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Friday, Jan. 23
Aflac says it doesn't need to raise new capital(10:26 am ET)
SAN FRANCISCO (MarketWatch) -- Aflac Inc. (AFL: news, chart, profile) said Friday that it doesn't need to raise new capital as the insurer tries to calm concerns about some of its investment exposures. The company estimated that it had roughly $500 million to $1 billion in excess cash at the end of 2008. "We believe our capital position is more than adequate to support our current ratings," Aflac Chief Financial Officer Kriss Cloninger said in a statement. "We continue to expect strong statutory earnings in the future, which we estimate were $1.5 billion for the full year of 2008. Accordingly, we do not see a need for raising additional capital." Aflac shares jumped 13% to $25.83 during morning trading Friday. That recouped some of the 37% slump on Thursday.
Energy stocks fall deeply into the red with broad market(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell deeply into the red with the broad market on Friday on fresh jitters tied to corporate earnings and the global recession. The Amex Oil Index (XOI: news, chart, profile) fell 2.5% to 892. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 1.6% to 353. Schlumberger (SLB: news, chart, profile) rose 2% to $38.10, bucking the trend.
Genuine Parts warns its 2008 results will fall short(9:02 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) warned Friday that its full-year results will fall short of its previous forecast. The Atlanta distributor of automobile replacement parts said it expects to post 2008 sales growth of about 2% and earnings of $2.85 to $2.90 a share, including a 7-cent charge for the lower investment value in the company's retirement plan. Its prior outlook was for 3% sales growth and earnings of $3.12 to $3.18 a share. On average, analysts polled by FactSet Research were expecting full-year earnings of $3.11 a share. The company is slated to release its results on Feb. 17.
Suntech taking loss on silicon inventories; laying off 800(8:50 am ET)
NEW YORK (MarketWatch) -- Suntech Power Holdings Co. Ltd. (STP: news, chart, profile) said it would book an inventory provision in the range of $46 million to $58 million as a result of the rapid decline in silicon prices in the fourth quarter. Suntech sees fourth-quarter gross margin of -1% to +2%. The company said it reduced its workforce by approximately 800 employees and suspended hiring a further 2,000 new staff as part of its decision to maintain its current production capacity. Suntech's headcount as of December 31 was 9,070. The solar cell maker expects fourth-quarter revenue of $405 million to $420 million, above its target of about $353 million.
Xerox posts lower fourth-quarter profit(7:16 am ET)
NEW YORK (MarketWatch) -- Xerox Corp. (XRX: news, chart, profile) said Friday that its fourth-quarter net income fell to $1 million, or breakeven on a per-share basis, from $382 million, or 41 cents a share, in the year-earlier period. On an adjusted basis, which excludes charges for restructuring and an equipment write-off, earnings in the latest quarter were 30 cents a share. On average, analysts polled by FactSet had expected a profit of 34 cents a share. Revenue fell 10% to $4.37 billion in the three months ended Dec. 31. The copier-technology company expects first-quarter earnings of 16 cents to 20 cents a share, compared to the FactSet consensus estimate of 24 cents.
GE's fourth-quarter net profit fell 46%; sees difficult 2009(6:50 am ET)
LONDON (MarketWatch) -- General Electric Co. (GE: news, chart, profile) said fourth-quarter net profit attributable to shareholders fell 46% to $3.65 billion, or 35 cents a share, from $6.97 billion, or 66 cents a share, earned in the year-earlier quarter. The results included $1.5 billion of after-tax restructuring and other charges. Adjusted earnings came in at 37 cents a share, in line with the consensus forecast, according to a poll of nine analysts surveyed by FactSet Research. Sales declined 5% to $46.2 billion, reflecting the stronger U.S. dollar and lower core growth. GE said it expects 2009 to be "extremely difficult" but is working to strengthen its cash flow and liquidity. It said it remains committed to its planned $1.24 dividend for the year.
Harley-Davidson profit down 58%, plans to cut shipments(6:21 am ET)
LONDON (MarketWatch) -- Harley-Davidson Inc. (HOG: news, chart, profile) said Friday that its fourth-quarter net profit fell 58% to $77.8 million, or 34 cents a share, from $186.1 million, or 78 cents a share, a year earlier as it also announced plans to restructure and reduce shipments in 2009. The group said revenue for the final quarter of 2008 fell 6.8% to $1.29 billion and worldwide retail sales of its motorcycles fell 13.1% from a year earlier as U.S. demand slumped. In the first quarter of 2009, the company expects to ship between 74,000 and 78,000 new motorcycles, representing a 3.5% to 8.5% increase on a year earlier. But for 2009 as a whole it expects to ship between 264,000 and 273,000 units -- a decline of 10% to 13%. Margin will be between 30.5% and 31.5%, compared to 34.5% in 2008, but the firm said it won't give earnings guidance because of the volatile economic environment.
UPDATE: Qimonda files for insolvency(5:22 am ET)
LONDON (MarketWatch) -- German chip maker Qimonda (QI: news, chart, profile) (DE:A0KEAT: news, chart, profile) said Friday that it has filed for insolvency in a Munich court. The company said the decision was due to the "massive drop in prices in the DRAM industry" as well as dramatically reduced access to financing on the capital markets. A previously agreed 325 million euro ($421 million) financing package involving the German state of Saxony, several banks and Qimonda's main shareholder Infineon Technologies (IFX: news, chart, profile) could not be completed in time, the company said. The court will appoint a preliminary insolvency administrator, who will analyze the company's situation in the coming days. Qimonda said it assumes it will be able to continue operating and that German insolvency laws offer the opportunity to accelerate its restructuring plans. Shares in Infineon fell around 5% in Frankfurt. [Updates to include company statement.]
Fortis Bank faces $18 billion loss(3:41 am ET)
LONDON (MarketWatch) -- Fortis Banque, the former Belgian banking arm of Fortis (BE:000380118: news, chart, profile) and now controlled by the Belgian government, said late Thursday that it made a net loss of 14.1 billion euros ($18.2 billion) in the first nine months of 2008. The bank also said it will lose between 4 billion euros and 5 billion euros in the final quarter of the year. France's BNP Paribas (FR:013110: news, chart, profile) had agreed to some Fortis assets and banking operations, but that deal has been put on hold after a court ruled shareholders must be given a say in the plans.
Gottex assets under management drop 29%, plans job cuts(2:49 am ET)
LONDON (MarketWatch) -- Switzerland's Gottex Fund Management Holdings (CH:003381261: news, chart, profile) said Friday that its assets under management fell 29% to $9.6 billion in the course of the fourth quarter due to a mix of negative performance, client outflows and foreign exchange moves. The group said it will cut costs by at least 30% and reduce its headcount by between 15% and 20%, effective from the end of March. It also said it will reopen some funds, revise its incentive fee structure by linking it to performance over a longer period and reduce management fees on some products. The group added it doesn't expect to see benefits from its plans in terms of assets under management growth for six to 12 months.
Barclays still sees profit for 08 after write-downs: report(2:39 am ET)
LONDON (MarketWatch) -- John Varley, the CEO of U.K. bank Barclays (UK:BARC: news, chart, profile) [s:bcs] said the bank will make a profit in 2008 even after taking all necessary write-downs, the Independent newspaper reported Friday. He also said that Barclays intended to pay in cash, rather than shares, if it participated in a government plan to insure banks' assets against further losses. Separately the Financial Times reported that Frits Seegers, chief executive of Barclays' retail and commercial division pledged almost all the 900,000 shares he holds in the bank as collateral for a loan to fund a 952,000 pound ($1.3 billion) share purchase just before the credit crisis started.
Thursday, Jan. 22
MEMC Electronic quarterly profit shrinks to 33 cents a share(4:30 pm ET)
SAN FRANCISCO (MarketWatch) -- MEMC Electronic Materials Inc. (WFR: news, chart, profile) late Thursday reported its fourth-quarter net income fell to $73.2 million, or 33 cents a share, from $376.4 million, or $1.62 a share, in the same quarter last year. Excluding one-time items, MEMC would have earned $145.9 million, or 65 cents a share. Revenue decreased to $425.7 million from $535.9 million a year earlier, said the maker of silicon wafers for the semiconductor industry. Analysts surveyed by FactSet Research had forecast MEMC to earn 61 cents a share on $413.9 million in revenue. The company said revenue in the first quarter could fall by as much as 50% sequentially due to end market weakness and "low order visibility" in the semiconductor industry on reduced consumer spending and limited access to credit.
Capital One reports quarterly net loss of $1.4 billion(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Capital One Financial (COF: news, chart, profile) reported a quarterly net loss late Thursday. The credit card company said its fourth-quarter net loss was $1.4 billion, or $3.74 per common share. That compares with net income of $226.6 million, or 60 cents per common share, in the fourth quarter of 2007, Capital One noted. The company was expected to make 33 cents a share, according to the average estimate of 19 analysts in a Thomson Reuters survey. Capital One said it added $1 billion to its allowance for loan losses in anticipation of increasing charge-offs in 2009. The company expects the U.S. unemployment rate to reach 8.7% by the end of 2009 and that, on average, home prices in the U.S. will fall another 10% by the end of the year.
Federated quarterly net income edges higher(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Federated Investors (FII: news, chart, profile) said late Thursday that fourth-quarter net income came in at $54.3 million, up slightly from a year earlier when the fund management company made $52.7 million. Earnings per share were 54 cents vs. 52 cents. Results for the fourth quarter of 2008 included a favorable impact of $2.6 million, or three cents a share, from lower deferred tax expense, Federated reported. The company was expected to make 50 cents a share, according to the average estimate of nine analysts polled by Thomson Reuters.
Google beats estimates with profit, sales gains(4:08 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. said late Thursday its fiscal fourth-quarter net income fell sharply to $382 million, or $1.21 a share, from $1.2 billion, or $3.79 a share in the same period a year earlier. Mountain View, Calif.-based Internet giant Google (GOOG: news, chart, profile) said net revenue in the period ended in December rose to $4.2 billion. Excluding special items, Google said earnings for the period were $5.10 a share. Analysts on average had been estimating Google would post earnings excluding special items of $4.95 a share on $4.1 billion in net revenue, according to Thomson Reuters.
Aflac says it's 'comfortable' with its capital position(1:07 pm ET)
SAN FRANCISCO (MarketWatch) -- Aflac Inc. (AFL: news, chart, profile) said Thursday that it's "comfortable" with its capital position in the wake of a Morgan Stanley analyst note that warned investors about potential losses within the insurer's investment portfolio. "We're comfortable with our current capital position and are constantly monitoring our investment portfolio," Laura Kane, a spokeswoman at Aflac, said. "We will be issuing our earnings release on February 2nd and specific details will be available then." Aflac shares fell 30% to $25.31 during afternoon trading on Thursday.
GE takes part in $20 million venture round for blade maker(9:47 am ET)
NEW YORK (MarketWatch) -- Privately-held wind turbine blade supplier TPI Composites Inc. said Thursday it received a $20 million investment from a unit of General Electric (GE: news, chart, profile) and other investors. The Scottsdale, Ariz. blade maker received the money from GE's investment arm, Landmark Growth Capital Partners, as well as NGP Energy Technology Partners and Angeleno Group.
Energy stocks move lower with broad market(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks fell with the broad market on Thursday morning, giving back gains from the previous session. The Amex Oil Index (XOI: news, chart, profile) fell 2.6% to 916. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 2.8% to 360. Investors are keeping a close watch on an expected rise in petroleum inventories in the U.S. government's weekly supply data due out during the session. Natural gas supplies will aso be updated.
Sherwin-Williams profit cut in half(9:21 am ET)
WASHINGTON (MarketWatch) - Sherwin-Williams' profit was cut in half in the fourth quarter, weighed down by slumping revenue and impairment charges, the paint maker and retailer reported Thursday. Earnings, including charges of 18 cents a share, came in at $50.2 million, or 42 cents a share, down from $100.8 million, or 80 cents in the year-ago period. Revenue fell to $1.7 billion from $1.85 billion. The average estimate of analysts polled by FactSet Research had been for the company to earn 53 cents share on $1.82 billion in revenue. Christopher Connor, Sherwin-Williams (SHW: news, chart, profile) chief executive said in the earnings report that "during the fourth quarter, the demand contraction in the end markets we serve became more severe and widespread as the U.S. economy rapidly deteriorated further and global economies quickly weakened."
Microsoft profit declines, software maker to cut 5,000 jobs(9:13 am ET)
WASHINGTON (MarketWatch) - Microsoft Corp. (MSFT: news, chart, profile) on Thursday reported an 11% drop in fiscal second-quarter profit and said it will cut 5,000 jobs as demand weakened for its Windows software. The Redmond, Wash.-based company also said it would cease giving per-share forecasts for the rest of 2009 because of the uncertainty caused by a slumping U.S. and global economy. In the final three months of 2008, meanwhile, Microsoft said earnings fell to $4.17 billion, or 47 cents a share, from $4.71 billion, or 50 cents a share, in the year-earlier quarter. Revenue edged up slightly to $16.63 billion from $16.4 billion from a year ago. Microsoft was expected to earn 48 cents a share on revenue of $17.1 billion, according to the consensus of analysts surveyed by FactSet Research. In premarket trades, shares of Microsoft sank as much as 7%.
CIT losses grow, firm completes transition to bank (8:46 am ET)
NEW YORK (MarketWatch) - Commercial finance firm CIT Group Inc. (CIT: news, chart, profile) said Thursday its fourth-quarter loss grew to $203.8 million, or 69 cents a share, from $130.8 million, or 69 cents a share a year ago. The loss includes preferred dividends of $20.4 million in the latest quarter compared to $7.5 million a year ago. There were 294.7 million average common shares outstanding in the 2008 quarter, compared to 189.8 million in 2007. CIT also said Thursday that it has completed its conversion to a bank holding company.
Huntington Banchares loss grows (8:44 am ET)
NEW YORK (MarketWatch) -- Ohio's Huntington Bancshares (HBAN: news, chart, profile) said Thursday its fourth-quarter loss grew to $440.4 million, or $1.20 a share, compared to a loss of $239.3 million, or 65 cents a share in the year-ago quarter. Results included the payment of preferred dividends totaling $23.2 million in 2008, compared to none in 2007.
Interactive Brokers profit rises 7%(8:43 am ET)
NEW YORK (MarketWatch) -- Interactive Brokers (IBKR: news, chart, profile) said Thursday its fourth quarter profit rose 7% to $20.3 million, or 49 cents a share, compared to $18.9 million, or 46 cents a share a year ago. Total net revenue rose to $429.3 million from $397.5 million a year ago. Analysts polled by Thomson Reuters had expected the company to report a 53 cents a share profit in the fourth quarter.
Exelon net income climbs 26%; reiterates 2009 target(8:41 am ET)
NEW YORK (MarketWatch) -- Exelon Corp. (EXC: news, chart, profile) said fourth-quarter net income climbed 26% to $707 million, or $1.07 a share, from $562 million, or 84 cents a share in the year-ago period. The company's adjusted earnings rose to $1.07 a share from $1.02 a share. Analysts expected earnings of $1.04 a share, according to a survey by FactSet Research. Adjusted revenue dipped to $4.55 billion from $4.65 billion a year ago. Looking ahead, the electric power company said it continues to expect 2009 operating earnings of $4.00 to $4.30 a share, compared to the analyst target of $4.22 a share. "We expect 2009 to be a year of many challenges, but we will work to mitigate the impact," the company said.
Ranbaxy posts $139 million quarter loss, hit by derivatives(8:29 am ET)
NEW YORK (MarketWatch) -- Ranbaxy Laboratories Ltd. (RBXLF: news, chart, profile) said Thursday it posted a net loss of 6.80 billion rupees ($139 million) in the fourth quarter, hurt by derivatives losses, reports said. The result compared with a profit of 1.88 billion rupees a year earlier. The average forecast from a Dow Jones poll of eight analysts was for a net profit at 21 million rupees, according to The Wall Street Journal. The Indian pharmaceutical giant reported revenue for the three months ended Dec. 31 was up 6.4% to 19.10 billion rupees. Its mark-to-market losses related to derivative contracts totaled 7.84 billion rupees.
Meredith posts lower second-quarter profit(8:20 am ET)
NEW YORK (MarketWatch) -- Meredith Corp. (MDP: news, chart, profile) said Thursday that its second-quarter profit fell to $12.5 million, or 28 cents a share, from $36.1 million, or 75 cents a share, in the year-earlier quarter. Excluding a special charge, earnings would have been 49 cents a share in the latest period. On average, analysts were expecting earnings of 47 cents a share, according to a FactSet Research survey. The Des Moines, Iowa-based media and marketing company said quarterly revenue was $366 million compared to $396 million in the year-ago period. Meredith said it expects full-year earnings of $2.00 to $2.25 a share, excluding the second-quarter charge, and third-quarter profit of 55 cents to 60 cents a share. Analysts were looking for a profit of $2.36 a share for the year and 75 cents for the third quarter, according to FactSet.
Northrop Grumman sees loss, discloses charge(8:18 am ET)
NEW YORK (MarketWatch) -- Northrop Grumman (NOC: news, chart, profile) said it expects to record a loss when it releases its fourth quarter results. The defense contracting giant cited $3 billion to $3.4 billion for impairment of goodwill. The company expects 2008 earnings per share from continuing operations before the charge to meet the upper end of $5.20 per share for its forecast. Wall Street analysts expect earnings of $5.21 a share, according to a survey by FactSet Research.
Union Pacific quarterly profit rises 35%, beats forecast(8:16 am ET)
NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said Thursday its fourth-quarter profit rose to $661 million, or $1.31 a share, from $491 million, or 93 cents a share, in the same quarter a year before. Analysts had expected earnings on average of $1.24 a share, according to a FactSet Research survey. Revenue for the quarter was $4.29 billion compared to $4.20 billion in the year-ago period. While the Omaha, Neb., rail transportation company didn't give a specific financial forecast, Chief Executive Jim Young said: "Although we expect 2009 will be a difficult year for our company, our customers and our employees, we are challenging ourselves to deliver an even higher level of performance." Shares of the company rose 0.47% in pre-market trade following the release.
BB&T Corp. net falls 31% during 'challenging' time(7:46 am ET)
NEW YORK (MarketWatch) -- BB&T Corp. (BBT: news, chart, profile) said fourth-quarter net income fell 31% to $284 million, or 51 cents a share, from $411 million, or 75 cents a share in the year-ago period. Operating income totaled 44 cents a share in the latest quarter. Wall Street analysts expected earnings of 52 cents a share in the fourth quarter, according to a survey by FactSet Research. "The year 2008 was very challenging and credit deterioration remains a significant concern; however, BB&T's performance ranks among the top performers in the financial services industry," the company said.
IGT profit slips to 22 cents a share from 36 cents year ago(7:43 am ET)
NEW YORK (MarketWatch) -- International Game Technology (IGT: news, chart, profile) said Thursday its first-quarter profit totaled $65.7 million, or 22 cents a share, from $113.7 million, or 36 cents a share, in the same quarter a year before. The Reno, Nev., gaming machine company said the results were affected by various one-time charges equivalent to 7 cents a share. Analysts had expected earnings on average of 26 cents a share, according to a FactSet Research survey. Revenue for the quarter was $602 million compared to $646 million in the year-ago period.