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Tuesday, Oct. 7
Toyota's 2008 operating profit expected to drop 40%: Nikkei (9:49 pm ET)
HONG KONG (MarketWatch) -- Toyota Motor Corp.'s (JP:7203: news, chart, profile) (TM: news, chart, profile) consolidated operating profit for the fiscal year ending in March is expected to decline 40% from its earlier forecast as the global financial crisis dampens global auto demand and higher commodity prices squeeze margins, according to a Japanese media report Wednesday. Toyota's consolidated operating profit is likely to amount to 1.3 trillion yen ($12.9 billion), down from its earlier forecast of 1.6 trillion yen, the Nikkei newspaper reported, without citing its source. The automaker is likely to have trouble achieving its global sales target of 9.5 million units, or about 25 trillion yen, because of falling demand in the U.S. and slower growth in China, the report said. Toyota's North American sales are likely to shrink to under 14 million units, from 16 million units a year earlier. Toyota shares were down 6.2% in late morning Tokyo trading.
Alcoa profit cut in half as aluminum prices fall(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Aluminum giant Alcoa Inc. (AA: news, chart, profile) on Tuesday reported a third-quarter profit of $268 million, or 33 cents a share, down from $555 million, or 63 cents a share, a year ago when the company benefited from an asset sale. The most recent results include an after-tax charge of 4 cents a share relating to the curtailment of a smelter in Texas. Revenue fell to $7.23 billion from $7.39 billion a year ago. Analysts polled by FactSet Research were looking for a profit, on average, of 54 cents a share on sales of $7.27 billion. Alcoa warned that the profit squeeze from falling aluminum prices, shrinking demand and high input costs will have a greater impact going forward.
Yum quarterly profit up 4.4%, backs 2008 outlook(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Fast-food operator Yum Brands Inc. (YUM: news, chart, profile) late Tuesday reported its third-quarter profit rose 4.4% from a year ago. The company backed its 2008 profit outlook. Yum said it earned $282 million, or 58 cents a share, compared with a profit of $270 million, or 50 cents a share, in the year-earlier period. Yum said a favorable tax rate and a 10% reduction in its diluted common shares outstanding helped to offset a weak U.S. operating profit. For the quarter ended Sept. 6, sales rose 11% to $2.8 billion. Yum operates KFC, Pizza Hut, Taco Bell and Long John Silver's. Yum shares closed Tuesday at $27.50, down 81 cents. Year-to-date, the stock is down 28%.
Sealy third-quarter net income falls to 12 cents a share (4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Sealy Corp. (ZZ: news, chart, profile) late Tuesday reported its third-quarter net income slid to $10.9 million, or 12 cents a share, nearly halved from $21.5 million, or 22 cents a share, in the third quarter last year. Revenue decreased to $405 million from $446.4 million in the same period a year ago, the Trinity, N.C.-based bedding products manufacturer said. Analysts surveyed by FactSet Research, on average, had forecast earnings of 9 cents a share on revenue of $394.3 million. The company did not provide an outlook for the quarters ahead but noted that it expects market weakness and cost pressures to continue in the near term.
Energy shares rebound with broad market(9:38 am ET)
NEW YORK (MarketWatch) -- Energy shares rebounded with the broad market on Tuesday. The Amex Oil Index (XOI: news, chart, profile) rose 1.7% to 1,039. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.8% to 437. Total SA (TOT: news, chart, profile) rose 5.7% to $56.20 as a leading gainer among oil producers. Exxon Mobil (XOM: news, chart, profile) rose 71 cents to $78.03. Devon Energy (DVN: news, chart, profile) and Chesapeake (CHK: news, chart, profile) both rose about 3%. Crude prices jumped $3.48 to $91.29.
Safeway net income climbs 2.6%, reiterates 2008 profit (9:11 am ET)
NEW YORK (MarketWatch) -- Safeway Inc. (SWY: news, chart, profile) said Tuesday third-quarter net income for the three months ended Sept. 6 rose 2.6% to $199.7 million, or 46 cents a share, from $194.6 million, or 44 cents a share in the year-ago period. Revenue at the Pleasonton, Calif. supermarket chain rose to $10.17 billion from $9.78 billion. Analysts expected earnings of 48 cents a share and revenue of $10.04 billion, on average, according to a survey by FactSet Research. Safeway said it continues to expected 2008 earnings of $2.25 to $2.35 a share, compared to the Wall Street target of $2.25 a share.
Acuity Brands posts quarterly profit decline, sets job cuts(8:21 am ET)
NEW YORK (MarketWatch) -- Acuity Brands Inc. (AYI: news, chart, profile) said Tuesday that its fiscal fourth-quarter net income fell to $41.9 million, or $1.02 a share, from $51.5 million, or $1.16 a share, in the year-ago period. On a continuing operations basis, it earned $1.02 a share compared with 97 cents a share a year earlier. Net sales declined to $522.8 million from $540.4 million. The company also said it is accelerating its plan to streamline operations, which includes workforce reductions of about 800 positions.
Illinois Tool Works see lower third-quarter profit(8:14 am ET)
NEW YORK (MarketWatch) -- Illinois Tool Works Inc. (ITW: news, chart, profile) on Tuesday said it expects lower third-quarter profit because of a slowdown in its North American business in September. The Glenview, Ill. company now forecasts third-quarter income from continuing operations of 82-86 cents a share, compared to third-quarter adjusted income per share from continuing operations of 84 cents a share. Excluding discontinued operations, the company expects third quarter earnings of 86 to 90 cents a share.
Frontier Air September traffic down, load factor up(5:25 am ET)
TEL AVIV (MarketWatch) -- Frontier Airlines Holdings Inc., (FRNTQ: news, chart, profile) the Denver carrier, said late on Monday that in September, its mainline traffic fell 8.3% from the year-earlier month, to 711.9 million revenue passenger miles. A revenue passenger mile is one paying passenger carried one mile. Revenue per seat mile rose 15% to 8.78 cents. The load factor -- the percentage of its planes filled with paying passengers -- averaged 82.8%, or 4.9 percentage points wider than the figure in September 2007.
F5 sees Q4 revenue $171.3 mln; to meet or exceed net view (3:22 am ET)
TEL AVIV (MarketWatch) -- F5 Networks Inc., (FFIV: news, chart, profile) the Seattle provider of solutions to enable fast and secure delivery of applications to network users, estimated fiscal fourth-quarter revenue at $171.3 million, compared with its earlier estimate of $172 million to $174 million. For the quarter ended Sept. 30, the company estimated that it would meet or exceed its earnings targets on both a reported and adjusted basis, F5 Networks said. A survey of analysts by FactSet Research produced consensus estimates for the quarter of 27 cents of profit on $172.9 million of revenue. The results reflect, among other things, "a sharp slowdown in Europe during the last week of September," offset in part by "a slight rebound in Japan and U.S. federal revenues and by strong demand" for new entry-level products, President and Chief Executive John McAdam said in a statement. In the quarter, F5 bought back $50 million of its stock and ended the period with $450 million of cash and investments.
Munich Re reiterates earnings target(2:37 am ET)
LONDON (MarketWatch) -- German reinsurance group Munich Re (DE:843002: news, chart, profile) on Tuesday reiterated its mid-term goal of achieving earnings per share of 18 euros ($24.3) in 2010. Speaking on the market turmoil of recent days, CEO Torsten Jeworrek said "The re-evaluation of risks will be reflected in greater demand for cover from financially strong insurers and reinsurers like us, and in a markedly higher overall price level for reinsurance protection." The group also confirmed its commitment to achieving a return on risk-adjusted capital of at least 15% over the cycle.
Monday, Oct. 6
Sharp sees fiscal 2008 profit off 41% on cell phones: Nikkei(8:23 pm ET)
NEW YORK (MarketWatch) -- Sharp Corp. (SHCA.Y: news, chart, profile) said Monday that it now expects consolidated net profit to decline 41% on year to 60 billion yen ($590 million) for the 12 months ending March 2009, Nikkei reported, citing cell-phone business woes. The projection compares to an earlier forecast of a 3% increase, the report said.
Energy stocks rise off lows for the session(4:03 pm ET)
NEW YORK (MarketWatch) -- Energy stocks rose from lows earlier in the day, but still rang up big losses on Monday. The Amex Oil Index (XOI: news, chart, profile) closed at 1,018, down 4%, but reclaiming the 1,000 level after falling more than 10%.