AI
Monday, April 14
Compuware sees fourth-quarter earnings of 22 cents a share(5:22 pm ET)
Outlook Roundup: W.W. Grainger, Eaton
Outlook Roundup: W.W. Grainger Ups Profit Forecast, Eaton Guides Higher on Strong 1Q Earnings
http://money.cnn.com/news/newsfeeds/articles/apwire/d70f4c19fa127c0ac964a58b7ac42160.htm
European Stocks Decline for Fifth Day; Philips, HSBC, BHP Fall
http://www.bloomberg.com/apps/news?pid=20601100&sid=aJo1OEGnFxXI&refer=germany
Equity Lifestyle Properties beats by $0.02, beats on revs; reaffirms FY08 FFO in-line Reports Q1 (Mar) funds from operations of $1.07 per share, $0.02 better than the First Call consensus of $1.05; revenues rose 5.8% year/year to $106.4 mln vs the $102.5 mln consensus. Co reaffirms in-line guidance for FY08, sees FFO of $3.15-3.30 vs. $3.21 consensus.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20080414&id=8484100
Wachovia pre-results option trades raise eyebrows
CHICAGO (Reuters) - Investors appeared to have made bearish bets on Wachovia Corp before the bank reported an unexpected quarterly loss on Monday, prompting questions among option traders on whether the news was leaked ahead of time.
Wachovia posted a surprise first-quarter loss early on Monday. The No. 4 U.S. bank said it would cut its dividend, eliminate jobs and raise $7 billion of capital after being hurt by credit conditions. Its shares fell 8.13 percent to $25.55.
But ahead of the earnings announcement -- originally scheduled for April 18 before being moved up over the weekend -- some lucky players aggressively scooped up Wachovia put options late last week.
The put trading was extremely heavy on Friday as traders appeared to be speculating on a bearish event affecting earnings, said Jon Najarian, a founder of Web information site optionmonster.com in Chicago.
A large part of that put activity involved May option contracts, allowing investors to sell Wachovia shares at $30 minus the premium paid.
http://www.reuters.com/article/BANKSL/idUSN1437276620080414
SAN FRANCISCO (MarketWatch) -- Compuware Corp. (CPWR: news, chart, profile) said Monday it expects fiscal fourth-quarter net earnings of 22 cents a share, or 23 cents a share before restructuring charges. The Detroit software company expects revenue of about $337 million, including software license revenues of $100 million, maintenance revenue of $126 million and professional services revenue of $111 million. Analysts surveyed by FactSet Research are projecting earnings of 18 cents a share on revenue of $320.9 million in the fourth quarter.
Energy stocks move up with crude prices (9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks tracked higher along with crude prices on Monday. The Amex Oil Index (XOI: news, chart, profile) rose 1% to 1,398. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 640. Crude prices rose 42 cents to $110.56 in morning action on the New York Mercantile Exchange.
Exxon Mobil ramps up exploration in southeast Hungary(9:15 am ET)
NEW YORK (MarketWatch) -- Exxon Mobil (XOM: news, chart, profile) on Monday said it hopes to spud the first wells in 2008 under a new energy development pact with MOL Hungarian Oil and Gas Plc in the Mako Trough in southeast Hungary. "The goal of the program is to evaluate the potential for commercial production of unconventional gas and liquid hydrocarbons," Exxon Mobil said. ExxonMobil will fund the work program and receive a 50% interest in the acreage upon completion. The exploration program covers 387,000 acres with wells drilled to depths of approximately 14,000 feet.
Carpenter sees lower third-quarter profit(8:22 am ET)
NEW YORK (MarketWatch) -- Carpenter Technology Corp. (CRS: news, chart, profile) said Monday that it expects to report third-quarter net income from continuing operations of $1 to $1.05 a share, which excludes the gain from the $145 million sale of its ceramics businesses. The company said these results reflected lower demand in automotive, industrial and consumer end markets as well as higher operating costs. In the year-earlier quarter, the Wyomissing, Pa.-based alloys maker reported earnings of $1.27 a share and net income from continuing operations of $1.22 a share. Carpenter is slated to release its results on April 29. Shares of Carpenter closed Friday at $59.30.
Federated Investors Inc. net income climbs 8%(8:15 am ET)
NEW YORK (MarketWatch) -- Federated Investors Inc. (FII: news, chart, profile) on Monday said first-quarter earnings rose 8% to $56 million, or 55 cents a share for the three months ended March 31, from $52 million, or 50 cents a share in the year-ago period. Revenue rose 16% to $305.7 million. Analysts surveyed by FactSet forecast earnings of 62 cents a share. Federated's total managed assets were a record $338.5 billion on March 31. The increase in total managed assets was driven by a $40.9 billion increase in money market assets during the first quarter, the company said. Federated's equity assets declined $4.6 billion to $37.5 billion mainly due to market depreciation.
ScottsMiracle-Gro sees second-quarter EPS $1.14-$1.18(7:47 am ET)
NEW YORK (MarketWatch) -- Scotts Miracle-Gro Co. (SMG: news, chart, profile) said Monday that it expects adjusted second-quarter earnings of $1.14 to $1.18 a share, due to a late launch of the lawn and garden season. On average, analysts polled by Thomson Financial projected earnings for the second-quarter at $1.42 a share. The Marysville, Ohio, horticultural and turf products company said it backed its outlook for the full year. The company said in January that it expects 2008 adjusted earnings to be flat to slightly down from 2007. Scotts said its fiscal 2008 financial statements will include $15 million to $20 million in unexpected costs due to a voluntary retail recall of wild bird food. A "significant" portion of this cost will be included in the second-quarter financial statements.
Eaton posts higher first-quarter profit(7:36 am ET)
NEW YORK (MarketWatch) -- Eaton Corp. (ETN: news, chart, profile) said Monday that its first-quarter net income rose 5.6% to $247 million, or $1.64 a share, from $234 million, or $1.56 a share, a year earlier, due in part to sales in international markets. Before acquisition integration charges, operating earnings rose to $1.70 a share from $1.62 in the first quarter of 2007, the Cleveland-based maker of electrical components said. A Thomson Financial survey of analysts, on average, projected earnings of $1.66 a share. Sales rose 12% to $3.50 billion from $3.11 billion. Eaton said it expects second-quarter earnings of $1.80 to $1.90 a share, and non-GAAP operating earnings of $1.90 to $2 a share. Eaton raised its full-year forecast by 5 cents a share, due to stronger first-quarter results, to $7.30 to $7.80 a share, and operating earnings of $7.80 to $8.30 a share. The company expects full year global automative markets flat, domestic output down 5%. Eaton is maintaining its previously issued full-year forecast that global electrical markets will grow 5% to 6%.
Volkswagen's first-quarter deliveries up 7%(7:22 am ET)
LONDON (MarketWatch) -- Volkswagen AG (DE:766400: news, chart, profile) , Europe's largest carmaker, on Monday said worldwide deliveries rose 7% in the first quarter to 1.572 million vehicles despite "increasingly difficult market conditions." Volkswagen said it reached record market share of 32.3% in Germany and saw a 32.4% jump in deliveries in China.
Fluidigm files $86 mln IPO(7:18 am ET)
NEW YORK (MarketWatch) -- Fluidigm Corp. on Monday filed to raise up to $86.25 million in an initial public offering with underwriters Morgan Stanley (MS: news, chart, profile) , UBS Investment Bank (UBS: news, chart, profile) and Leerink Swann. The South San Francisco, Calif. maker of genetic analysis technology plans to trade under the symbol FLDM on the Nasdaq.
Alpharma sets earnings mark; plans $150 mln stock buyback(7:12 am ET)
NEW YORK (MarketWatch) -- Alpharma Inc. (ALO: news, chart, profile) on Monday said it expects 2008 earnings from continuing operations of 15-35 cents a share, excluding the impact of any potential milestone payments associated with its 2007 licensing agreements. The Bridgewater, N.J. company expects to use the net after-tax proceeds of approximately $365 million from the sale of its API unit to invest in the pharmaceuticals and animal health businesses. The company's board of directors has authorized a share repurchase program of up to $150 million.
Wachovia raising $7 billion through offerings(6:22 am ET)
LONDON (MarketWatch) -- Wachovia Corp. (WB: news, chart, profile) said it's raising $7 billion by issuing common stock and convertible preferred stock. The non-cumulative dividend rate, conversion rate and other terms will be determined by negotiations between Wachovia and the underwriters of the convertible preferred stock offering. Wachovia Securities is serving as global coordinator and joint bookrunning manager and Goldman, Sachs & Co. is serving as joint bookrunning manager of these offerings.
Wachovia to slash dividend, raise capital after loss(6:09 am ET)
LONDON (MarketWatch) -- Wachovia (WB: news, chart, profile) said it's cutting its dividend to 37.5 cents a share and going to issue common stock and convertible preferred stock after reporting a loss during the first quarter of $350 million before preferred dividends. Excluding merger-related expenses, it lost 14 cents a share. It earned $2.3 billion, or $1.20 a share, in the year-earlier period. Analysts polled by FactSet expected Wachovia to earn 44 cents a share. Wachovia said cutting its quarterly dividend will save $2 billion of capital annually "to build capital ratios and provide more operational flexibility." Wachovia said it took market-disruption valuation losses of $2 billion during the quarter. "The precipitous decline in housing market conditions and unprecedented changes in consumer behavior prompted us to update our credit reserve modeling and rely less heavily on historical trends to forecast losses," said CEO Ken Thompson.
Danone sales up 18.7%, reaffirms growth targets(2:24 am ET)
LONDON (MarketWatch) -- French dairy and beverage company Groupe Danone (FR:012064: news, chart, profile) said Monday that its first-quarter sales rose 18.7% to 3.76 billion euros ($5.9 billion). Comparable sales excluding the impact of exchange rate moves and consolidation rose 11.4% from a year earlier. "We are specifically pleased with the developments in our two new divisions baby nutrition and medical nutrition as their particular strong performances illustrate the quality and the speed of the integration process since the completion of the Numico acquisition," said CEO Franck Riboud. Danone also confirmed its 2008 target for sales growth of 8% to 10% and growth in underlying earnings per share of at least 15%.
Friday, April 11
Retail gasoline edges up on Friday to $3.37 a gallon(9:10 am ET)
NEW YORK (MarketWatch) -- The average U.S. retail price for unleaded regular gasoline rose by a penny Friday from the previous day to $3.37 a gallon, up from $3.25 a month ago and $2.81 a year ago, according to the Daily Fuel Gauge Report from the Automobile Association of America.
Fastenal posts rise in first-quarter profit (8:00 am ET)
NEW YORK (MarketWatch) -- Fastenal Co. (FAST: news, chart, profile) said Friday that its first-quarter net income rose to $68.1 million, or 46 cents a share, from $54 million, or 36 cents a share, in the year-earlier period. The Winona, Minn., industrial supplies manufacturer said sales for the three months ended March 31 increased 15.8% to $566.2 million from $489.2 million. The company's shares closed Thursday at $47.75.
Foundry sees quarterly results below expectations(7:46 am ET)
NEW YORK (MarketWatch) -- Foundry Networks Inc. (FDRY: news, chart, profile) said Friday that it expects to report first-quarter earnings of 8 to 9 cents a share, including stock-based compensation, on revenue of $148 million to $150 million. On average, analysts surveyed by Thomson Financial were expecting the Santa Clara, Calif.-based computer hardware company to report earnings of 20 cents a share on revenue of $163.4 million. "Entering the quarter, we expressed our view that Foundry would experience typical seasonality," said Bobby Johnson, president and chief executive officer of Foundry Networks. "However, during the first quarter, a more challenging macroeconomic environment evolved from the financial market crises, which we believe led some customers to delay their purchase decisions." Shares of Foundry closed Thursday at $11.59.
Exxon Mobil OK's $75 mln for Hungary project(7:44 am ET)
NEW YORK (MarketWatch) -- Exxon Mobil Corp. (XOM: news, chart, profile) said late Thursday it'll spend about $75 million to test and drill in the Mako Trough in southeast Hungary. The company's Esso Exploration International Limited unit signed a production and development agreement with Falcon Oil and Gas Ltd. to begin work on a production license in a contract area of 184,300 acres. After the initial work program, the agreement includes options for ExxonMobil to elect to follow with appraisal and development.
CORRECT: GE profit drops 6%, cuts 2008 forecast(6:42 am ET)
LONDON (MarketWatch) -- General Electric (GE: news, chart, profile) said first-quarter net income dropped 6% to $4.3 billion, or 43 cents a share, while revenue rose 8% to $42.24 billion. From continuing operations, the component of the Dow Jones Industrial Average earned 44 cents a share, below FactSet-compiled analyst estimates of 51 cents a share. "Demand for our global Infrastructure business remained strong, but our financial services businesses were challenged by a slowing U.S. economy and difficult capital markets," GE Chairman and CEO Jeff Immelt said. GE also lowered 2008 guidance to a range of $2.20 to $2.30 a share, with second-quarter EPS seen 53 cents to 55 cents a share. Analysts expected annual earnings of $2.43 and second-quarter earnings of 58 cents a share. (Corrects revenue.)
South Korea's Posco posts 5% rise in Q1 net profit (4:27 am ET)
HONG KONG (MarketWatch) -- South Korean steel maker Posco posted a surprise 5% rise in first-quarter net profit Friday, bolstered by higher steel price and cost-reduction efforts. Posco, the world's fourth-largest steel maker by output, reported quarterly net profit of 1.03 trillion won ($1.06 billion), up from the 982.3 million won in the year-earlier period. An average of analysts' forecasts compiled by Dow Jones Newswires was for a net profit of 963 million won. Revenue totaled 6.06 trillion won, up 6.6% from 5.70 trillion won a year earlier. The steel maker lifted its 2008 sales target by 17% to 28 trillion won.
Compuware sees fourth-quarter earnings of 22 cents a share(5:22 pm ET)
Outlook Roundup: W.W. Grainger, Eaton
Outlook Roundup: W.W. Grainger Ups Profit Forecast, Eaton Guides Higher on Strong 1Q Earnings
http://money.cnn.com/news/newsfeeds/articles/apwire/d70f4c19fa127c0ac964a58b7ac42160.htm
European Stocks Decline for Fifth Day; Philips, HSBC, BHP Fall
http://www.bloomberg.com/apps/news?pid=20601100&sid=aJo1OEGnFxXI&refer=germany
Equity Lifestyle Properties beats by $0.02, beats on revs; reaffirms FY08 FFO in-line Reports Q1 (Mar) funds from operations of $1.07 per share, $0.02 better than the First Call consensus of $1.05; revenues rose 5.8% year/year to $106.4 mln vs the $102.5 mln consensus. Co reaffirms in-line guidance for FY08, sees FFO of $3.15-3.30 vs. $3.21 consensus.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20080414&id=8484100
Wachovia pre-results option trades raise eyebrows
CHICAGO (Reuters) - Investors appeared to have made bearish bets on Wachovia Corp before the bank reported an unexpected quarterly loss on Monday, prompting questions among option traders on whether the news was leaked ahead of time.
Wachovia posted a surprise first-quarter loss early on Monday. The No. 4 U.S. bank said it would cut its dividend, eliminate jobs and raise $7 billion of capital after being hurt by credit conditions. Its shares fell 8.13 percent to $25.55.
But ahead of the earnings announcement -- originally scheduled for April 18 before being moved up over the weekend -- some lucky players aggressively scooped up Wachovia put options late last week.
The put trading was extremely heavy on Friday as traders appeared to be speculating on a bearish event affecting earnings, said Jon Najarian, a founder of Web information site optionmonster.com in Chicago.
A large part of that put activity involved May option contracts, allowing investors to sell Wachovia shares at $30 minus the premium paid.
http://www.reuters.com/article/BANKSL/idUSN1437276620080414
SAN FRANCISCO (MarketWatch) -- Compuware Corp. (CPWR: news, chart, profile) said Monday it expects fiscal fourth-quarter net earnings of 22 cents a share, or 23 cents a share before restructuring charges. The Detroit software company expects revenue of about $337 million, including software license revenues of $100 million, maintenance revenue of $126 million and professional services revenue of $111 million. Analysts surveyed by FactSet Research are projecting earnings of 18 cents a share on revenue of $320.9 million in the fourth quarter.
Energy stocks move up with crude prices (9:40 am ET)
NEW YORK (MarketWatch) -- Energy stocks tracked higher along with crude prices on Monday. The Amex Oil Index (XOI: news, chart, profile) rose 1% to 1,398. The Amex Natural Gas Index (XNG: news, chart, profile) rose 0.8% to 640. Crude prices rose 42 cents to $110.56 in morning action on the New York Mercantile Exchange.
Exxon Mobil ramps up exploration in southeast Hungary(9:15 am ET)
NEW YORK (MarketWatch) -- Exxon Mobil (XOM: news, chart, profile) on Monday said it hopes to spud the first wells in 2008 under a new energy development pact with MOL Hungarian Oil and Gas Plc in the Mako Trough in southeast Hungary. "The goal of the program is to evaluate the potential for commercial production of unconventional gas and liquid hydrocarbons," Exxon Mobil said. ExxonMobil will fund the work program and receive a 50% interest in the acreage upon completion. The exploration program covers 387,000 acres with wells drilled to depths of approximately 14,000 feet.
Carpenter sees lower third-quarter profit(8:22 am ET)
NEW YORK (MarketWatch) -- Carpenter Technology Corp. (CRS: news, chart, profile) said Monday that it expects to report third-quarter net income from continuing operations of $1 to $1.05 a share, which excludes the gain from the $145 million sale of its ceramics businesses. The company said these results reflected lower demand in automotive, industrial and consumer end markets as well as higher operating costs. In the year-earlier quarter, the Wyomissing, Pa.-based alloys maker reported earnings of $1.27 a share and net income from continuing operations of $1.22 a share. Carpenter is slated to release its results on April 29. Shares of Carpenter closed Friday at $59.30.
Federated Investors Inc. net income climbs 8%(8:15 am ET)
NEW YORK (MarketWatch) -- Federated Investors Inc. (FII: news, chart, profile) on Monday said first-quarter earnings rose 8% to $56 million, or 55 cents a share for the three months ended March 31, from $52 million, or 50 cents a share in the year-ago period. Revenue rose 16% to $305.7 million. Analysts surveyed by FactSet forecast earnings of 62 cents a share. Federated's total managed assets were a record $338.5 billion on March 31. The increase in total managed assets was driven by a $40.9 billion increase in money market assets during the first quarter, the company said. Federated's equity assets declined $4.6 billion to $37.5 billion mainly due to market depreciation.
ScottsMiracle-Gro sees second-quarter EPS $1.14-$1.18(7:47 am ET)
NEW YORK (MarketWatch) -- Scotts Miracle-Gro Co. (SMG: news, chart, profile) said Monday that it expects adjusted second-quarter earnings of $1.14 to $1.18 a share, due to a late launch of the lawn and garden season. On average, analysts polled by Thomson Financial projected earnings for the second-quarter at $1.42 a share. The Marysville, Ohio, horticultural and turf products company said it backed its outlook for the full year. The company said in January that it expects 2008 adjusted earnings to be flat to slightly down from 2007. Scotts said its fiscal 2008 financial statements will include $15 million to $20 million in unexpected costs due to a voluntary retail recall of wild bird food. A "significant" portion of this cost will be included in the second-quarter financial statements.
Eaton posts higher first-quarter profit(7:36 am ET)
NEW YORK (MarketWatch) -- Eaton Corp. (ETN: news, chart, profile) said Monday that its first-quarter net income rose 5.6% to $247 million, or $1.64 a share, from $234 million, or $1.56 a share, a year earlier, due in part to sales in international markets. Before acquisition integration charges, operating earnings rose to $1.70 a share from $1.62 in the first quarter of 2007, the Cleveland-based maker of electrical components said. A Thomson Financial survey of analysts, on average, projected earnings of $1.66 a share. Sales rose 12% to $3.50 billion from $3.11 billion. Eaton said it expects second-quarter earnings of $1.80 to $1.90 a share, and non-GAAP operating earnings of $1.90 to $2 a share. Eaton raised its full-year forecast by 5 cents a share, due to stronger first-quarter results, to $7.30 to $7.80 a share, and operating earnings of $7.80 to $8.30 a share. The company expects full year global automative markets flat, domestic output down 5%. Eaton is maintaining its previously issued full-year forecast that global electrical markets will grow 5% to 6%.
Volkswagen's first-quarter deliveries up 7%(7:22 am ET)
LONDON (MarketWatch) -- Volkswagen AG (DE:766400: news, chart, profile) , Europe's largest carmaker, on Monday said worldwide deliveries rose 7% in the first quarter to 1.572 million vehicles despite "increasingly difficult market conditions." Volkswagen said it reached record market share of 32.3% in Germany and saw a 32.4% jump in deliveries in China.
Fluidigm files $86 mln IPO(7:18 am ET)
NEW YORK (MarketWatch) -- Fluidigm Corp. on Monday filed to raise up to $86.25 million in an initial public offering with underwriters Morgan Stanley (MS: news, chart, profile) , UBS Investment Bank (UBS: news, chart, profile) and Leerink Swann. The South San Francisco, Calif. maker of genetic analysis technology plans to trade under the symbol FLDM on the Nasdaq.
Alpharma sets earnings mark; plans $150 mln stock buyback(7:12 am ET)
NEW YORK (MarketWatch) -- Alpharma Inc. (ALO: news, chart, profile) on Monday said it expects 2008 earnings from continuing operations of 15-35 cents a share, excluding the impact of any potential milestone payments associated with its 2007 licensing agreements. The Bridgewater, N.J. company expects to use the net after-tax proceeds of approximately $365 million from the sale of its API unit to invest in the pharmaceuticals and animal health businesses. The company's board of directors has authorized a share repurchase program of up to $150 million.
Wachovia raising $7 billion through offerings(6:22 am ET)
LONDON (MarketWatch) -- Wachovia Corp. (WB: news, chart, profile) said it's raising $7 billion by issuing common stock and convertible preferred stock. The non-cumulative dividend rate, conversion rate and other terms will be determined by negotiations between Wachovia and the underwriters of the convertible preferred stock offering. Wachovia Securities is serving as global coordinator and joint bookrunning manager and Goldman, Sachs & Co. is serving as joint bookrunning manager of these offerings.
Wachovia to slash dividend, raise capital after loss(6:09 am ET)
LONDON (MarketWatch) -- Wachovia (WB: news, chart, profile) said it's cutting its dividend to 37.5 cents a share and going to issue common stock and convertible preferred stock after reporting a loss during the first quarter of $350 million before preferred dividends. Excluding merger-related expenses, it lost 14 cents a share. It earned $2.3 billion, or $1.20 a share, in the year-earlier period. Analysts polled by FactSet expected Wachovia to earn 44 cents a share. Wachovia said cutting its quarterly dividend will save $2 billion of capital annually "to build capital ratios and provide more operational flexibility." Wachovia said it took market-disruption valuation losses of $2 billion during the quarter. "The precipitous decline in housing market conditions and unprecedented changes in consumer behavior prompted us to update our credit reserve modeling and rely less heavily on historical trends to forecast losses," said CEO Ken Thompson.
Danone sales up 18.7%, reaffirms growth targets(2:24 am ET)
LONDON (MarketWatch) -- French dairy and beverage company Groupe Danone (FR:012064: news, chart, profile) said Monday that its first-quarter sales rose 18.7% to 3.76 billion euros ($5.9 billion). Comparable sales excluding the impact of exchange rate moves and consolidation rose 11.4% from a year earlier. "We are specifically pleased with the developments in our two new divisions baby nutrition and medical nutrition as their particular strong performances illustrate the quality and the speed of the integration process since the completion of the Numico acquisition," said CEO Franck Riboud. Danone also confirmed its 2008 target for sales growth of 8% to 10% and growth in underlying earnings per share of at least 15%.
Friday, April 11
Retail gasoline edges up on Friday to $3.37 a gallon(9:10 am ET)
NEW YORK (MarketWatch) -- The average U.S. retail price for unleaded regular gasoline rose by a penny Friday from the previous day to $3.37 a gallon, up from $3.25 a month ago and $2.81 a year ago, according to the Daily Fuel Gauge Report from the Automobile Association of America.
Fastenal posts rise in first-quarter profit (8:00 am ET)
NEW YORK (MarketWatch) -- Fastenal Co. (FAST: news, chart, profile) said Friday that its first-quarter net income rose to $68.1 million, or 46 cents a share, from $54 million, or 36 cents a share, in the year-earlier period. The Winona, Minn., industrial supplies manufacturer said sales for the three months ended March 31 increased 15.8% to $566.2 million from $489.2 million. The company's shares closed Thursday at $47.75.
Foundry sees quarterly results below expectations(7:46 am ET)
NEW YORK (MarketWatch) -- Foundry Networks Inc. (FDRY: news, chart, profile) said Friday that it expects to report first-quarter earnings of 8 to 9 cents a share, including stock-based compensation, on revenue of $148 million to $150 million. On average, analysts surveyed by Thomson Financial were expecting the Santa Clara, Calif.-based computer hardware company to report earnings of 20 cents a share on revenue of $163.4 million. "Entering the quarter, we expressed our view that Foundry would experience typical seasonality," said Bobby Johnson, president and chief executive officer of Foundry Networks. "However, during the first quarter, a more challenging macroeconomic environment evolved from the financial market crises, which we believe led some customers to delay their purchase decisions." Shares of Foundry closed Thursday at $11.59.
Exxon Mobil OK's $75 mln for Hungary project(7:44 am ET)
NEW YORK (MarketWatch) -- Exxon Mobil Corp. (XOM: news, chart, profile) said late Thursday it'll spend about $75 million to test and drill in the Mako Trough in southeast Hungary. The company's Esso Exploration International Limited unit signed a production and development agreement with Falcon Oil and Gas Ltd. to begin work on a production license in a contract area of 184,300 acres. After the initial work program, the agreement includes options for ExxonMobil to elect to follow with appraisal and development.
CORRECT: GE profit drops 6%, cuts 2008 forecast(6:42 am ET)
LONDON (MarketWatch) -- General Electric (GE: news, chart, profile) said first-quarter net income dropped 6% to $4.3 billion, or 43 cents a share, while revenue rose 8% to $42.24 billion. From continuing operations, the component of the Dow Jones Industrial Average earned 44 cents a share, below FactSet-compiled analyst estimates of 51 cents a share. "Demand for our global Infrastructure business remained strong, but our financial services businesses were challenged by a slowing U.S. economy and difficult capital markets," GE Chairman and CEO Jeff Immelt said. GE also lowered 2008 guidance to a range of $2.20 to $2.30 a share, with second-quarter EPS seen 53 cents to 55 cents a share. Analysts expected annual earnings of $2.43 and second-quarter earnings of 58 cents a share. (Corrects revenue.)
South Korea's Posco posts 5% rise in Q1 net profit (4:27 am ET)
HONG KONG (MarketWatch) -- South Korean steel maker Posco posted a surprise 5% rise in first-quarter net profit Friday, bolstered by higher steel price and cost-reduction efforts. Posco, the world's fourth-largest steel maker by output, reported quarterly net profit of 1.03 trillion won ($1.06 billion), up from the 982.3 million won in the year-earlier period. An average of analysts' forecasts compiled by Dow Jones Newswires was for a net profit of 963 million won. Revenue totaled 6.06 trillion won, up 6.6% from 5.70 trillion won a year earlier. The steel maker lifted its 2008 sales target by 17% to 28 trillion won.
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