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Monday, Oct. 29
Vulcan Materials profit slips, sees more housing drag(7:48 pm ET)
SAN FRANCISCO (MarketWatch) -- Vulcan Materials, Inc. (VMC: news, chart, profile) , the largest producer of construction aggregates in the United States, said late Monday net income in the third quarter edged down to $135.4 million, or $1.38 a share, from $135.7 million, or $1.39 a share, in the year-ago quarter. Profit in the most recent quarter included a 9 cents a share loss from discontinued operations. Earnings from continuing operations were $144 million, or $1.47 a share. Analysts polled by Thomson Financial were anticipating earnings from ongoing operations of $1.59 a share. Sales slipped 0.4% to $844.9 million, also missing views of $952.4 million. The Birmingham, Ala. company said it expects aggregate volumes in the fourth quarter will continue to be "hampered" by a downturn in residential construction and plans to close its acquisition of Florida Rock Industries (FRK: news, chart, profile) then. Ahead of the report, shares closed 0.4% higher at $88.56. (Adds earnings from continuing operations.)
EOG Resources profit falls 32% (5:01 pm ET)
SAN FRANCISCO (MarketWatch) -- Natural-gas and oil producer EOG Resources Inc. (EOG: news, chart, profile) posted late Monday third-quarter net income of $202.4 million, or 82 cents a share, down from $297.3 million, or $1.21, a year ago. Revenue for the three months ended Sept. 30 was $990.5 million, up 2.3% from $968.7 million a year ago. Analysts polled by Thomson Financial had forecast the Houston-based company would earn 79 cents a share on $971 million in revenue. Shares of EOG Resources rose 0.7% to $82.51 ahead of the report. The stock is up about 31% so far this year.
Pitney Bowes profit falls 14%, warns for 4Q(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Postage-meter maker Pitney Bowes Inc. (PBI: news, chart, profile) on Monday posted a third-quarter profit of $127.7 million, or 58 cents a share, down from $148.6 million, or 67 cents a share, a year earlier. Excluding tax and impairment charges, earnings per share from continuing operations came in at 63 cents. Sales rose 5% to $1.5 billion. Analysts polled by Thomson Financial were looking for a profit of 74 cents a share on sales of $1.56 billion. For the fourth-quarter, the company said it expects to post a profit of 67 cents to 71 cents a share, excluding charges. Wall Street previously forecast earnings of 84 cents a share. The stock fell 11% to $41.98 in after-hours trades.
Hanover quarterly net jumps 61%; new buyback unveiled(4:39 pm ET)
SAN FRANCISCO (MarketWatch) -- The Hanover Insurance Group Inc. (THG: news, chart, profile) said late Monday that third-quarter net income came in at $53.9 million, or $1.03 a share, up 61% from a year earlier when the insurer made $33.4 million, or 65 cents a share. Segment income, which excludes net realized investment gains and losses and some other items, was $53 million, or $1.01 a share, the company reported. The company was expected to make $1 a share, according to the average estimate of seven analysts in a Thomson Financial survey. Hanover also unveiled a new $100 million share buyback.
Principal quarterly net falls; operating profit jumps(4:23 pm ET)
SAN FRANCISCO (MarketWatch) -- Principal Financial Group (PFG: news, chart, profile) said late Monday that third-quarter net income came in at $240.5 million, down from a year earlier when the 401k specialist made $259.2 million. Net income available to common shareholders was 87 cents a share vs. 92 cents a share. Operating earnings, which exclude net realized investment gains and losses, came in at a record $312.9 million, or $1.17 a share, vs. $254.7 million, or 94 cents a share, a year ago, the company reported. Principal was expected to make $1 a share in the period, according to the average estimate of 11 analysts polled by Thomson Financial.
Energy stocks gain after oil breaks $93 a barrel(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks moved up Monday along with the overall market after oil futures broke through $93 a barrel for the first time on jitters over a production cut in Mexico on bad weather. The Amex Oil Index (XOI: news, chart, profile) rose 0.5% to 1,513. The Amex Natural Gas Index (XNG: news, chart, profile) advanced 0.2% to 561.4 Petro China (PTR: news, chart, profile) rose $2.69 to $249.16 after it priced its Shanghai initial public offering at the top of its range. Western Refining (WNR: news, chart, profile) rose 3% to $39.41 after it was upgraded to neutral from sell at UBS. Oil States International (OIS: news, chart, profile) fell 1% to $42.36 after it was downgraded to neutral from buy at Oppenheimer. Tesero (TSO: news, chart, profile) fell 1.3% to $63.62, giving back some of its gains in the previous session on an offer from Kirk Kerkorian to buy a chunk of the company.
Grey Wolf net income dips(9:28 am ET)
NEW YORK (MarketWatch) -- Grey Wolf Inc. (GW: news, chart, profile) on Monday said third-quarter net income fell to $35.6 million, or 17 cents a share, from $55.3 million, or 25 cents a share in the year-ago period. Revenue fell to $224 million from $242.7 million. Analysts surveyed by Thomson Financial forecast earnings of 18 cents a share, on average.
Natixis Bleichroeder eyes oil oversupply amid record prices(8:56 am ET)
NEW YORK (MarketWatch) -- Natixis Bleichroeder Inc. on Monday said in a note to clients that oil prices above $90 a barrel may not be justified by supply data. "The oil price move to record territory has been accompanied by some geo-political issues, continued inventory draws and very aggressive buying by non-commercial speculators," Natixis said. "That said, we are less than certain that the fourth-quarter oil market undersupply condition of roughly 1.1 million barrels a day justifies prices above $90 a barrel." In recent trades, oil futures on the Nymex rose 74 cents to $92.60. Earlier, oil futures moved past $93 a barrel for the first time amid a production halt in Mexico on inclement weather.
Loews Corp. third-quarter income falls(8:50 am ET)
NEW YORK (MarketWatch) -- Loews Corp. (LTR: news, chart, profile) said Monday that its third-quarter net income fell to $555.7 million, or 77 cents a share, from a year-earlier profit of $635.1 million, or 94 cents a share. Revenue rose 5.2% to $4.70 billion from $4.47 billion a year ago. Net income attributable to Carolina Group (CG: news, chart, profile) improved to $145.7 million, or $1.34 a share, from $117.9 million, or $1.17 a share, a year earlier. Carolina Group revenue rose to $1.04 billion from $986 million.
Washington Group net up 29%; affirms year outlook(8:38 am ET)
TEL AVIV (MarketWatch) -- Washington Group International Inc., (WNG: news, chart, profile) the Boise, Idaho, engineering and construction firm, reported third-quarter net income jumped on 29% higher revenue. Net reached $36.4 million, or $1.17 a share, from $4.3 million, or 14 cents, in the year-earlier period. Adjusted net was $1.22 a share in the latest period; that's shy of the company's mid-October estimate of $1.25 to $1.38 a share because WNG took a $2.5 million charge for a fixed-price highway project. Revenue rose to $1.06 billion from $824.4 million. A survey of four analysts by Thomson Financial produced a consensus estimate of $1.21 of earnings. Washington Group reiterated its outlook for the year.
Ashland Q4 net income falls sharply (8:31 am ET)
NEW YORK (MarketWatch) -- Ashland Inc. (ASH: news, chart, profile) on Monday said fourth-quarter net income fell sharply to $32 million, or 51 cents a share, from $200 million, or $2.82 a share in the year-ago period, which included $144 million in discontinued operations for its Apac business. Operating income fell slightly to $26 million from $28 million in the year-ago period. Revenue rose to $2.1 billion from $1.9 billion. Analysts surveyed by Thomson Financial forecast earnings of 72 cents a share, on average. The Covington, Ky. chemical products firm said it's "disappointed" by the results. "Weak conditions in the North American building and construction markets and a difficult environment in the transportation markets have challenged Ashland Performance Materials and Ashland Distribution all year and especially in the fourth quarter," the company said.
Hertz 3rd-quarter earnings up 51%, revenue up 9.3%(7:53 am ET)
TEL AVIV (MarketWatch) -- Hertz Global Holdings Inc., (HTZ: news, chart, profile) the Park Ridge, N.J., car-rental company, reported third-quarter net income rose 51% on 9.3% higher revenue. Earnings reached $162.7 million, or 50 cents a share, from $107.5 million, or 46 cents, in the year-earlier period. Adjusted net income was 65 cents vs 48 cents. Shares outstanding rose 41% to 327.5 million. Revenue reached $2.45 billion from $2.24 billion. A survey of analysts by Thomson Financial produced consensus estimates of 57 cents a share of profit on $2.38 billion of revenue.
Schnitzer Steel Industries net income falls 24%(7:48 am ET)
NEW YORK (MarketWatch) -- Schnitzer Steel Industries Inc. (SCHN: news, chart, profile) on Monday said fourth-quarter net income for the three months ended Aug. 31 fell to $38 million, or $1.28 a share from $50 million, or $1.62 a share in the year-ago period. Revenue rose to $749 million from $605 million. Adjusted net income fell to $1.28 a share from $1.58 a share. Analysts surveyed by Thomson Financial forecast earnings of $1.35 a share, on average.
Winn-Dixie posts quarterly loss(7:39 am ET)
NEW YORK (MarketWatch) - Winn-Dixie Stores Inc. (WINN: news, chart, profile) on Monday posted a fiscal first-quarter loss of $790,000, or 1 cent a share. The company, which recently emerged from bankruptcy, said its predecessor company lost $24.6 million, or 17 cents a share, in the year-ago period. Net sales rose to $1.62 billion from $1.61 billion. Identical-store sales from continuing operations rose 0.2%. The grocery-store operator said identical-store sales for fiscal 2008 are expected to be slightly positive. Gross margin in fiscal 2008 is expected to be slightly higher than in fiscal 2007. Winn-Dixie's financial results in fiscal 2008 will be affected by $105 million to $117 million in certain non-cash and cash items. Capital expenditures in fiscal 2008 are expected to be about $250 million, of which approximately $140 million is expected to be spent for store-remodeling. In addition, Winn-Dixie expects it will spend about approximately $110 million on other capital expenditures, including maintenance and other store-related projects, information technology projects, new stores and back-up generators.
Kaydon posts decline in third-quarter earnings(7:22 am ET)
NEW YORK (MarketWatch) -- Kaydon Corp. (KDN: news, chart, profile) said Monday that third-quarter net income fell to $17.1 million, or 54 cents a share, compared to $17.6 million, or 55 cents a share, in the year-earlier period. Third-quarter sales rose to $107.4 million from $99.7 million a year ago. On average, analysts surveyed by Thomson Financial had expected the company to earn 59 cents a share on revenue of $110.9 million. The company also said it acquired Avon Bearings Corp. for $55 million in cash. Shares of Kaydon closed Friday at $55.30.
Symtera Financial eyes $750 mln in IPO proceeds (7:20 am ET)
NEW YORK (MarketWatch) -- Symetra Financial Corp. on Monday filed to sell 39.5 million shares at $18 to $20 a share in a bid to raise about $750 million in its initial public offering. The Bellevue, Wash. insurance firm plans to trade under the symbol SYA. Shareholders in the company include Berkshire Hathaway (BRKA: news, chart, profile) and White Mountins Insurance Group (WTM: news, chart, profile) .
Key Energy Services says pricing pressures to affect results(7:01 am ET)
WASHINGTON (MarketWatch) -- Key Energy Services (KEG: news, chart, profile) said it expects to report earnings of 25 cents to 27 cents a share for the third quarter, as well as revenue of about $414 million. Analysts' average estimates stand at 35 cents a share on a fully reported basis and $415.3 million, respectively, according to data compiled by Thomson Financial. The Houston-based provider of oilfield services cited pricing pressures tied to "capacity-driven factors" within all of the company's business lines.
Alon USA estimates 3rd-quarter net 23c-29c; margins hurt(6:26 am ET)
TEL AVIV (MarketWatch) -- Alon USA Energy Inc., (ALJ: news, chart, profile) the Dallas refiner and retailer of petroleum products, estimated third-quarter earnings at 23 cents to 29 cents a share, as sharply higher crude-oil prices hurt its profit margins in its asphalt segment and in its West Coast refining operations. A survey of analysts by Thomson Financial produced a consensus estimate of 61 cents for the quarter. "A substantial portion of Alon's asphalt sales are made pursuant to forward, fixed-price contracts," the company said. Profit margins in the segment are hurt when crude prices rise before it delivers the asphalt and helped when oil prices fall before delivery.
Hong Kong-listed Cosco Pacific Q3 net up 14% to $94M(6:25 am ET)
HONG KONG (MarketWatch) -- Port operator Cosco Pacific Ltd. (HK:1199: news, chart, profile) said Monday net profit for the September-ending quarter climbed 14% on year, helped by higher container handling volume. Cosco Pacific said quarterly net profit reached $94 million, up from $82.6 million in the year-ago period. Net profit for the first nine months of the year climbed to $242.5 million from $219.04 million. Cosco Pacific said container throughput at its ports climbed 17.1% in the quarter to 10.4 million 20-foot-equivlanet units. Shares of Cosco climbed 2.8% to HK$25.45 in Hong Kong trading Monday.
CTC Media profit more than doubles; audience share slips(6:23 am ET)
LONDON (MarketWatch) -- Russian television station operator CTC Media Inc. (CTC: news, chart, profile) said Monday that its third-quarter net profit more than doubled to $17.4 million, or 11 cents a share, from $8.4 million, or 5 cents a share. Total operating revenue for the period rose 33% to $94.1 million. The group said its results reflect continued strength in the Russian television advertising market, rising advertising rates and the appreciation of the ruble against the dollar. This was partly offset by a decrease in audience share, which fell to 8.7% from 10.1% a year ago and was below the group's expectations. CTC Media said it expects operating revenue for the year to be in the range of $460 million to $480 million.
Adams Respiratory gets approvable letter on Mucinex(6:18 am ET)
LONDON (MarketWatch) -- Adams Respiratory Therapeutics (ARXT: news, chart, profile) said the U.S. Food and Drug Administration has given it an approvable letter on Mucinex with codeine to treat cough associated with the common cold. The FDA made preliminary labeling comments and wants more data on the use of the drug with food. Adams does not expect this development to impact its financial guidance for fiscal 2008. It added that fiscal 2008 earnings should be at the top end, or slightly exceed, earlier estimates of $1.55 to $1.75 a share due to a FDA ruling that manufacturers of unapprovaled timed-release guaifensin combination products must stop retail distribution. It still sees fiscal 2009 earnings per share growing more than 30%.
Office Depot delays third-quarter results(6:07 am ET)
LONDON (MarketWatch) -- Office Depot Inc. (ODP: news, chart, profile) said Monday that it will delay its third-quarter earnings due to an independent review by its audit committee of the company's vendor program funds. The office supplies company said the review relates to the timing of the recognition of certain vendor program funds. The third-quarter results had been scheduled to be released on Tuesday.
UBS confirms third-quarter loss, warns more charges possible(3:55 am ET)
LONDON (MarketWatch) -- Swiss banking group UBS (UBS: news, chart, profile) on Monday reaffirmed it expects a third-quarter loss of 600 million Swiss francs ($515 million) to 800 million francs, but warned it could take further charges in the fourth quarter from its exposure to U.S. housing and mortgage markets. The group, which will report third-quarter earnings on Tuesday, said the fourth quarter has started with good results from all units, but further deterioration in U.S. housing markets or rating downgrades for mortgage-related securities could lead to further write-downs. "UBS is not assuming that the quarter will continue as positively as it has begun, or that the current difficulties will be resolved in the short term," the group said.
StatoilHydro profit climbs 28% on currency benefit(3:36 am ET)
LODNON (MarketWatch) -- StatoilHydro (STO: news, chart, profile) said third-quarter net income rose 28% to 10.6 billion Norwegian kroner ($1.97 billion), helped by foreign currency gains. The results -- which exclude Norsk Hydro's oil and gas operations that were merged into the firm on Oct. 1 -- came amid a 2% drop in productiondue to 1.06 million barrels of oil equivalent a day, on reduced production from the Norwegian continental shelf. The company also said that natural gas prices dropped 15% in local currencies. StatoilHydro said it will issue proforma consolidated results fo rthe third quarter on Nov. 12.
Kier group on track to meet targets for the year(3:24 am ET)
LONDON (MarketWatch) -- U.K. construction company Kier Group (UK:KIE: news, chart, profile) said Monday that its fiscal first-quarter trading was in line with its expectations, putting the company on track to achieve its targets for the year. Kier said its construction division achieved a record level of revenue in the first quarter and its support services unit continued to perform well. Its homes division made a "satisfactory" start to the year in the face of negative buyer sentiment and uncertainties in the mortgage lending market. Reservations to the end of September fell slightly, while its order book at Oct. 19 was around 4% ahead of a year ago by value.
Friday, Oct. 26
Tesoro Corp. reviewing Tracinda offer, touts low valuation (2:44 pm ET)
NEW YORK (MarketWatch) -- Tesoro Corp. (TSO: news, chart, profile) on Friday said it'll review an offer by Tracinda Corp. to increase its stake in the company to 16% at a price of $64 a share, and make a recommendation to shareholders within 10 days after it's filed. "We believe the offer by Tracinda acknowledges our successful strategy to create shareholder value as well as the relatively lower valuation of our stock compared to others in our industry," Tesoro said.
Countrywide says secondary mortgage market stabilizing(1:36 pm ET)
BOSTON (MarketWatch) -- Executives at mortgage lender Countrywide Financial Corp. (CFC: news, chart, profile) on Friday said they see signs the secondary mortgage markets are stabilizing. "The current market for non-agency securities is improving, at least as it relates to securities backed by newer production, where the market has really bifurcated between older and newly issued securities," said Chief Operating Officer David Sambol during a conference call. However, securities packaged before the rating agencies changed their rating methodology in the third quarter are still "trading at very wide levels, if at all," he added. "But liquidity has returned and spreads have been tightening at least for [AAA-rated] securities backed by newly originated loans, and that includes both subprime as well as prime," while below-AAA-rated liquidity exists but mostly on newly-originated, better-documented prime mortgages, he said. "As a result of this market improvement we are now anticipating that we will securitize most of our non-agency inventory that we held at the end of the third quarter and begin selling, at least the AAA securities, as early as the coming months, ahead of where we previously suggested our plan was, which was the first quarter of 2008," Sambol said.
Countrywide COO says lender has 'ample' liquidity(12:53 pm ET)
BOSTON (MarketWatch) -- Countrywide Financial Corp. (CFC: news, chart, profile) has sufficient capital, liquidity and financing capacity to fund its operating and growth needs, the mortgage lender's chief operating officer said Friday. "The company has ample and growing liquidity," said Countrywide COO David Sambol during a conference call. "Importantly, we no longer have or plan to have any reliance on the commercial paper markets for funding." Since August, the company has arranged for about $18 billion of additional secured borrowing capacity, he added.
Energy rises on Tracinda bid, oil prices(9:50 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose along with the overall market Friday as oil continued moving to new record levels. The Amex Oil Index (XOI: news, chart, profile) rose 1.8% 1,501. The Amex Natural Gas Index (XNG: news, chart, profile) increased 1% to 555.8. Tesoro (TSO: news, chart, profile) rallied 13% to $64.77 after Tracinda Corp. offered to buy 12% of the company, or 21.9 million shares, at $64 a share. Suncor (SU: news, chart, profile) rose 10 cents to $106.24 and EnCana (ECA: news, chart, profile) rose 43 cents to $67.02 after Canada moved to increase taxes on oil sands revenue. Exxon Mobil (XOM: news, chart, profile) increased 1% to $92.58.
Brunswick Q3 earnings 2 cents per share vs 39 cents(9:25 am ET)
NEW YORK (MarketWatch) -- Brunswick Corp. (BC: news, chart, profile) said Friday its third-quarter profit totaled $1.9 million, or 2 cents per share, from $36.5 million, or 39 cents per share, in the same quarter a year before. Excluding items, earnings from continuing operations were 16 cents a share, down from the year-ago's 48 cents. Analysts polled Thomson Financial had expected earnings of 12 cents per share. The Lake Forest, Ill., company reported net sales for the quarter at $1.33 billion compared with $1.34 billion a year previously. The company -- which makes boating motors and products, pool and bowling equipment and fitness machines -- reaffirmed its 2007 forecast at $1.20 to $1.30 per share.