Ever since Jane Jacobs valiantly fought off Robert Moses’s highway through Washington Square Park, scale has been the bugbear of the high-minded urban critic. It’s a key complaint about the Atlantic Yards development in Brooklyn; the rezoning of the north Brooklyn waterfront to facilitate a promenade and public parks rather than industrial waste and trash collection; and it even figured—improbably—into discussions of the World Trade Center site. When you hear the word scale, reach for your gun, as Mao might have said.
Not every neighborhood has to look like Greenwich Village. In fact, if they tried to put another Greenwich Village on top of the Hudson Yards, we could reasonably expect critics to complain about historical pastiche. They would be right. But more gravely, the underdevelopment of the site, one of the few areas where enormous buildings would have almost no effect on site lines or quality of life in the surrounding neighborhoods, would be absurd land-use planning, and a major lost opportunity for economic growth and new architectural landmarks in the city.
For all the overheated rhetoric surrounding the few high-rises cropping up on the Lower East Side and the Williamsburg waterfront—and even, improbably again, Times Square—New York is growing slowly relative to Beijing, Moscow, Dubai, and countless other cities. We certainly don’t look forward to a time when historic neighborhoods are razed to create skyscraper cities. But investment is a hugely important part of a thriving city, and New Yorkers are fortunate to be able to pick and choose what kind and size of investment we prefer.
In most places, if anyone wanted to drop some billions of dollars into the expansion of the central business district, you could expect a fair amount of excitement and no end of crowing ceremonies on the part of city leaders. Here we had five teams of banks, developers, architects, and other designers fighting for the chance. And in all likelihood—barring an economic catastrophe far greater than hundreds of billions of dollars in stupid and poorly regulated mortgage loans—the winner will eventually double their money by the time all is said and done. (It’s worth recalling that the size of the U.S. economy was nearly $14 trillion last year.)
Despite the sometimes heady presentations of architecture and planning schemes at Cooper Union and in a gallery across from Grand Central, the MTA always made it clear that they would be voting on a development scheme for the site, not an architectural scheme, though there was very little transparency in terms of what the basis for its evaluation would be. None of the teams were permitted to put a dollar figure on the amount of investment they were proposing, at least publicly. Given the historic infiltration of the construction industry, someone should perhaps look into a conspiracy behind its selection of Tishman Speyer’s proposal with Helmut Jahn and Peter Walker, the only criminally bad architectural plan proposed. During the embarrassing initial presentation I noted to myself its fascistic symmetry and grandiosity, which I don’t mean as a slam against the German-born architect so much as a slam on fascistic symmetry and grandiosity. But, again, architecture was never the point, and the clumsy presentation seemed to acknowledge that.
Presumably the MTA was looking for a developer who actually had the financial resources to pony up for the land and build the project, which automatically excluded the anemic proposal by Extell Development and Steven Holl Architects, in any case a completely rhetorical plan lacking in detail and mostly intended as a kind of finger in the eye of large-scale development. Its gray military bastions huddled at the edges would have had the advantage for Holl of not obscuring his view of the Hudson River from his office on 31st Street but hugely undersold the site’s potential in terms of size and signature buildings. Times critic Nicolai Ouroussoff—posing as the social conscience of a profession that likes to flatter itself by pretending to have a conscience—bought into it hook, line, and sinker, as it were, appearing to recoil against the very idea of profit-taking in real estate. One would have to be a slightly nuanced urban critic to begin from the point of view that profits and public interest are not necessarily in opposition—that the use of the market to promote the public good is how pretty much everything worthwhile gets done—and a somewhat more nuanced architecture critic to do more than celebrate this merely rhetorical proposal in contrast to the genuine corporate trash.
For what it’s worth, I was always somewhat a fan of the eclectic proposal by Brookfield Properties with its hit list of contemporary architects, urban designers, and landscape architects, a truly spectacular assortment of inventive practices that included Thomas Phifer, SHoP, Diller Scofidio, SANAA, Field Operations, and Handel Architects, anchored by the skyscraper specialists at SOM, with Buro Happold on board for engineering. It had a thoughtful approach to the integration of the High Line, which extends into the site, in a way that fluidly merged the two districts, with smart planning along the border as a transition to a cultural center by the Japanese wizards at SANAA, and the ingenious landscapes of James Corner and the bolder meat-and-potatoes architecture in the middle. Clearly Brookfield too lacked the financial wherewithal to compete with the big banks, however, dropping out before a decision was announced, reportedly to focus on one of the adjacent sites that will be developed in a separate bid.
But I was also not totally apoplectic about the similarly eclectic but squarely middle-brow plan—mishmash is probably the word—by Kohn Pedersen Fox, Arquitectonica, Robert A.M. Stern, and West 8 for Goldman Sachs and the Related Companies, despite the latter’s history of defacing major public squares with clunky buildings like One Union Square South, the Astor Place condos, and the Time Warner Center. It would have turned the park into an instrument of branding for News Corp, but I don’t have that much of a problem with corporations per se and Rubert Murdoch owns a lot of classic movies that they were planning on showing on a big screen. FxFowle’s project with Pelli Clarke Pelli for Durst Vornado could have reliably been expected to more than fulfill the sustainable building promises made by all bidders—in accordance with the new PlaNYC guidelines— with a workman-like but pretty generic and inoffensive office-park architecture. In any case, all of this is moot, since the bottom line was always the bidding process taking place behind closed doors. Follow the money, as someone supposedly once said. Instead of architecture critics and tastemakers parsing aesthetics, we needed real estate and city room reporters to dig a little. The high-rise haters would have done much better to look for a rat behind the scenes (maybe a hooker scandal among the board members).
But so what if the MTA did in fact choose the developer based on how much they were willing to pay for the land? That’s the purpose of a competitive bidding process, greatly preferable to politicians handing out deals to connected insiders, as the Times noted on its editorial page. How do you quantify the value of a better urban design scheme, more sustainable features, better integration of the High-Line, more inspiring skyscrapers? A hundred twelve million dollars for a skyscraper aiming for LEED Platinum, as the outbid Durst Vornado partnership proposed? Five hundred million for city control of the site, as it offered? How much of a fare hike would New Yorkers be willing to pay for each improvement—in an area that most of us have never set foot and are unlikely ever to go? And how much profit or potential loss is publicly acceptable on an investment of untold billion dollars over the course of maybe 20 years?
Without a more transparent process it’s almost impossible to judge, but the World Trade Center competition suggests that more public involvement is not necessarily the answer. What seems clear is that shadowy agencies like the MTA and Port Authority, originally established to balance the competing interests of various states and cities in the metro region—there are at least five Pataki appointees still on the MTA Board—are ill-equipped to deal with these kinds of projects. I personally would have hoped that the critics, if their opinions mattered, had pushed for more ambition not only in terms of style but also size, something to compete with the gigantic carbon-neutral cities breaking ground in Abu Dhabi and the supertall buildings under construction in Dubai, even if that meant having to come to terms with the shocking prospect of somebody making a profit from real estate in New York.
http://www.metropolismag.com/cda/story.php?artid=3244
http://en.wikipedia.org/wiki/Tofutti
Good read imho.
Not sure, sorry I cannot be more helpful.
Have a great weekend Spark and everyone else.
Aloe Vera: the Homicide of Hair Loss
Ryan English
Los Angeles Chronicle
April 15, 2008
So you´re going bald. Maybe you are even already bald. Well, there´s millions things you can do. You can elect for surgery, take the medications, and use the laser hair therapy. You´ve even tried lemon juice and an assortment of other natural cure-alls. Well, have you tried Aloe Vera? It´s natural and proven to help with hair loss and hair rejuvenation.
Many people use Aloe Vera for thicker and healthier hair. It works. You can apply it to any part of the scalp and it can promote hair re-growth or prevent hair from falling out. Aloe contains anti-inflammatory which help stop hair loss. There are a lot of people out there that just don´t believe such a cheap and easy to use product can prevent hair loss. Native Americans have been using this product for centuries and you very rarely see a Native American that is bald or that has a bad head of hair. They are known for their full and shiny heads of hair.
Large amounts of money are spent on hair rejuvenation products with no results or some nasty side effects. People just don´t believe such an affordable thing you can buy at the super market can re-grow hair or prevent you from losing it in the first place.
Aloe Vera is found in many shampoos and conditioners. It can be rubbed in and left for a bit of time and rinsed out and it will help make your hair healthier and keep those wonderful follicles producing hair.
It can be used to lose stress as well. It helps the blood flow to the hair. You may already be using it in your brand named shampoo or conditioner and just don´t know it. This herb is a wonderful thing that can keep you from buying wigs or doing that super comb over we all love to look at.
An Aloe Vera gel containing coconut milk with a small amount of wheat germ oil used as a shampoo can promote healthy hair and hair growth and maintenance. Aloe Vera conditioners contain the right amount of natural herbs and oils and with proper use help out your hair so much it is indescribable. Each one is pH balanced, prepared without alcohol, and petroleum based ingredients. Aloe Vera jojoba helps you to have healthier and shinier hair.
I hope you got as much out of reading this article as I got out of writing it. It is obvious that Aloe Vera products are good, not only for the person losing hair, but even for the person that just wants to have a nice, healthy and shiny head of hair. It is such an affordable and simple solution there´s no reason you shouldn´t go out and grab some right now. There´s no reason not to try other solutions, but Aloe Vera can definitely help, even if you´re not going bald.
http://www.losangeleschronicle.com/articles/58482
You could be right. Shocking to see this stock trading so low. Looks like a great value unless Gordon is planning to full a fast one on the sh's which I highly doubt. I wonder what the Mass AG is up to? Something must be holding us back especially considering the multiple good news. The company should release a 10-K or other financial update. They owe the sh's that much. A sh revolt is not out of the question. All imho, dyodd, glta.
The share structure data was found in the latest filing btw. www.sec.gov Have a good weekend buddy, hope next week is a fun one.
Agree 100%. Won also mentioned this during our long conversation. He said that 50% of Chinese cities do not have adequate water supplies. Cathay is still very rural, a developing country. Most of TTCM's growth is coming from water diversion / flood control. All imho.
I just called Dr. Won-Gil "Won" Choe. He will not allow a visit because he does not want to run the risk of legal objections (inside information). He also mentioned that folks have visited in the past and then made up stories and posted them online.
We had a 20 minute conversation. He did not answer all the questions but here is a summary:
TTCM China:
Not involved in military projects - not sure about the uniforms in the company videos.
Growing segment: water diversion
No trouble getting orders - little marketing effort
Sold some pipes to the Middle East several years ago
Receiving interest from overseas customers
Shipping the pipes is impractical - local
operations/factories/shops are set up - done frequently by TTCM
Plenty of jobs in the backlog - many projects get delayed 2-3 years in China
Working to diversify - small acquisitions already announced
Smart card - R&D phase, not ready for commercial use
CEO is a former military officer (may be on the website or PR's, sounds familiar).
Won is an officer of the company but has little control of the company.
The company does not provide share updates - contact the transfer agent for the information. I asked, "Why is the TA gagged?" Won said if you call the TA they will give the AS and OS.
Wang from TTCM is not Andy Wang of Netcert - absolutely no relation.
How does TTCM China see the Chinese water sector developing in relation to the current TTCM China business model? Answer - long winded answer. We are in the right place at the right time (summary).
What is the financing situation? Does TTCM China have adequate working capital, liquidity and monies available? Answer - adequate funds. Funding large projects can be problematic but overall liquidity is fine for 6-12 months (my intepretation of his comments).
What is the rev projection for 2008? - Forgot to ask that one.
Overall, Won seems to be a trustworthy character. He said his feelings were hurt by the harassing phone calls and internet postings. Won has served as CFO for several NASDAQ listed companies.
ALL IMHO DYODD GLTA