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Thursday, Oct. 16
Leggett & Platt profit falls by half, trims outlook (5:46 pm ET)
SAN FRANCISCO (MarketWatch) -- Leggett & Platt Inc. (LEG: news, chart, profile) reported late Thursday third-quarter net income of $32.7 million, or 20 cents a share, down from $65.7 million, or 37 cents, a year ago. Excluding one-time items, the company earned 34 cents a share from continuing operations. Revenue for the quarter ended Sept. 30 rose to $1.13 billion from $1.09 billion. Analysts polled by FactSet Research predicted the engineed parts maker would post per-share earnings of 30 cents on $1.05 billion in revenue. The company, citing weak market demand, said it expects to earn $1 to $1.15 a share for the full year, down from $1.10 to $1.40 estimated in July. Leggett & Platt shares closed at $18.57 ahead of the report, up 6.7% for the day.
Zions quarterly net income falls 72%(4:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Zions Bancorporation (ZION: news, chart, profile) said late Thursday that third-quarter net income came in at $37.8 million, 72% lower than a year earlier when the bank made $135.7 million. Net income per common share came in at 31 cents versus $1.22 a year ago, the company reported. Nonperforming assets were $924.4 million at the end of September, up from $196.6 million a year earlier. Zions said this was driven mainly by deterioration in residential real estate acquisition, development and construction loans in the Southwest, and by continued weakening in Utah residential construction and commercial and industrial portfolios.
Capital One reports quarterly net income of $374 million(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Capital One Financial (COF: news, chart, profile) said late Thursday that it made net income of $374.1 million, or $1 a share, in the third quarter, up from a net loss of $81.7 million, or 21 cents a share, a year earlier. Earnings from continuing operations in the third quarter of 2008 were $385.8 million, or $1.03 a share, the credit card and banking company reported.
IBM earnings rise on strong software, services revenue(4:19 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. said Thursday that earnings grew 22% for the third quarter, in line with an earlier pre-announcement. The high-tech giant (IBM: news, chart, profile) reported operating income of $2.8 billion, or $2.05 per share, compared to earnings of $2.4 billion, or $1.68 per share, for the same period last year. Revenue rose 5% to $25.3 billion for the quarter. The company said revenue from its software segment grew by 12% to $5.2 billion during the period.
Google posts strong quarterly profit, sales gains(4:10 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. on Thursday said its fiscal third-quarter profit and sales rose compared to the same period last year. Mountain View, Calif.-based Google (GOOG: news, chart, profile) said net income for the period ended in September rose to $1.35 billion, or $4.24 a share, from $1.25 billion, or $3.92 a share in the same period a year earlier. Net revenue rose to $4.04 billion. Excluding special items, Google said earnings for the quarter were $4.92 a share. Analysts on average had estimated Google would post earnings excluding special items of $4.74 a share, on net revenue of $4.04 billion, according to FactSet Research.
Energy stocks recover in early action(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks recovered some of their bruising losses in the previous session ahead of key weekly inventory data on Thursday. The Amex Oil Index (XOI: news, chart, profile) rose 2.8% to 353. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.5% to 816.
Nucor net climbs 93%, but outlook cloudy on economy(9:21 am ET)
NEW YORK (MarketWatch) -- Steel producer Nucor Corp. (NUE: news, chart, profile) said Thursday third-quarter net income for the three months ended Sept. 30 rose 93% to $734.6 million, or $2.31 a share, from the $381.2 million, or $1.29 per share in the year-ago period. Revenue climbed to $7.45 billion from $4.26 billion. Analysts surveyed by FactSet forecast earnings of $2.18 a share and revenue of $7.16 billion, on average. The Charlotte, N.C. company declined to provide an earnings estimate for the fourth quarter, given the economic turmoil surrounding the global credit crunch. "The business environment has obviously become significantly more challenging for everyone including Nucor," the company said. "These conditions are such that financial projections are not practical." Nucor said discussions between Sidenor S. A. of Greece and Nucor concerning the possible formation of a joint venture between the companies continue, but "the current turmoil in the world financial markets has delayed the completion of this effort."
Reliance Steel reports higher third-quarter profit(8:59 am ET)
NEW YORK (MarketWatch) -- Reliance Steel & Aluminum Co. (RS: news, chart, profile) said Thursday that its third-quarter net income rose to $152.5 million, or $2.07 a share, from $93.6 million, or $1.22 a share, in the year-earlier period. Analysts polled by FactSet Research, on average, projected earnings of $1.94 a share. The Los Angeles-based metals-services company said quarterly revenue increased to $2.57 billion from $1.81 billion a year earlier. Chairman and Chief Executive Officer David Hannah said the company was not comfortable giving fourth-quarter guidance, citing economic uncertainty, although he noted that he hasn't seen a significant decrease in business activity.
Vishay cuts third-quarter forecast for revenue, gross margin(8:46 am ET)
NEW YORK (MarketWatch) -- Vishay Intertechnology Inc. (VSH: news, chart, profile) on Thursday lowered its third-quarter revenue and gross-margin forecasts, citing deterioration in its end markets. The Malvern, Pa.-based chip maker said it expects to post revenue of $736 million to $742 million in the period, down from its previous guidance range of $750 million to $770 million. On average, analysts polled by FactSet Research were expecting revenue of $756.6 million. The company's gross-margin forecast was cut to a range of 21.4% to 21.8%, versus the previous expectation of about 23.2%. Vishay also said that it expects to record more impairment charges, which could be significant, in the third quarter.
Peabody Energy 3rd-quarter net up on 59% higher revenue(8:27 am ET)
TEL AVIV (MarketWatch) -- Peabody Energy Corp., (BTU: news, chart, profile) the St. Louis coal producer, reported third-quarter net income jumped on 59% higher revenue and raised its earnings estimate for the full year. Profit reached $369.6 million, or $1.36 a share, from $32.3 million, or 12 cents, in the year-earlier period. Earnings from continuing operations were $1.38 against 20 cents. Revenue rose to $1.91 billion from $1.2 billion. A survey of analysts by FactSet Research produced consensus estimates of 85 cents of profit on revenue of $1.67 billion. The company sold 66 million tons of coal, up 6% from a year earlier, and secured higher prices in all regions. The company now sees full-year profit from continuing operations of $3 to $3.25 a share, or as much as a doubling from the year earlier. FactSet's survey was looking for $2.80.
Illinois Tool Works net income falls 7.6%(8:14 am ET)
NEW YORK (MarketWatch) -- Illinois Tool Works Inc. (ITW: news, chart, profile) on Thursday said net income for the three months ended Sept. 30 fell 7.6% to $453.5 million, or 85 cents a share, from $491.1 milllion, or 84 cents a share in the year-ago period. The Glenview, Ill. manufacturer said revenue climbed to $4.15 billion from $3.74 billion. Analysts surveyed by FactSet Research forecast earnings of 86 cents a share and revenue of $4.14 billion, on average. "While our financial results in the third quarter were clearly impacted by slowing end markets, our decentralized businesses continue to assess local market conditions and implement aggressive cost-cutting initiatives where appropriate," the company said. Looking ahead, ITW expects fourth-quarter income of 74-82 cents a share, compared to the analyst target of 80 cents a share.
BB&T's quarterly net falls 19%(7:49 am ET)
BOSTON (MarketWatch) -- BB&T Corp. (BBT: news, chart, profile) on Thursday said its third-quarter net income fell to $358 million, or 65 cents a share, from $444 million, or 80 cents a share, in the same period the previous year. Provision for credit losses was $364 million in the third quarter, and exceeded net charge-offs by $122 million, the bank said. "While we are not immune to the unprecedented challenges in the financial markets, BB&T remains a strong and financially sound company," said Chief Executive John Allison in the earnings release.
Sonoco posts lower quarterly profit, cuts full-year forecast(7:46 am ET)
NEW YORK (MarketWatch) -- Sonoco (SON: news, chart, profile) said Thursday that third-quarter net income fell to $57.4 million, or 57 cents a share, from $64.5 million, or 63 cents a share, in the same period a year ago. Sales rose to $1.06 billion, compared to $1.03 billion. Quarterly base earnings, which exclude certain items such as restructuring charges, slipped to 60 cents a share from the year-earlier 64 cents. The company lowered its outlook for 2008 base earnings to a range of $2.36 to $2.40 a share, compared to its previous forecast of $2.44 to $2.47.
Huntington Bancshares 3rd-quarter net off, outlook cut(7:46 am ET)
TEL AVIV (MarketWatch) -- Huntington Bancshares Inc., (HBAN: news, chart, profile) the Columbus, Ohio, financial-services provider, reported third-quarter net income fell 17% and cut its full-year earnings target. Earnings were $115.2 million against $138.2 million in the year-earlier period. Earnings applicable to common shares fell 25% to $103.1 million, or 28 cents, from $138.2 million, or 38 cents. Shares outstanding rose 13% to 415 million. A survey of analysts by FactSet Research produced a consensus estimate of 21 cents of profit. The net interest margin -- the difference between what a bank takes in on loans and pays out on deposits -- narrowed to 3.29% from 3.52% a year earlier. For the year, the company now expects to earn $1.12 to $1.16 a share, compared with its previous estimate of $1.25 to $1.35. FactSet's survey had been looking for $1.02.
Media General profit climbs on broadcast earnings(7:43 am ET)
NEW YORK (MarketWatch) -- Media General Inc. (MEG: news, chart, profile) said Thursday its third-quarter profit totaled $6.15 million, or 28 cents a share, from $2.48 million, or 11 cents a share, in the same quarter a year before. Analysts had expected earnings on average of 30 cents a share, according to a FactSet Research survey. Revenue for the quarter was $194 million compared to $217 million in the year-ago period. Media General said its higher third-quarter results primarily reflected a 24.5% increase in Broadcast Division profits, lower interest expense and the absence this year of operating losses from SP Newsprint, which was divested in March.
Entergy net income to fall short of Wall Street estimate(7:28 am ET)
NEW YORK (MarketWatch) -- Entergy Corp. (ETR: news, chart, profile) on Thursday said it expects third-quarter earnings of about $2.40 a share and operating earnings of $2.49 a share. Analysts expect earnings of $2.53 a share, according to a survey by FactSet Research. The New Orleans-based power company cited lower results at its non-nuclear wholesale assets business and lower sales due to the effect of outages related to hurricanes Gustav and Ike.
Update: Baxter 3rd-quarter net up 19%, outlook raised(7:25 am ET)
TEL AVIV (MarketWatch) -- Baxter International Inc., (BAX: news, chart, profile) the Deerfield, Ill., health-care-products provider, reported third-quarter net income rose 19% on 16% higher sales and raised its earnings outlook for the full year. Net reached $472 million, or 74 cents a share, from $395 million, or 61 cents, in the year-earlier period. Adjusted earnings were 88 cents against 70 cents. Revenue rose to $3.15 billion from $2.75 billion. A survey of analysts by FactSet Research produced consensus estimates of 82 cents of profit on $3.07 billion of revenue. For the fourth quarter, Baxter expects adjusted earnings of 88 cents to 90 cents a share as revenue rises 7%. FactSet's survey is looking for 89 cents of profit. For the year the company expects to earn an adjusted $3.35 to $3.37 a share on sales -- excluding foreign-exchange effects -- up 5% to 6%. FactSet's survey is looking for $3.30. (Updates to add fourth-quarter and full-year outlook.)
Harley-Davidson's third-quarter profit drops(7:24 am ET)
NEW YORK (MarketWatch) -- Harley-Davidson Inc. (HOG: news, chart, profile) said Thursday that its third-quarter profit dropped to $166.5 million, or 71 cents a share, from $265 million, or $1.07 a share, in the year-earlier period. Sales declined to $1.42 billion from $1.54 billion. The company said it expects to report full-year earnings of $3.00 to $3.10 a share, compared with its previous forecast of $3.00 to $3.18. Analysts polled by FactSet Research expected, on average, a third-quarter profit of 79 cents a share and full-year earnings of $3.13 a share.
CIT Group widens loss in third quarter(7:22 am ET)
NEW YORK (MarketWatch) -- CIT Group Inc. (CIT: news, chart, profile) said Thursday its third-quarter loss totaled $317 million, or $1.11 a share, from $46 million, or 24 cents a share, in the same quarter a year before. Analysts had expected CIT would swing to profit, with predictions on average for earnings of 17 a share, according to a FactSet Research survey. Finance revenue for the quarter was $1.40 billion compared to $1.60 billion in the year-ago period.
United Technologies reports 6% profit rise, tweaks 2008 view(7:18 am ET)
LONDON (MarketWatch) -- United Technologies (UTX: news, chart, profile) , the conglomerate that's part of the Dow Jones Industrial Average, said its third-quarter profit rose 6% to $1.27 billion, or $1.33 a share. Results include a 3 cent charge on one-time items. Revenue rose 7% to $14.8 billion. It lifted the bottom end of its earnings guidance, now seeing annual earnings between $4.90 and $4.95 a share. Analysts polled by FactSet Research expected a profit of $1.31 a share for the quarter and $4.92 for the year.
Citi loses $2.8 billion in quarter, sheds 11,000 jobs (7:13 am ET)
NEW YORK (MarketWatch) -- Citigroup Corp. (C: news, chart, profile) said Thursday it lost $2.8 billion, or 60 cents a share, including a $4.4 billion pre-tax write-down in its Securities & Banking unit, in its fiscal third quarter ending Sept. 30. Citi also reported $4.9 billion in net credit losses, and a $3.9 billion net charge to increase loan loss reserves. In the year-ago period, the financial services giant earned $2.2 billion, or 44 cents a share. Loss from continuing operations in the latest period totaled $3.4 billion, compared to a year-ago gain of $2.1 billion. Revenue fell to $16.7 billion from $21.6 billion. Wall Street analysts expected a loss of 58 cents a share, according to a survey by FactSet Research. Citi said its headcount was reduced by approximately 11,000 since the second quarter of this year.
Report: BP exploring acquisitions of Chesapeake properties(7:02 am ET)
NEW YORK (MarketWatch) -- Oil giant BP PLC (BP: news, chart, profile) is exploring fresh acquisitions of properties owned by Chesapeake Energy Corp. [ (CHK: news, chart, profile) after already spending $3.7 billion in two deals earlier this year, The Wall Street Journal reported Thursday. A Chesapeake spokesman told the newspaper the company wants to sell a stake in a Pennsylvania gas-field similar to the Arkansas deal, but declined to comment on BP's reported interest.
PNC Financial's third-quarter net profit down 39%(7:01 am ET)
WASHINGTON (MarketWatch) -- PNC Financial Services Group Inc. (PNC: news, chart, profile) reported third-quarter net income of $248 million, or 71 cents a share, down from $407 million, or $1.19 a share, earned in the same period during 2007. The Pittsburgh-based company's quarterly revenue fell to $1.65 billion from the prior year's $1.75 billion. The consensus of 14 analysts surveyed by FactSet Research had been for PNC to post a profit of $1.02 a share. Net interest margin improved to 3.46% from 3.00% in the year-earlier third quarter, as net interest income hit $1 billion, up 31%, the company said. PNC's nonperforming assets were 1.16% of total loans and foreclosed assets as of Sept. 30, higher than both 1.00% at the end of June and 0.46% on Sept. 30, 2007.
Southwest swings to loss on fuel-hedging charge(6:53 am ET)
NEW YORK (MarketWatch) -- Southwest Airlines Co. (LUV: news, chart, profile) said Thursday that it swung to a third-quarter loss of $120 million, or 16 cents a share, compared to a year-earlier profit of $162 million, or 22 cents a share. Excluding charges mostly related to mark-to-market adjustments on part of its fuel-hedge portfolio, the company posted a quarterly profit of 9 cents a share. On average, analysts were expecting earnings of 8 cents a share, according to FactSet Research. The Dallas low-cost carrier said total operating revenue rose 12% to $2.89 billion from $2.59 billion. Shares of Southwest closed Wednesday at $11.56.
Bank of New York Mellon 3rd-quarter net off 53%(6:52 am ET)
TEL AVIV (MarketWatch) -- Bank of New York Mellon Corp., (BK: news, chart, profile) the New York financial-services giant, reported third-quarter fell 53%, reflecting charges for merger and integration as well as the settlement of Internal Revenue Service matters plus certain support agreements. Net income was $303 million, or 26 cents a share, against $640 million, or 56 cents, in the year-earlier period. The charges in the latest period totaled 46 cents a share. A survey of analysts by FactSet Research produced a consensus estimate of 54 cents of profit for the quarter.
Merrill Lynch's quarter shows multibillion-dollar losses(6:45 am ET)
WASHINGTON (MarketWatch) -- Merrill Lynch & Co. reported a third-quarter net loss of $7.47 billion, or $5.58 a share, wider than the loss of $2.2 billion, or $2.82 a share, registered in the same period during 2007. The New York-based investment firm, which has agreed to be acquired by Bank of America Corp. (BAC: news, chart, profile) , generated $16 million in revenue for the latest quarter, primarily reflecting the impact of a variety of write-downs that were partially offset by one-time gains. The company's loss from continuing operations worked out to $5.1 billion, or $5.56 a share, wider than a comparable loss of $2.4 billion, or $2.99 a share, for the year-earlier third quarter. The consensus in a survey of 16 analysts by FactSet Research had been for Merrill Lynch to post a quarterly loss of $4.97 a share. "We continue to reduce exposures and deleverage the balance sheet prior to the closing of the Bank of America deal," said John Thain, chairman and chief executive, in a statement.
Continental Air swings to loss on fuel costs, hurricane (6:33 am ET)
TEL AVIV (MarketWatch) -- Continental Airlines Inc., (CAL: news, chart, profile) the world's No. 5 airline, swung to a third-quarter loss from a year-earlier profit on 8.8% higher revenue as 62% higher fuel prices and the impact of Hurricane Ike hammered results. The Houston carrier's loss was $236 million, or $2.14 a share, reversing the year-earlier period's profit of $241 million, or $2.15. Shares outstanding fell 3.5% to 110 million. Revenue reached $4.16 billion from $3.82 billion. A survey of analysts by FactSet Research produced consensus estimates of a loss of $1.49 a share on revenue of $4.12 billion. Jet fuel averaged $3.49 a gallon in the latest quarter compared with $2.16 in the year-earlier period. Hurricane Ike cost the company about $50 million in the latest quarter, Continental said. Load factor, the percentage of seats filled with passengers, narrowed 1.8 percentage points to 82%.
Orbital Sciences third-quarter net falls to 20 cents a share(6:23 am ET)
LONDON (MarketWatch) -- Orbital Sciences (ORB: news, chart, profile) said Thursday its third-quarter net income fell to $12.1 million, or 20 cents a share, from $15.7 million, or 26 cents a share, a year ago. The results met the average estimate of analysts surveyed by FactSet. Orbital, which makes rockets and space systems for military and civilian use, said third-quarter revenue rose to $278.6 million from $275.6 million.
UnitedHealth Group net off 28% on 7.9% higher revenue(6:12 am ET)
TEL AVIV (MarketWatch) -- UnitedHealth Group, (UNH: news, chart, profile) the Minneapolis health-care-services provider, reported third-quarter net income fell 28% on 7.9% higher revenue. Net fell to $920 million, or 75 cents a share, from $1.28 billion, or 95 cents, in the year-earlier period. Shares outstanding declined 9% to 1.23 billion. Revenue reached $20.16 billion from $18.68 billion. A survey of analysts by FactSet Research produced consensus estimates of 73 cents of profit on $20.04 billion of revenue. The company estimated it would earn 77 cents to 80 cents a share in the fourth quarter. FactSet's survey is looking for 77 cents.
Nokia's third-quarter profit drops 30%, sales fall 5%(6:13 am ET)
LONDON (MarketWatch) -- Nokia Corp. (NOK: news, chart, profile) , the world's largest maker of mobile phones, Thursday said third-quarter net income fell 30% to 1.09 billion euros, or 0.29 euro a share, from 1.56 billion euros, or 0.40 euro a share, earned in the year-earlier quarter. Adjusted earnings came in a 0.33 euro a share, in line with analysts' forecasts. Sales fell 5% to 12.2 billion euros, missing consensus forecasts for sales of 12.7 billion euros. The Finnish manufacturer shipped 117.8 million units, down 3% sequentially. Market share declined to 38% from 40% in the second quarter and 39% in the year-earlier period, as the company had indicated it would last month. It confirmed it still expects to gain market share in mobile devices 2008. Sales at Nokia Siemens Networks fell 5% to 3.5 billion euros.