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Wednesday, Jan. 28
Cabot to cut 500 jobs; first quarter profit drops(6:44 pm ET)
SAN FRANCISCO (MarketWatch) -- Cabot Corp. (CBT: news, chart, profile) said late Wednesday that its net income for the fiscal first quarter was $4 million, or 6 cents a share, compared with $36 million, or 56 cents a share, in the year-ago period. Excluding $1 million of charges, adjusted earnings were 8 cents a share. Analysts had expected net income earnings of 10 cents a share on revenue of $551.7 million, according to Thomson Reuters. The Boston, Mass. chemical and materials company also said it plans to cut about 500 jobs, or 12% of its global workforce. The restructuring is expected to result in an $80 million cash charge and non-cash charges of about $70 million, a majority of which will be incurred during fiscal 2009.
Murphy Oil profit dragged down by lower energy prices (4:57 pm ET)
SAN FRANCISCO (MarketWatch) -- Murphy Oil Corp. (MUR: news, chart, profile) reported late Wednesday fourth-quarter net income fell to $158.5 million, or 83 cents a share, from $206.1 million, or $1.07, a year ago. Revenue for the quarter fell 21% to $4.43 billion. Analysts surveyed by FactSet Research had expected the El Dorado, Ark.-based company to report earnings of $1.09 a share on $6.5 billion in revenue. Murphy Oil shares closed ahead of the report with a 0.4% gain at $48.27.
Meritage Homes' fourth-quarter loss narrows to $2.58 a share(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- Meritage Homes Corp. (MTH: news, chart, profile) late Wednesday reported its fourth-quarter net loss narrowed to $79.1 million, or $2.58 a share, from $128.8 million, or $4.91 a share, in the fourth quarter last year. Fourth-quarter results included real estate-related and joint venture charges of $109 million, the homebuilder said. Analysts polled by FactSet Research had forecast a loss of 99 cents a share. Home closing revenue decreased to $386.6 million from $615.6 million a year ago. Number of homes closed fell 30% to 1,488 units while sales orders were down 52% to 500 units.
Ryland's fourth-quarter net loss narrows(4:34 pm ET)
SAN FRANCISCO (MarketWatch) -- Ryland Group (RYL: news, chart, profile) late Wednesday reported its fourth-quarter net loss narrowed to $59.9 million, or $1.40 a share, from $201.9 million, or $4.80 a share, in the fourth quarter of last year. Consolidated revenues totaled $528.2 million, down sharply from $859.8 million a year earlier while homebuilding revenues decreased to $513.5 million from $828.8 million. Analysts surveyed by FactSet Research had forecast a loss of 78 cents a share on revenue of $533.1 million. New orders fell 65.3% to 554 units and its inventory of unsold homes stood at 639 units at the end of December, down 22.4% from Dec. 31, 2007.
Allstate reports quarterly net loss of $1.13 billion(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- Allstate Corp. (ALL: news, chart, profile) reported a fourth-quarter net loss of $1.13 billion, or $2.11 a share, late Wednesday. That compares to net income of $760 million, or $1.36 a share, a year earlier, the property and casualty insurer said. Operating income, which excludes net realized investment gains and losses, came in at $518 million, or 97 cents a share, down from $701 million, or $1.24 a share, a year ago. Allstate was expected to make $1.35 a share in the latest fourth quarter, according to the average estimate of 18 analysts in a Thomson Reuters survey. Allstate shares fell 10% to $26.62 during after-hours trading on Wednesday.
Citrix Systems earnings fall 5%(4:18 pm ET)
SAN FRANCISCO (MarketWatch) -- Citrix Systems Inc. (CTXS: news, chart, profile) on Wednesday reported a fourth-quarter profit of $60 million, or 33 cents a share, on revenue of $416 million. During the same period a year ago, the infrastructure and virtualization software company earned $63 million, or 33 cents a share, on $399.6 million in sales. Excluding one-time items, Citrix would have earned $87 million, or 48 cents a share, while analysts surveyed by FactSet Research estimated the company would earn 47 cents a share on revenue of $431.5 million.
Symantec swings to $6.8 billion loss(4:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Symantec Corp. (SYMC: news, chart, profile) on Wednesday reported a third-quarter loss of $6.81 billion, or $8.23 a share, vs. a profit of 15 cents a share, a year ago. The most recent quarter included a non-cash goodwill impairment charge of about $7 billion. Excluding charges, the security software company would have earned 42 cents a share. Revenue came in at $1.51 billion, mostly flat from a year earlier. Analysts polled by FactSet Research were looking for a profit, on average, of 32 cents a share. The company said it expects to earn between 33 cents and 35 cents a share, excluding one-time items, in the fourth quarter. Wall Street previously forecast a profit of 34 cents a share.
Starbucks plans to close 300 more shops as profit drops(4:16 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) , battered by slower store traffic and restructuring charges, reported Wednesday its quarterly net profit dropped 69% and announced plans to shut down 300 more coffee shops. For the quarter ended Dec. 28, Starbucks reported net income of $64.3 million, or 9 cents a share, which included charges to shut down stores and lay off workers. A year ago, the coffee-shop chain earned $208.1 million, or 28 cents a share. Sales slipped 6% to $2.6 billion. Sales at U.S. stores open at least one year -- a measure of retailer health -- dropped 10%. Starbucks said it will close 200 U.S. stores and 100 overseas, bring its announced store closures to more than 900. Starbucks shares closed Wednesday at $9.65, up more than 5%.
Flextronics posts widened loss, takes massive charge (4:13 pm ET)
SAN FRANCISCO (MarketWatch) -- Flextronics International (FLEX: news, chart, profile) on Wednesday reported a fiscal third-quarter loss of $6 billion, or $7.43 a share, on net sales of $8.2 billion. During the same period a year ago, the electronics contract manufacturer posted a loss of $96.8 million, or 94 cents a share, on $9.07 billion in sales. The company said the results for the period ended in December included a non-cash charge of $5.9 billion, "to write-off the entire carrying value of its goodwill." Excluding special items, Flextronics said earnings were 16 cents a share. Analysts surveyed by FactSet Research had forecast Flextronics to earn 19 cents a share, on revenue of $8.05 billion.
Qualcomm sees earnings fall in first quarter(4:10 pm ET)
SAN FRANCISCO (MarketWatch) - Qualcomm Inc. reported that earnings fell in the first fiscal quarter as the company took a large investment loss. For the period ended Dec. 31, Qualcomm (QCOM: news, chart, profile) reported net income of $341 million, or 20 cents a share, compared to net income of $767 million, or 46 cents a share, for the same period the previous year. Excluding stock options and other charges, the company said it would have earned $520 million, or 31 cents a share, for the recent period. Revenue grew 3% to $2.52 billion. Analysts were expecting earnings of 47 cents a share on revenue of $2.42 billion for the quarter, according to consensus estimates from Thomson Reuters.
Energy stocks add to generous gains after Fed move(2:21 pm ET)
NEW YORK (MarketWatch) -- Energy stocks moved slightly higher on top of generous gains after the Federal Open Market Committee stuck to its low interest rate policy, and said inflation should remain in check, while holding out the possibility of buying U.S. debt. The Amex Oil Index (XOI: news, chart, profile) rose 3% to 990. The Amex Natural Gas Index (XNG: news, chart, profile) rose 3.6% to 394. The Philadelphia Oil Service Index ($OSX: news, chart, profile) rose 5.6% to 136.
New York Times Co. execs blame digital ad decline on economy(11:52 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) executives said Wednesday that the decline in digital advertising revenue the company saw in the fourth quarter was primarily attributable to the economic downturn, with much of the drop-off coming from the help-wanted classified category. Speaking to analysts during a conference call, Martin Nisenholtz, senior vice president of digital operations, said it was more difficult for NYTimes.com to command premium ad rates for display ads during the quarter. As a result, the site will be increasingly designed for cost-per-click ads during 2009, Nisenholtz said.
Allied Capital slumps 38% after debt default warning (10:30 am ET)
SAN FRANCISCO (MarketWatch) -- Allied Capital (ALD: news, chart, profile) shares slumped 38% during morning trading on Wednesday after the small-business lender warned that it may default on its debt. Allied estimated that its asset coverage ratio at the end of 2008 will be less than the 200% required under its revolving credit facility and four outstanding private notes. "Failure of the Company to satisfy the minimum 200% asset coverage ratio would constitute an event of default," it warned in a statement. The company said plans to seek relief from its lenders. Withouth a minimum 200% asset coverage ratio, Allied also said it won't be able to declare dividends or make other distributions to shareholders. The company also wouldn't be able to borrow more. Allied shares dropped 38% to $2.24 during morning action on Wednesday.
Energy stocks rise with broad market(9:37 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose with the broad market on Wednesday, boosted by the prospects for a nearly $1 trillion economic bailout in the works by the Obama administration. The Amex Oil Index (XOI: news, chart, profile) rose 0.6%. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.2% to 385. Oil major ConocoPhillips (COP: news, chart, profile) rose 1.6% to $50.30 after posting a steep fourth-quarter loss, as expected. Hess Corp. (HES: news, chart, profile) dipped 1.3% to $58.32 after the production firm posted a loss. Baker Hughes (BHI: news, chart, profile) jumped 3.4% to $33.86 after it managed to hammer out fatter fourth-quarter earnings.
Franklin Resources earnings slide in quarter(9:13 am ET)
NEW YORK (MarketWatch) -- Franklin Resources Inc. (BEN: news, chart, profile) said Wednesday that fiscal first-quarter earnings were $121 million, or 52 cents a share, compared to $518 million, or $2.15 cents a share, in the same period a year ago. Revenue was $969 million compared to $1.69 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of 87 cents and sales of $1.12 billion.
ConocoPhillips to keep production steady at current levels(9:02 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) rose 4% to $51.50 in pre-market trades after the oil and gas producer and refiner posted a steep but expected loss. Looking ahead, ConocoPhillips expects the company's first-quarter oil production to be near the fourth-quarter level of 1.87 million barrels of oil equivalent a day. Worldwide refining crude oil capacity utilization rate in the first quarter will be in the low-80% range due to planned turnaround activity in the United States and continued economic run reductions at its Wilhelmshaven refinery. Turnaround costs are expected to be approximately $225 million before-tax for the quarter.
New York Times profit slides 48% on writedown, ad decline(8:59 am ET)
CHICAGO (MarketWatch) -- New York Times Co. (NYT: news, chart, profile) , battling along with the rest of the newspaper industry to remain solvent during the financial meltdown, said Wednesday its fourth quarter profit fell 48%, reflecting the reduced value of an asset at the International Herald Tribune, severance costs and ongoing declines in advertising sales. The company also said it has hired Goldman Sachs & Co. to help it explore the sale of its nearly 18% stake in New England Sports Ventures, which includes the Boston Red Sox. New York Times Co. reported fourth-quarter net income of $27.6 million, or 19 cents a share, compared with a profit of $53 million, or 37 cents, in the same quarter a year ago. Excluding special items including severance costs, the company would have earned 36 cents a share in the latest three months. Fourth-quarter revenue fell 11% to $772 million. On average, analysts surveyed by Thomson Financial had been looking for a profit of 27 cents a share on revenue of $767.5 million.
Tidewater's profit rises in third quarter(8:45 am ET)
NEW YORK (MarketWatch) -- Tidewater Inc. (TDW: news, chart, profile) said Wednesday that its third-quarter net income for the three months ended Dec. 31 rose to $117 million, or $2.28 a share, from $89.4 million, or $1.66 a share, in the year-ago period. On average, analysts expected earnings of $1.92 a share, according to a survey by FactSet Research. Revenue at the New Orleans offshore-energy fleet operator rose to $362.3 million from $314.2 million.
ConocoPhillips swings to steep loss on goodwill impairment(8:38 am ET)
NEW YORK (MarketWatch) -- ConocoPhillips (COP: news, chart, profile) on Tuesday posted a fourth-quarter loss of $31.76 billion, or $21.37 a share, compared to net income of $4.37 billion, or $2.71 a share in the year-ago period. Revenue fell to $44.5 billion from $52.7 billion. Adjusted net income totaled $1.91 billion, or $1.28 a share in the latest period. Analysts expected earnings of $1.29 a share, on average, according to a survey by FactSet Research. The latest period includes a $25.55 billion impairment of all exploration and production segment goodwill. Daily production averaged 1.87 million barrels of oil equivalent per day, an increase from 1.75 million in the previous quarter and 1.84 million per day in the fourth quarter of 2007.
Total SA shares rise 4% after bid for UTS Energy(8:22 am ET)
NEW YORK (MarketWatch) -- U.S.-listed shares of Total SA (TOT: news, chart, profile) rose 4% to $53 in pre-market after the French integrated oil giant bid C$617 million in cash for Canadian oil sands producer UTS Energy Corp. (CA:UTS: news, chart, profile) . Late Tuesday, Total bid a premium of 57% above UTS's closing price of 83 cents a share on the Toronto Stock Exchange.
Stanley Works earnings tumble in quarter(8:20 am ET)
NEW YORK (MarketWatch) -- The Stanley Works (SWK: news, chart, profile) said Wednesday that fourth-quarter earnings were $1.1 million, or one cent a share, compared to $92.3 million, or $1.11 a share, in the same period last year. Sales were $1.09 billion compared to $1.14 billion. Earnings from continuing operations were 66 cents a share. Analysts polled by FactSet Research estimated, on average, earnings per share of 22 cents and sales of $1.05 billion. Stanley said it would offer no guidance for 2009 due to volatile conditions.
Wells Fargo swings to fourth-quarter loss(8:14 am ET)
BOSTON (MarketWatch) -- Wells Fargo & Co. (WFC: news, chart, profile) on Wednesday said it swung to a fourth-quarter loss of $2.55 billion, or 79 cents a share, compared with net income of $1.36 billion, or 41 cents a share, in the year-ago period. Analysts polled by Thomson Reuters had been looking for quarterly profit of 33 cents a share. The banking giant said it has no plans to request additional capital under the Treasury Department's Troubled Asset Relief Program, or TARP. Wells Fargo shares were up 17% in premarket action.
Southern reports slight profit fall(7:57 am ET)
NEW YORK (MarketWatch) -- Southern Company (SO: news, chart, profile) said Wednesday it had fourth-quarter earnings of $185.6 million, or 24 cents a share, compared with a profit of $204.1 million, or 27 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, 25 cents a share. The Atlanta-based energy company said full-year 2008 profit was $1.74 billion, or $2.26 a share, compared with a profit of $1.73 billion, or $2.29 a share, in 2007. Fourth-quarter revenues were $3.8 billion, a 13.8% increase from the fourth quarter of 2007. Revenues for the full year were $17.13 billion, an 11.6% rise from $15.35 billion in 2007.
MeadWestvaco loses $16 million on restructuring costs(7:53 am ET)
NEW YORK (MarketWatch) -- MeadWestvaco (MWV: news, chart, profile) said it swung to a fourth-quarter loss of $16 million, or 9 cents a share, from a gain of $148 million, or 82 cents a share in the year-ago period. The Richmond, Va. packaging and office products giant said the latest period included after-tax restructuring charges of $33 million, or 19 cents a share related to facility closures, asset write-downs and employee separation costs. Breaking out the restructuring costs, MeadWestvaco earned 10 cents a share, ahead of the forecast of 9 cents a share in a survey by FactSet Research. The company said it faces a difficult operating environment of continued input cost inflation and lower demand in many consumer packaging markets. Revenue fell to $1.6 billion from $1.7 billion. MeadWestvaco said it's accelerating elements of a cost reduction program to achieve an additional $100 million in reduced corporate and business overhead expenses and $25 million in savings from facility closures and restructuring this year.
AT&T profit falls 23%, but 1.9 million iPhone users added (7:48 am ET)
WASHINGTON (MarketWatch) - Phone giant AT&T Inc. (T: news, chart, profile) said Wednesday its fourth-quarter net income fell 23.3%, but the carrier added a hefty 2.1 million wireless subscribers, including 1.9 million iPhone accounts. In the final three months of 2008, AT&T reported net profit of $2.4 billion, or 41 cents a share, down from $3.1 billion, or 51 cents a share, in the comparable 2007 quarter. Revenue rose 2.4% to $31.4 billion. . The company cited merger-related expenses, severance costs and upfront subsidies for the iPhone as contributing to lower income. Excluding one-time costs, AT&T said it would have earned 64 cents a share, compared with 71 cents a share, a year earlier. AT&T was forecast to earn an adjusted 65 cents a share on revenue of $31.4 billion, according to the average projection of analysts surveyed by FactSet Research. For the current fiscal year, AT&T said revenue would continue to expand despite a U.S. recession, but the company plans to cut annual capital expenditures by 10% to 15%.
General Dynamics profit rises almost 6%(7:48 am ET)
NEW YORK (MarketWatch) -- General Dymanics (GD: news, chart, profile) said on Wednesday that its fourth-quarter profit rose 5.7% to $612 million, or $1.57 a share, from $579 million, or $1.42 a share. Net sales rose to $7.85 billion from $7.52 billion a year ago. ""Sales increased in the Aerospace, Marine Systems and Information Systems and Technology groups when compared to the year-ago period, and company-wide operating margins increased 30 basis points in the quarter," chief executive Nicholas Chabraja said in a press release.
Hess swings to loss on exploration and production slowdown(7:39 am ET)
NEW YORK (MarketWatch) -- Hess Corp. (HES: news, chart, profile) said Wednesday it swung to a fourth-quarter loss on a slowdown in its core oil production business, along with other costs. The New York-based oil producer lost $74 million, or 23 cents a share in the three months ended Dec. 31, compared to net income of $510 million, or $1.59 a share in the year-ago period. Analysts surveyed by FactSet Research forecast earnings of 29 cents a share, on average. Sales fell to $7.28 billion from $9.46 billion. Fourth quarter results included after-tax dry hole costs of $86 million, foreign exchange losses of $84 million and net income tax charges of $20 million. The corporation's oil and gas production, on a barrel-of-oil equivalent basis, fell to 379,000 barrels per day in the fourth quarter compared with 390,000 barrels per day in the fourth quarter of the prior year.
McCormick earnings per share fall 7.5% in quarter(7:24 am ET)
NEW YORK (MarketWatch) -- McCormick & Co. (MKC: news, chart, profile) said Wednesday that fourth-quarter earnings were $83 million, or 62 cents a share, compared to $88 million, or 67 cents, in the same period a year ago. Sales were $907 million, compared to $860 million last year. On an adjusted basis McCormick earned 84 cents a share. Analysts polled by FactSet Research estimated, on average, earnings per share of 82 cents and sales of $936 million. For the full year of 2009, the Baltimore-based spice company expects earnings per share in the range of $2.24 to $2.28 and earnings per share rising 7% to 9%.
Legg Mason loss swells to $1.49 billion(7:15 am ET)
LONDON (MarketWatch) -- Legg Mason (LM: news, chart, profile) , the Baltimore asset management firm, said its third-quarter loss ballooned to $1.49 billion, or $10.55 a share, from $103.8 million, or 74 cents a share. The company took a write-down in its wealth management unit of $6.03 a share, a $3.63 a share hit on efforts to reduce structured investment vehicle exposure, a $1.07 a share hit on additional support for liquidity funds and a 16 cents a share hit from lost sublease income from "a major investment bank which had declared bankruptcy." Assets under management dropped 17% to $698.2 billion from Sept. 30 levels. Analysts polled by FactSet were looking for a loss of $2.83 a share. Analyst estimates typically exclude one-time items.
Becton, Dickinson profit up 15%, lifts guidance(7:11 am ET)
LONDON (MarketWatch) -- Medical technology group Becton, Dickinson and Co. (BDX: news, chart, profile) said Wednesday that its fiscal first-quarter net profit rose 15% to $312.1 million, or $1.26 a share, from $271.5 million, or $1.07 a share, a year earlier. Revenue for the quarter rose 1.6% to $1.73 billion. Analysts polled by FactSet had been expecting earnings of $1.16 a share. The group said it continued to see strength in its biosciences and diagnostics segments and strong sales for insulin delivery products. The company also raised its guidance for fiscal 2009, saying it expects earnings from continuing operations in the year to increase between 9% and 11% from from $4.46 in 2008.