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Tuesday, March 4
Fremont General says it got default notices (9:39 am ET)
SAN FRANCISCO (MarketWatch) -- Fremont General (FMT: news, chart, profile) said on Tuesday that it got default notices from two affiliated entities that purchased a total of $3.15 billion of residential subprime mortgage loans from the company in March 2007. As part of the deals, Fremont promised that its tangile net worth wouldn't drop below $250 million. If that happened, Fremont agreed to make up the difference, either in cash or a letter of credit. Fremont said it probably won't be able to comply with that obligation. If the purchasers file a lawsuit against the company and it can't successfully defend that litigation, "its ability to continue to conduct business as a going concern would be called into question," Fremont said. Fremont shares fell rouhly 10% in early trading on Tuesday.
Porsche first-half pretax profit rises 24%(9:07 am ET)
LONDON (MarketWatch) -- Porsche (DE:693773: news, chart, profile) reported a 24% rise in profit before tax in the six months to Jan. 31 to 1.66 billion euros ($2.5 billion), helped by its stake in Volkswagen and by revenue rising 14% to 3.49 billion euros. The sports car maker sold 17% more vehicles than a year ago to 46,736 units.
Conseco reschedules earnings release(8:31 am ET)
NEW YORK (MarketWatch) -- Conseco Inc. (CNO: news, chart, profile) said Tuesday that it has filed with the Securities and Exchange Commission to formally extend the due date of its annual report to March 17 because it hasn't yet finalized its Dec. 31 financial statements. The Carmel, Ind.-based insurance company said it expects its quarterly net income to be about breakeven. It has also been consulting with the SEC staff about its accounting policy for long-term care premium rate increases. Conseco plans to report fourth-quarter results on March 17. Shares of Conseco closed Monday at $11.64.
Xinyuan Real Estate profit up 81% excluding one-time charge(7:07 am ET)
LONDON (MarketWatch) -- Chinese Residential real estate developer Xinyuan Real Estate Co. (XIN: news, chart, profile) said Tuesday that its fourth-quarter net income rose 81% to $6.6 million as revenue more than doubled to $91.4 million from $42.7 million. Earnings attributable to shareholders, however, fell to a loss of $1.53 a share, or $3.06 per American depository share, due to a $182 million one-time charge as a result of a waiver of the conversion option in certain convertible shares.
Simcere Pharma 4th-quarter net up 44%, revenue up 56%(6:49 am ET)
TEL AVIV (MarketWatch) -- Simcere Pharmaceutical Group, (SCR: news, chart, profile) the Nanjing, China, generic-drug maker, reported fourth-quarter net rose 44% as revenue rose 56%. Profit reached 78.7 million renminbi ($10.7 million), or 1.21 renminbi (US$0.17) a share, from 54.1 million renminbi, or 0.54, in the year-earlier period. Revenue reached 398.6 million renminbi from 255 million. The company expects to earn 390 million to 400 million renminbi in 2008 on revenue of 2 billion to 2.1 billion renminbi.
U.S. Concrete loss widens after goodwill charge(6:17 am ET)
LONDON (MarketWatch) -- U.S. Concrete Inc. (RMIX: news, chart, profile) said Tuesday that its fourth-quarter net loss widened to $80.2 million, or $2.09 a share, from $23.8 million, or 63 cents a share, a year earlier. Revenue for the quarter held roughly flat at $198.7 million as higher ready-mixed concrete prices were offset by lower volumes. The company said its loss included a $1.99-a-share non-cash charge to reduce the carrying value of its goodwill. Adjusted income from continuing operations was 2 cents a share for the quarter, in line with the company's guidance. U.S. Concrete says it expects to report a loss from continuing operations of 13 cents to 19 cents a share in the first quarter of 2008.
ABM Industries 1st-period net off; outlook is lifted(4:28 am ET)
TEL AVIV (MarketWatch) -- ABM Industries Inc., the New York facilities-services provider, reported fiscal first-quarter net income fell 27%, boosted its full-year earnings outlook, and lifted its quarterly dividend 4.2%. For the quarter ended Jan. 31, earnings fell to $6.4 million, or 13 cents a share, from $8.7 million, or 18 cents, in the year-earlier period. Adjusted earnings nearly doubled to $18 million from $9.3 million. Revenue reached $922.6 million from $703.5 million. For fiscal 2008, the company now expects to earn $1 to $1.15 a share, or an adjusted $1.20 to $1.35. ABM raised its quarterly payout to 12.5 cents a share from 12 cents, payable May 5 to holders of record April 10.
ProSiebenSat.1 net drops 63% on cartel fine, interest costs(2:43 am ET)
LONDON (MarketWatch) -- ProSiebenSat.1 Group (DE:777117: news, chart, profile) , Germany's largest television company, said its annual profit slumped 63% to 89.4 million euros ($136 million), hurt by a 120 million euro fine by Germany's Federal Cartel Office, higher operating costs and higher interest exepnses from financing the SBS acquisition. On an adjusted basis, its earnings before interest, tax, depreciation and amortization would have climbed 36% to 661.9 million euros, as revenue rose 29% to 2.7 billion euros on the SBS deal as well as strong international growth and organic growth in the German-speaking region. The company said it's going to focus on its competitive position in free television by focusing on content and launching new channels, and it expects growth revenue and profits this year.
Premier Foods swings to loss, cuts dividend(2:42 am ET)
LONDON (MarketWatch) -- Premier Foods (UK:PFD: news, chart, profile) said Tuesday that it swung to a loss of 63.3 million pounds in 2007 from a profit of 47.1 million pounds a year earlier due to rising ingredient costs and the impact of integrating recent acquisitions. The group said revenue jumped to 2.25 billion pounds from 840.7 million pounds due to the acquisition of RHM and the U.K. and Ireland operations of Campbell Soup. Among the hardest hit operations was the company's bread business, which saw its trading profit roughly halved. Given the high costs in 2007 and the potential for further inflationary pressure in 2008, Premier Foods said it would cut its dividend by 46% to 6.5 pence a share.
NXP Semiconductors operating profit up 13.5%(2:33 am ET)
LONDON (MarketWatch) -- NXP Semiconductors, the Eindhoven, Netherlands chipmaker held by KKR Private Equity (KPEGF: news, chart, profile) , Philips Electronics (PHG: news, chart, profile) and other investors, said fourth-quarter adjusted operating profit rose 13.5% to 243 million euros, with sales up 9.3% on a comparable basis to 1.16 billion euros. Its book-to-bill ratio was 0.89. The chipmaker said it grew in line with the market, and reiterated that it expects to play an "active role in industry consolidation." On a comparable basis, sales in the first quarter should fall 9% to 13% from the fourth quarter, or a low single-digit rise when compared to the year-ago quarter. The fourth quarter marks the last in which it will report results in euros, as it will change to dollars to increase comparability with peers.
Cable & Wireless sets five-year growth targets(2:29 am ET)
LONDON (MarketWatch) -- U.K.-listed telecom group Cable & Wireless (UK:CW: news, chart, profile) said Tuesday that it's set a new five-year growth plan for its Europe, Asia and U.S. business. The plan targets annual revenue growth of between 5% and 8% a year and growth in earnings before interest, taxes, amortization and depreciation of between 20% and 25% a year. The group said future revenue growth for Europe, Asia and the U.S. will be driven by customers' adoption of new applications, including digital marketing and video-conferencing.
Monday, March 3
Knight Vinke: Much of HSBC net rise from one-offs, FX(12:08 pm ET)
LONDON (MarketWatch) -- Activist investor Knight Vinke said on Monday that much of HSBC Holdings's (HBC: news, chart, profile) (UK:HSBA: news, chart, profile) earnings growth came from "one-offs, acquisitions and currency changes rather than from underlying improvements in operating performance." But it added that HSBC has "gone a long way" to address concerns about corporate governance and board independence. The problems at its HFC arm are worse than thought, Knight Vinke added, and it said the U.S. division can't support the $150 billion in debt on its balance sheet.
Sunrise Senior Living reports preliminary Q4 results(9:32 am ET)
NEW YORK (MarketWatch) - Sunrise Senior Living Inc. (SRZ: news, chart, profile) on Monday reported some preliminary financial results for its quarter ended Dec. 31. McClean, Va.-based Sunrise said revenue under management rose 7% to $617 million in the fourth quarter from $576 million in the prior-year period. Fourth-quarter same-community revenue increased 5.9%. The company said it expects the impact of previously disclosed restatement issues will reduce net income for all affected periods, including 1996 through 2005, by about $140 million, excluding stock option adjustments and revenue recognition related to its Greystone subsidiary.
Hormel Foods sets sales target(7:50 am ET)
NEW YORK (MarketWatch) -- Hormel Foods Corp. (HRL: news, chart, profile) said Monday that by 2012, it intends to achieve $2 billion of sales from products created since 2000. Shares of the Austin, Minn., processed food company closed Friday down $1.06, or 2.5%, at $40.86.
Bunge corrects 2 figures in 2007 reports; no effect on net(6:43 am ET)
TEL AVIV (MarketWatch) -- Bunge Ltd., (BG: news, chart, profile) the White Plains, N.Y., agribusiness and food company, said that in its annual report, filed Monday with the Securities and Exchange Commission, it corrected 2007 net sales and cost of goods sold, which were overstated in its 2007 preliminary report. The corrections total about $7 billion for the two figures and do not affect segment operating profit, net income, or earnings per share, Bunge said. The company said that the errors reflected "material weaknesses" in its internal financial-reporting controls and that it would remedy the weaknesses.
Polypore buys a company and lifts full-year profit estimate(6:23 am ET)
TEL AVIV (MarketWatch) -- Polypore International Inc., (PPO: news, chart, profile) the Charlotte, N.C., filter producer, bought a producer of battery-separator membranes and, as a result of the deal, increased its estimate of its earnings for fiscal 2009, ending Jan. 3. Polypore acquired Microporous Holding Corp. of Piney Flats, Tenn., from Industrial Growth Partners II, the San Francisco private-equity firm, and other holders. Polypore said in a statement on Monday that the deal is valued at $76 million, including the purchase price and assumption of debt. Polypore now expects to earn 90 cents to $1.01 a share in fiscal 2009 on sales of $580 million to $605 million. A survey of four analysts by FactSet Research produced a consensus estimate of 87 cents a share for the year.
HSBC could sell portfolios, committed to rebuilding U.S. arm(6:18 am ET)
LONDON (MarketWatch) -- Michael Geoghegan, CEO of HSBC Holdings (UK:HSBA: news, chart, profile) (HBC: news, chart, profile) (HK:5: news, chart, profile) on Monday told an analyst conference the bank would consider selling portfolio's of U.S. debt, but only if it could get a sensible price. But he also effectively dismissed calls from some investors for it to exit its U.S. operations. Geoghegan said the bank wants to protect its U.S. franchise because, when the subprime crisis settles down, there will be fewer competitors, creating some opportunities for growth.
HSBC profit climbs 21%, loan impairment charges soar(3:35 am ET)
LONDON (MarketWatch) -- HSBC Holdings (UK:HSBA: news, chart, profile) (HBC: news, chart, profile) (HK:5: news, chart, profile) said Monday that its net profit for 2007 rose 21% to $19.13 billion even after profits in North America were virtually wiped out by rising bad debt charges. The result came in ahead of market expectations as the bank reported strong profit growth in other regions, including 42% pretax profit growth in Hong Kong to $7.34 billion. In the U.S., pretax profit fell over 98% to $91 million as total impairment charges for the group rose 63% to $17.24 billion. The bank also raised its total dividend payout for the year by 11.1% to 90 cents a share and named four new appointments to its board of directors.
Arcadis 4th-quarter net up 22%, revenue up 24%(2:27 am ET)
TEL AVIV (MarketWatch) -- Arcadis NV, (ARCAY: news, chart, profile) (NL:35855: news, chart, profile) the Arnhem, Netherlands, engineering firm, reported fourth-quarter net income up 22% on 24% higher gross revenue. Net reached 17.8 million euros, or 0.88 euro a share, from 14.6 million, or 0.72, in the year-earlier period. Gross revenue rose to 422.3 million euros from 341.5 million. Net revenue, the part of revenue produced by Arcadis's staff, rose 21%. Of that figure, 16% was derived from acquisitions. Currency fluctuations knocked 4% off net revenue. Arcadis proposed to lift the dividend for 2007 to 1.23 euros a share from the 2006 payout of 1 euro a share. It has boosted its goal of growth in earnings per share, excluding currency effects, now targeting a rise of 15% a year.
Sunday, March 2
Takefuji Corp. says subprime losses may hit $290 million(8:49 pm ET)
HONG KONG (MarketWatch) -- Japanese consumer finance firm Takefuji Corp. (JP:8564: news, chart, profile) said Monday it may report up to 30 billion yen ($290 million) in losses from derivative transactions linked to the U.S. mortgage market. The firm, Japan's third-largest consumer lender by market value, said it may reduce its full-year net profit forecast from 42.3 billion yen for the fiscal year ending March 31 because of the losses. The soured investments involved transactions in May using credit default swaps that were arranged by Merrill Lynch Japan Securities Co., the Nikkei business daily reported. Shares of Takefuji were down 2.7% in mid-morning trade in Tokyo.
Friday, Feb. 29
Berkshire quarterly net income falls 18%(4:43 pm ET)
SAN FRANCISCO (MarketWatch) -- Berkshire Hathaway (BRKA: news, chart, profile) (BRKB: news, chart, profile) said late Friday that fourth-quarter net income came in at $2.95 billion, or $1,904 per class A share, down 18% from a year earlier when the insurance-focused conglomerate made $3.58 billion, or $2,323 per class A share. Operating earnings, which exclude realized gains and losses from investments and derivatives, came in at $2.35 billion, or $1,518 per class A share, the company reported.
Pepco profit rises on power delivery unit(4:37 pm ET)
SAN FRANCISCO (MarketWatch) -- Pepco Holdings Inc. (POM: news, chart, profile) said Friday that its fourth-quarter profit rose to $57.8 million, or 29 cents a share, from $36.3 million, or 19 cents a share, last year. Analysts surveyed by FactSet Research estimated a profit of 33 cents a share. Operating revenue rose to $2.33 billion from $1.9 billion in the year-ago period.
Wells says it lost $39 mln in money funds(3:52 pm ET)
NEW YORK (MarketWatch) -- Wells Fargo & Co. (WFC: news, chart, profile) said Friday that it took a $39 million loss in 2007 on debt held in one of its structured investment vehicles. It outlined the loss in an annual report filed with the U.S. Securities and Exchange Commission. Wells said the loss came as part of a $130 million capital support agreement Wells entered into as a way to safeguard a coveted Triple-A credit rating for many of its investment funds. The bank is currently the only one of the top five American banks to hold such a high credit ranking. The nation's fifth-largest bank added it had three separate SIVs worth more than $1 billion as of Feb.1.
Volkswagen annual profit climbs nearly 50%(10:20 am ET)
LONDON (MarketWatch) -- Volkswagen Group (DE:766400: news, chart, profile) , in an unplanned announcement, said annual profit rose nearly 50% to 4.12 billion euros ($6.2 billion), with revenue up 4% to 108.9 billion euros. The automaker said it recorded the highest profit before tax in the company's history, and is planning 1.80 euros a share dividend, up from 1.25 euros last year. Analysts polled by FactSet expected a profit of 3.89 billion euros on revenue of 109.7 billion euros, and a dividend of 1.59 euros per share. For 2008, the company expects growing sales, led by Asia-Pacific and Central and Eastern Europe regions, with growth in operating profit.
Grant Prideco Q4 earnings $1.00; merger seen closing April(9:11 am ET)
NEW YORK (MarketWatch) -- Grant Prideco, Inc. (GRP: news, chart, profile) said Friday its fourth-quarter profit totaled $128.5 million, or $1.00 per share, from $140.1 million, or $1.07 per share, in the same quarter a year before. This was below the $1.09 average forecast of analysts polled by FactSet. Revenue for the quarter was $505.4 million, up from $452.2 million in last year's fourth quarter. Grant Prideco said its acquisition by National Oilwell Varco is expected to close in April.
Cassano, CEO of AIG's derivatives unit, to retire(9:01 am ET)
SAN FRANCISCO (MarketWatch) -- Joe Cassano, chief executive of American International Group's (AIG: news, chart, profile) derivatives unit, will retire on March 31, Martin Sullivan, CEO of the giant insurer, said on Friday during a conference call with analysts. Bill Dooley will assume interim responsibility for the day-to-day operation of AIG Financial Products, along with his current duties, Sullivan added. Cassano will stay on as a consultant to AIG for the rest fo the year, while AIG looks for a new CEO for the derivatives unit. AIG reported a large quarterly loss late Thursday after taking more than $11 billion in charges related to the valuation of credit derivatives.
Armstrong World Industries' fourth-quarter net soars(8:55 am ET)
NEW YORK (MarketWatch) -- Armstrong World Industries Inc.'s (AWI: news, chart, profile) fourth-quarter earnings soared to $19.6 million, or 34 cents a share, from $2.2 million, or 4 cents a share, a year earlier, boosted in part by higher selling prices. A Thomson Financial survey of analysts, on average, predicted earnings of 39 cents a share for the quarter. Analysts' estimates usually exclude items. The Lancaster, Pa., floor maker said sales increased to $852.4 million from $817.3 million a year ago. Armstrong also said it completed its strategic review. The company said due in part to current market conditions, it will continue to operate under its current structure. In addition, the company declared a special cash dividend of $4.50 a common share, payable March 31 to shareholders of record March 11. Looking forward, the company expects 2008 adjusted earnings of $2.30 to $2.90 a share on revenue of $3.5 billion to $3.65 billion. Armstrong sees first-quarter adjusted earnings of 30 cents to 35 cents a share. On Thursday, Armstrong shares closed down $1.06, or 3.1%, to $33.13.
New York Times January ad revenue falls 9.8% to $165 million(8:48 am ET)
NEW YORK (MarketWatch) -- The New York Times Co. (NYT: news, chart, profile) said Friday its advertising revenue for January fell 9.8% to just under $165 million. Total revenue from continuing operations fell 5.5% on year, while circulation revenues increased 1.6%. The newspaper publisher said its Internet ad revenue grew 8.6% during the month. It also said it had the 10th largest presence on the Web, with 51.6 million unique visitors in the U.S. -- for an on-year growth of about 21% -- according to Nielsen Online.
FBR boosts price target on Southwestern Energy(8:30 am ET)
NEW YORK (MarketWatch) -- Friedman Billings Ramsey on Friday raised its price target on Southwestern Energy Company (SWN: news, chart, profile) to $75 a share from $64 a share following the company's profit update. The move reflects FBR's higher net asset value for Southwestern. "With shale production continuing to grow, expectation of average initial production rates continuing to improve, and a good possibility of more strong initial production results in weekly...filings (given the increased use of seismic and longer laterals), we believe that the positive news flow will continue," FBR said.
Royal Bank of Canada posts lower first-quarter net (8:12 am ET)
NEW YORK (MarketWatch) -- Royal Bank of Canada (RY: news, chart, profile) posted lower earnings in the fiscal first quarter, noting that although a few of its businesses were hurt by difficult market conditions, most performed well. The Canadian chartered bank credited its diversified business mix and "proactive approach to risk management" for the latest results. It said it had net income of C$1.245 billion, or 95 Canadian cents a share, in the first quarter, down from C$1.494 billion, or C$1.14 a share, a year earlier. The bank said its latest results reflect an after-tax writedown in Capital Markets of C$187 million and related compensation adjustments, higher impaired loans in U.S. banking over last year, and a C$45 million impact from strong appreciation of the Canadian dollar against the U.S. dollar. The year-earlier earnings were helped by a C$40 million adjustment related to reallocation of foreign investment capital, a C$25 million cumulative valuation adjustment related to prior periods, a C$14 million foreign-exchange translation gain on certain deposits and a tax reversal. Return on equity was 21.4% versus 27.3%, and the provision for credit losses rose to C$293 million from C$162 million.