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Thursday, July 16

IBM reports earnings rise 12%(4:20 pm ET)
SAN FRANCISCO (MarketWatch) -- IBM Corp. (IBM: news, chart, profile) on Thursday reported a second-quarter profit of $3.1 billion, or $2.32 a share, on revenue of $23.3 billion. Analysts surveyed by FactSet Research had forecast IBM to earn $2.01 a share on $23.56 billion in sales. During the same period a year ago, IBM earned $2.8 billion, or $1.97 a share, on revenue of $26.8 billion. IBM also raised its full-year earnings forecast to at least $9.70 a share from $9.20 a share.

Google tops views with second-quarter profit(4:05 pm ET)
SAN FRANCISCO (MarketWatch) - Google Inc. (GOOG: news, chart, profile) on Thursday said its second-quarter net income rose to $1.48 billion, or $4.66 a share, from $1.25 billion, or $3.92 a share in the same period a year earlier. Net revenue in the period ended in June rose to $4.07 billion from $3.9 billion, Google said. Excluding special items, earnings were $5.36 a share. Wall Street analysts had expected Google to post earnings excluding special items of $5.09 a share, and $4.06 billion in net revenue, according to data from Thomson Reuters.

CDC Software files $62 million IPO(9:33 am ET)
NEW YORK (MarketWach) -- CDC Software Corp. on Thursday filed to raise up to $62.4 million in an initial public offering of 4.8 million American depositary shares at an estimated price range of $11-$13 each. The Hong Kong-based maker of business software will remain a unit of CDC Corp. (CHINA: news, chart, profile) after the offering. CDC Software expects to trade on the Nasdaq under the symbol CDCS. Lazard Capital Markets and JMP Securities are underwriting the deal.

Genuine Parts posts lower quarterly profit(9:19 am ET)
NEW YORK (MarketWatch) -- Genuine Parts Co. (GPC: news, chart, profile) said Thursday that its second-quarter profit fell to $103 million, or 65 cents a share, from $133 million, or 81 cents a share, in the year-earlier period. Sales at the distributor of automotive-replacement parts fell to $2.54 billion from $2.87 billion. "We are not satisfied with our results for the second quarter and first half of 2009, but feel that they reflect the realities of a difficult economy," said Thomas Gallagher, the company's chairman and chief executive officer, in a statement.

J.P. Morgan first half provisions doubled vs 2008 (8:35 am ET)
NEW YORK (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) has set aside $16.63 billion for credit loss provisions since the beginning of the year, according to the firm's Thursday earnings report for the second quarter. The company said it set aside $8.03 billion in loss provisions in the second quarter, after putting away $8.60 billion in the first quarter. In the first half of 2008, J.P. Morgan set aside $7.88 billion for loan losses.

PPG net income falls 42%; sales hit by currency(8:14 am ET)
NEW YORK (MarketWatch) -- PPG Industries (PPG: news, chart, profile) said Thursday second-quarter net income fell to $146 million, or 89 cents a share, from $250 million, or $1.52 a share in the year-ago period. Adjusted net income at the Pittsburgh-based maker of paints, optical products and coatings said adjusted net income for the quarter totaled 91 cents a share. Sales dropped 30% to $3.1 billion. Currency conversion accounted for more than 40%of the sales decline, and the company also realized lower volumes in the automotive refinish business. Analysts expected earnings of 74 cents a share on revenue of $3.28 billion, according to a survey by FactSet Research. "Looking ahead to the third quarter, we expect overall market demand to improve, but only mildly," the company said. "We expect sequential improvement in the U.S. automotive original equipment manufacturing market, but we expect the opposite for commodity chemicals."

Biogen Idec earnings per share drop to 49 cents(7:42 am ET)
NEW YORK (MarketWatch) -- Biogen Idec Inc. (BIIB: news, chart, profile) said Thursday that second-quarter earnings fell to $143 million, or 49 cents a share, compared to $207 million, or 71 cents, in the same period a year ago. Revenue was $1.1 billion, compared to $993 million. Adjusted earnings per share were 75 cents. Analysts polled by FactSet Research estimated, on average, earnings per share of 79 cents and sales of $1.1 billion. Biogen sees revenue growth in the high single digits in 2009 and adjusted earnings per share above $3.85.

MGIC second-quarter loss widens(7:22 am ET)
NEW YORK (MarketWatch) -- MGIC Investment Corp. (MTG: news, chart, profile) said Thursday that its second-quarter loss was $339.8 million, or $2.74 a share, compared to a loss of $99.9 million, or 81 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, a loss of 93 cents a share. Mortgage insurer MGIC's total revenues for the second quarter were $454.5 million, compared with $424.5 million in the second quarter last year. Separately, MGIC said it will provide up to $1 billion to subsidiary MGIC Indemnity Corp. to write new mortgage guaranty insurance on or about Jan. 1. The cash will come from existing cash and investments, said the firm. "In order to provide certainty that we would be able to continue writing new business on an uninterrupted basis, we needed to write new business in a company which has a lower risk to capital ratio," said MGIC of the move.

Baxter net income climbs 8% on wider margins(7:15 am ET)
NEW YORK (MarketWatch) -- Baxter International Inc. (BAX: news, chart, profile) said Thursday second-quarter net income grew by 8% to $587 million, or 96 cents a share, from $544 million, or 85 cents a share in the year-ago period, despite lower revenue from the Deerfield, Ill. medical products giant. Baxter said sales fell 2% to $3.1 billion. Wall Street analysts expected earnings of 94 cents a share on revenue of $3.1 billion, according to a survey by FactSet Research. The company said it beat its 93 to 95 cents-a-share forecast for the quarter because of "improved margins and benefits derived from the company's ongoing share repurchase program." Baxter expects third-quarter earnings of 95-97 cents a share, compared to the Wall Street target of 96 cents a share.

Marriott net off. adjusted profit above estimate(6:58 am ET)
TEL AVIV (MarketWatch) -- Marriott International Inc., (MAR: news, chart, profile) the Bethesda, Md., hotel operator, reported that second-quarter net income fell 77% and adjusted earnings per share from continuing operations declined 55%. Net income fell to $35 million from $155 million in the year-earlier quarter. Net attributable to shareholders was $37 million, or 10 cents a share, compared with $157 million, or 42 cents. The latest adjusted earnings from operations were 23 cents a share. Revenue fell 20% to $2.56 billion from $3.19 billion. A survey of analysts by FactSet Research produced consensus estimates of 21 cents of profit on $2.54 billion of revenue. For the third quarter, Marriott pegs adjusted earnings from continuing operations at 9 cents to 14 cents; FactSet's survey is looking for 20 cents.

J.P. Morgan Chase tops with 36% profit rise(6:37 am ET)
LONDON (MarketWatch) -- J.P. Morgan Chase (JPM: news, chart, profile) said its second-quarter net income climbed 36% to $2.72 billion, or 28 cents a share, as revenue rose to $25.62 billion from $18.4 billion. The quarter included a 27 cents a share hit for TARP repayment and a 10-cents-a-share FDIC special assessment penalty. Analysts had forecast earnings of 4 cents a share. The investment bank had record first half revenue, and it saw "solid" performance from commercial banking, asset management, treasury and security services and retail banking. But it expects high levels of credit costs to remain elevated for the foreseeable future.

Update: Harley-Davidson net off; cuts outlook(6:26 am ET)
TEL AVIV (MarketWatch) -- Harley-Davidson Inc., (HOG: news, chart, profile) the Milwaukee motorcycle maker, reported that second-quarter net income fell 91%, reflecting fewer motorcycle shipments as well as charges tied to Harley-Davidson Financial Services. The company earned $19.8 million, or 8 cents a share, compared with $222.8 million, or 95 cents, in the year-earlier quarter. Revenue fell 27% to $1.15 billion from $1.57 billion. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $1.15 billion of sales. Worldwide retail-unit sales of new Harley-Davidson motorcycles fell 30% from the year-earlier quarter. That reflected declines of 35% in the U.S. and 18% internationally, Harley-Davidson reported. The company also lowered its 2009 expectations for shipments, now planning to ship 212,000 to 228,000 motorcycles to dealers and distributors worldwide this year. That's 25% to 30% fewer than the nearly 303,500 shipped in 2008. The prior 2009 estimate was 264,000 to 273,000. Third-quarter shipments are estimated at 52,000 to 57,000. And Harley-Davidson plans 700 more job cuts. (Updates with FactSet estimate.)

Nokia posts 73% drop in profit, lowers share view(6:20 am ET)
LONDON (MarketWatch) -- Nokia Corp. (NOK: news, chart, profile) , the world's largest maker of mobile phones, on Thursday posted a 73% drop in second-quarter net profit to 287 million euros, or 0.10 euro a share, from 1.08 billion euros, or 0.29 euro a share, earned in the year-earlier quarter. Adjusted earnings came in at 0.15 euro a share. Sales declined 25% to 9.9 billion euros. On a sequential basis, they rose 7%. Nokia shipped 103.2 million units in the quarter, down 15% year on year but up 11% sequentially. The average selling price of a Nokia phone slipped to 62 euros from 65 euros in the first quarter. The company reiterated its forecast for the global mobile industry to contract 10% this year. Nokia, however, changed its mobile device operating margin forecast for the second half, saying it now sees it at the same level as in the first half rather than in the teens. In the second quarter it was 11.2%. Nokia also said it no longer expects to gain market share in the second half of the year but for it to remain flat.

Sony Ericsson loses $301 million as sales slump(2:42 am ET)
LONDON (MarketWatch) -- Sony Ericsson Mobile Communications, the handset making joint venture between Sony (SNE: news, chart, profile) and Ericsson (ERIC: news, chart, profile) , said it swung to a second-quarter loss of 213 million euros ($301 million) as sales dropped 40% to 1.68 billion euros. The firm, which earned 6 million euros in the year-earlier quarter, saw its gross margins nearly halved to 12% from 23% as the number of units shipped fell to 13.8 million from 24.4 million. The company said the remainder of the year will be difficult as it said it's on track to reduce operating expenses by 880 million euros by the second half of 2010. Sony Ericsson maintains its forecast that the global handset market for 2009 will continue to contract by at least 10%.

Novartis net down 9.8% but exceeds estimate(1:57 am ET)
TEL AVIV (MarketWatch) -- Novartis AG (NVS: news, chart, profile) (CH:NOVN: news, chart, profile) reported Thursday that second-quarter net income fell 9.8% on 1.7% lower sales. Net income was $2.04 billion, or 90 cents a share, compared with $2.27 billion, or 99 cents, in the year-earlier quarter. Sales slipped to $10.55 billion from $10.73 billion. A survey of analysts by FactSet Research produced consensus estimates of 88 cents of profit on $10.07 billion of sales. The Basel health-care giant affirmed that for 2009, it expects sales measured in local currencies to grow at a mid-single-digit percentage rate. Adjusted net income should reach a yearly record in 2009, but that growth "could be more than offset in reported results by currency-related losses," Novartis said.
Wednesday, July 15

Crown Holdings quarterly earnings rise to 65 cents(6:18 pm ET)
LOS ANGELES (MarketWatch) -- Crown Holdings Inc. (CCK: news, chart, profile) late Wednesday said second-quarter net income attributable to Crown Holdings were $105 million, or 65 cents a share, up from $99 million, or 61 cents a share, in the year-ago period. Excluding a net charge related to previously announced restructuring actions, earnings for the beverage and food packaging producer would have been 66 cents a share. Revenue fell to $2.06 billion from $2.2 billion in the same period a year ago. Analysts polled by Thomson Reuters had expected earnings of 61 cents a share on revenue of $2.09 billion.

Cintas quarterly profit drops to $4.1 million(4:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Cintas Corp. (CTAS: news, chart, profile) said late Wednesday that its fiscal fourth-quarter profit was $4.1 million, or 3 cents a share, down from $89.7 million, or 58 cents a share, in the year-ago period. Excluding a $54 million after-tax charge, earnings would have been 38 cents a share. Revenue fell to $878.7 million from $1.01 billion in the same period a year ago, said the corporate apparel provider.

Gannett CFO: Ad trends stabilizing at newspapers(10:32 am ET)
CHICAGO (MarketWatch) -- Gannett Co. (GCI: news, chart, profile) Chief Financial Officer Gracia Martore told analysts Wednesday that while economic weakness continues to hamper advertising revenue, "demand seems to be firming up a bit in some categories and in some geographic locations." During a conference call, Martore noted that classified ad revenue, the traditional lifeblood of newspaper income, showed improvement in the second quarter. Real estate revenue "trended upward," she said, while other classified categories "have stabilized somewhat." Help-wanted classified "has historically been a lagging indicator, so we will be keeping an eye on that," Martore said. In national advertising, the month of June was the strongest of the year thus far, with revenue about 12% lower, compared with "declines in the mid-20s" during April and May, she added. At USA Today, ad revenue fell 26%, but that decline was smaller than that of the first quarter.

Drug stocks gain; Abbott falls on forecast(9:43 am ET)
BOSTON (MarketWatch) -- Drug stocks gained in early action Wednesday while shares of Abbott Laboratories (ABT: news, chart, profile) fell after it issued a third-quarter financial forecast that fell at the lower end of Wall Street estimates. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) was up marginally at 263.92 and the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) rose 0.5% to 653.32. Abbott shares were down almost 3% at $45.15.

AMR Corp.'s adjusted loss grows by $21 million(9:12 am ET)
NEW YORK (MarketWatch) -- AMR Corp. (AMR: news, chart, profile) said Wednesday it lost $390 million in its second quarter, or $1.39 a share, narrower than the year-ago loss of $1.46 billion, or $5.83 a share. Adjusted net loss grew by $21 million to $319 million, or $1.14 a share, excluding $70 million in non-recurring charges related to the sale of aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Revenue at the Fort Worth, Texas parent company of American Airlines fell 21% to $4.89 billion. Analysts expected a loss of $1.21 a share on revenue of $4.87 billion, according to a survey by FactSet Research. AMR expects consolidated capacity in the third quarter to decrease by approximately 9% compared to the year-ago period.

Abbott earnings per share 83 cents versus 85 cents(8:50 am ET)
NEW YORK (MarketWatch) -- Abbott (ABT: news, chart, profile) said Wednesday that second-quarter earnings were $1.3 billion, or 83 cents a share, compared to $1.3 billion, or 85 cents a share, in the same period a year ago. Excluding items, earnings per share were 89 cents versus 84 cents. Revenue rose 2.5% to $7.5 billion compared to $7.3 billion a year ago. Analysts polled by Fact Set Research estimated, on average, earnings per share of 89 cents and sales of $7.6 billion. Abbott sees double-digit sales growth for 2009 and earnings per share in the $3.65-$3.70 range. Third-quarter adjusted earnings per share are forecast at 88 cents to 90 cents a share. (Corrects earnings for second quarter 2009)

Worthington Industries swings to a loss (8:46 am ET)
NEW YORK (MarketWatch) -- Worthington Industries (WOR: news, chart, profile) on Wednesday reported a fourth-quarter loss of $13.7 million, or 17 cents a share, from net income of $53.9 million, or 68 cents a share in the year-ago period. Excluding items, the Columbus, Ohio metal processing company lost 2 cents a share. Sales fell 46% to $471.6 million. Wall Street analysts expected a loss of 3 cents a share, according to a survey by FactSet Research. Looking ahead, Worthington said, "Our goal is not just to maintain our business, but to be in a position to gain share, make selective acquisitions and capture opportunities as they present themselves."

Campbell sees above 5% to 7% 2009 earnings growth(8:41 am ET)
NEW YORK (MarketWatch) -- Campbell Soup Co. (CPB: news, chart, profile) said Wednesday that it expects growth in adjusted earnings per share on a currency-neutral basis to exceed the 5%-to-7% range from the fiscal 2008 adjusted base of $2.09. It also said earnings-per-share and sales growth will be held back about 5% due to currency translation.

Gannett swings to a second-quarter profit(8:27 am ET)
NEW YORK (MarketWatch) -- Newspaper publisher Gannett Co. (GCI: news, chart, profile) said Wednesday that it swung to a second-quarter profit of $70.5 million, or 30 cents a share, from a year-earlier loss of $2.29 billion, or $10.03 a share. Excluding items, the McLean, Va.-based company would have earned 46 cents a share in the most recent quarter. Revenue slipped to $1.41 billion from $1.72 billion. Analysts polled by FactSet Research had expected a profit of 35 cents a share.

Bemis raises outlook(8:12 am ET)
NEW YORK (MarketWatch) -- Bemis Co. Inc. (BMS: news, chart, profile) on Wednesday improved its outlook for its second-quarter and full-year earnings. The Neenah, Wis., packaging and materials company said it now expects earnings of 47 cents a share in the second quarter, up from its original guidance of 35 cents to 43 cents a share. For the full year, Bemis said it expects earnings of between $1.68 and $1.75 a share, up from previous guidance of $1.50 to $1.70 a share. Bemis said it had benefited from lower raw material costs related to shipments as well as "the positive impact of cost management initiatives implemented during the fourth quarter of 2008 and the first quarter of 2009."

Lubrizol sees earnings per share of about $1.92(8:09 am ET)
NEW YORK (MarketWatch) -- The Lubrizol Corp. (LZ: news, chart, profile) said Wednesday that it expects second-quarter earnings per share of about $1.92, including a restructuring and impairment charge of approximately 10 cents a share.

W.W. Grainger net income down 18%(8:00 am ET)
NEW YORK (MarketWatch) -- W.W. Grainger Inc. (GWW: news, chart, profile) on Wednesday said second-quarter earnings fell 18% to $92 million, or $1.21 a share, from $113 million, or $1.42 a share in the year-ago period. Sales for the Chicago-based supplier of facilities maintenance products fell 13% to $1.5 billion. Analysts expected earnings of $1.14 a share on revenue of $1.5 billion, according to a survey by FactSet Research. "We have not seen an indication of an economic turnaround at this point but our results indicate that we are gaining market share during this recession," the company said. "We are in a great position to grow when the economy eventually recovers. We're expanding our sales force to improve customer coverage."

Wolverine World Wide profit off, outlook higher(6:59 am ET)
TEL AVIV (MarketWatch) -- Wolverine World Wide Inc., (WWW: news, chart, profile) the Rockford, Mich., marketer of footwear and apparel under brands including Hush Puppies, Sebago and more, reported that second-quarter earnings fell 53% and raised its estimate of earnings for the full year. Earnings fell to $7.9 million, or 16 cents a share, from $16.8 million, or 33 cents, in the year-earlier quarter. Adjusted profit was 27 cents against 33 cents. Revenue fell 7.8% to $246.4 million from $267.4 million. Adjusting for foreign-exchange fluctuations, revenue fell 3.1%. A survey of analysts by FactSet Research produced consensus estimates of 26 cents of profit on $243.1 million of sales. The company now expects to earn an adjusted $1.55 to $1.73 in 2009, compared with its previous estimate of $1.50 to $1.70. Diluted earnings are projected at $1.07 to $1.25. Revenue should range $1.07 billion to $1.12 billion; constant-currency revenue should come in $1.12 billion to $1.17 billion. FactSet's survey is looking for $1.67 and $1.13 billion.

Fifth Street Finance investment income rises(6:31 am ET)
TEL AVIV (MarketWatch) -- Fifth Street Finance Corp., (FSC: news, chart, profile) the White Plains, N.Y., provider of financing and investments for small and medium-sized companies, estimated that for the quarter ended June 30, net investment income was 34 cents to 36 cents a share, compared with 33 cents in the quarter ended March 31. The company on Wednesday estimated that its net asset value at the end of the June quarter was about flat with the $11.94 a share reported at March 31. The number of investments on non-accrual status also was about level with the previous quarter, Fifth Street Finance reported. Separately, the company plans a public offering of 6.5 million common shares. The underwriters will have an option on 975,000 more shares if demand for the offering requires. Wells Fargo and UBS will run the books for the offering. Fifth Street expects to use $16.5 million of the offering proceeds to pay down its secured revolving-credit line and the rest for investments.

Lufkin Industries net off 79%, sales down 29%(6:20 am ET)
TEL AVIV (MarketWatch) -- Lufkin Industries Inc., (LUFK: news, chart, profile) the Lufkin, Texas, provider of oilfield-pumping units and other equipment, reported that second-quarter earnings fell 79% on 29% lower sales. Net income was $4.5 million, or 30 cents a share, compared with $21.2 million, or $1.42, in the year-earlier quarter. Adjusted per-share earnings from continuing operations for the latest period were 40 cents. Sales fell to $123.7 million from $174.5 million. To cut costs and improve its competitive position, Lufkin has cut its workforce 16% this year, placed some operations on short workweeks, and eliminated overtime pay.