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Thursday, July 23 Before Open

Sigma-Aldrich profit declines on currency impact(8:32 am ET)
CHICAGO (MarketWatch) -- Biotechnology firm Sigma-Aldrich Corp. (SIAL: news, chart, profile) said Thursday that its second-quarter profit declined on an unfavorable currency impact. Sigma-Aldrich said its profit was $84 million, or 68 cents a share, compared with a profit of $91 million, or 70 cents a share, in the second quarter of 2008. Excluding the currency impact, Sigma-Aldrich said it would have earned 79 cents a share in the latest three months. Net sales fell to $522 million from $581 million. Analysts polled by Thomson Reuters were anticipating a profit of 68 cents a share on sales of $531.6 million.

ProLogis sees lower funds from operations(8:25 am ET)
BOSTON (MarketWatch) -- ProLogis (PLD: news, chart, profile) said Thursday its second-quarter funds from operations fell to 34 cents a share from $1.02 in the year-earlier quarter. The real estate investment trust, which has been hit by lower demand for industrial properties during the global economic downturn, said net earnings dropped to 58 cents a share from 76 cents. ProLogis Chief Executive Walter Rakowich said the industry is facing declining rents, and expects the difficult leasing environment to persist. "Property fundamentals continue to mirror global economic weakness, characterized by reductions in market rental rates and an increase in leasing concessions," the CEO said. ProLogis reiterated its full-year estimate for FFO in the range of $1.31 and $1.48 a share.

Northrop Grumman earnings fall; sales rise 4%(8:19 am ET)
NEW YORK (MarketWatch) -- Northrop Grumman Corp. (NOC: news, chart, profile) said Thursday that second-quarter earnings from continuing operations were $394 million, or $1.21 a share, compared with $483 million, or $1.40 a share, a year ago. Results include a $64 million pre-tax gain, or 13 cents a share, for legal matters, and a $105 million pre-tax charge, or 21 cents a share, for cost increases in the estimates to complete several ships under construction. Sales increased 4% to $8.96 billion from $8.63 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.28 and sales of $8.66 billion.

Union Pacific net income down 12%(8:20 am ET)
NEW YORK (MarketWatch) -- Union Pacific Corp. (UNP: news, chart, profile) said Thursday second-quarter net income fell 12% to $468 million, or 92 cents a share, from $531 million, or $1.02 a share in the year-ago period. Without a one-time boost of $72 million for a land sale to Colorado's Regional Transportation District, earnings in the lastest period totaled 78 cents a share. Revenue fell 28% $3.3 billion. Analysts expected earnings of 78 cents a share and revenue of $3.4 billion, according to a survey by FactSet Research. "Although we expect it will be some time before the economy recovers, it appears that volume levels may have hit the bottom as the economy seems to have stabilized," the railroad said.

International Game Technology Q3 profit falls(8:14 am ET)
NEW YORK (MarketWatch) -- International Game Technology (IGT: news, chart, profile) reported Thursday that net income in its fiscal third quarter ended June 30 fell 39% from the year-ago period to $66.3 million, or 22 cents a share. Revenue dropped 23% to $522.1 million, while units shipped worldwide decreased 31%, the computer gaming provider said. In its gaming operating division, quarterly revenue and gross profit declined 14% and 11%, respectively, from the same quarter the previous year.

Ryder earnings slump by more than half(8:08 am ET)
NEW YORK (MarketWatch) -- Ryder System Inc. (R: news, chart, profile) said Thursday that second-quarter earnings fell to $23 million, or 41 cents a share, compared to $63 million, or $1.09 a share, from a year ago. Revenue fell to $1.24 billion, down 25% compared with $1.66 billion in the same period of last year. Analysts polled by FactSet Research estimated, on average, earnings per share of 38 cents and sales of $1.25 billion. Ryder said it anticipates the weak overall economic environment and protracted freight recession to continue throughout the remainder of 2009.

UPS profit falls 49% on global econnomic weakness (8:01 am ET)
NEW YORK (MarketWatch) -- Package delivery firm UPS (UPS: news, chart, profile) said its second quarter profit was almost halved due to the global economic slowdown, falling to $445 million, or 44 cents a share from $873 million, or 85 cents a share a year ago. On an adjusted basis, earnings per share were 49 cents versus 85 cents a year ago. Analysts polled by Thomson Reuters had expected the company to earn 49 cents a share in the quarter. Revenue totaled $10.83 billion in the quarter, compared to $13 billion a year ago. The company also Thursday reiterated its third quarter profit outlook of 45 cents a share to 55 cents a share.

JetBlue swings to profit as costs decline(7:57 am ET)
CHICAGO (MarketWatch) -- JetBlue Airways Corp. (JBLU: news, chart, profile) said Thursday that it swung to a better-than-expected second-quarter profit as operating expenses declined 13%. JetBlue said it earned $20 million, or 7 cents a share, in the quarter ended June 30. A year earlier, it took a loss of $9 million, or 4 cents a share. Excluding an accounting gain, JetBlue would have earned $14 million, or 5 cents a share in the latest three months. Revenue declined 6% to $807 million. Analysts were expecting a profit of 2 cents a share on revenue of $800.1 million, according to a survey by Thomson Reuters. Passenger revenue per available seat mile fell 5.7% to 8.76 cents, while operating revenue per available seat mile declined 4.4% to 9.80 cents. In the third quarter, JetBlue expects to report an operating margin of 6-8%. Passenger revenue per available seat mile is expected to decrease between 8% and 11% from 2008's third quarter, the company said, while revenue per available seat mile is seen declining between 7% and 10%.

Bristol-Myers reports higher quarterly earnings(7:54 am ET)
BOSTON (MarketWatch) -- Bristol-Myers Squibb (BMY: news, chart, profile) said early Thursday that its second-quarter earnings were $983 million, or 49 cents a share, up from $764 million, or 38 cents a share, for the 2008 quarter. Excluding various items, the drugmaker would have posted adjusted earnings of 56 cents a share, versus 43 cents a share. Revenue for the quarter rose 3% to $5.38 billion. According to a poll by FactSet Research, Bristol-Myers was pegged at posting earnings of 47 cents a share, on revenue of $5.29 billion. The company said it now sees 2009 earnings a share coming in between $1.58 and $1.68 a share, with adjusted earnings of $1.95 to $2.05.

Celgene posts higher quarterly profit(7:54 am ET)
NEW YORK (MarketWatch) -- Biotech company Celgene Corp. (CELG: news, chart, profile) said Thursday that its second-quarter profit rose to $143 million, or 31 cents a share, from $120 million, or 26 cents a share, in the year-earlier quarter. Excluding items, adjusted earnings came in at 46 cents a share. The consensus forecast was for earnings of 42 cents a share, according to FactSet Research. Revenue rose to $629 million from $571 million. The company reaffirmed its forecast for full-year adjusted earnings at the lower end of $2.05 to $2.10 a share.

Reynolds American earnings up 3.6%(7:52 am ET)
NEW YORK (MarketWatch) -- Reynolds American Inc. (RAI: news, chart, profile) said Thursday that second-quarter earnings were $377 million, or $1.29 a share, compared to $364 million, or $1.23 a share, in the same period a year ago. Revenue fell 3.8% to $2.25 billion compared to $2.34 billion. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.16 and sales of $2.27 billion. Reynolds American sees 2009 adjusted earnings per share of $4.40 to $4.60.

AT&T profit off 15%; activates 2.4 million iPhones(7:50 am ET)
WASHINGTON (MarketWatch) -- AT&T Inc. (T: news, chart, profile) on Thursday reported a 15% decline in second-quarter net income owing to further declines in its wireline business as well as heavy subsidies to sign up new iPhone customers. The company added a net 1.4 million mobile customers, including a record 2.4 million iPhone accounts. Net income slid to $3.2 billion, or 54 cents a share, from $3.8 billion, or 63 cents a share, a year earlier. Revenue dipped 0.4% to $30.7 billion. AT&T was projected to earn 52 cents a share on revenue of $30.72 billion, according to a survey of analysts compiled by FactSet Research.

Fifth Third chargeoffs almost doubled in Q2(7:50 am ET)
NEW YORK (MarketWatch) -- Ohio-based Fifth Third Bancorp (FITB: news, chart, profile) said on Thursday that its net chargeoffs as a percentage of loans almost doubled in the second quarter, driven by a surge in chargeoffs for commercial loans. Total net chargeoffs in the quarter rose to 3.08% of outstanding loans. The rate for commercial loans was 2.81%, up from 1.41% a year ago. Consumer chargeoffs as a percentage of total loans rose to 3.48% from 2.04%. In dollar amounts, the bank charged off $626 million of loans in the quarter, compared to $344 million a year ago. "Loss experience overall continues to be driven by commercial and residential real estate loans in Michigan and Florida, the company said in a press release. " In aggregate, Florida and Michigan represented approximately 45 percent of total losses during the quarter and 28 percent of total loans and leases." The company said within its commercial portfolio, "Michigan and Florida account(ed) for 54% of commercial construction losses."

Occidental Petroleum net income falls 70%(7:46 am ET)
NEW YORK (MarketWatch) -- Occidental Petroleum (OXY: news, chart, profile) said Thursday second-quarter net income fell 70% to $682 million, or 84 cents a share, from $2.3 billion or $2.78 a share in the year-ago period. The Los Angeles oil and gas producer said sales fell to $3.69 billion from $7.11 billion. Wall Street analysts expected earnings of 75 cents a share and revenue of $3.87 billion, according to a survey by FactSet Research. The company said it boosted production growth by 10% in the second quarter over the year-ago period. Its discovery in Kern County, Calif. announced on Wednesday "should also contribute to our future growth," the company said.

Zimmer net declines 7.5%; year outlook affirmed(7:47 am ET)
TEL AVIV (MarketWatch) -- Zimmer Holdings Inc., (ZMH: news, chart, profile) the Warsaw, Ind., medical-products developer, reported that second-quarter net income fell 7.5% on 5.5% lower sales. Earnings were $210.1 million, or 98 cents a share, compared with $227.1 million, or 99 cents, in the year-earlier quarter. Adjusted earnings for the period were $1 a share compared with $1.03. Shares outstanding declined 6.1% to 215.5 million. Net sales fell to $1.02 billion from $1.08 billion. A survey of analysts by FactSet Research produced consensus estimates of 96 cents of profit on $1.02 billion of sales. And Zimmer affirmed its earnings and sales estimates for the year. The company sees adjusted earnings of $3.85 to $4 a share as revenue declines 1% to 3% on a constant-currency basis. FactSet's survey is looking for earnings of $3.88.

EMC quarterly net income falls 43%(7:41 am ET)
NEW YORK (MarketWatch) -- EMC Corp. (EMC: news, chart, profile) said Thursday that it earned $205.2 million, or 10 cents a share, in the second-quarter ended June 30 compared to net income of $360.1 million, or 17 cents a share, in the year-ago period. Revenue fell 11% to $3.26 billion in the three-month period. On an adjusted basis, the data storage provider earned $358.9 million, or 18 cents a share, in the second-quarter. EMC also said it expects to earn 51 cents a share in 2009, including the negative impact of a little less than 2 cents a share from the acquisition of Data Domain Inc. (DDUP: news, chart, profile) .

Huntington Bancshares reports slimmer loss(7:41 am ET)
BOSTON (MarketWatch) -- Huntington Bancshares Inc. (HBAN: news, chart, profile) on Thursday reported a second-quarter net loss of $125.1 million, or 40 cents a share, compared with a loss of $2.43 billion, or $6.79 a share, in the year-earlier period. The Ohio-based bank said provision for credit losses was $413.7 million in the second quarter as it continues to wrestle with exposure to troubled real estate loans. "Though we saw increases in net charge-offs and delinquencies in our residential mortgage portfolio, this was in line with expectations given the market environment," said Chief Executive Stephen Steinour. "In light of our commercial loan portfolio review, it was prudent to continue to build reserves," he added.

L-3 Communications profit drops 18%(7:35 am ET)
LONDON (MarketWatch) -- L-3 Communications Holdings Inc. (LLL: news, chart, profile) said Thursday that its second-quarter net profit fell 18.2% to $225 million, or $1.90 a share, from $275 million, or $2.21 a share, a year earlier. Revenue for the quarter was up 5.6% at $3.93 billion. Excluding one-off gains a year ago, earnings were up 16%, the group said. Analysts had been expecting earnings of $1.77 a share. The group said sales growth was driven by its command, control, communications, intelligence, surveillance and reconnaissance division as well as its aircraft modernization and maintenance unit. The group lifted its guidance for 2009 earnings per share to a range of $7.25 to $7.35 from a range of $7.17 to $7.32.

NCR profit drops 49% in second quarter(7:30 am ET)
WASHINGTON (MarketWatch) - NCR Corp. (NCR: news, chart, profile) on Wednesday reported a 49% drop in second-quarter profit stemming from falling sales and onetime reorganization costs. The Duluth, Ga.-based company reported net income of $23 million, or 14 cents a share, down from $44 million, or 26 cents a share, in the year-earlier period. Revenue fell nearly 16% to $1.12 billion. Adjusted for onetime items, NCR said it would have earned 13 cents a share, compared with 40 cents a year earlier. The company reiterated its forecast for 2009 of adjusted earnings in the range of 60 cents to 75 cents a share, with revenue 5% to 10% lower compared to 2008. NCR makes automated tellers and related technology products.

Diamond Offshore net income falls 6.9%(7:29 am ET)
NEW YORK (MarketWatch) -- Diamond Offshore Drilling Inc. (DO: news, chart, profile) on Thursday said second-quarter net income fell 6.9% to $387.4 million, or $2.79 a share, from $416.2 million, or $2.99 a share in the year-ago period. Revenue dropped to $946.4 million from $954.4 million. Analysts expected earnings of $2.61 a share on revenue of $943.4 million, according to a survey by FactSet Research.

Omnicom's quarterly profit falls 24%(7:24 am ET)
NEW YORK (MarketWatch) -- Omnicom Group (OMC: news, chart, profile) said Thursday that its second-quarter profit fell 24% to $233.4 million, or 75 cents a share, from $307 million, or 95 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, profit of 74 cents a share. The marketing and communications company said worldwide revenue in the quarter fell 17% to $2.87 billion from $3.48 billion.

CME Group's quarterly revenue climbs 15%(7:20 am ET)
BOSTON (MarketWatch) -- CME Group Inc. (CME: news, chart, profile) on Thursday reported second-quarter net income of $222 million, or $3.33 a share, compared with profit of $201 million, or $3.67 a share, in the same quarter the previous year. The operator of the Chicago Mercantile Exchange, Chicago Board of Trade and New York Mercantile Exchange said quarterly revenue rose 15% to $648 million. The company said average daily volume was 10.4 million contracts, off 19% from the year-ago quarter. "As the economy showed signs of stability, we saw increased volumes in June, particularly in interest rates, foreign exchange and agricultural markets," said Terry Duffy, CME Group's executive chairman.

Hershey earnings jump to 31 cents a share(7:20 am ET)
NEW YORK (MarketWatch) -- The Hershey Co. (HSY: news, chart, profile) said Thursday that second-quarter earnings rose to $71 million, or 31 cents a share, compared to $41 million, or 18 cents a share, in the year-ago period. On an adjusted basis, earnings per share were 43 cents. Sales were $1.2 billion compared with $1.1 billion a year earlier. Analysts polled by FactSet Research estimated, on average, earnings per share of 35 cents and sales of $1.1 billion. Hershey sees 2009 sales growth in 3% to 5% range and increase in adjusted earnings per share to be slightly above the 6% to 8% range.

Fifth Third swings to profit on $1 bln gain (7:13 am ET)
NEW YORK (MarketWatch) -- Fifth Third Bancorp (FITB: news, chart, profile) on Thursday said it earned net income of $882 million, or $1.15 a share, compared to a loss of $202 million, or 37 cents a share a year ago. Results for 2009 's second quarter net income included an after tax gain of $1.10 billion from the completion of the previously announced processing business transaction with Advent International. Results also included a special FDIC deposit insurance fund assessment of $36 million after-tax.

Wyeth ups earnings target after 13% profit rise(7:14 am ET)
LONDON (MarketWatch) -- Wyeth (WYE: news, chart, profile) said its second-quarter profit rose 13% to $1.27 billion, or 94 cents a share, while revenue fell 4% to $5.7 billion. Wyeth, which expects its takeover by Pfizer (PFE: news, chart, profile) to close at the end of the third quarter or the beginning of the fourth quarter, said it would have earned 98 cents a share if restructuring charges and merger costs are excluded. As with sector peers, Wyeth raised its earnings outlook, now seeing adjusted earnings between $3.48 and $3.58 a share. Analysts polled by FactSet had forecast second-quarter earnings of 85 cents a share and 2009 earnings of $3.46.

Ford's operating loss is narrower than expected (7:08 am ET)
NEW YORK (MarketWatch) -- Ford Motor Co. (F: news, chart, profile) on Thursday said it earned $2.3 billion, or 69 cents a share in its second quarter, compared to a loss of $8.7 billion, or $3.89 a share in the year-ago period. The latest period included a one-time gain of $3.4 billion related to Ford and Ford Credit's debt reduction moves. On an after-tax basis, excluding special items, Ford posted a second-quarter operating loss of $638 million, or 21 cents a share compared with a loss of $1.4 billion, or 63 cents a share a year ago. Revenue fell by $11 billion to $27.2 billion. Analysts expected a loss of 49 cents a share on revenue of $24.8 billion, according to a survey by FactSet Research. Ford remains on track, based on current planning assumptions, to achieve its 2011 financial targets.

Xerox reports 35% profit decline(7:06 am ET)
LONDON (MarketWatch) -- Xerox Corp. (XRX: news, chart, profile) said its second-quarter net income fell 35% to $140 million, or 16 cents a share, with revenue falling 18% to $3.73 billion. The copy machine producer cited continued spending constraints in the overall business environment, which is delaying purchasing decisions for new technology and slowing demand for document-related supplies. It expects third-quarter EPS between 10 cents and 12 cents a share and annual earnings between 50 cents and 55 cents. Analysts polled by FactSet had forecast earnings of 11 cents a share for the second quarter, 14 cents for the third, and 51 cents for the year.

PNC Financial posts lower second-quarter profit(6:56 am ET)
NEW YORK (MarketWatch) -- PNC Financial Services Group Inc. (PNC: news, chart, profile) said Thursday that its second-quarter net income fell to $207 million, or 14 cents a share, from $517 million, or $1.45 a share, in the year-earlier period. The Pittsburgh-based bank said that the latest results include a special FDIC assessment of 19 cents a share and integration costs of 20 cents a share. On average, analysts polled by FactSet Research were expecting earnings of 51 cents a share. Revenue rose to $3.99 billion from $2.04 billion, and net interest income more than doubled to $2.18 billion from $977 million.

NII Holdings net off 9.6%, revenue down 4.1%(6:54 am ET)
TEL AVIV (MarketWatch) -- NII Holdings Inc., (NIHD: news, chart, profile) the Reston, Va., provider of mobile communications for business in Latin America, reported that second-quarter net income fell 9.6% on 4.1% lower revenue. Earnings were $134.3 million, or 79 cents a share, compared with $148.5 million, or 86 cents, in the year-earlier quarter. Revenue fell to $1.06 billion from $1.1 billion. A survey of analysts by FactSet Research produced consensus estimates of 61 cents of profit on $1.03 billion of revenue. Net income included $64 million of gains related to the strengthening of the Brazilian real against the U.S. dollar. Average revenue per subscriber was $44 against $59 a year earlier. And the company affirmed that it expects revenue of $4.1 billion to $4.3 billion for 2009.

Goodrich profit slips, boosts full-year outlook(6:53 am ET)
LONDON (MarketWatch) -- Aerospace and defense firm Goodrich Corp. (GR: news, chart, profile) on Thursday reported second-quarter net income of $177.1 million, or $1.41 a share, compared to $186.6 million, or $1.47 a share in the same period last year. Discontinued operations contributed $31.2 million, or 25 cents a share, to second-quarter earnings. A survey of analysts by FactSet Research had produced a consensus forecast of $1.12 a share. Second-quarter sales fell 8% from a year earlier to $1.7 billion, the company said, including a $91 million reduction attributed to foreign exchange. The Charlotte, N.C.-based company raised the lower end of its full-year 2009 forecast range, saying it now expects earnings of $4.60 to $4.75 a share. It previously estimated earnings of $4.50 to $4.75 a share.