Ericsson LatAm revenues up 41% in Q4 - Regional Swedish telecoms equipment supplier Ericsson (Nasdaq: ERIC) posted revenues of 6.8bn kronas (US$1.07bn) in Latin America for the fourth quarter of 2007, up 41% year-on-year, the company said in a statement. Revenues in Latin America for the full year 2007 totaled 18.4bn kronas, an increase of 12% compared to 2006.
Globally, the company recorded net profits of 5.6bn kronas for the quarter, down 42% from 9.7bn kronas in 4Q06.
Ericsson's Q4 global net revenues amounted to 54.5bn kronas, flat on the 54.2bn kronas in the year-ago quarter.
"The continued rapid buildout of mobile communications in emerging markets and our significant market share gains have resulted in a higher proportion of new network builds with initial lower margins. At the same time, we have seen a decline in network expansions and upgrades in mature markets," company president and CEO Carl-Henric Svanberg said.
The company's network segment generated revenues of 37.5bn kronas in the last quarter of 2007, down 4% compared to the same quarter in 2006. Professional services totaled 12.1bn kronas, up 15% compared to 4Q06.
According to the company, Argentina and Brazil showed strong growth in the quarter in Latin America.
During 2007, Latin America experienced continued 2G expansion and accelerated 3G buildouts, Svanberg said in a conference call.
The executive also said that Ericsson expects to continue growing in the professional services market this year, adding that the company is taking some actions to safeguard Ericsson's competitive position in the market since the company expects a flattish mobile networks market this year. The company announced a global cost reduction plan of 4bn kronas for 2008. http://www.bnamericas.com/news/telecommunications/Ericsson_LatAm_revenues_up_41*_in_Q4
Chevron Corp. 4th Quarter Net Up 29% On Higher Oil Prices Chevron Corp.'s fourth-quarter net income rose 29% to $4.87 billion, or $2.32 a share, from $3.77 billion, or $1.74 a share, a year earlier, as the company continued to benefit from the rising price of oil. Total upstream product and exploration income rose 66% to $4.84 billion, but total downstream income fell 79% to $204 million from $954 million a year ago. The San Ramon, Calif., energy company's sales and other operating revenue rose 30% to $59.9 billion from $46.24 billion a year ago. On average, analysts polled by Thomson Financial expected earnings of $2.26 a share on revenue of $76.09 billion. Worldwide oil-equivalent production was 2.61 million barrels a day in the period, which marked a 42,0000 barrel a day decrease from the year-ago period. http://tinyurl.com/36r64t
ExxonMobil's earnings hit record $40.6 billion in 2007 Helped by $90 and $100-a-barrel oil, ExxonMobil announced Friday that earnings increased 4 percent to a record $40.6 billion in 2007. That’s $4.6 million an hour, roughly the gross domestic product of Costa Rica and Uruguay combined.
The country’s biggest company also set a record for highest quarterly results. Irving-based ExxonMobil saw net income rise 14 percent to $11.7 billion, or $2.13 a share while its nearest rival, California-based Chevron said profits climbed 29 percent to $4.88 billion, or $2.32 a share.
Unlike recent years, there was no immediate outcry from consumer groups and critics in Congress over Big Oil’s profits.
One exception was Rep Ed Markey, D-Mass., who said in an e-mail statement quoted by Bloomberg news: “While the oil companies are turning the American consumer upside down at the pump, shaking out every last cent, the White House is defending unnecessary giveaways and tax breaks to big oil.”
The subprime mortgage crisis has monopolized attention, said Dan Short, dean of Texas Christian University’s Neeley School of Business, explaing the paucity of angry backlash. “Being the biggest, they have long been the poster child or lightning rod for any issue that comes up,” Short said.
The annual results, which beat financial analysts’ collective prediction by 18 cents, gave little indication of how the average motorist will fare at the pump this year. Company spokesman Alan Jeffers stressed that ExxonMobil, which handles about 3 percent of hydrocarbons burned by world, doesn’t set oil prices.
All of the attention on the amount that Exxon-Mobil earns is misplaced, Jeffers said, decrying the translation of it into dollars per hour or minute. Putting it into perspective, he said it amounted to about 10 cents on every dollar of revenue — half what many in the pharmaceutical industry earn — and less than the 25 cents per greenback ExxonMobil pays in taxes.
Some analysts saw a gray lining in Exxon’s pearly white cloud, noting difficulties the large integrated energy companies are having in finding new high-yielding fields in the face of growing assertiveness by national oil companies.
“Even to show a 1 percent increase in this environment, big projects are getting hard to find,” said Brian Youngberg, an industry analyst with Edward Jones in St. Louis.
“And there definitely is a heightened aggressivenes by some countries,” Youngberg said. “Whether there will be more extreme cases like Venezuela (which ExxonMobil after the country demanded a joint venture with a state firm), only time will tell. The landscape is changing and they’ll have to adapt.
“They can boost production through acquisitions,” Youngberg said. “But that’s tough because there are not too many companies out there at the scale that would move the needle.”
Jeffers noted that Exxon has 19 major projects to be implemented over the next three years that could potentially bring in 1.3 billion barrels of oil a day and 7.3 billion cubic feet of gas for it and its partners.
The company said a project 90 miles off the coast of Angola is “ahead of schedule and within budget,” while UBS Investment Research noted medium-term growth was possible from fields in Qatar, Nigeria, and Russia’s Sakhalin island.
But the spokesman held out little hope of the biggest energy company changing its long standing policy and diversifying into alternative sources like wind and solar any time soon.
ExxonMobil bought back 6 percent of its shares, up sharply from recent years, which pleased the stock market. “Investors are willing to sacrifice a bit on the production side if they can make it up on the buy-back side,” said Youngberg of Edward Jones.
It’s nifty having the largest of the major oil companies based in North Texas, said TCU’s Short. But aside from salaries from from more than 10,000 in Houston and several hundred in Irving, Fort Worth-based “XTO probably invests more in infrastructure in the state.”
Although earning beat analysts’ forecast, shares in ExxonMobil (Ticker: XOM) closed down 45 cents, or .52 percent, to finish at $85.95 on the New York Stock Exchange. http://www.star-telegram.com/business/story/448056.html
Simon Property 2008 outlook disappoints Mall real estate investment trust Simon Property Group Inc. on Friday offered 2008 guidance that fell below Wall Street's expectations.
The REIT said it expect 2008 funds from operation, or FFO, between $6.25 per share and $6.45 per share. On average, analysts polled by Thomson Financial are forecasting $6.46 per share.
FFO, which the real estate industry uses to gauge operating performance, adds depreciation and amortization expenses, as well as other nonoperating items, back to net income.
Simon Property said the estimates reflect completion of current development projects, no future acquisitions or sales, the potential for modest increases in store closings and bankruptcies and flat retail sales.
Estee Lauder Companies Delivers Strong Second Quarter Results The Estee Lauder Companies Inc. (NYSE: EL | news | PowerRating | PR Charts ) today reported $2.31 billion in net sales for its fiscal second quarter ended December 31, 2007, a 16% increase over the $1.99 billion reported in the prior-year quarter. Excluding the impact of foreign currency translation, net sales rose 11%.
The Company reported net earnings for the quarter ended December 31, 2007 of $224.4 million, an 8% increase compared with $208.4 million last year. Diluted net earnings per common share for the quarter rose 16% to $1.14 compared with $.99 reported in the prior year.
William P. Lauder, President and Chief Executive Officer said, "In our second quarter, we produced across-the-board sales gains in our geographic regions and product categories. A favorable currency environment further aided our strong top-line growth. Solid overall global performances from our travel retail business, freestanding retail stores, internet distribution and most brands contributed to our overall results this quarter. Our top- and bottom-line gains were led by our international operations, which continued their steady growth pace. Sales in the United States this holiday season reflected the soft retail backdrop, particularly in department stores.
"Despite a slowdown in consumer spending in the U.S., I believe we can achieve our profit objectives through ongoing cost containment efforts and disciplined expense control. With this view, we continue to forecast earnings per share of $2.28 to $2.40 for the full 2008 fiscal year." http://www.tradingmarkets.com/.site/news/Stock%20News/1054412/
Nissan U.S. January sales fall 7.3 Nissan Motor Co Ltd (7201.T: Quote, Profile, Research) said on Friday that its U.S. sales fell 7.3 percent in January.
Sales for Nissan-brand vehicles fell 7.8 percent to 67,961 vehicles, while sales for the automaker's luxury Infiniti unit fell 3.6 percent to 8,644 vehicles from a year earlier, Nissan said. (Reporting by David Bailey, editing by Leslie Gevirtz)
Google falls after 4Q misses view Shares of Google Inc. fell Friday after the company said its fourth-quarter earnings and revenue growth slowed more than analysts had expected, unnerving investors already nervous about the possibility of a U.S. recession.
The online search engine operator's shares shed $48.40, or 9.6 percent, to close at $515.90.
The stock has moved between $437 and $747.24 in the past year, hitting the upper end of this range in November and sliding downward in January. In the past month, Google shares have declined more than 25 percent.
Google said late Thursday that it earned $4.43 per share, excluding stock awards given to employees, on revenue, excluding commissions paid to the company's advertising partners, of $3.39 billion.
This compares to expectations of analysts polled by Thomson Financial for a profit of $4.44 per share on revenue of $3.45 billion, with both figures accounting for the same exclusions.
Jefferies & Company Inc. analyst Youssef H. Squali reacted to the report by downgrading the stock to "Hold" from "Buy" and lowering his price target to $600 from $725.
Squali said rising traffic acquisition cost rates and operating expenses pressured the company's margins, overshadowing revenue in line with estimates and resulting in the earnings miss.
The traffic acquisition cost rates are related to guaranteed payments the company owes through advertising deals to sites such as News Corp.-owned social-networking Web site MySpace.
"Given the rising guaranteed payments to MySpace, Ask.com and others and the absence of operating leverage, we believe that the risk profile of Google has increased and recommend that investors step to the sidelines," he wrote.
Meanwhile, Citi Investment Research analyst Mark S. Mahaney cut his Google price target to $650 from $775, while RBC Capital Markets analyst Jordan Rohan lowered his target to $675 from $725.
"Given the lack of positive catalysts, we believe that shares could remain range-bound near term, but we would be adding to positions at current levels," Rohan wrote in a note to investors.
Some, including J.P. Morgan analyst Imran Khan, took the company's report more in stride.
Khan said that while the company reported a bit of a revenue miss, his pro forma earnings estimate for 2008 remains pretty much unchanged. He lowered his expectations slightly, and now anticipates pro forma earnings of $20.32 per share for the year, down from a prior estimate for $20.92 per share.
"Google generated over 50 percent of its traffic internationally and we think monetization improvement in the international market will be a key catalyst for continued strong paid clicks growth," he wrote.
Khan also said the company's hiring control is a positive, as the company's headcount grew just 6 percent over the third quarter. He expects Google's management to continue controlling hiring in the future. http://www.businessweek.com/ap/financialnews/D8UHR4LG0.htm
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