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When a business borrows money so it can reinvest it in hopes of getting a higher return, it's called leverage. Using loaned money, the company can make larger investments, and, therefore, receive larger returns. At least, that's the theory. However, along with leverage comes risk, because it not only magnifies the potential profit, but the potential loss as well.
Here¿s how it could work. Say a company has $10 million in the bank. It can leverage itself by borrowing another $20 million. Now that company has $30 million to play with, and, if it plays its cards right, the return on its investment will outpace the interest it has to pay on its debt.
Therein, lurks the risk. If the company's investments don't bring in enough money to pay the debt and principal and then some, it's stuck with debt that far exceeds its assets. Not good. A company's leverage can be measured by its debt to equity ratio. The more debt a company has compared to its equity, the more leveraged (and vulnerable to bankruptcy) it's considered.
Companies aren't the only ones affected by leverage. When you buy stocks on margin, borrowing extra money from your broker to invest in more stocks than you could have on your own, you¿re using leverage. Again, the larger investment might mean more profits when you sell, but there's also a risk that you'll lose money and you'll lose a lot more than if you had used your own funds to invest.
Home / Markets
Thursday, May 01, 2008
Hits and Misses: Thursday's Earnings Reports
Associated Press
ExxonMobil Corp.
Exxon Mobil Corp. (XOM), the world's largest publicly traded oil company, said Thursday record crude prices helped its net income grow 17% in the first quarter, but the results came in below Wall Street forecasts.
Its shares fell $2.32, or 2.5%, to $90.75 in premarket trading.
As expected, margins at the company's refining operations dragged heavily on the bottom line as the big jump in prices on refined products such as gasoline, while a menace to consumers, failed to keep pace with the rapid increase in crude prices.
Lower production to start the year hurt too.
ExxonMobil said earnings for the first three months of the year rose to $10.9 billion, or $2.03 per share, up from $9.3 billion, or $1.62 per share, a year ago.
Analysts polled by Thomson Reuters were looking for a slightly larger profit of $2.13 per share.
Revenue rose to $116.8 billion from $87.2 billion a year earlier. Analysts were looking for revenue of about $124 billion.
Given record oil prices, some had speculated ExxonMobil would top its own record for the biggest quarter profit for a U.S. company. But the latest results fell short of the record $11.7 billion profit ExxonMobil earned in the final quarter of 2007.
ExxonMobil said earnings at its exploration and production, or upstream, business rose 45% to $8.8 billion, lifted by higher oil and natural gas prices. Increased natural gas production was more than offset by lower crude volumes.
Overall production fell 5.6% from a year ago, in part from natural field declines and maintenance.
On the refining and marketing side, earnings were off 39% from a year ago to nearly $1.2 billion. The company said significantly lower worldwide refining margins reduced earnings by about $1 billion in the quarter.
Crude prices averaged nearly $100 a barrel in the first quarter, up from roughly $58 a barrel a year ago. Analysts have attributed the spike to growing global demand, speculative trading and a weak dollar, among other factors.
Crude has pushed even higher since, reaching a record $119.93 per barrel this week.
Meanwhile, gasoline prices also are reaching new highs -- and creating financial stress for many Americans. The national average price of a gallon of regular gas rose past $3.60 Wednesday.
CVS Caremark Corp.
CVS Caremark Corp. (CVS), the nation's biggest pharmacy chain, said its first-quarter profit jumped 84%, helped by surging sales in the wake of last year's purchase of Caremark.
Profit climbed to $745 million, or 51 cents per share, after preferred dividend payments in the quarter ended March 29, up from $405.4 million, or 43 cents per share, in the prior year, the Woonsocket-based company said. Excluding 4 cents per share for acquisition activities, earnings were 55 cents per share, meeting the expectations of analysts surveyed by Thomson Reuters.
Revenue surged 61% to $21.3 billion, up from $13.2 billion a year ago, meeting analysts' estimates, CVS said.
The company said same-store sales rose 3.9% from the prior year, with pharmacy sales rising 3.7% and front end sales up 4.3%.
CVS purchased pharmacy benefits management company Caremark in March 2007.
Last month, CVS agreed to pay almost $37 million to nearly two dozen states and the federal government to settle claims that it had billed Medicaid programs for a more expensive antacid.
CVS operates more than 6,300 retail, specialty and mail order pharmacy stores in 44 states and the District of Columbia.
Sun Microsystems Inc.
Sun Microsystems Inc. (JAVA) swung to a loss in the fiscal third quarter, surprising investors who were expecting a healthy profit from the server and software maker despite a weakening U.S. economy.
The Santa Clara-based company said Thursday that it lost $34 million, or 4 cents per share, in the three months ended March 30. That's down from a profit of $67 million, or 7 cents per share, during the year-ago period.
The results for the latest quarter include costs of 4 cents per share from Sun's $1 billion acquisition of open-source software company MySQL AB, a purchase that gives Sun a foothold in the rapidly expanding market for database software for Web-based companies.
Analysts surveyed by Thomson Reuters were expecting Sun to earn 18 cents per share, so the miss spooked investors who sent Sun's shares down 9% in after-hours trading.
The stock was trading down $1.48 cents at $14.85 after the results were reported following the stock market's close. It had closed up 67 cents, or 4.3%, at $16.33 during the regular session.
Sun's sales of $3.27 billion also came in below analyst expectations. Wall Street was predicting Sun would have $3.38 billion in sales, a miss of more than $100 million.
Sun's chief executive, Jonathan Schwartz, said in an interview that some of the weakness during the third quarter flowed from small businesses and other smaller companies in the U.S. clamping down on spending.
"Smaller companies that could make discretionary decisions about (information technology) spending made discretionary decisions -- they definitely tapped the brakes," Schwartz said.
Schwartz added that slower-than-expected sales to government agencies also dragged down the results.
Despite the credit and housing crunch that is ravaging the financial community, Schwartz said the financial services sector actually came in ahead of the company's internal projections, indicating that banks and other financial institutions appear to be "using technology to drive down costs elsewhere."
Nymex Holdings Inc.
Nymex Holdings Inc.'s (NMX) first-quarter profit jumped 27% as market volatility led to higher transaction and clearing fees, the operator of the New York Mercantile Exchange said Thursday.
Nymex, which is being acquired by the operator of the Chicago Mercantile Exchange, the CME Group, said net income rose to $71.2 million, or 75 cents per share, from $56.2 million, or 59 cents per share, in the year-ago period.
Excluding a charge related to the planned sale of the company, profit came in at 83 cents per share.
Analysts expected that figure to reach 82 cents per share, according to Thomson Reuters.
A 30% rise in clearing and transaction fees pushed revenue 27% higher, to $208.9 million, from $164.2 million last year. Wall Street forecast $208 million in revenue.
Average daily volume increased 24% to 1.9 million contracts. Expenses fell 10%, excluding the buyout charge.
Comcast Corp. (CMCSA) on Thursday reported a 12.5% decline in first-quarter profits from a year ago, when the company's earnings were inflated by a $300 million one-time gain.
The nation's largest cable operator posted net income of $732 million, or 24 cents per share, compared with $837 million, or 26 cents, in the quarter a year ago.
Excluding one-time gains from dissolution of cable partnerships, Comcast said quarterly profits were $588 million, or 19 cents per share, compared with $537 million, or 17 cents, last year.
That matched the average expectation of analysts surveyed by Thomson Reuters.
Comcast had a $144 million gain in the quarter after it split a joint venture cable partnership with Insight Communications Co. Comcast received cable systems in Illinois and Indiana. Last year, Comcast posted a $300 million gain from the dissolution of a cable partnership with Time Warner Cable Inc., in which Comcast received cable systems in Houston.
Revenue was up 14% to $8.39 billion in the latest quarter. Analysts were expecting $8.17 billion.
Revenue rose as people spent more on cable television, which helped offset lower spending on the Philadelphia-based company's phone and Internet services.
Operating income was up 23% to $1.55 billion while free cash flow -- an important indicator for typically debt-laden industries such as cable -- soared by 59% to $702 million.
But the slowing economy seems to have exerted a drag on signing new customers: Comcast added 1.46 million lines of service in the quarter, down 20% from a year ago.
The number of basic subscribers fell by 57,000, versus a gain of 83,000 a year ago. Digital cable added 494,000 subscribers compared with last year's 658,000.
Comcast said last year's digital rollout was heavier because it ramped up shipping of digital set-top boxes as a July federal deadline loomed to switch to set-tops with separable security.
The company added 492,000 new high-speed Internet customers, down 16% year-over-year.
But its digital voice service added 639,000 new customers, up 9% from last year. Its circuit-switched phone business, which Comcast is exiting, lost 110,000 customers.
Customers spent an average of $63.46 for cable TV, up from $59.97 in 2007's first quarter. Cable TV revenue rose by 5% to $4.71 billion.
For Internet service, where Comcast faces more competition, customers spent an average of $42.18, down from $43.08. Revenue for this business rose by 12% to $1.75 billion.
For digital phone service, subscribers spent $40.24, down from $42.44. Revenue, however, more than doubled to $573 million as the company siphoned customers from phone companies.
Eastman Kodak Co.
Eastman Kodak Co. (EK) said Thursday its first-quarter loss narrowed to $115 million as it chases a bigger stake in digital photography.
Hit by carry-over restructuring charges after navigating a four-year digital overhaul, the photography products maker lost the equivalent of 40 cents a share in the January-March quarter, compared with a loss of $151 million, or 53 cents a share, a year earlier.
Sales rose 1% to $2.093 billion from $2.08 billion.
Excluding one-time items totaling $2 million, or 1 cent a share, operating losses came to $112 million, or 39 cents a share. Analysts polled by Thomson Reuters expected, on average, a loss of 3 cents a share on $2.037 billion in revenue.
Its shares slipped 17 cents to $17.72 in premarket trading.
Kodak blamed the shortfall on higher-than-expected tax provisions and increased inkjet printer investments in both its consumer photography and commercial graphic communications businesses.
Digital sales rose 10% to $1.366 billion from $1.245 billion a year earlier, while traditional film-based revenue slumped 13% to $724 million from $830 million.
Sales in consumer digital imaging rose 20% to $554 million. But the division recorded an operating loss of $111 million, versus a loss of $75 million a year earlier, as it invested in its fledgling consumer inkjet printer business.
Graphic communications sales rose 4% to $812 million but operating losses came to $1 million, compared with a profit of $9 million a year earlier. Kodak attributed the decline mainly to higher aluminum costs and inkjet research costs.
Late this month, the company is aiming to shake up the commercial market with a 2,000-page-a-minute, highly customizable inkjet machine that delivers offset-print quality.
Sales in its film and photofinishing unit fell 13% to $724 million, partly reflecting higher prices for silver and other raw material costs and the impact of the Hollywood writers' strike.
After accumulating more than $2 billion in net losses over three years, Kodak has posted net profits in four of the last six quarters.
Converting the bulk of its business from high-profit film to more highly competitive digital technology cost Kodak $3.4 billion from 2004 through 2007. It chopped its work force from 64,000 to 26,900, eliminating 4,275 jobs in 2007 alone and selling a health-imaging unit that employed 8,100 people.
Through 2011, Kodak has said it expects revenues to rise 5% a year, driven by a 10% to 12% annual rise in digital sales. Operating profits, it forecasts, will more than triple to $1 billion.
Burger King Holdings Inc.
Burger King Holdings Inc. (BKC) said Thursday that strong same-store sales in each of its segments and new restaurant growth helped to boost profit 21% in its third fiscal quarter.
The Miami-based fast-food chain said net income rose to $41 million, or 30 cents per share, from $34 million, or 25 cents per share, last year. Revenue rose 10% to $594 million from $539 million last year.
Analysts, on average, predicted a profit of 27 cents per share on revenue of $580 million, according to Thomson Reuters.
Burger King says same-store sales rose 5.8% during the quarter.
"This quarter we delivered on our global growth strategies, with all segments contributing to top and bottom line expansion," said John Chidsey, chief executive officer. "We leveraged our product pipeline and marketing initiatives around the world while creating a consistent and positive guest experience at our restaurants."
Chidsey credited the growth with a new Whopper advertising campaign in the U.S., as well as new chicken sandwiches and Snoopy and SpongeBob SquarePants promotions. In the rest of the world new products and standardizing some menus also helped.
For the first nine months of the year, net income was $139 million, or $1.01 a share, compared with $112 million, or 82 cents a share, last year. Revenues were $1.81 billion compared with $1.64 billion.
Burger King now expects a profit of $1.33 to $1.35 per share for the year, up from previous guidance of $1.28 per share. Analysts predict earnings of $1.32 per share.
In the quarter, Burger King continued its global expansion, including the opening of the first restaurant in Colombia and three franchised airport locations in China.
"Our high visibility restaurant in the Beijing airport will expose millions of passengers to our brand this summer in connection with the 2008 Olympics," Chidsey said. "Gateway airport locations throughout the Asia Pacific region are projecting our brand presence worldwide."
Northeast Utilities
Northeast Utilities (NU), a New England electricity and natural gas supplier, said Thursday its first-quarter profit dropped 22% as amortization costs spiked.
For the period ended March 31, Northeast posted profit of $58.4 million, or 38 cents per share, compared with profit of $75.1 million, or 49 cents per share, in the year-ago period.
Excluding a payment to Consolidated Edison Inc. to settle 2001 litigation, first-quarter profit was $88.2 million, or 57 cents per share.
The company said fuel costs dropped to $823.3 million from $1.07 billion in the first quarter of 2007. Amortization costs grew more than fourfold to $28.9 million from $6.2 million.
Revenue for the period fell 11% to $1.52 billion from $1.70 billion.
Analysts polled by Thomson Reuters expected, on average, earnings of 54 cents per share. Analysts typically exclude one-time charges.
Shares rose 73 cents, or 2.8%, to close at $27.05.
EnPro Industries Inc.
EnPro Industries Inc.'s (NPO) profit grew 7% in the first quarter, as the engine and sealing products maker's markets remained healthy, the company said Thursday.
EnPro earned $13.2 million, or 61 cents per share, in the first quarter, compared with profit of $12.3 million, or 56 cents per share, in the first quarter last year.
Excluding charges from asbestos and other extraordinary costs, profit was $1.07 per share. Analysts polled by Thomson Reuters forecast profit of 99 cents per share, on average.
Sales grew 14% to $283.1 million from $247.3 million. Analysts expected sales of $269 million.
EnPro credited the sales growth to businesses the company bought, as well as strong international markets. Chief Executive Steve Macadam said in a statement most of the company's key markets remained sound.
Profit in the engine products and services division rose to $3.5 million from $2 million, while earnings in the engineered products segment grew 16%, to $21.8 million. The sealing products segment was flat.
EnPro shares rose $2.02, or 5.6%, to close at $38.32.
Peet's Coffee & Tea Inc.
Specialty coffee retailer Peet's Coffee & Tea Inc. (PEET) said Thursday its first-quarter profit grew 48% because of higher sales in both its retail and specialty businesses.
For the quarter ended March 30, net income jumped to $2.1 million, or 15 cents per share, from $1.4 million, or 10 cents per share, in the prior-year quarter.
The results matched the mean estimate of analysts polled by Thomson Reuters.
Revenue rose 17% to $67.1 million from $57.5 million in the first quarter of 2007. Analysts predicted revenue of $67.7 million.
The company said its retail revenue grew 14%, mainly due to stores that have opened in the past year. Sales in the specialty business grew 22%, helped by the company's expansion into more grocery stores.
Shares fell 8 cents to $23.89 in after-hours trading. During regular trading, shares rose 74 cents, or 3.2%, to close at $23.97.
Cepheid
Biotechnology company Cepheid (CPHD) said Thursday that its first-quarter loss narrowed on higher sales of its GeneXpert DNA testing systems and testing products.
The company lost $1.9 million, or 3 cents per share, compared with a loss of $6.2 million, or 11 cents per share, in the same period a year earlier. Revenue rose 76% to $44.8 million from $25.5 million.
Analysts polled by Thomson Reuters expected a loss of 8 cents per share on revenue of $41.5 million.
System sales more than doubled to $14.3 million while testing product sales rose 81% to $27.6 million.
Shares of Cepheid rose $1.65, or 8.4%, to close at $21.22. The stock has ranged from $10.66 to $33.36 over the past year.
Wynn Resorts
Casino operator Wynn Resorts (WYNN) says its first-quarter profit fell 20% because of higher operating costs.
The Las Vegas-based company says it earned $46.7 million, or 41 cents per share, compared with $58.4 million, or 54 cents, a year earlier. Excluding items, Wynn says its income amounted to 69 cents per share. Sales rose to $778.7 million from $635.3 million
Analysts expected earnings of 70 cents per share on sales of $734.4 million.
Wynn says the revenue increase was primarily driven by sales at its Wynn Macau property.
The company says operating costs rose 30% to $688.1 million.
Affiliated Computer Services Inc.
Affiliated Computer Services Inc. (ACS), which runs back-office business operations for companies, said Thursday its fiscal third-quarter profit edged higher, and revenue jumped as the company signed on new customers.
For the three months ended March 31, the company earned $82.6 million, or 85 cents per share, up from $82.1 million, or 82 cents per share, in the same period a year earlier.
Excluding costs related to the company's stock options investigation and a legal settlement gain, ACS earned 91 cents per share in the latest quarter.
Revenue rose 7% to $1.54 billion from $1.44 billion.
Analysts, on average, expected a profit of 87 cents per share on sales of $1.55 billion, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates
Shares rose 93 cents to close at $53.90. In aftermarket activity, the stock added another $1.10, or 2%, to $55.
Cabela's Inc.
Cabela's Inc. (CAB), an outdoor products retailer, said on Thursday its first-quarter profit climbed 40% as merchandise sales improved.
For the quarter ended March 29, Cabela's earned $10 million, or 15 cents per share, compared with $7.1 million, or 11 cents per share, in the same quarter last year.
Revenue grew 16% to $535.5 million from $462.1 million in the year-ago quarter, the company said.
Analysts polled by Thomson Reuters expected earnings of 5 cents per share, on average, and revenue of $534.5 million.
The company said retail store revenue, which accounted for almost half of total revenue, grew 38% to $254.4 million. Same-store sales slipped by 8.4%.
Same-store sales, or sales at stores open at least a year, are an important metric in the retail sector because it measures performance at established, rather than newly opened, stores.
Shares of Cabela's added 54 cents, or 3.8%, at $14.74 in the aftermarket. They closed at $14.20 in the regular session.
comScore Inc.
Internet data analysis provider comScore Inc. (SCOR) said Thursday its first-quarter profit surged 64% to top Wall Street expectations on strong subscription revenue and raised its sales outlook for the full year.
Net income rose to $2.5 million, or 8 cents per share, from $1.5 million, or breakeven per share, a year ago.
Excluding both stock-based compensation and other one-time items, the company would have earned 18 cents per share in the latest period. Including 6 cents of stock-based compensation costs but excluding other items, comScore earned 12 cents per share.
Revenue rose 41% to $26.4 million from $18.7 million.
Analysts surveyed by Thomson Reuters expected profit of 10 cents per share on revenue of $26.1 million. The estimates include stock-based compensation, but exclude other one-time items.
ComScore's subscription revenue grew 48% to $21.5 million, accounting for 81% of the company's total quarterly revenue. Existing customer revenue grew 38% to $22.1 million, while new customers generated revenue of $4.3 million.
The company added a net of 53 new customers during the quarter, bringing the total number of comScore customers to 948.
"We continued to make gains in penetrating our existing customer base both in the U.S. and internationally," said Magid Abraham, comScore's chief executive and president. "Despite recent indications of a slowing U.S. economy, our confidence in the strength of our business and client demand for our products and services remains unchanged.
Looking ahead, comScore forecast full-year adjusted profit of 75 cents to 80 cents per share on revenue of $113 million to $113.6 million, up from a prior estimated range of $112.2 million to $113.2 million.
Wall Street is predicting earnings per share excluding most items of 50 cents on revenue of $113.2 million.
Second-quarter earnings per share, excluding items, are expected to be 16 cents or 17 cents on revenue of about $27.1 million to $27.4 million, comScore said, compared with Wall Street estimates of 12 cents per share on revenue of $27.4 million.
Shares rose 97 cents, or 5.1%, to close earlier at $19.84, and jumped $1.66, or 8.4%, to $21.50 in aftermarket electronic trading.
Monster Worldwide Inc.
Employment-services company Monster Worldwide Inc. (MNST) said Thursday its first-quarter profit dropped 43% as marketing and promotion costs skyrocketed.
For the period ended March 31, Monster posted a profit of $22.6 million, or 18 cents per share, compared with $39.5 million, or 30 cents per share, in the year-ago period.
Excluding certain items, including currency benefits, income was $29 million, or 24 cents per share.
Revenue rose 13% to $370.4 million from $329 million in the first quarter of 2007.
Analysts polled by Thomson Reuters expected, on average, earnings of 22 cents per share on revenue of $362.9 million. Analysts typically exclude one-time items.
Marketing and promotion costs jumped 47% to $114.6 million from $78.1 million. Total operating expenses rose 25% to $339 million from $270.8 million.
Sal Iannuzzi, chairman, president and chief executive officer of Monster, said the company is working to add business customers of all sizes in order to boost sales and improve market penetration.
"We believe this action will help fuel us through the current economic downturn and position us well for an economic rebound," Iannuzzi said in a release. "We are convinced that the current market environment presents a building opportunity that will yield solid benefits to our shareholders."
Shares rose 1 cent to $25.57 in aftermarket trading.
MetLife Inc.
MetLife Inc. (MET) said Thursday its profit shrank 37% in the first quarter as turbulent markets and the plummeting dollar pummeled the insurer's investment portfolio.
New York-based MetLife earned $615 million, or 84 cents per share, compared with profit of $983 million, or $1.28 per share, in the first quarter of last year.
During a rough quarter for stock and bond markets, the New York-based insurer's investment portfolio lost $560 million. Bad credit, the plunge of the dollar and a drop in interest rates hurt the insurer's investments.
Operating income jumped 3% to $1.11 billion, or $1.52 per share. Like most insurers, MetLife emphasizes operating income because it excludes certain costs -- including investment losses -- insurers do not consider reflective of trends in their business.
Analysts polled by Thomson Reuters forecast operating profit of $1.48 per share.
The insurer's premiums and fees grew 12% to $9.4 billion, which Chief Executive C. Robert Henrikson credited to the diversify of MetLife's business.
The company sold more retirement and savings products, fueling a 23% acceleration in profit in the institutional business to $558 million.
In the individual business, the 10% decline in the stock market reduced sales of variable annuities. The segment's profit slipped 2% to $312 million.
The car and home insurance division's profit fell 8% to $98 million because of more claims from insured damage.
The international insurance's segment leaped 10% to $137 million because of growth in Latin America.
Shares of MetLife fell 31 cents to $61.63 in aftermarket activity. They earlier added $1.09 to close regular trading at $61.94.
Automatic Data Processing Inc.
Automatic Data Processing Inc.'s (ADP) profit jumped 6% in its fiscal third quarter as a stagnant economy slowed growth at many clients' payrolls, the outsourcing services company said Thursday.
Automatic Data Processing earned $413.6 million, or 79 cents per share, compared with profit of $388.9 million, or 70 cents per share, in the year-ago period.
Analysts polled by Thomson Reuters forecast profit of 75 cents per share in the quarter ended March 31.
Revenue surged 12% to $2.43 billion from $2.17 billion. Analysts expected revenue of $2.41 billion.
Chief Executive Gary C. Butler said "in the midst of a challenging economy," the pace of growth slowed during the quarter.
ADP offers a number of outsourcing services to businesses, including managing payrolls. The number of employees on clients' payrolls grew at a more moderate rate in the third quarter, ADP said.
Shares rose $1.01, or 2.3%, to close at $45.21.
LifePoint Hospitals Inc.
Hospital operator LifePoint Hospitals Inc. (LPNT) said Thursday its first-quarter earnings rose 40%, as revenue was helped by rising admissions, emergency room visits and longer hospital stays.
Net income for the quarter ended March 31 grew to $41.8 million, or 76 cents per share, from $29.8 million, or 53 cents per share, a year ago. Profit from continuing operations edged up 2% to $39.7 million, or 72 cents per share, in the latest period.
Revenue grew 6% to $699.9 million from $661.2 million a year ago.
Analysts surveyed by Thomson Reuters expected profit of 61 cents per share on revenue of $692.3 million.
LifePoint, which operates 48 hospitals mainly in rural communities, said admissions edged up just 0.3% to 52,358 during the quarter but revenue per admission rose 5.7% to $7,031. A 5.3% rise in emergency room visits helped offset a 4.7% decline in inpatient surgeries and a 2.6% drop in outpatient surgeries.
Patients stayed an average of 4.4 days in LifePoint's hospitals during the quarter, up 2.3% from 4.3 days a year ago.
Looking ahead, LifePoint raised its full-year profit outlook to a range of $2.35 to $2.65 per share to reflect a favorable tax adjustment and the positive impact of stock buybacks on earnings per share.
Analysts are expecting 2008 earnings per share of $2.34, on average.
International Flavors & Fragrances Inc.
Flavor and scent maker International Flavors & Fragrances Inc. (IFF) said Thursday its first-quarter profit fell 11% on restructuring and other charges, but adjusted results topped analysts' estimates.
For the period ended March 31, net income dropped to $55.9 million, or 69 cents per share, from $62.7 million, or 69 cents per share, a year earlier.
The per share amount reflects that company's outstanding shares declined about 10% compared with the same period last year.
Quarterly results included restructuring and other charges of $6.2 million, or 6 cents per share.
Excluding the charges, earnings were 75 cents per share, the company said.
Analysts expected profit of 74 cents per share, according to a Thomson Reuters survey. Estimates typically exclude one-time items.
Research and development costs increased to $52.1 million from $46.6 million.
Sales grew 5% to $596.6 million from $566.1 million.
MarineMax Inc.
Recreational
boat retailer MarineMax Inc. (HZO) said Thursday it swung to a fiscal second-quarter loss as weakening economic conditions
continue to hinder results.
The boating sector, along with many other industries, has been pressured as consumers tighten spending due to the ongoing housing downturn, diminishing credit, escalating food and fuel costs and recession fears.
The company reported a loss of $3.5 million, or 19 cents per share, compared with a profit of $3.3 million, or 17 cents per share, in the prior year.
Revenue for the period ended March 31 slid 28% to $233.3 million from $325.1 million.
Analysts polled by Thomson Reuters predicted a loss of 17 cents per share on sales of $244.4 million.
Same-store sales sagged about 28% during the quarter, which MarineMax partly blamed on its emphasis on Florida and other markets that have been hard hit by the housing slowdown.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Oshkosh Corp.
Oshkosh Corp. (OSK) said Thursday its second-quarter earnings rose 43%, matching Wall Street's estimates, on international equipment sales and continuing demand for military vehicles.
The specialty vehicle and equipment manufacturer earned $72.6 million, or 97 cents per share, compared with $50.9 million, or 68 cents per share, in the year-ago quarter.
Revenue rose 7% to $1.77 billion, from $1.66 billion a year earlier.
The results matched the average prediction of analysts polled by Thomson Reuters.
The company said global sales of equipment though its subsidiary JLG Industries Inc. and ongoing defense vehicle demand offset commercial segment weakness. The commercial segment was dragged down, Oshkosh said, by the slowdown in the U.S. residential construction and certain industrywide truck standard changes.
Administaff Inc.
Personnel-management company Administaff Inc. (ASF) said Thursday its first-quarter profit jumped 57%, beating Wall Street expectations.
For the three months ended March 31, the company reported income of $13.2 million, or 51 cents per share, compared with $8.4 million, or 30 cents per share, in the year-ago period.
Results are based on 25.8 million shares outstanding in the 2008 quarter and 28.2 million shares outstanding in the prior-year quarter.
Analysts polled by Thomson Reuters, on average, estimated earnings of 48 cents per share on sales of $460.2 million.
Revenue rose 12% to $456.1 million from $407.8 million in the first quarter of 2007.
Revenue was boosted by an 8.3% increase in the average number of worksite employees paid per month and a 3.3% increase in revenue per worksite employee per month, the company said.
Iron Mountain Inc.
Data storage and protection company Iron Mountain Inc. (IRM) said Thursday its first-quarter profit slipped 3.5% as higher interest expense offset rising revenue.
Net income for the three months ended March 31 fell to $33.5 million, or 16 cents per share, from $34.7 million, or 17 cents per share in the year-earlier quarter.
Analysts polled by Thomson Reuters expected, on average, earnings per share of 12 cents.
Net interest expense climbed 19% to $60 million.
Revenue increased 18% to $749.4 million from $632.5 million. Analysts expected revenue of $731.8 million.
Sales rose in the company's North American physical, international physical and worldwide digital business segments, and benefited from the weaker dollar.
Westlake Chemical Corp.
Westlake Chemical Corp. (WLK) on Thursday said earnings fell in the first quarter as high raw material costs reduced the profit it makes from producing petrochemicals and plastics.
Net income declined to $5.4 million, or 8 cents per share, from $19.7 million, or 30 cents per share, a year ago.
Sales rose to $915.1 million from $718.8 million as the company charged higher prices for olefins, which form the base for plastics such as polyproylene, and vinyl products.
Analysts surveyed by Thomson Reuters had forecast net income of 19 cents per share on sales of $862.9 million.
Westlake said high raw materials prices, plus higher costs for natural gas and electricity hurt results. In addition, a Louisiana plant that produces styrene was down for 45 days, and the company incurred costs for shutting down a New York plant and consolidating some operations in Calgary.
Green Mountain Coffee Roasters Inc.
Coffee maker Green Mountain Coffee Roasters Inc. (GMCR) on Thursday said net income rose 89% in the fiscal second quarter as it more than doubled the number of Keurig brewers shipped to customers.
Profit for the quarter ended March 29 rose to $6 million, or 23 cents per share, from $3.1 million, or 13 cents per share last year. Excluding a non-cash amortization expense, profit was $6.7 million.
Revenue rose 46% to $120.9 million from $82.8 million last year.
Analysts polled by Thomson Reuters predicted a profit of 21 cents per share on revenue of $115.8 million.
About 193,000 Keurig brewers were shipped, more than double the 84,000 shipped in the year-ago quarter. Shipments of its K-Cup single-serve packs rose 68% to 155 million.
Cameron International Corp.
Oil and gas services company Cameron International Corp. (CAM) on Thursday said its first-quarter profit jumped 25%, driven by demand for drilling systems, subsea systems and engineered valves.
Net income for the quarter ended March 31 rose to $126.3 million, or 55 cents per share, compared with $101.0 million, or 44 cents per share, a year ago.
Revenue jumped 34% to $1.34 billion, from $997 million in the first quarter of 2007.
Analysts surveyed by Thomson Reuters, on average, forecast first-quarter earnings of 54 cents per share, on revenue of nearly $1.2 billion.
"Our first quarter revenue growth was fueled by drilling systems, subsea systems and engineered valves," said Cameron President and Chief Executive Jack B. Moore. "While the margins on project-related businesses like these may not be as high as those of our traditional product and aftermarket businesses, we continue to see solid growth in our overall earnings."
Total costs and expenses jumped 37% to $1.15 billion, from $841.6 million.
Cameron said orders rose 56% to $1.95 billion for the quarter. Backlog grew 30% to $4.90 billion at the end of the first quarter, from $3.77 billion as of March 31, 2007.
Moore said the company expects to improve margins in the second half of the year, as those orders and backlog are converted into revenue.
LKQ Corp.
LKQ Corp. (LKQX), a supplier of used automotive parts, said Wednesday its first-quarter profit nearly doubled, as revenue soared on contributions from acquisitions.
The company also issued strong full-year profit guidance, and LKQ shares jumped $3.11, or 14%, to $24.87 in premarket trading. Shares closed at $21.76 Wednesday.
For the quarter ended March 31, LKQ earned $30.9 million, or 22 cents per share, up from $15.8 million, or 14 cents per share, for the same quarter in 2007.
The recent quarter's results were based on about 139.7 million outstanding shares, while the year-ago period's were based on about 112 million.
Revenue more than doubled to $491.9 million from $235.3 million in the 2007 period.
Analysts polled by Thomson Reuters expected profit of 20 cents per share on $485.7 million in revenue.
LKQ said the quarter's results benefited from its acquisitions of Keystone Automotive Industries Inc. and two separate recycled parts businesses.
The period also included $1.2 million in restructuring expenses related to the Keystone acquisition.
Patterson-UTI Energy Inc.
Patterson-UTI Energy Inc. on Thursday said net income dropped as bad weather postponed a number of drilling operations in Appalachia.
Earnings declined to $77.4 million, or 50 cents per share, from $115.8 million, or 73 cents per share.
Revenue slipped to $504.6 million from $547.1 million.
Analysts surveyed by Thomson Reuters had forecast earnings of 50 cents per share on revenue of $503 million.
Average revenue per operating day for the first three months of 2008 was $18,900, compared to $19,250 for the final three months of 2007.
The company, which provides drilling services to oil and gas companies operating in Texas, New Mexico, Pennsylvania and other states, said a number of jobs in Appalachia were postponed during the quarter "by wet locations that resulted from a lack of consistently cold weather."
Like other drillers, the company noted a recent pickup in North American activity. Noting a recent increase in natural gas prices, Mark S. Siegel, Patterson-UTI's chairman, said, "if natural gas prices remain at current levels, we expect to see the activation of additional rigs and an increase in the number of wells drilled."
Nicor Inc.
Nicor Inc. (GAS) said Thursday its first-quarter earnings fell 12%, as its gas distribution business was hampered by higher costs and its shipping business was weighed down by high fuel prices and economic weakness.
The company earned $41.4 million, or 91 cents per share, compared with $47.2 million, or $1.04 per share, in the year-ago quarter. The 2007 period included a gain of 11 cents per share related to a previous mercury inspection and repair program.
Revenue rose 20% to $1.6 billion, from $1.33 billion in the prior-year period.
Analysts predicted a profit of 73 per share on revenue of $1.38 million, according to a poll by Thomson Reuters.
"Our gas distribution business continues to be pressured by higher operating costs, and as a result, we have filed for rate relief with the Illinois Commerce Commission, President and Chief Executive Russ M. Strobel said in a statement. On Tuesday, Nicor asked the commission for an increase in business and residential rates of $140.3 million.
"Our shipping business experienced lower than expected results due to increasing fuel costs and economic and competitive pressures on volumes shipped. Our other energy-related businesses produced solid results for the quarter that were inline with our earlier expectations," Strobel said.
Herbalife Ltd.
Herbalife Ltd. (HLF), which sells nutritional supplements and weight-loss products, said Thursday it expects its second-quarter profit to beat Wall Street analysts' expectations.
The company said it will likely earn 89 cents to 92 cents per share in the quarter.
Analysts polled by Thomson Reuters expect profit of 83 cents per share.
The company also boosted its 2008 profit guidance to between $3.52 and $3.57 per share. Previously, Herbalife had said it would earn between $3.25 and $3.30 per share.
Analysts anticipate profit of $3.32 per share for the year.
Herbalife said it's new yearly guidance reflects current foreign exchange rates.
Steven Madden Ltd.
Steven Madden Ltd. (SHOO) said Thursday its first-quarter profit plunged 78%, hurt by a one-time charge related to the resignation of former Chief Executive Jamieson Karson.
The footwear and accessories retailer reported earnings dropped to $2.1 million, or 10 cents per share, compared with $9.5 million, or 43 cents per share, in the prior year.
Excluding a one-time charge of $3 million, or 15 cents per share, related to the CEO's resignation, earnings were $5.1 million, or 25 cents per share.
Analysts surveyed by Thomson Reuters expected net income of 29 cents per share.
The company announced Karson's resignation last month and named Edward Rosenfeld, executive vice president of strategic planning and finance, as interim CEO.
Karson had also served as chairman and was succeeded in that role by independent director Walter Yetnikoff.
For the period ended March 31, sales fell 6% to $100.5 million from $106.7 million, but the results still beat Wall Street's estimate of $98.9 million.
Elizabeth Arden Inc.
Beauty-products maker Elizabeth Arden Inc. (RDEN) on Thursday said it swung to a fiscal third-quarter loss, as sales fell amid a difficult North American retail environment.
Loss for the three months ended March 31 totaled $3.8 million, or 14 cents per share, compared with a year-ago profit of $3.1 million or 11 cents per share. Excluding restructuring charges, net loss was 10 cents per share in the recent quarter.
Revenue fell 4% to $210.5 million, from $219.2 million last year. Excluding the benefit of a weaker dollar, net sales fell 5.9%. The company said results were hurt by weakness in the consumer and retail environment in North America and the U.K.
Analysts polled by Thomson Reuters expected profit of 7 cents per share on revenue of $223.3 million.
"While we were not expecting any improvement in the retail environment this past quarter in North America, we did not anticipate the extent of the negative retail sales trends," said Chief Executive E. Scott Beattie in a statement.
The company sees weakness in North America and developed markets in Europe for the rest of the year.
Elizabeth Arden also said it is accelerating a program to overhaul its supply chain functions and implement a transaction-processing system. The company also provided fiscal 2008 guidance below expectations.
Wyndham Worldwide Corp.
Hotel operator Wyndham Worldwide Corp. (WYN) said Thursday its first-quarter profit dropped 51% on legacy and rebranding charges, but adjusted results surpassed analysts' estimates.
For the period ended March 31, earnings declined to $42 million, or 24 cents per share, compared with $86 million, or 45 cents per share, in the previous year. Revenue was flat at $1.01 billion.
Excluding $20 million in legacy and rebranding charges, net income was $62 million, or 35 cents per share, the company said. Year-ago adjusted profit was $81 million, or 43 cents per share.
The legacy charges are due to separation costs from former parent company Cendant Corp., according to Wyndham.
Analysts expected a profit of 33 cents per share on sales of $1.04 billion, according to a Thomson Reuters survey.
Systemwide revenue per available room climbed 2.7% during the quarter.
Revenue per available room, also known as revpar, is a key gauge of a lodging company's performance.
Gentiva Health Services Inc.
Home health care services company Gentiva Health Services Inc. (GTIV) said Thursday its first-quarter profit rose 13% on higher revenue from Medicare and commercial insurance.
The company earned $7.7 million, or 27 cents per share, compared with $6.8 million, or 24 cents per share, during the same period a year prior. Revenue rose 8% to $323.7 million from $299.5 million.
Analysts polled by Thomson Reuters expected profit of 31 cents per share on revenue of $316.2 million.
Medicare revenue rose 6% to $159.7 million during the quarter, while commercial insurance revenue rose 16% to $128.7 million. Revenue from Medicaid fell to $35.4 million.
"While we were pleased with our revenue growth, some of the quarter's events had a short-term, moderating effect on profitability," Chairman and Chief Executive Ron Malone said in a statement.
He called the first quarter a transitional period as the company adapted to a new Medicare payment system and renewed a contract with CareCentrix.
Shares of Gentiva closed at $21.74 Wednesday.
Cbiz Inc.
Cbiz Inc. (CBZ) said Thursday that first-quarter earnings rose 18% as acquisitions boosted revenue.
Cbiz, which provides back office functions such as payroll and benefits services, said net income rose to $16.8 million, or 26 cents per share, from $14.3 million, or 21 cents per share, in the year-ago period.
Analysts expected profit of 26 cents per share on $202.5 million in revenue, according to Thomson Reuters.
Revenue rose 11% to $197.4 million from $178.4 million last year.
Revenue from newly acquired businesses contributed $10 million or 5.6% to revenue growth compared with last year, the company said.
Cbiz said the results put it on track to meet its 2008 financial targets.
Investment Technology Group Inc.
Investment Technology Group Inc.'s (ITG) net income rose 34% on higher foreign revenue and commissions, the provider of electronic trading services said Thursday.
Net income for the three months ended March 31 climbed to $33 million or 75 cents per share, from $24.7 million, or 55 cents per share, in the year-ago period.
The result surpassed estimates on Wall Street, where analysts, on average, expected profit of 70 cents per share, according to a poll by Thomson Reuters.
Revenue added 21% to $204.3 million, from $168.9 million last year. Foreign revenue accounted for $49.9 million of the total, and was 33% higher than a year ago. Commissions jumped 22% to $176.2 million.
Analysts expected revenue of $205.5 million.
Alliant Energy Corp.
Utility operator Alliant Energy Corp. (LNT) said Thursday its first-quarter profit rose 6.6% as colder-than-average winter weather boosted demand for electricity and gas.
For the quarter ended March 31, Alliant earned $68.1 million, or 62 cents per share, compared with $63.9 million, or 55 cents per share, for the same quarter in 2007.
The 2007 quarter included a loss of $1.3 million, or 1 cent per share, from discontinued operations.
Operating revenue rose 8.7% to $992 million from $912.7 million in the year-ago period.
Alliant said profit at its utility business got a boost from higher electric and gas sales in the recent quarter resulting from colder weather, while the year-ago period's results included costs related to winter storms in Interstate Power and Light Co.'s service areas.
Those items were partially offset by the effects of retail fuel cost recoveries at Wisconsin Power and Light Co. and higher transmission-related costs at Interstate Power, the company said.
Revlon Inc.
Cosmetics-maker Revlon Inc. (REV) on Thursday said it narrowed its first-quarter loss, as lower expenses offset a sales decline in the U.S.
Revlon's quarterly loss shrank to $2.5 million, or break-even per share, compared with a loss of $35.2 million, or 7 cents per share, a year earlier. Analysts, on average, predicted a loss of a penny per share, according to a Thomson Reuters poll.
Revlon, which markets Almay cosmetics and Charlie perfume, said revenue fell 3% to $320.4 million from $328.6 million last year. Analysts expected revenue of $320.3 million.
U.S. sales fell 8.3%, while international sales rose 5.8%, helped by a weaker dollar.
New York-based Revlon, controlled by financier Ron Perelman, said the narrower loss was due to lower expenses, as the year-ago period included brand support expenses related to launching Revlon Colorist hair color.
The company said new product launches in fiscal 2008 will lead to sustainable sales growth and will be profitable.
Cigna Corp.
Health insurer Cigna Corp. (CI) posted an 80% drop in first-quarter profits due to softness in its core health care unit and hefty charges in its annuities business.
The Philadelphia-based company earned $58 million, or 21 cents per share, in the quarter, compared with $289 million, or 98 cents, in the quarter a year earlier.
Profits include $195 million, or 69 cents per share, of charges from Cigna's guaranteed minimum income benefits business mainly related to accounting and litigation matters.
Revenue rose 4.4% to $4.6 billion.
Excluding one-time items, Cigna reported adjusted earnings from operations of $265 million, or 94 cents per share, compared with $279 million, also 94 cents due to fewer shares outstanding.
Analysts surveyed by Thomson Reuters expected a slightly higher profit -- 95 cents per share -- but lower revenue, $4.55 billion.
Cigna shares fell 4%, or $1.71, to $41 in premarket trading.
In the quarter, health care profits fell 18% to $138 million after taxes, as higher costs ate into premiums and fees, which rose 1% to $2.7 billion. Expenses included the integration costs for Colorado-based Great-West Healthcare, which Cigna agreed to acquire last year.
Health care membership rose to 10.4 million, including 1.4 million members acquired from Great-West, from 9.8 million a year ago.
Cigna's group disability, life and accident insurance business earned $68 million after taxes, up from $60 million a year earlier. The boost included a $3 million one-time gain related to reserve studies. Premiums and fees were up over 9% to $631 million.
Cigna's insurance to expatriates earned $52 million in the quarter, up 37%. Premiums and fees were $472 million vs. $414 million.
Looking ahead, Cigna forecast full-year adjusted earnings per share of $4.05 to $4.25, compared with analysts' average estimate of $4.25.
Cigna sees health care earnings coming in between $735 million and $775 million, including the Great-West acquisition. Medical membership is expected to rise between 2% and 2.5% organically.
GEO Group Inc.
GEO Group Inc. (GEO), which operates correctional and mental health facilities, said Thursday that first-quarter earnings more than doubled as revenue surged in the company's international services and long-term health care units.
Earnings for the quarter ended March 30 rose to $12.4 million, or 24 cents per share, from $5.3 million, or 12 cents per share, a year ago.
Excluding discontinued operations, startup expenses and other one-time items, earnings totaled $13.6 million, or 26 cents per share, compared with $9 million, or 21 cents per share, in the prior year.
Revenue rose 16% to $275 million, from $237 million in the first quarter of 2007.
Analysts surveyed by Thomson Reuters, who generally exclude discontinued operations and one-time items, forecast first-quarter earnings of 26 cents per share on revenue of $257.9 million.
Geo said U.S. corrections revenue increased 9% to $179.4 million. First-quarter international services revenue jumped 21% to $34.7 million. Revenue for the company's GEO Care unit, which manages mental health hospitals and long-term care facilities, surged 42% to $31.3 million.
Clorox Co.
Household products maker Clorox Co. (CLX) said Thursday its third-quarter profit dropped 23% due to higher commodity costs and charges from restructuring and the acquisition of Burt's Bees.
For the quarter ended March 31, net income fell to $100 million, or 71 cents per share, from $129 million, or 84 cents per share in the prior-year quarter.
Excluding restructuring and acqusition-related charges, the company said it earned 84 cents per share.
Analysts polled by Thomson Reuters expected profit of 75 cents per share.
The company said it was hurt by higher commodity costs, but that price increases helped offset the costs.
Revenue rose 9% to $1.35 billion from $1.24 billion in the third quarter of 2007. Analysts predicted revenue of $1.32 billion.
Sales in North America rose 8% while international sales jumped 14% in the quarter.
The company's sales were helped by the acquisition of Burt's Bees, which makes lip balm and other personal care products.
Cardinal Health Inc.
Cardinal Health Inc. (CAH) said Thursday its fiscal third-quarter profit soared from a year-ago period in which the health care products and services company established a $600 million reserve to settle lawsuits alleging securities law violations.
For the quarter ended March 31, net income rose to $356 million, or $1.02 per share, from $19 million, or 5 cents a share, a year ago. Excluding one-time charges, profit totaled $1.08 per share in the latest period.
Revenue rose 5% to $22.91 billion from $21.87 billion.
Analysts surveyed by Thomson Reuters expected adjusted earnings of $1.01 per share on higher revenue of $23.42 billion.
In the 2007 quarter, the company established a reserve to settle lawsuits brought by investors which accused Cardinal and its officers of violating securities law by manipulating accounting practices and inflating Cardinal's earnings. Federal regulators began investigating the company in October 2003 over its accounting of money it got from vitamin manufacturers. The investigation was expanded to include its core pharmaceutical distribution business.
Cardinal then began an internal investigation, which resulted in the company restating its annual and quarterly financial statements for three years. Some employees were disciplined or fired, and the company's chief financial officer quit in 2004.
In its main wholesale drug distribution business, Cardinal said revenue rose 3% in the latest quarter to $19.9 billion but profit fell 31% to $300 million.
Cardinal said that business has been hurt by contracts with large customers being renegotiated at lower levels. It also cited the expense of measures it is putting in place at its distribution centers after three centers were cited by the federal government for not having effective controls on drugs. In one case, a distribution center in Florida supplied a painkiller to a business accused of dispensing excessive amounts based on illegitimate prescriptions from Internet pharmacies.
Cardinal, based in suburban Columbus, reaffirmed its earnings outlook for the year of $3.75 to $3.85 per share, excluding one-time items. Wall Street is looking for profit of $3.78.
Xcel Energy Inc.
Utility company Xcel Energy Inc. (XEL) said Thursday its first-quarter profit rose 28% as higher electric and natural-gas margins helped offset increased expenses.
Net income available to common shareholders rose to $152.1 million, or 35 cents per share, compared with $118.7 million, or 28 cents per share.
Analysts polled by Thomson Reuters expected, on average, earnings per share of 31 cents.
Among the factors Xcel cited for its profit improvement were higher electric and natural-gas margins, reflecting various rate increases, and "weather-normalized" retail sales growth.
Partially offsetting these positive factors were higher operating, maintenance and depreciation expenses.
Revenue rose to $3.03 billion from $2.76 billion. Analysts expected revenue of $2.84 billion.
Tyco International Ltd.
Tyco International Ltd. (TYC) said Thursday its fiscal second-quarter profit tumbled 67%, as it had substantial profits from now-discontinued operations a year ago.
The diversified manufacturer, which split into three companies last summer, said net income in the quarter ended March 28 fell to $280 million, or 57 cents per share, compared with $835 million, or $1.66 per share, a year earlier.
Tyco said income from continuing operations rose to $273 million, or 56 cents per share. Excluding some charges and a legal settlement, earnings were 67 cents per share, the company said.
Tyco, which is nominally based in Bermuda but has operational headquarters in West Windsor, N.J., reported that revenue climbed 8%, to $4.87 billion from $4.49 billion. Favorable currency exchange rates boosted revenues by about 5%.
Analysts surveyed by Thomson Reuters expected earnings of 57 cents per share, which typically excludes one-time charges, and sales of $4.94 billion.
The company, best known for its ADT home alarm systems, raised its profit forecast for its 2008 fiscal year, to a range of $2.65 to $2.75, from its January forecast of $2.60 to $2.70 per share.
In the second quarter, the ADT World business reported revenues of $1.97 billion, up 4%, while the flow control business, which makes industrial valves and thermal controls, saw revenues jump 17%, to $1.02 billion. Revenues in the electrical and metal products segment rose 13% to $542 million, and revenues increased 5% to $861 million in the fire protection services business.
For the first six months, Tyco reported net income of $643 million, or $1.31 per share, down 60% from $1.63 billion, or $3.23 per share, in the year-ago period. Income from continuing operations totaled $633 million, nearly double the $322 million in the first half of fiscal 2007. Revenues totaled $9.7 billion, up 10% from $8.83 billion.
Last June, the conglomerate split into the current Tyco International, Tyco Electronics Ltd. and health products company Covidien Ltd.
On Wednesday, Tyco agreed to pay New Jersey $73.3 million to resolve state charges of securities fraud involving former management of the diversified manufacturer. The payment will be shared by the three new businesses.
Timberland Co.
Apparel and footwear maker Timberland Co. (TBL) said Thursday its first-quarter profit nearly doubled on a decline in operating expenses and strong European sales growth.
For the three months ended March 28, the company reported income of $18 million, or 30 cents per share, compared with $9.3 million, or 15 cents per share, in the year-ago period.
On an adjusted basis, excluding restructuring and related costs, Timberland reported income of $18.4 million, or 31 cents per share, compared with $13.5 million, or 22 cents per share, in the first quarter of last year.
Analysts polled by Thomson Reuters, on average, estimated earnings of 17 cents per share on sales of $316.3 million. Analyst estimates typically exclude one-time, unusual items.
Revenue rose slightly to $340.4 million from $336.3 million, as European sales growth offset a decline in North American sales.
Total European sales grew 7% to $164.8 million, while North American sales slipped 5% to $137.7 million, on soft consumer spending in both the U.S and Canada. Foreign exchange rate changes increased first-quarter revenue by about $16 million, or 5%, due to the strength of the euro and the British pound, the company said.
Total operating expenses decreased 9% to $134.4 million from $148 million in the prior-year quarter.
Same-store sales grew 1.9% domestically. Global same-store sales rose 5.7% in the quarter.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Shares jumped 81 cents, or 5.6%, to $15.41 in premarket trading.
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