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Friday, Oct. 17
ING faces $670 million loss, says capital remains strong(11:28 am ET)
LONDON (MarketWatch) -- Dutch banking and insurance group ING (ING: news, chart, profile) (NL:30360: news, chart, profile) said Friday that it expects to report a net loss of around 500 million euros ($670 million) in the third quarter after taking impairments and other pretax charges of 1.6 billion euros as well as loan loss provisions of 400 million euros. The group said the Tier 1 capital ratio of its banking operations is above target at 8.5% as of Sept. 30. It added it will consider the merits of a government capital injection program once the details are available. Separately ING also took write-downs of around 1.5 billion euros on its Alt-A, subprime and collateralized debt obligations investments, which was reflected in shareholders' equity. Shares in the group fell 20%, but were off earlier lows following rumors it would need to raise capital.
Genuine Parts posts rise in third-quarter profit(9:04 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Friday that its third-quarter net income rose to $131 million, or 81 cents a share, from $128.6 million, or 76 cents a share, in the year-earlier period. On average, analysts polled by FactSet Research expected earnings of 80 cents a share. The Atlanta distributor of automobile replacement parts said sales rose to $2.88 billion from $2.8 billion a year ago.
Wilmington Trust profit cut in half (8:15 am ET)
NEW YORK (MarketWatch) -- Wilmington Trust (WL: news, chart, profile) said on Friday that it earned $22.9 million, or 34 cents a share in the third quarter, compared to $46.2 million, or 67 cents a share a year ago. The company said loan loss provisions in the quarter climbed to $19.6 million from $8.9 million a year ago. Analysts polled by Thomson Reuters had expected the company to earn 42 cents.
Pfizer to settle painkiller litigation for $894 million(8:15 am ET)
NEW YORK (MarketWatch) -- Pfizer Inc. (PFE: news, chart, profile) said Friday that it agreed in principle to settle litigation related to its pain treatments Bextra, which was taken off the U.S. market in 2005, and Celebrex. The New York-based pharmaceutical giant said that the personal-injury settlements will resolve more than 90% of known claims brought by law firms representing people who allege that Pfizer's pain medications caused heart attacks, strokes or other injury. The company also agreed in principle to resolve claims brought by 33 states and the District of Columbia, primarily relating to alleged Bextra promotional practices. As a result of these settlements, Pfizer will take a third-quarter pre-tax charge of $894 million. Shares of Pfizer closed Thursday at $16.97.
First Horizon loss widens after increasing loan provisions(7:14 am ET)
LONDON (MarketWatch) -- Banking group First Horizon National Corp. (FHN: news, chart, profile) said Friday that its third-quarter net loss widened to $118.3 million, or 59 cents a share, from $14.2 million, or 11 cents a share, while revenue rose 20% to $528.3 million. Analysts polled by FactSet had been expecting a loss of 12 cents a share. The firm increased its provision for loan losses to $340 million from $220 million in the second quarter and $43 million a year earlier. Net charge-offs rose to $154.7 million from $127.7 million in the second quarter. For the year as a whole First Horizon said it's still forecasting net charge-offs at the upper end of its $485 million to $585 million range.
Comerica third-quarter net income drops to $28 million(7:15 am ET)
LONDON (MarketWatch) -- Dallas-based financial-services firm Comerica Inc. (CMA: news, chart, profile) on Friday said third-quarter net income fell to $28 million from $181 million in the third quarter of 2007. Income from continuing operations fell to $27 million, or 18 cents a share, from $180 million, or $1.17 a share, in the same quarter of last year. Third-quarter results included a $174 million provision for credit losses, compared to $45 million for third-quarter 2007. Comerica also recognized an after-tax charge of 40 cents a share tied to a previously announced offer to repurchase auction-rate securities from customers at par. Other special factors included a gain of 11 cents a share tied to sales of shares in Visa Inc. and a 4 cent a share charge tied to settlements with the Internal Revenue Service.
Schlumberger meets estimates with13% profit rise(6:08 am ET)
LONDON (MarketWatch) -- Schlumberger Ltd. (SLB: news, chart, profile) , the oil services giant, said third-quarter net income rose 13% to $1.53 billion, or $1.25 a share. Revenue climbed to $7.26 billion from $5.93 billion. Analysts polled by FactSet had expected a profit of $1.25 a share. Fourth-quarter activity may be limited both by the recent rapid deterioration of credit markets and by the strengthening production of North American natural gas. Schlumberger said it anticipates a slowing in the rate of increase of customer spending in 2009, but said the weakness of the current supply base, the age of the production profile and the decrease in reserve replacement are such that any significant drop in exploration and production investment would rapidly provoke an even stronger recovery.
Caisse d'Epargne faces $800 million derivatives loss(4:47 am ET)
LONDON (MarketWatch) -- French banking group Caisse d'Epargne said Friday that it lost around 600 million euros ($809 million) following an "incident" in its derivatives business. The group said the loss was due to extreme market volatility in the week of Oct. 6. It added that the bank's strong capital position means the loss won't affect customers and that it has informed regulators. Caisse d'Epargne is a mutually owned bank and is a major shareholder in Natixis (FR:012068: news, chart, profile) .
Catlin sees $200 million hurricane loss(2:35 am ET)
LONDON (MarketWatch) -- Insurance and reinsurance company Catlin Group (UK:CGL: news, chart, profile) said Friday that its losses from Hurricanes Ike and Gustav are estimated at around $200 million. The group said its total net investment return for the first nine months of the year was -0.9% after valuing all investments on a mark-to-market basis, including an unrealized loss of $118 million on fixed income investments. Catlin said its investments remain defensively positioned, with the majority in cash and government securities. Around 11% is invested in hedge funds and 2% in equities.
Bunzl revenue grows 15%(2:29 am ET)
LONDON (MarketWatch) -- Outsourcing and distribution company Bunzl (UK:BNZL: news, chart, profile) said Friday that group revenue rose 15% in the third quarter and overall trading has been in line with the group's expectations at the time of its interim results in August. Bunzl said revenue growth was driven by a mix of acquisitions, favorable currency moves and organic growth.
Satyam second-quarter profit rises 42% year-on-year(12:42 am ET)
HONG KONG (MarketWatch) -- Satyam Computer Services (SAY: news, chart, profile) Friday reported a 42% jump in fiscal second-quarter profit as a weakened Indian rupee boosted its software exports revenue and operating profit margins. Group net income for the July-September period jumped to 5.81 billion rupees ($120.3 million), or 8.63 rupees a share, from 4.09 billion rupees in the same period a year earlier. Satyam shares rose 0.9% in Mumbai morning trading.
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.