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Tuesday, Oct. 14
CSX posts lower net but operating profit jumps 40% (5:28 pm ET)
SAN FRANCISCO (MarketWatch) -- CSX Corp. (CSX: news, chart, profile) reported late Tuesday third-quarter net income fell to $382 million, or 94 cents a share, from $407 million, or 91 cents, a year ago. The year-ago results included a $110 million one-time tax benefit. Excluding the tax benefit, earnings from continuing operations rose 40% to $382 million, or 94 cents a share, from $297 million, or 67 cents, in the year-ago period. Revenue for the three months ended Sept. 26 rose 18% to $2.96 billion. Analysts polled by FactSet had predicted the railroad would earn 93 cents a share on $2.88 billion in revenue. Shares of Jacksonville, Fla.-based CSX fell 3.5% to close at $48.14 ahead of the report.
Genentech reports higher third-quarter earnings(4:17 pm ET)
BOSTON (MarketWatch) -- Genentech Inc. (DNA: news, chart, profile) late Tuesday reported that third-quarter net income grew to $731 million, or 68 cents a share, from $685 million, or 64 cents a share, for the same quarter in 2007. Revenue for the biotech group increased to $3.4 billion, up from $2.9 billion the previous year. Excluding various items, Genentech would have reported adjusted earnings per share of 81 cents, up from 73 cents. According to analysts, Wall Street had been looking for the company to post adjusted earnings of 88 cents a share, on revenues of $3.35 billion.
Credit Agricole says it does not need more capital(11:55 am ET)
LONDON (MarketWatch) -- French bank Credit Agricole (FR:004507: news, chart, profile) said Tuesday that it does not need to raise capital. The group said it had a Tier 1 capital ratio of 8.9% at the end of June after completing a 5.9 billion euro ($8.1 billion) rights issue and reporting a first-half profit of nearly 1 billion euros. CEO Georges Pauget said that, like other French banks, Credit Agricole wouldn't exclude using a government capital facility to refinance hybrid capital if it is advantageous in terms of cost.
Phosphate Holdings files $200 million IPO (10:17 am ET)
NEW YORK (MarketWatch) -- Phosphate Holdings Inc. on Tuesday filed to raise up to $200 million in an initial public offering with underwriters Goldman Sachs (GS: news, chart, profile) and Merrill Lynch (MER: news, chart, profile) . The fertilizer company did not yet specify which exchange would list its shares. Currently, the company trades on the OTC markets under the symbol PHOS.
Grainger shares gain ground on higher profit(9:53 am ET)
SAN FRANCISCO (MarketWatch) -- Grainger, Inc. (GWW: news, chart, profile) shares added almost 5% in early trades Tuesday after the facilities maintenance contractor reported a third-quarter profit improvement and raised its outlook for the full year. The Lake Forest, Ill.-based company posted a third-quarter profit of $140.0 million, or $1.79 a share, up from $109.2 million, or $1.29 a share, a year earlier. Sales rose to $1.84 billion from $1.66 billion. Analysts polled by FactSet Research were looking for earnings, on average, of $1.53 a share on sales of $1.8 billion. Grainger raised its 2008 outlook to a range of $6.00 to $6.20 a share. Wall Street previously forecast a profit of $5.87 a share.
Gazprom eyes role in Denali pipeline project in Alaska (9:30 am ET)
NEW YORK (MarketWatch) -- Officials from Russian energy giant Gazprom (UK:OGZD: news, chart, profile) on Tuesday reiterated interest in taking part in a pipeline project to transport natural gas from Alaska to the U.S. market, according to published reports. In a recent visit to Alaska, the world's largest gas producer discussed gas production, transport and supply with counterparts in the U.S., including ConocoPhillips (COP: news, chart, profile) CEO Jim Mulva. ConocoPhillips and BP (BP: news, chart, profile) have proposed the $30 billion Denali pipeline project to connect natural gas fields in the North Slope of Alaska to the lower 48 states.
BP strikes oil in deep waters of the Gulf of Mexico(9:15 am ET)
NEW YORK (MarketWatch) -- BP America Inc. (BP: news, chart, profile) said Tuesday it struck oil at its Freedom Prospect in the deepwater Gulf of Mexico in 6,100 feet of water. Appraisal will be required to determine the size and commerciality of the discovery in a well drilled to a total depth of more than 29,000 feet. Noble Energy Inc. (NBL: news, chart, profile) holds a 37.5% working interest, Samson Offshore Company holds 25% and Marathon Oil Company (MRO: news, chart, profile) hold a 12.5% working interest. The lease was acquired by Noble Energy and Samson Offshore at a federal lease sale in 2006.
CORRECT: Supervalu net income falls 14%(8:14 am ET)
NEW YORK (MarketWatch) - Supervalu (SVU: news, chart, profile) on Tuesday said second-quarter net income fell 14% to $128 million, or 60 cents a share, from $148 million, or 69 cents a share in the year-ago period. The latest period includes a charge of a penny a share. Sales for the three months ended Sept. 6 rose slightly to $10.23 billion from $10.16 billion. Analysts surveyed by FactSet Research forecast earnings of 70 cents a share on revenue of $10.11 billion, on average. The Minneapolis-based supermarket chain expects 2009 earnings of $2.90 to $3 a share, excluding one-time items, compared to the Wall Street target of $2.96 a share. (Corrects 2009 earnings estimate.)
Johnson & Johnson profit rises to $1.17 a share(7:53 am ET)
NEW YORK (MarketWatch) -- Johnson & Johnson (JNJ: news, chart, profile) said Tuesday its third-quarter profit totaled $3.31 billion, or $1.17 a share, from $2.55 billion, or 88 cents a share, in the same quarter a year before. Analysts had expected earnings on average of $1.11 a share, according to a FactSet Research survey. Revenue for the quarter was $15.92 billion compared to $14.97 billion in the year-ago period. Domestic sales increased 11.2%, while international sales increased 14.7%. The company also raised its 2008 profit forecast to $4.50 to $4.53 a share, excluding one-time charges, while the FactSet survey tips annual earnings at $4.50.
XL Capital sees third quarter loss of up to $6.17 a share (7:44 am ET)
NEW YORK (MarketWatch) -- Insurer XL Capital Corp (XL: news, chart, profile) said on Tuesday it expects to report a third quarter loss of $1.65 billion to $1.67 billion, or $6.08 a share to $6.17 a share. That compares to the profit of $328 million, or $1.82 a share in the year-ago period. The estimates include previously announced charges, including $1.4 billion of costs associated with its acquisition of Syncora Holdings Ltd. in August. The company added that during the third quarter it, "raised capital sufficient to pay for our Syncora solution, to withstand the historic economic turbulence and its effects on our investment portfolio in the quarter, and to cover the demands of our estimated third quarter hurricane losses."
Boston Scientific says it has access to about $3 billion(7:41 am ET)
NEW YORK (MarketWatch) -- Boston Scientific Corp. (BSX: news, chart, profile) said Tuesday that it currently has access to approximately $3 billion in cash, with approximately $1.7 billion on hand and access to about $1.3 billion of additional cash through its revolving bank credit facility. The company said that the recent volatility of the financial markets and of its own stock price "have had no noticeable effect on the financial strength or ongoing financial performance of the company." It also said it was moving up its earnings call one day earlier, to Oct. 22, in order to avoid scheduling conflicts with calls of two other major medical device companies.
Polaris Industries profit falls, ups 2008 view(7:36 am ET)
LONDON (MarketWatch) -- Polaris Industries Inc. (PII: news, chart, profile) , the Medina, MN.,-based builder and supplier of snowmobiiles, ATVs, motorcycles and associated apparel Tuesday said third-quarter net income fell to $37.7 million, or $1.13 a share, from $38.8 million, or $1.06 a share. Sales rose to $580 million, up 7%, on strong ATV sales. The company said it was raising its 2008 earnings view to $3.47 to $3.50 a share on sales growth between 10% and 11%. Analysts polled by FactSet had expected third-quarter earnings of $1.10 a share and 2008 earnings of $3.45 a share.
Meadwestvaco Corp. lowers business outlook (7:15 am ET)
NEW YORK (MarketWatch) -- Meadwestvaco Corp. (MWV: news, chart, profile) on Tuesday warned its third-quarter profit will come in below the year-ago figure of $121 million, or 66 cents a share. Analysts surveyed by FactSet have been forecasting earnings of 44 cents a share, on average, for the three months ended Sept. 30. The Richmond, Va. packaging giant said its combined business segment profits for the third quarter will be modestly above previous quarter level of 34 cents a share, but below third quarter levels. Meadwestvaco cited the impact of higher input cost inflation, lower volumes in its Consumer & Office Products unit and weakening demand in some packaging end markets.
Heidrick & Struggles cuts its 2008 sales forecast(7:10 am ET)
NEW YORK (MarketWatch) -- Heidrick & Struggles International Inc. (HSII: news, chart, profile) said Tuesday it was cutting its 2008 net revenue forecast to "approximately $630 million" from a previous range of between $650 million and $660 million. It also cut its operating margin projection to about 10% from an estimate of 13% earlier. Chief Executive Officer Kevin Kelly cited "the challenging, and in many respects unprecedented, economic environment in which we are operating," but said the Chicago-based consulting service was helped by its geographic and product diversity.
Johnson Controls says 2009 earnings to fall 10% to 16%(7:05 am ET)
LONDON (MarketWatch) -- Industrial company Johnson Controls, Inc. (JCI: news, chart, profile) said it expects earnings to decline 10% to 16% to between $1.95 and $2.10 a share in fiscal 2009, as it struggles with the difficult economic environment and lower auto sales. The guidance falls short of consensus forecasts for earnings of $2.47 a share, according to estimates compiled by FactSet Research. The company also said 2009 sales would decline 3% to $37 billion, again lower than consensus forecasts of $39.85 billion. Turning to the fourth quarter, Johnson Controls said it expects adjusted earnings of 73 cents a share, in line with its guidance of 72 cents to 74 cents a share.
Daimler to close two plants, cut 3,500 jobs in North America(6:17 am ET)
LONDON (MarketWatch) -- German car maker Daimler AG (DE:710000: news, chart, profile) (DAI: news, chart, profile) said Tuesday that its Daimler Trucks North America unit will close two plants, shed around 3,500 jobs and discontinue one of its brands in response to continued depressed demand across the industry. The group said it will stop making vehicles under the Sterling Trucks brand in March 2009. It added its St. Thomas, Ontario, plant will cease truck manufacturing at that time, and its Portland, Oregon, plant will also close in June 2010. Daimler said 2,300 workers at the plants will be affected by mid-2010, including 720 previously announced cuts, and the company also plans to reduce its salaried workforce by around 1,200 positions. The group said the plans will cost around $600 million and are expected to result in annual earnings improvements of $900 million by 2011.
British Sept. annual CPI jumps to 5.2%(4:39 am ET)
LONDON (MarketWatch) -- British consumer inflation surged 0.5% in September, boosting the annual rate to 5.2% -- the highest year-on-year reading since March 1992, the Office for National Statistics said Tuesday. The rise exceeded forecasts for a 0.4% monthly rise and a 5.1% annual jump. The rise puts the annual rate more than three percentage points above the government's official target of 2%. August inflation rose at an annualized 4.7%. Meanwhile, the core inflation measure, which excludes energy, food, alcohol and tobacco, rose 0.2% in September for a 2.2% annual rate.
Bellway profit falls 84%, focuses on conserving cash(2:40 am ET)
LONDON (MarketWatch) -- U.K. home builder Bellway (UK:BWY: news, chart, profile) said Tuesday that its net profit for the year ended July 31 fell 84% to 27 million pounds ($47 million) as revenue slipped 15% to 1.15 billion pounds. The group said completed sales fell to 6,556 from 7,638 a year earlier and the average selling price also dropped 2% to 169,700 pounds. Bellway said it will pay a final dividend of 6 pence a share, taking the total payout for the year to 24.1 pence, compared to 43.1 pence a year earlier. The group said its strategy is aimed primarily at conserving cash and reducing the cost base.
Burberry revenue climbs 20%, sees Spanish business weakening(2:31 am ET)
LONDON (MarketWatch) -- Fashion company Burberry Gruop (UK:BRBY: news, chart, profile) said Tuesday that its first-half revenue rose 20% to 539 million pounds from 449 million pounds, driven by strong growth in Europe, the Americas and Asia Pacific. Underlying revenue was up 13%. Only the company's Spanish operations showed a decline in revenue, which it attributed to low consumer confidence due to the weak economic environment. Burberry said it expects wholesale revenue to fall around 20% in Spain in the second half and it's therefore planning for overall wholesale revenue to be roughly flat in the period. Retail revenue should benefit from a 12% increase in selling space year-on-year in the second half.
Shanghai Pudong Bank to report Jan to Sept profit rose 150%(12:10 am ET)
HONG KONG (MarketWatch) -- Shanghai Pudong Development Bank Co., which is 3% held by Citibank, said Tuesday it expects net profit for the January through September period to likely climb 150% on year, owing to lower taxes and wider loan margins. The lender, which is based and traded in Shanghai, reported a net profit of 3.92 billion yuan ($574 million) in the first nine months last year. The bank will report earnings for the nine-month period Oct. 30.