Updates, advisories and surprises - UPDATE 21 19.02.2004 22:32 Headlines
BEA Systems beats Q4 target (4:13 PM ET) SAN FRANCISCO (AFX) -- BEA Systems
on Thursday posted fourth-quarter net income of $39.3 million, or 9 cents a
share, up from $35.0 million, or 8 cents a share, in the same period a year
earlier. Excluding one-time items, BEA said it earned $42.8 million, or 10 cents
a share. By that measure, analysts polled by Thomson First Call had expected BEA
to earn 9 cents a share, on average. Revenue rose to $278.1 million, up from
$249.3 million in the fourth quarter a year earlier. BEA shares fell 2 cents to
close at $12.93 in regular-session Nasdaq trading, ahead of the announcement.
Hewlett-Packard reports Q1 profit of $1.1 billion (4:08 PM ET) SAN
FRANCISCO (AFX) -- Hewlett-Packard on Thursday posted a first-quarter profit of
$1.1 billion, or 30 cents a share, on $19.5 billion in revenue. Excluding
charges, H-P earned $1.4 billion, or 35 cents a share to meet the company's own
forecasts. Analysts surveyed by Thomson First Call expected a profit of 35 cents
a share on $19.4 billion in revenue. H-P expects its second-quarter profit to be
34 cents a share on revenue between $19.2 billion and $19.6 billion.
Wal-Mart upped to 'outperform' at Goldman Sachs (1:59 PM ET) NEW YORK
(AFX) -- Analyst Adrianne Shapira at Goldman Sachs upgraded Wal-Mart to
"outperform" vs. "in-line" and raised 2004 and 2005 estimates after the world's
biggest retailer reported fourth-quarter earnings. Shapira expects further
margins expansion enabling the company to beat earnings targets. The stock's
valuation is also compelling with the share trading at 1.29 times the S&P 500, a
discount to its five-year average. The analyst is now forecasting 2004 earnings
of $2.37, at the upper end of management's revised range and ahead of her prior
$2.30 forecast. For 2005, she is forecasting earnings of $2.70 a share vs. a
prior $2.62. "We believe after its F03 stock underperformance, the current
risk/reward has improved," said Shapira. Wal-Mart shares were last up 2.1
percent at $58.37.
Carriage Services falls on Q4 miss, 2004 outlook (1:26 PM ET) NEW YORK
(AFX) -- Shares of Carriage Services fell 10 percent to $4.35 on a disappointing
outlook for 2004 in the wake of fourth quarter earnings which came in below
analyst expectations. The Houston-based funeral home operator and cemetery
management company posted net income for the quarter of 8 cents a share compared
with 10 cents a share in the same period in 2002. Revenues dipped to $29.8
million from $30.2 million. The Thomson First Call mean estimate was for
earnings of 11 cents a share. CEO Melvin Payne attributed the earnings decline
to a fall in gross margins to 25.5 percent from 27.4 percent prompted by the
company's inability to reduce costs and expenses as revenues declined. Looking
ahead to the first quarter, Carriage Services expects to earn between 14 and 17
cents a share on revenue of $39 to $41 million. For 2004, the company is
forecasting net income of 38 to 43 cents a share on revenues of between $150 and
$154 million. Analysts expect first quarter earnings of 15 cents a share, while
full-year earnings are forecast at 48 cents a share, according to Thomson First
Call.
Wal-Mart upgraded on valuation, improved earns outlook (12:41 PM ET) NEW
YORK (AFX) -- Analyst Robert Buchanan at A.G. Edwards upgraded Wal-Mart to "buy"
from "hold" following the world's largest retailer's fiscal fourth-quarter
report, citing valuation and an improved near-term earnings growth outlook. The
world's largest retailer's stock, a component of the Dow industrials, was
trading up 98 cents, or 1.7 percent, to $58.17. "Following 16 months of
under-performance by these shares, valuation is now an ally in the Wal-Mart
investment thesis," Buchanan said in a note to clients. Since the end of October
2002, the stock has gained 8.6 percent and the Dow has advanced 28 percent. He
also raised his fiscal first quarter and fiscal 2005 earnings forecasts to 48
cents a share and to $2.36 a share from 46 cents and $2.28, respectively. In its
fourth quarter, the company said earnings increased 12.5 percent to 63 cents a
share, matching Wall Street expectations.
CyberOptics surges after Q4; Adams Harkness ups target (11:51 AM ET) NEW
YORK (AFX) -- CyberOptics shares surged Thursday after the company reported a
return to profitability in the fourth quarter. The Minneapolis-based optical
technology company said it earned 11 cents a share in the quarter, up from a
loss of 20 cents a year ago and ahead of the 7 cents average estimate of Thomson
First Call analysts. Analyst Avinash Kant at Adams, Harkness & Hill said
business is gaining from an overall improving environment and growth in Asia.
"Longer-term trends remain positive," he told clients in a note. Kant raised his
estimates for 2004 and upped his price target to $18 vs. $16. Shares were last
trading up 15.1 percent at $15.86.
Specialty Labs slumps 10% after Q4 (11:35 AM ET) NEW YORK (AFX) --
Specialty Laboratories shares slumped 10 percent Thursday after the clinical
reference laboratory reported a fourth-quarter loss of 3 cents a share, narrower
than the 18 cents loss posted a year ago. The figure included special charges
equal to 4 cents a share and tax adjustments of 3 cents a share. Revenue edged
up to $30.5 million from $29.9 million. Shares were last down 9.8 percent at
$13.14.
First Energy Q4 EPS top forecasts, while sales decline (11:27 AM ET) NEW
YORK (AFX) -- FirstEnergy reported fourth-quarter earnings of $109.4 million, or
33 cents a share, vs. a loss of 20 cents a share in the year-earlier period.
Excluding special items, such as costs related to outages and discontinued
operations, earnings were 41 cents a share, topping the average analyst estimate
of 38 cents, according to Reuters Research. Total revenue fell 6.7 percent to
$2.8 billion. Electric generation sales fell 7.4 percent from year-earlier
levels, amid a 13-percent slide in wholesale transactions and a 5 percent
decline in retail generation sales, as customers increasingly chose
"alternative" generation suppliers. Distribution deliveries dipped 1.7 percent,
due primarily to milder weather conditions. The stock was last trading down a
nickel at $38.10. Separately, the company said late Wednesday that it will
terminate its shareholder rights plan.
LandAmerica Financial slumps after Q4 profit tumbles (10:34 AM ET) NEW
YORK (AFX)-- Shares of LandAmerica Financial Group fell 7.7 percent to $49.26
after fourth quarter net income slumped to $24.7 million, or $1.32 a share from
$66.3 million, or $3.61 a share in the same quarter in 2002. Operating revenue
climbed to $924.3 million from $762.9 million. The Thomson First Call mean
estimate was for earnings of $1.86 a share, on revenues of $718.6 million The
real estate company attrituted the decline to a sharp fall-off in mortgage
activity, $6.2 million in one-off charges,$4.4 million in charges related to
recent acquisitions and an increase in its loss provision rate.
Wal-Mart CEO unusually bullish on economy (10:28 AM ET) CHICAGO (AFX) --
Wal-Mart Chief Executive Lee Scott was brimming with enthusiasm on a
pre-recorded earnings call Thursday in a sharp departure from calls the past two
years. Using the word "excellent" a number of times to describe the retailer's
11 percent jump in quarterly earnings, Scott said he was looking for 2004's
profit to come in at the high end of a 3-5 percent gain forecast. "I am
personally more optimistic about the year we have just started than I have been
in several years," Scott said. "I'm optimistic about the economy" because of the
strength in housing starts and stronger consumer spending. Shares of Wal-Mart
were trading at $58.04, up 84 cents, or 1.5 percent.
Altria still sees 2004 earns $4.57-$4.67 (10:20 AM ET) NEW YORK (AFX) --
Altria is still expecting 2004 earnings of $4.57 to $4.67, including a 23 cents
charge related to restructuring at Kraft Foods and other items. Andre
Calantzopoulos, president and chief executive officer of Philip Morris
International, said that while Western Europe remains challenging for the
company, it expects increased stability through the year. "While our business
continues to grow strongly in many Eastern European and Asian markets, our
volume performance should also be enhanced by new Marlboro initiatives,
continued L&M expansion and the growth of our differentiated international
brands," he said in a statement. Altria is expecting 3 percent organic volume
growth in 2004 and growth of 5 percent including acquisitions. Operating income
is exepcted to grow in the double-digits, based on current exchange rates. In
the U.S., the company is expecting moderate retail share growth and operating
income growth in the low single digits. Shares were up 13 cents at $55.25.
Skechers rallies on better-than-expected Q4 results (10:06 AM ET) NEW
YORK (AFX) -- Shares of Skechers USA tacked on 41 cents, or 3.8 percent, to
$11.15 after the shoe maker reported better-than-expected fourth-quarter
results. The net loss was $12.3 million, or 33 cents a share, wider than the
year-earlier loss of 23 cents a share, but narrower than the average analyst
loss estimate of 49 cents a share, according to Reuters Research. Net sales
dipped 3 percent to $175.3 million, but topped analyst forecasts of $160.1
million.
Intuit hits 3-mo. low after Q3 profits, sales warning (9:53 AM ET) NEW
YORK (AFX) -- Shares of Intuit were down $2.51, or 5.1 percent, at $46.68, and
were down as much as 6.8 percent at a 3-month low of $45.86 in intraday trading,
after the tax software company reported late Wednesday better-than-expected
fiscal second-quarter results, but warned of a third-quarter earnings shortfall.
The company now expects to earn $1.12 to $1.16 a share on revenue of $685
million to $725 million in the current quarter, vs. the average analyst
forecasts compiled by Thomson First Call of $1.23 and $737 million,
respectively. For the first quarter, the company earned, excluding charges, 77
cents a share on revenue of $636.3 million, up a respective 21 percent and 14
percent from year-earlier levels, and above analyst forecasts of 70 cents a
share.
Charter loss sharply narrower in Q4 (9:34 AM ET) CHICAGO (AFX) - Charter
Communications lost $58 million, or 20 cents per share, in the fourth quarter of
2003. That is sharply narrower than the $1.9 billion and $6.36 loss of a year
ago and less than half the 46-cent average loss estimate of analysts polled by
Thomson First Call. The St. Louis-based cable and broadband company's revenue
was up 2 percent to $1.2 billion, reflecting a 47 percent jump in its high-speed
data business that was partially offset by declines in advertising and video
sales. Shares of Charter were flat at $4.87 in early trading Thursday.
Credence Systems Q1 loss narrows; sales soar (9:27 AM ET) NEW YORK (AFX)
-- Credence Systems posted a fiscal first quarter net loss of $11.5 million, or
18 cents a share compared with a loss of $30.1 million, or 49 cents a share in
the same period a year ago. Sales climbed 86 percent to $68.1 million against
$36.7 million. The Thomson First Call mean estimate was for a loss of 23 cents a
share on sales of $65.4 million. The company said net orders climbed to $94.2
million from, up 55 percent on a sequential basis. Gross margins jumped to 47
percent in the first quarter from 38 percent in the fourth. Looking ahead, the
chip tool maker said it expects second quarter earnings to come in between
breakeven and a profit of 2 cents a share, on sales targeted between $84 and $87
million. Gross margins are forecast in a range of 50 to 52 percent. Shares of
Credence Systems were up 27 cents, or 2.12 percent at $12.98 at the close of
trading Wednesday.
PG&E reports Q4 earns vs. year-ago loss (9:19 AM ET) NEW YORK (AFX) --
PG&E reported fourth-quarter net income of $37 million, or 9 cents a share, vs.
a loss of $5.41 in the same period a year ago. Total revenue increased 5.9
percent to $2.54 billion, amid 2 percent growth in electric, and a 16 percent
increased in natural gas revenue. The San Francisco-based utility said it
expects earnings of $2 to $2.10 a share in 2004, up from 2003's $1.48 a share.
The company added that it continues to more forward with its plan to emerge from
bankruptcy, which should occur 11 business days after the sale of its long-term
debt, which is expected to be completed in April 2004. The stock closed
Wednesday down 27 cents at $27.73.
Reliance Q4 earnings rise, miss estimates by 2c (9:00 AM ET) NEW YORK
(AFX) -- Reliance Steel said it earned $9.7 million in the fourth quarter, up
from $1.9 million a year ago. Earnings per share climbed to 30 cents from 6
cents, although they were just below the Thomson First Call average estimate of
32 cents a share. Sales climbed 12 percent to $485.2 million. "Our earnings
were at the high end of our expectations in spite of a larger than anticipated
LIFO charge of $.06 per share for the quarter," said CEO David Hannah. "Business
levels were significantly better than those in the 2002 fourth quarter."
Reliance is expecting "meaningful" improvements in sales volumes in 2004 if
current operating conditions continue, driven by price increases. Shares ended
Wednesday down 1.6 percent at $30.32.
Ivax Q4 earns decline, but match expectations (8:58 AM ET) NEW YORK
(AFX) - Ivax reported fourth-quarter net income of $29.3 million, or 15 cents a
share, down from 19 cents a share in the year-earlier period, as investments in
research and development rose 61 percent, and in sales and marketing increased
48 percent. The results matched the average analyst forecast compiled by Thomson
First Call. Revenue increased 23 percent to $399 million, ahead of the $381.3
million expected by analysts. Gross margin improved 2.9 percentage points to
45.4 percent. The maker of branded and generic drugs reiterated its 2004
earnings forecast of 89 cents a share. The stock closed Wednesday down 71 cents
at $24.66.
Hormel tops Q1 estimates on strong pork, turkey sales (8:51 AM ET) NEW
YORK (AFX) -- Hormel Foods said it earned $51.8 million, or 37 cents a share, in
the first quarter, up from $46.9 million, or 34 cents a share, a year ago,
boosted by strong demand for pork and turkey products. The average estimate of
analysts polled by Thomson First Call was for earnings of 36 cents a share.
Sales totalled $1.1 billion against $1.0 billion last year. Hormel said it now
expects earnings of 28 to 34 cents in the second quarter and $1.46 to $1.60 for
2004. The First Call average estimates are for second-quarter earnings of 31
cents and 2004 earnings of $1.53. Shares ended Wednesday down 18 cents at
$27.66.
Coeur d'Alene Mines narrows Q4 loss (8:45 AM ET) NEW YORK (AFX) -- Coeur
d'Alene Mines said it lost $13.5 million, or 6 cents a share, in the fourth
quarter, narrower than the $46.1 million, or 44 cents a share loss posted a year
ago. Excluding special items, the mining company had a loss of $4.8 million.
Revenue climbed 6 percent to $30.6 million. Shares ended Wednesday down 6.4
percent at $7.18.
Target Q4 earns rise, exceed expectations (8:39 AM ET) NEW YORK (AFX) -
Target reported fiscal fourth-quarter net earnings of $832 million, or 91 cents
a share, up from $688 million, 75 cents a share in the year-earlier period, and
above the average analyst estimate compiled by Thomson First Call of 87 cents a
share. Total sales rose 11 percent to $15.6 billion, matching analyst forecasts.
Results at the discount retailer benefited from improved gross margins, which
helped offset higher expenses. The stock closed Wednesday up 41 cents at $42.29.
Mac-Gray Q4 net 12c vs. 10c (8:31 AM ET) NEW YORK (AFX) -- Mac-Gray
Corporation posted a rise in fourth quarter net income to $1.6 million, or 12
cents a share compared with $1.2 million, or 10 cents in the same quarter in
2002. Revenue was $40.4 million against $39.6 million. Looking ahead, the
laundry facilities management group, said its acquisition in January of Web
Service Company is expected to produce around $29 million in incremental annual
revenue, while being immediately earnings enhancing. CEO Stewart MacDonald said
the company remains on the look-out for further acquisition opportunities.
Shares of Mac-Gray were down a penny at $6.49 at the close of trading Wednesday.
Duane Reade Q4 earns top lowered expectations (8:31 AM ET) NEW YORK
(AFX) - Duane Reade reported fourth-quarter net income of $2.8 million, or 12
cents a share, down from 39 cents a share in the year-earlier period. Excluding
an acquisition-related charge, earnings were 14 cents a share, topping the
average analyst estimate compiled by Thomson First Call of 13 cents a share. The
company had warned in January that earnings for the quarter would be 12 to 13
cents a share, below prior forecasts of 17 to 22 cents. Gross margin fell 1.2
percentage points to 21.7 percent, due to an increase percentage of lower margin
pharmacy sales. Net sales rose 7.7 percent to $356.4 million, amid a 12 percent
rise in pharmacy sales. Same-store sales rose 3 percent, with pharmacy sales
increasing 7 percent and front-end sales inching up 0.1 percent. The stock
closed Wednesday down a penny at $16.99.
Williams narrows Q4 loss (8:24 AM ET) NEW YORK (AFX) -- Williams said it
lost $66 million, or 13 cents a share, in the fourth quarter, narrower than the
$219.2 million, or 44 cents a share loss posted a year ago. The figure includes
$66.8 million in pre-tax costs due to debt retirement. The Thomson First Call
average estimate was for earnings of 3 cents a share. Williams said it had an
unaudited 2003 loss of $504.5 million, or $1.03 per share, narrower than the
$754.7 million, or $1.63 per share loss posted the year earlier. The company
took an after-tax charge of $761.3 million, or $1.47 a share, in the first
quarter of 2003 due to an accounting change. On an operating basis, the company
said it had a loss of 5 cents a share, compared with the First Call average of 1
cent a share. The stock ended Wednesday down 3.5 percent at $9.97.
Bluefly posts adj Q4 profit on 42% jump in sales (8:20 AM ET) NEW YORK
(AFX) -- Bluefly reported a fourth quarter ajdusted profit of $111,000 compared
to a loss of $1.66 million in the fourth quarter of 2002. Including preferred
stock dividends totalling $871,000, the internet retailer posted a net loss of 7
cents a share against 22 cents a share a year earlier. Bluefly said the
improvement in its financial performance was due to a 42 percent increase in
quarterly sales to $14 million from $9.9 million and a improvement in gross
margins to 38.6 percent in the fourth quarter from 31 percent. Bluefly also
attributed its first ever adjusted quarterly profit to efficient marketing,
which saw a 38 percent jump in new customers, while advertising expenses fell by
23 percent during the fourth quarter. Shares of Bluefly were up 2 cents at $3.95
at the close of trading Wednesday.
York Int'l tops Q4 earns expectations (8:15 AM ET) NEW YORK (AFX) - York
International reported a fourth-quarter net loss of $4.1 million, or 10 cents a
share, vs. earnings of 55 cents a share in the year-earlier period. Excluding
restructuring charges and an acceleration of pension expenses, earnings were 67
cents a share, above the average analyst estimate compiled by Thomson First Call
of 60 cents a share. Sales grew 10 percent to $1.11 billion, topping analyst
forecasts of $1.04 billion, boosted by strength in Asia, favorable currency
translation and continued growth in its global service businesses. The air
conditioning and refrigeration company also reiterated its 2004 earnings
forecast of $2.70 to $3 a share. The stock closed Wednesday down 71 cents at
$38.15.
Ciena Q1 net loss 16c vs. 25c; revenues dip (7:58 AM ET) NEW YORK
(CBS.MW] -- Ciena posted a fiscal first quarter net loss of $76.7 million, or 16
cents a share compared with a loss of $107.1 million, or 25 cents a share in the
year-earlier period. Revenue dipped to $66.4 million from $70.5 million. The
Thomson First Call mean estimate was for a loss of 8 cents a share on revenues
of $69.3 million. Looking ahead, CEO Gary Smith said he expects revenue in the
second quarter to be up "as much as 20 percent from our fiscal first quarter
revenue," excluding any potential impact of two acquisitions announced today. In
separate statements, Ciena said it was acquiring privately-held Internet
Photonics in a $150 million all-share deal. It also said it had completed its
purchase Catena Networks, another privately-held company, in all-share deal
valued at $486.7 million. Shares of Ciena were down 13 cents, or 2.03 percent at
$6.28 at the close of trading Wednesday.
Nextel adj Q4 earns 48c vs 40c First Call estimate (7:15 AM ET) NEW
YORK (AFX) -- Nextel Communications said it earned $637 million, or 56 cents a
share, in the fourth quarter, down from $1.46 billion, or $1.38, a year ago. The
figure includes charges for debt restructuring and gains from the sale of stakes
in NII Holdings and Nextel Partners. Excluding those items, the company earned
48 cents a share, up from 21 cents a year ago. The average estimate of analysts
polled by Thomson First Call was for earnings of 40 cents a share. Revenue
climbed to $3.01 billion from $2.33 billion. The wireless company said it now
expects 2004 earnings of $2.00 or more. Cash flow is forecast at $1.6 billion or
more, while capex is forecast at $2.2 billion. The company expects to add 1.8
million new subscribers or more, excluding its Boost mobile operation. Nextel
added 2.3 million new subscribers in 2003, or 553,000 in the fourth quarter, for
a toal of 12.9 million at year end. Shares ended Wednesday down 15 cents at
$28.62.
RadioShack Q4 sales flat, earns growth tops forecast (7:14 AM ET) LONDON
(AFX) -- RadioShack Corp. said fourth quarter net income rose to $127 million or
77 per share vs. $109 million or 63 cents a year ago. Analysts, on average, were
expecting 72 cents a share in earnings, according to Reuters Research.
Same-store sales for the fourth quarter 2003 were flat. Total sales were also
flat at $1,490.4 million, compared to total sales of $1,497.7 million, also in
line with the estimates. RadioShack said it's expecting earnings per share to
grow 13 percent to 15 percent year-over-year to at least $1.99 in 2004.
Qwest posts fourth-quarter loss; sales fall (7:14 AM ET) WASHINGTON
(AFX) -- Qwest Communications on Thursday said it lost $307 million, or 17 cents
a share, in the fourth quarter. That compared with a year-ago net profit of
$2.74 billion, or $1.61, which included a onetime gain of $1.7 billion. The
company did not provide a per-share result from operations. On that basis, Qwest
was expected to lose 8 cents a share, according to the consensus of analysts
surveyed by Thomson First Call. Revenue fell 5.6 percent to $3.49 billion, a
slightly bigger decline than Wall Street expected.
King Pharmaceuticals' Q4 profit matches Street target (7:06 AM ET)
WASHINGTON (AFX) -- King Pharmaceuticals posted a fourth-quarter profit of $76.7
million, or 14 cents per share, excluding special items, up from $67.2 million,
or 28 cents, earned in the final three months of 2002. The latest quarter's
earnings matched the consensus among analysts surveyed by Reuters Research.
King's quarterly sales reached $382.6 million, up from $272 million a year
earlier. The increase reflected contributions from the therapies Sonata and
Skelaxin, as well as King's January 2003 acquisition of Meridian. Sales for the
latest quarter also included an $18.9 million adjustment tied to a company audit
into Medicaid underpayments during 1998 through 2002. Finally, King affirmed its
2004 outlook for earnings and revenue. King's shares ended Wednesday at $16.86,
down 30 cents.
Tribune's Jan. revenue rose 1.9 percent (6:41 AM ET) NEW YORK (AFX) -
Tribune reported January revenue of $476 million, up 1.9 percent over the same
period a year ago. Advertising revenue increased 2 percent, with 3.8 percent
growth in retail, a 1.5 percent rise in classified, 40 percent growth in
interactive and flat national results. Broadcasting and entertainment revenue
rose 5 percent. The newspaper publisher's stock closed Wednesday down 44 cents
at $51.75.
Wal-Mart Q4 earns, revenue rise, match expectations (6:28 AM ET) NEW
YORK (AFX) - Wal-Mart reported fiscal fourth-quarter ongoing earnings of $2.7
billion, or 63 cents a share, up from 56 cents a share in the year-earlier
period, and in line with the average analyst estimate compiled by Thomson First
Call. The world's largest retailer said that a new tax law in Germany reduced
earnings by 3 cents a share. Net sales rose 12 percent to $74.5 billion,
matching analyst expectations, with international sales increasing 17 percent,
Wal-Mart stores sales rising 11 percent and Sam's Club sales growing 9.5
percent. Same-store sales in the U.S. increased 4.8 percent, with Sam's Club
sales rising 6.7 percent and Wal-Mart store sales increasing 4.4 percent. The
stock, a component of the Dow industrials, closed Wednesday down 32 cents at
$57.20.
Patterson Dental Q3 earns rise, match expectations (6:20 AM ET) NEW YORK
(AFX) - Patterson Dental reported fiscal third-quarter net income of $40.1
million, or 58 cents a share, up from 44 cents a share in the year-earlier
period, and in line with the average analyst estimate compiled by Thomson First
Call. Sales for the quarter ending January rose 24 percent to $521.2 million,
vs. analyst forecasts of $520.2 million, helped by strength in its dental
consumable and restorative system products, as well as in its digital
radiography systems and software. Looking ahead, the medical supply company
expects to earn 64 to 66 cents a share in its fourth quarter, surrounding
analyst estimates of 65 cents. The stock closed Wednesday down $1.76 at $66.89.
Reed Elsevier cuts earns growth target, cites edu mkt (3:07 AM ET)
LONDON (AFX) -- Anglo-Dutch publisher Reed Elsevier Thursday lowered its
earnings per share growth target for 2004, citing expectations for low market
growth overall and in particular, a weak education market. It's now targeting
mid to high single digit adjusted earnings per share growth at constant
currencies in 2004, and above market revenue growth. It had been projecting
double-digit earnings per share growth, a target it now calls "difficult." It
added that if the current exchange rates prevail, there will be an adverse
translation impact on reported earnings due to the weakness of the U.S. dollar.
Reed posted a decline in 2003 sales to 7.141 billion euros from 7.982 billion
euros a year ago. Sales rose 1 percent measured in constant currency rates.
Adjusted pre-tax profit rose 10 percent to 1.465 billion euros. The group said
its science & medical business "performed well" and that its new electronic
products were "driving above market revenue growth." The legal business
(LexisNexis) continued to outperform its markets; the education business "has
had a mixed performance in weak markets, affected by the low level of textbook
adoption opportunities compounded by state budget pressures." Looking ahead, it
said: "For 2004, we plan to increase our investment programme yet further. This
will drive the expansion of our online information products and services... We
also continue to target acquisitions that accelerate our growth strategy."
Royal Bank Scotland pre-tax surges 29% in 2003 (2:45 AM ET) LONDON (AFX)
-- Royal Bank of Scotland Group , one of the largest U.K. banks, Thursday posted
a 29 percent surge in pre-tax profit to 6.2 billion British pounds in 2003. The
Group's net interest margin at 3 percent was down from 3.1 percent in 2002 "due
to a reduced benefit from interest-free funds arising from the lower interest
rate environment, and the outcome of the Competition Commission inquiry into SME
banking," it said. The charge for provisions for bad debt rose to 1.494 billion
pounds, up from 1.345 billion in 2002. The bank said it hiked its dividend 15
percent to 50.3 pence a share for the year. Profit before tax, goodwill and
other integration costs rose 11 percent for the year to 7.2 billion, slightly
higher than analyst estimates, according to AFX News. Looking ahead, RBS said:
"The three main economies in which we operate, the UK, US and Europe are better
positioned than for some time."
ABB 2003 loss wider than expected, orders up 8% (2:34 AM ET) LONDON
(AFX) -- Swedish-Swiss engineering group ABB Thursday posted a
wider-than-expected loss of $767 million in 2003 against a range of loss
estimates from $447 millio to $704 million, according to AFX News. ABB said its
core Power Technologies and Automation Technologies improved operating
profitability in the fourth quarter and for the full year. It said non-cash
losses from discontinued operations were the biggest factors in its net loss of
$387 million for the fourth quarter. Sales, adjusted for the loss of some
operations, rose 8 percent to $18.795 billion for the year. Orders were up 8
percent as well to $18.703 billion. Orders received for the core divisions in
the fourth quarter "grew more than 20 percent in U.S. dollar terms...reflecting
an improvement in the overall investment climate." Looking ahead, ABB stuck to
target compound average annual revenue growth of 4 percent in local currencies
from 2002 to 2005. "Economic growth in Asia is expected to remain robust, and a
recovery is forecast to begin in Europe and the U.S. later in the year."
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
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