Comcast Adds Record 2.5M Subs in '07 CMCSA, CMCSK boosted revenues and profits in the fourth quarter, but continued to bleed basic video subs in the face of solid competition from telcos and satellite TV providers.
Daimler 2007 profit rises By MELISSA EDDY Associated Press Writer Article Last Updated: 02/14/2008 04:32:16 AM PST
BERLIN—Daimler AG's profit rose to $5.83 billion in 2007 as demand for its upscale sedans and SUVs led to a surge in sales, the German automaker reported Thursday.
The maker of Mercedes-Benz, Smart and ultra-luxury Maybach models earned 4 billion euros last year. It was only a slight gain from 3.8 billion euros in 2006, due largely to a 2.2 billion euros ($3.21 billion) charge this year related to the spinoff of its U.S.-based Chrysler division in August, the company said.
Sales rose to 99.4 billion euros ($144.98 billion) from 99.2 billion euros, with 2.1 million automobiles sold globally.
Shares of the company rose 1.17 percent in early Frankfurt trading, before settling back to a 0.45 percent gain, to 54 euros ($78.76) in the afternoon.
For the fourth quarter of 2007, the company's profit jumped to 1.7 billion euros ($2.48 billion) from a net loss of 12 million euros in the quarter a year earlier, driven by strong earnings from the company's Mercedes-Benz and trucks units.
The company's Mercedes-Benz unit, which also produces the Smart and Maybach brands, reported a rise in earnings of 1.43 billion euros ($2.09 billion) for the quarter, up from 978 million euros for the same period in 2006.
Daimler's chief executive said the company expected future growth.
UBS Falls to Four-Year Low After Posting Record Loss UBS AG fell to a four-year low in Swiss trading after the U.S. subprime mortgage crash led to a record loss and Chief Executive Officer Marcel Rohner declined to predict whether the bank will return to profit this quarter.
Europe's largest bank by assets fell 8.3 percent, the most in 5 1/2 years, after reporting a fourth-quarter loss of 12.5 billion Swiss francs ($11.3 billion). Zurich-based UBS took $13.7 billion in writedowns on assets infected by subprime mortgages.
Rohner, speaking on a conference call with journalists, described the results as ``unacceptable'' and said this will be ``another difficult year.'' The bank reported $26.6 billion of additional positions in U.S. mortgages at the end of 2007, on top of the subprime holdings already announced.
``Further writedowns are likely in at least the first quarter, further impairing confidence and raising the risk of market share losses,'' said Matt Spick, an analyst at Deutsche Bank AG, in a note today. He lowered his recommendation on the stock to ``hold'' from ``buy.''
UBS fell 3.4 francs to 37.46 francs. The stock slumped 41 percent in the past six months, making it the fifth-worst performer in the 60-member Bloomberg Europe Banks and Financial Services Index.
Subprime Writedowns
UBS's writedowns included $10.8 billion on subprime residential mortgages, $2 billion on so-called Alt-A mortgages, which fall between subprime and prime, and $871 million on credit protection purchased from monoline insurers. The bank recorded losses of about $500 million on commercial real estate and about $200 million on loans for leveraged buyouts.
The bank still had about $27.6 billion of positions linked to the U.S. subprime residential mortgage market at the end of the year, down from $38.8 billion on Sept. 28. In addition, it reported positions totaling $26.6 billion in Alt-A mortgages, $3.8 billion of subprime-related assets through its reference- linked notes, and $2.9 billion in exposure to credit insurers.
Credit markets ``are not going go see a strong recovery'' this year, Chief Financial Officer Marco Suter said in an interview.
The bank has lowered risks in January and February, and is creating a special group of about 50 traders within its debt unit to focus on reducing holdings affected by the subprime crash, Suter said.
`The Rot'
Rising U.S. subprime-mortgage defaults have led to more than $145 billion in writedowns and loan losses at the world's biggest financial companies. The Group of Seven nations estimates that markdowns may swell to $400 billion across the industry, German Finance Minister Peer Steinbrueck said on Feb. 9.
``The rot is spreading to other residential areas,'' ABN Amro Holding NV analysts Kinner Lakhani and Omar Fall said in a note to clients last week. They recommend investors ``avoid'' UBS shares and forecast as much as $10.8 billion of possible further writedowns at the bank.
The wealth management and business banking division raised fourth-quarter profit 12 percent to 2.5 billion francs, and asset management earnings increased 19 percent to 476 million francs. Clients invested a net 31.5 billion francs at the wealth management unit in the fourth quarter, and added more money in January, Rohner said.
``The writedowns, even though huge, were flagged,'' said Florian Esterer, who helps oversee $56 billion at Swisscanto Asset Management in Zurich, including UBS shares. ``So far the impact on wealth management remains relatively small.''
Investment Banking Chief
The investment bank had a loss in the quarter of 15.5 billion francs, compared with a profit of 1.36 billion francs a year ago. The equities business posted a 5 percent increase in revenue to 2.7 billion francs, while revenue from the fixed income, currencies and commodities division was negative 15.5 billion francs. Proprietary trading revenues fell because of ``market dislocation'' across all regions.
UBS said yesterday it hired Jerker Johansson as head of the investment bank, replacing Huw Jenkins, who stepped down in October as writedowns ballooned. The 51-year-old vice chairman for Europe at Morgan Stanley will join UBS on March 17 after 22 years at the second-biggest U.S. securities firm.
Johansson ``faces many problems at his new firm, including restoring morale, cutting the problem exposures and convincing staff and clients that the investment bank has a long-term future at UBS,'' Peter Thorne, a London-based analyst at Helvea, said in note yesterday.
Job Cuts
Rohner, who replaced Peter Wuffli in July, has said he wants the investment bank to cut risks and assets and work more closely with the money-management divisions. He already cut 1,500 jobs at the securities unit and has brushed off calls to sell it.
The unit, which had 21,932 employees at the end of the year, will see that number fall to about 21,000 ``relatively rapidly,'' and any other reductions will depend on the markets, Rohner said.
UBS's main European competitors have so far fared better in the subprime debacle. Frankfurt-based Deutsche Bank, which controls Europe's biggest securities firm by revenue, last week reported a smaller-than-expected decline in quarterly profit, managing to avoid any net writedowns on bonds after booking gains from hedges, and recorded a 44 million-euro ($64 million) markdown on leveraged loans.
Credit Suisse
Credit Suisse Group, Switzerland's second-biggest bank, said on Feb. 12 it took 1.3 billion francs in net writedowns in the fourth quarter. CEO Brady Dougan said the bank is ``well positioned'' in the current markets, which may become ``more constructive'' by the middle of the year.
UBS Chairman Marcel Ospel, 58, and Rohner, 43, told analysts and investors in London on Dec. 11 that record losses were a result of positions created ``by a small group of people in one team.''
To replenish capital, UBS is seeking shareholder approval to sell 13 billion francs in bonds that will convert into shares to investors in Singapore and the Middle East. Suter said today that those investors are firmly behind their commitment.
``The problems that the financial industry faces have not evaporated with the turn of the year,'' Ospel and Rohner said in a letter to shareholders last month.
UBS was created in 1998 by the merger of Swiss Bank Corp. and Union Bank of Switzerland. Swiss Bank was established in 1854.
Shareholders including the Ethos Foundation are calling for a special audit into the bank's risk controls and a replacement of Ospel, who said in December he isn't thinking of resigning. The Swiss Federal Banking Commission has also initiated an investigation into reasons that led to the bank's subprime holdings and subsequent writedowns, as well as risk management. http://www.bloomberg.com/apps/news?pid=20601085&sid=aqnibuMIv_30&refer=europe
Smith & Wesson (SWHC) NewsBite - SWHC Rises on TASR Profit Posted on Thursday, February 14, 2008 1:43 PM Smith & Wesson (SWHC) opened at $5.66. So far today the stock has hit a low of $5.5 and a high of $5.78. SWHC is now trading at $5.58, up 0.08 (1.45%). After hitting a one-year high of $22.80 in August, the stock hit a one-year low of $3.72 in January. SWHC shares are rising today after competitor Taser International (TASR) reported a fourth-quarter profit of $4.7 million, or 7 cents per share, in line with analyst estimates. Technical indicators for SWHC are neutral and improving. If you’re looking for a hedged play on this stock, consider a March bull-put credit spread below the $5 range. SWHC hasn't been below 5 since coming out of a trough earlier this month, and could lose up to 10.3% before this trade loses money. [LHF- Seven Summits Strategic http://www.marketintelligencecenter.com/articles/533022
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