Alcatel-Lucent Loses $3.7B in Q4, Delivers Grim Outlook lost more than US$3.7 billion in the fourth quarter and predicted a soft market for its telecommunications gear for much of 2008.
The France-based company -- created through a $13 billion merger in 2006 -- also said it would not pay out a dividend to shareholders. However, the company did not announce additional layoffs Latest News about layoffs, as had been widely expected.
Weyerhaeuser swings to Q4 loss on housing market weakness Weyerhaeuser Co. (NYSE:WY) (TSX:WYL), one of the world's largest lumber and packaging producers, said Friday it swung to a fourth-quarter loss as the deteriorating U.S. housing market cut into demand for lumber.
Executives forecast another grim year ahead, prompting investors to send shares down US$2.26, or 3.5 per cent, to $62.45 in midday trading.
Federal Way, Wash.-based Weyerhaeuser, which has plants in B.C. and other parts of Canada, reported a loss of $63 million, or 30 cents per share, after a profit of $507 million, or $2.12 per share, a year earlier.
Excluding write-downs from housing-related business, restructuring costs and other special items, Weyerhaeuser would have earned $90 million, or 42 cents per share, in the quarter.
Revenue fell 18 per cent to $3.94 billion from $4.8 billion a year ago.
Analysts surveyed by Thomson Financial forecast a profit of 35 cents per share excluding items, but predicted higher revenue of $4.13 billion.
"Until the housing market recovers, our real estate, wood products and timberlands businesses will struggle," said Daniel Fulton, Weyerhaeuser's president, in a conference call.
Weyerhaeuser owns homebuilder operations in the greater Seattle area; Houston; Scottsdale, Ariz.; southern California; Las Vegas and suburban areas around Washington, D.C. It also invests in residential real estate development and sells forest land as home sites.
Real estate segment earnings sank 93 per cent to $22 million in the fourth quarter as the U.S. housing market crumbled. Executives said even cities such as Houston and Seattle, which initially fared better than Southern California, Las Vegas and the Phoenix area, have begun to show signs of fatigue. Weyerhaeuser said it expects the division to post a loss in the current first quarter.
The wood products business widened its loss to $313 million, weighed down by facility closure charges and a 16 per cent drop in single-family housing starts. Weyerhaeuser expects another loss in the first quarter, and warned of additional curtailments or mill closures.
Weyerhaeuser's timberlands unit, faced with sinking demand and some of the lowest prices in 25 years, earned nine per cent less, or $152 million. The company forecast even lower profit in the first quarter.
Cellulose fibres earnings rose 38 per cent to $80 million in the quarter, helped by a weak U.S. dollar, but maintenance costs are expected to push down first-quarter results.
The containerboard, packaging and recycling unit, which Weyerhaeuser is considering selling, improved 39 per cent to $99 million in the fourth quarter as prices increased, offsetting higher energy and materials costs. First-quarter earnings are expected to fall due to a seasonal drop in demand and higher fiber and energy costs.
Chief executive Steven Rogel did not say whether the company is any closer to a sale of the division but said he was pleased with the options in front of the board.
"They are doing the very best that they can, given those types of market conditions," said Soleil Securities analyst Anna Torma.
Torma said she expects Weyerhaeuser's shift to a pure timber, wood products and real estate company, and away from paper and containerboard production, will improve the underlying business. Weyerhaeuser closed the sale of its fine paper business to Domtar Inc. in March 2007, in a stock exchange offer.
Torma said she expects the housing market to stabilize in the second half of the year.
For the full year, Weyerhaeuser's profit rose to $790 million, or $3.59 per share, from $453 million, or $1.84 per share a year ago. Revenue fell 13 per cent to $16.3 billion from $18.7 billion in 2006. http://www.canadaeast.com/business/article/207108
Windstream Q4 Profit Surges On Gain From Sale Of Publishing Business; Guides Q1 Revenue; Plans $400 Mln Buyback based telecommunications services provider Windstream Corp. (WIN) announced a surge in fourth quarter earnings compared to the prior year. The results were impacted by a gain from sale of publishing business. Further, the company said its Board authorized a $400 million share repurchase plan that expire by end of 2009.
Quarterly net income came in at $583.6 million, up 396% from $117.7 million a year ago. Earnings per share surged to $1.25 from $0.25 last year. The results includes a tax free gain of approximately $451 million on the sale of its directory publishing business and $3.3 million in merger and integration of costs related to the acquisition of CT Communications.
Total revenue and sales edged up 0.2% to $827.8 million from $827.6 million in the prior year. On a pro forma basis, consolidated revenue and sales declined to $804.1 million from $826 million a year ago. GAAP operating income climbed 5% to $300 million from the prior year. On a proforma basis the company reported a 3% decline in operating income to $804 year -over - year. Average revenue per customer increased 3% to $80.85.
On average, 11 analysts polled by First Call/Thomson Financial expected the company to report revenue of $823.12 million.
For the 12-month period, net income climbed to $917.1 million from $545.3 million in the prior year. Earnings per share rose to $1.94 from $1.25 last year.
Total revenue and sales increased 8% to $3.261 billion from $3.033 billion in the same period a year ago.
Looking ahead to 2008, the company expects revenue in the range of $3.160 -$3.290 billion. Analysts are expecting $3.25 billion, with estimates in the range of $3.18 to $3.28 billion.
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