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Monday, March 17
WCI's quarterly loss widens(3:24 pm ET)
BOSTON (MarketWatch) -- WCI Communities Inc. (WCI: news, chart, profile) on Monday afternoon reported a fourth-quarter net loss of $459.8 million, or $10.03 a share, compared with a loss of $64.6 million, or $1.55 a share, in the year-ago period. Revenue fell 63% to $191.6 million as net new orders remained negative due to cancellations, the residential builder said. For the full year, WCI booked $412.2 million of pretax asset impairments and write-offs. The stock was up nearly 5% in afternoon dealings.
WCI shares gain ahead of earnings, call(10:10 am ET)
BOSTON (MarketWatch) -- Shares of troubled Florida-based condominium builder WCI Communities Inc. (WCI: news, chart, profile) were up more than 11% Monday morning ahead of the release of its quarterly earnings release. WCI last week pushed back the time of its conference call to Monday afternoon. The company said it expects to issue its earnings press release and file its 10-K on Monday.
Update: CSX outlook, payout, buyback up; sues 2 funds(9:31 am ET)
TEL AVIV (MarketWatch) -- CSX Corp., (CSX: news, chart, profile) the Jacksonville, Fla., rail and inter-modal transportation company, estimated that first-quarter earnings would rise 42% to 48%, increased its quarterly dividend 20%, and said it would buy back as much as $3 billion of shares by the end of 2009. In a separate statement, CSX said it filed a lawsuit, alleging that two hedge funds violated federal securities laws. For the first quarter, CSX expects to earn 74 cents to 77 cents a share, compared with 52 cents in the year-earlier period. The company sees earnings of $3.40 to $3.60 a share for all of 2008, against $2.74 from continuing operations in 2007. That's a rise of 24% to 31%. The latest estimates for the quarter and year include a 4-cent gain from a sale of real estate. The dividend rises to 18 cents a share from 15 cents, payable June 13 to holders of record May 30. And as for the buyback, the board added $2.4 billion to the $600 million remaining on CSX's previous authorization. The $3 billion amounts to about 15% of CSX's current market capitalization. CSX also said that it named Children's Investment Fund and 3G Capital Partners in a lawsuit in U.S. District Court in New York. CSX said the suit charges among other things, that Children's Investment Fund used swap agreements to avoid certain Securities and Exchange Commission filing requirements. Children's Investment Fund and 3G Capital Partners "have formed a group to nominate a slate of directors to stand for election" at CSX's 2008 annual meeting, the company said. (Updates with details of lawsuit.)
Coventry Health cuts earnings forecasts(7:29 am ET)
NEW YORK (MarketWatch) -- Coventry Health Care Inc. (CVH: news, chart, profile) said Monday that it now expects 2008 earnings of $4.39 to $4.50 a share on $12.0 billion to $12.5 billion in revenue. The Bethesda, Md.-based health insurer also sees first-quarter earnings of 81 cents a share on revenue of $3.0 billion. When the company reported fourth-quarter results on Feb. 8, it provided guidance for 2008 earnings of $4.42 to $4.58 a share on sales of $12.4 billion to $12.9 billion and first-quarter earnings of 85 to 87 cents a share on revenue of $2.9 billion to $3.1 billion. The company said that influenza-related medical costs would affect its first-quarter results, and that recent Federal Reserve actions to reduce the federal funds rate put more downward pressure on net investment income. Shares of Coventry closed Friday at $42.75.
RAM Holdings posts $153 million loss on derivatives(6:48 am ET)
LONDON (MarketWatch) -- RAM Holdings (RAMR: news, chart, profile) , a Bermuda-based financial guaranty reinsurer for U.S. and international public finance and structured finance transactions, swung to a fourth-quarter loss of $152.9 million, or $5.61 a share. It earned $10 million, or 37 cents, in the year-ago quarter. Most of the losses came on an increase in fair value losses on credit derivatives of $149.4 million. Two analysts polled by FactSet expected earnings of 37 cents a share.
Bond insurer FGIC reports $1.89 billion loss, eyes re-org(6:24 am ET)
LONDON (MarketWatch) -- Bond insurer FGIC Corp. reported a $1.89 billion quarterly loss, mostly on loss and loss adjustment expense reserves and mark-to-market losses recorded for the quarter. The increase in loss reserves for the quarter stemmed from the rapid and substantial deterioration during the quarter in the performance of certain RMBS and ABS CDO transactions written primarily in 2006 and 2007. FGIC anticipates that any claims relating to these transactions will be made over a period of years. FGIC has ceased writing new financial guaranty business for a period of time to preserve capital and has hired Goldman Sachs to provide advice. In addition, FGIC has proposed a significant restructuring of its insurance operations to the New York Insurance Department, including the organization of a new financial guaranty insurer to be domiciled in New York to provide support for global public finance and infrastructure obligations previously insured by FGIC and to write new business to serve those markets. The losses at FGIC led PMI Group (PMI: news, chart, profile) , which holds 42% of the firm, to report a $$1.01 billion, or $12.51 per share, fourth-quarter loss.
Siemens sees quarterly earnings cut by 900M euros(3:32 am ET)
LONDON (MarketWatch) -- German engineering giant Siemens AG (SI: news, chart, profile) (DE:723610: news, chart, profile) on Monday said earnings this quarter will be cut by 900 million euros because of order delays and structural issues at its energy, transport and technology units. Siemens said the impact would likely be the bulk of financial burdens this year.
Wolseley profit drops 69%, expects further U.S. housing fall(3:31 am ET)
LONDON (MarketWatch) -- Wolseley (UK:WOS: news, chart, profile) , the U.K. building materials firm, said half year to Jan. 31 profit dropped 69% to 65 million pounds ($132 million), while revenue rose 2% to 8.03 billion pounds. The company said it's facing increasingly difficult trading conditions across many businesses. It's going to up its dividend by 3.7% to 11.25 pence a share. Wolseley expects the U.S. housing market to deteriorate further, though in Europe, it expects the RMI and commercial and industry sectors that drive the majority of its business to remain marginally positive.
Friday, March 14
Bear says client withdrawals accelerated quickly on Thursday(1:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Bear Stearns Cos. (BSC: news, chart, profile) executives said on Friday that withdrawals by clients of the brokerage firm accelerated quickly this week forcing it to seek emergency financing from the Federal Reserve and J.P. Morgan Chase (JPM: news, chart, profile) . Big cash outflows came from hedge fund clients of Bear's prime brokerage division on Thursday, the firm's chief financial officer explained during a conference call with analysts and investors. However, since Bear announced its new financing from the Fed on Friday, the firm has seen no big withdrawals. The broker remains comfortable with the range of analyst estimates ahead of its first-quarter results, which are due out on Monday. Bear also said it hasn't incurred any big mark to market write-downs since February and its book value remains at least $80 a share. Bear's Chief Executive said the firm will continue to explore strategic alternatives with its adviser Lazard Ltd. (LAZ: news, chart, profile) .
DuPont sees $1.7 billion in cost-cutting opportunities(11:26 am ET)
NEW YORK (MarketWatch) -- DuPont Co. (DD: news, chart, profile) said Friday that it sees the opportunity to cut $1.7 billion in costs through 2010. The Wilmington, Del.-based chemical company said it will be able to reduce costs in its supply-chain and support functions, aided by lower labor costs. Since 2006, DuPont has sliced its workforce in North America and Western Europe by about 2,000 people, while increasing growth in emerging markets, where labor costs are much lower. Shares of DuPont were recently down about 1% to $46.74.
Energy stocks dip despite gains in broad market(9:38 am ET)
NEW YORK (MarketWatch) -- Energy stocks traded lower in early action on Friday, as crude prices fell and the overall market rose. The Amex Oil Index (XOI: news, chart, profile) fell 0.5% to 1,403, reversing gains from the previous session. The Amex Natural Gas Index (XNG: news, chart, profile) fell fractionally at 617.5. Exxon Mobil rose 12 cents to $87.17 after Credit Suisse upgraded the oil and gas giant to outperform from neutral. Crude oil fell 57 cents to $109.76 a barrel.
Gasoline approaches $4 a gallon on Maui(8:22 am ET)
NEW YORK (MarketWatch) -- Retail gasoline prices hit $3.94 a gallon for regular unleaded in Wailuku on the Hawaiian island of Maui, the richest price in the AAA'S Daily Fuel Gauge Report on Friday. In the year-ago period, the price was $3.21. Meanwhile, the national average for unleaded regular rose to a record $3.28 a gallon, the AAA said.
Superior Industries swings to fourth-quarter profit(8:17 am ET)
NEW YORK (MarketWatch) -- Superior Industries International Inc. (SUP: news, chart, profile) on Friday swung to a fourth-quarter profit of $5.78 million, or 22 cents a share, from a year-ago loss of $5.37 million, or 20 cents a share. Revenue rose in the latest three months to $229.2 million from $212.2 million in the same period a year earlier. The Van Nuys, Calif., maker of aluminum wheels also said that it restated income tax provisions for the fourth-quarter and annual periods of 2006. Shares of Superior closed Thursday at $19.10.
Tecumseh swings to quarterly profit(6:42 am ET)
LONDON (MarketWatch) -- Tecumseh Products (TECUA: news, chart, profile) [tecub], a maker of compressors for refrigerators, freezers and air conditioners, said it swung to a fourth-quarter net profit of $4.1 million, or 21 cents a share, compared to a net loss of $63.8 million, or $3.45 a share, in the year-earlier period. The average forecast of two analysts polled by FactSet was for a loss of 37 cents a share. Earnings from continuing operations came in at 18 cents a share compared with a loss of $1.36 a year earlier. Sales rose 2% to $256 million.
GateHouse Media swings to loss after goodwill charge(6:32 am ET)
LONDON (MarketWatch) -- GateHouse Media Inc (GHS: news, chart, profile) said Friday that it swung to a fourth-quarter net loss of $214.6 million, or $3.78 a share, from a profit of $7.8 million, or 23 cents a share, a year earlier. The newspaper and Web site publisher said revenue for the quarter rose 76% to $172.2 million). Excluding a one-time goodwill and masthead impairment charge, operating income rose 28% to $12.3 million. The firm said it would pay a dividend of 20 cents a share for the quarter ended March 31.
RAB Capital profit edges up, sees tough start to 2008(3:45 am ET)
LONDON (MarketWatch) -- U.K.-listed hedge fund manager RAB Capital (UK:RAB: news, chart, profile) said Friday that its net profit on ordinary activities for 2007 rose 3% to 36 million pounds ($72.6 million) as revenue for the period grew 4% to 125.2 million pounds. The group said it had a strong first half in 2007, followed by weaker trading as credit and liquidity problems impacted on markets. RAB Capital said assets under management rose 38% to $7.2 billion at the end of the year, with over half that growth driven by net inflows to its funds. The firm said it will raise its final dividend by a third to 1.8 pence a share. RAB said continued market weakness has seen its assets under management fall back to around $6.9 billion in the first several weeks of 2008.
Prudential profit up 17%, reports strong Asia growth(3:24 am ET)
LONDON (MarketWatch) -- U.K. insurer Prudential (UK:PRU: news, chart, profile) said Friday that its 2007 net profit rose 17% to 1.02 billion pounds as new business on an annual premium equivalent basis rose 21% to 2.87 billion pounds. The group said more than half its new business profits came from Asia and added its assest management division grew its external funds under management to 69 billion pounds from 57 billion pounds. On a European embedded value basis, operating profit for the year rose 25% to 2.54 billion pounds. The group said it expects a period of less attractive economic growth in both the U.S. and U.K., but added it prospects remain good in Asia, where it expects to hit its growth targets one year ahead of its previous forecast.
Thursday, March 13
Security Capital to stop writing new business after losses(5:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Security Capital Assurance (SCA: news, chart, profile) said late Thursday that it will stop writing new business for a period of time after the bond insurer reported a $1.2 billion fourth-quarter net loss. The company also said it won't pay a quarterly dividend on its common stock or a semi-annual dividend on its series A preference shares. However, Security Capital also noted that its auditors will not put a "going concern" statement in its annual 10-K filing. The company had warned earlier this year that the auditors might include such a statement. The loss was $18.67 a share vs. net income of $35.8 million, or 56 cents a share, in the fourth quarter of 2006, the company reported. Security Capital had an operating loss of $678.1 million, or $10.57 a share, in the latest quarter.
IEA convening round table on oil prices on Monday(9:00 am ET)
NEW YORK (MarketWatch) -- The International Energy Agency will convene a round table on Oil Price Formation on Monday, as first announced three months ago, a spokesperson for the Paris-based group said Thursday. Spokeswoman Sylvie Stephan said the round table is part of ongoing work at the IEA to understand the complex process of price formation. "Participants will represent a broad spectrum of the industry: financial, trading, producing, refining and economic institutions," she said in an e-mail to MarketWatch. There is no public document or agenda.
Akeena Solar's fourth-quarter loss widens(8:31 am ET)
NEW YORK (MarketWatch) -- Akeena Solar Inc. (AKNS: news, chart, profile) said Thursday that its fourth-quarter loss widened to $4.47 million, or 18 cents a share, from $1.19 million, or 7 cents, a year earlier. The Los Gatos, Calif., designer of solar power systems said revenue rose to $10.3 million from $4.49 million. Akeena expects first-quarter revenue of $12 million, and 2008 revenue to increase 100% from year ago revenue of $32.2 million. Akeena also said that it and Kyocera Solar Inc., a producer of solar energy products, agreed to a strategic partnership to manufacture Andalay solar panels. Under the agreement Kyocera will manufacture Andalay solar panels utilizing its high efficiency solar cells and will deliver 1.6 MW of panels to Akeena during 2008.
Countrywide mortgage fundings for February up 17%(8:21 am ET)
NEW YORK (MarketWatch) -- Troubled lender Countrywide Financial Corp. (CFC: news, chart, profile) said Thursday that mortgage loan fundings for February were up 17% to $26 billion from a month earlier. Countrywide said average daily mortgage loan applications were $1.9 billion for the month, down from $2.6 billion in January, and its mortgage loan pipeline fell $3 billion to $48 billion. The Calabasas, Calif.-based lender's loan servicing portfolio grew $1.6 billion from January to $1.48 trillion. Countrywide saw its share price rise more than 12% earlier this week when the Federal Reserve took action to add more liquidity to the market for mortgage securities. Shares of Countrywide closed Wed at $4.75.
Isis Pharmaceuticals narrows fourth-quarter loss(7:39 am ET)
NEW YORK (MarketWatch) -- Isis Pharmaceuticals Inc. (ISIS: news, chart, profile) said Thursday that its fourth-quarter loss narrowed to $6.96 million, or 8 cents a share, from $14.1 million, or 18 cents, a year earlier, as a result of higher interest income and a decrease in operating loss, among other factors. The Carlsbad, Calif., drug company said revenue rose to $24.7 million from $11.9 million. On average, analysts polled by Thomson Financial expected per-share earnings of 3 cents on revenue of $28 million, helped by new revenue from collaborations with Bristol-Myers Squibb Co. (BMY: news, chart, profile) and Ortho-McNeil Inc. Isis expects a 2008 non-GAAP operating loss of less than $15 million, with a year-end cash balance of more than $450 million.
Gray Television fourth-quarter income falls(7:09 am ET)
NEW YORK (MarketWatch) -- Gray Television Inc. (GTN: news, chart, profile) said Thursday that fourth-quarter net income tumbled to $1.49 million, or 3 cents a share, from $8.59 million, or 16 cents a share, a year earlier. Revenue for the quarter fell 17% to $84.3 million from $101.9 million, hurt by decreased political advertising revenue partially offset by increased local and national advertising revenue. Analysts polled by Thomson Financial forecast break-even earnings for the three months ended Dec. 31, on revenue of $84 million. For the first quarter, the Atlanta-based television broadcast company anticipates revenue of between $69.7 million to $70.5 million.
BMW 2007 profit up stronger-than-forecast 9%(7:06 am ET)
LONDON (MarketWatch) -- Luxury automaker BMW Group (DE:519000: news, chart, profile) said its 2007 profit rose 9% to 3.13 billion euros ($4.8 billion), an all-time high, as corporate tax reform and a sharp rise in sales volume offset a year-ago settlement of the exchangeable bond on shares in the British engine manufacturer Rolls-Royce and foreign exchange and raw materials costs. Revenue rose 14% to 56.02 billion euros, and said it expects all three of its lines to record improving volumes this year. The company is planning to lift its dividend by 51% to 1.06 euros a share. Analysts polled by FactSet expected the firm to earn 2.91 billion euros on revenue of 55.64 billion euros.
Nestle sees 2008 organic growth above long-term target(3:27 am ET)
LONDON (MarketWatch) -- Nestle (CH:001205604: news, chart, profile) (NSRGY: news, chart, profile) said Thursday that it expects to achieve "very strong" organic growth for the first quarter of 2008. Organic growth for the year will be close to that achieved in 2007 and clearly above the long-term target of between 5% and 6%. The group said it had been forced to raise its prices to absorb higher commodity prices, which accounts for some of the growth. At the same time Nestle said a successful early Easter season and the extra day in February helped growth.
Wednesday, March 12
Toshiba to post 100 billion yen loss on HD-DVD business(9:42 pm ET)
HONG KONG (MarketWatch) -- Toshiba Corp. (JP:6501: news, chart, profile) will take a charge of up to 50 billion yen ($493 million) to discontinue its HD-DVD business and will see total year losses of up to 100 billion yen on the failed technology in the fiscal year ending March 31, according to a published report Thursday. The electronics conglomerate is likely to fall short of its 180 billion yen net profit forecast for the current fiscal year owing to the failure of the HD-DVD format and poor performance in its electronic devices and components unit owing to falling prices for memory chips and other devices, the Nikkei business daily reported, without citing its source. Expenses related to the closure of assembly lines for HD-DVD players and other restructuring costs will amount to 50 billion yen and be booked as a non-operating loss. Toshiba is likely to post an operating profit of 250 billion yen in the current fiscal year, about 40 billion yen shy of its initial forecast, the report said
Mens Wearhouse profit drops 72%(4:27 pm ET)
SAN FRANCISCO (MarketWatch) -- Mens Wearhouse Inc. (MW: news, chart, profile) late Wednesday reported fiscal fourth-quarter net income fell to $14.8 million, or 28 cents a share, compared with net income of $52.3 million, or 95 cents a share. For the quarter ended Feb. 2, sales fell 3.9% to $535 million. Sales at stores open at one year, also known as same-store sales, fell 5.4% in the quarter. For fiscal 2008, Mens Wearhouse is forecasting same-store sales in the U.S. to decline in the "mid single digit range." It pegged full-year earnings between $1.90 to $2.10 a share, which includes the costs of closing a Canadian manufacturing facility. Shares fell 8% in late trading.
Energy stocks close to flat line in early action(9:36 am ET)
NEW YORK (MarketWatch) -- Energy stocks traded close to the flat line with slim losses on Wednesday, despite gains in the broader market. The Amex Oil Index (XOI: news, chart, profile) fell fractionally at 1,417. The Amex Natural Gas Index (XNG: news, chart, profile) advanced 0.2% to 611. ConocoPhillips (COP: news, chart, profile) subtracted 55 cents to $78.95.
ConocoPhillips CEO to boost production by 2% a year(8:49 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) CEO Jim Mulva said the U.S.'s No. 3 oil company plans to boost production by about 2% a year, not including its stake in Lukoil (LUK: news, chart, profile) . Meeting with Wall Street analysts, Mulva said the company could boost production by 3%, but decided to keep it at the lower level partly to keep costs in line. Looking at reserves, ConocoPhillips will "more than replace" its supplies in years ahead, Mulva said. ConocoPhillips also has lower exposure than others to production sharing contracts with foreign governments, he said.
VimpelCom fourth-quarter net profit jumps 86%(8:27 am ET)
NEW YORK (MarketWatch) -- OAO Vimpel Communications (VIP: news, chart, profile) , Russia's No. 2 cellular operator by user numbers, said Wednesday that fourth-quarter net profit jumped 86% on the year. Net profit was $368.1 million, up from $198.0 million in the year-earlier period. Revenue surged 39% to $2.01 billion from $1.45 billion, as more than 6 million new customers signed up for mobile services.