MGT Capital (Amex:MGT) Shares Top $5; NYSE Notifies Company About Unusual Activity

Tomahawk, WI 3/29/2012 (StreetBeat) – MGT Capital Investments, Inc. (Amex: MGT) said today, in a press release, that there have been no material undisclosed developments which would account for the recent increase in the price of its common stock. Shares of MGT topped out at $5.06 in late trading today on fairly heavy volume and then settled back down to its current price of $3.18 per share, which is still a 66 percent gain.

The NYSE Amex notified the Company today about unusual trading activity in its stock, and the NYSE Amex requested the Company to respond by press release to the unusual activity. The Company's general policy is not to comment on market rumors or speculation including unusual market activity and instead urges investors to look to the Company’s filings with the SEC and its official press releases.

MGT is a holding company comprised of MGT, the parent company, and its wholly-owned subsidiary MGT Capital Investments (U.K.) Limited. In addition we also have a controlling interest in our subsidiary, Medicsight Ltd, including its wholly owned subsidiaries.

Medicsight is a medical technology company with operations in medical imaging software development and medical hardware devices. The company provides a computer-aided detection software application that is used to assist radiologists with early detection and measurement of colorectal polyps. The company’s software received a CE Mark in 2009, as well as clearance from the U. S. FDA in May 2011. Medicsight has also developed an automated carbon dioxide medical inflation device and associated disposable tubing (MedicCO 2 LON) that is being commercialized in partnership with a global distributor.

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A Look at Cable TV Earnings Reports

Tallahassee, FL 11/1/11 (StreetBeat) - Comcast Corp (Nasdaq: CMCSA) and Time Warner Inc. (NYSE: TWX) reported stronger quarterly results on Wednesday, confirming that it pays to have a strong lineup of cable networks -- at least while advertisers keep spending.

Against all odds, advertisers continue to scoop up commercial time on television, and cable networks such as Time Warner's TNT or Comcast's USA have been major beneficiaries. Subscription fees have only helped. That point was driven home on Wednesday when Time Warner reported revenue from its cable networks rose 7 percent. Comcast, whose cable business is run through its majority interest in NBC Universal, showed a 12 percent increase.

"As you know, cable networks drive the profitability of NBC Universal and they continue to perform well," said Comcast Chief Executive Brian Roberts, who has staked his reputation on last year's $30 billion deal for NBC Universal. "We are investing in programing to make them even more valuable to customers and distributors."

Comcast's cable network results stand out even more when compared to the performance of its flagship broadcast TV network NBC, whose prime-time schedule has struggled for years. Already NBC has canceled two shows it just rolled out for the new TV season, "Playboy Club" and "Free Agents."

At Time Warner, where CEO Jeff Bewkes wants to cut costs and focus the company squarely on creating content for TV, movies and magazines, advertising sales climbed 6 percent. It cited strong pricing at its Turner networks, home to original shows such as "The Closer," the late-night host Conan O'Brien, news on CNN and sports including baseball and auto racing. Overall, Time Warner reported third quarter income of $822 million, or 78 cents a share, up from $522 million, or 46 cents a share, in the same period a year ago. Adjusted earnings rose a better-than-expected 27 percent to 79 cents a share.

Along with its cable business, the company got a big lift from the latest installment of the Harry Potter movie series. Its stock slipped 1 percent to $33.48, however, on what analysts described as concerns about future growth prospects.

To many observers, the continued strength of national advertising comes as a surprise. Just two years ago, in reaction to the recession, overall U.S. ad spending dropped by percent to $163 billion. Today's stubbornly bad jobs and housing markets -- couple with Europe's debt crisis -- would seem the sort of troubles that would have advertisers once more slashing budgets. Advertisers instead appear to be betting that the best way to jump-start sales is to keep their brands in front of consumers with billboards, digital campaigns and, particularly, TV commercials.

Heading into Wednesday, the economy was a major question facing media companies, particularly Comcast. Not only does Comcast rely on advertising from its TV networks, its chief business of selling broadband, video and telephone services relies heavily on the housing market and consumer confidence.
Overall, it added 229,000 telephone, video and Internet customers. That satisfied Wall Street and calmed worries that arose last week when Time Warner Cable and Cablevision Systems Corp, two rivals, posted disappointing subscriber numbers.

Comcast reported third-quarter net income of $908 million, or 33 cents a share, up from $867 million, or 31 cents a share, in the period a year ago. Shares of Comcast rose 2.2 percent to $23.50.

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Quanta Services Shares Jump 12% on Pipeline Project

Tallahassee, FL 11/1/11 (StreetBeat) -- Quanta Services Inc. (NYSE: PWR) said Wednesday that its third-quarter net income fell 17.2 percent as sales declined in its natural gas and pipeline business.

The Houston energy services company reported net income of $52 million, or 25 cents per share, for the three months ended Sept. 30. That compares with $62.8 million, or 30 cents per share, for the same part of 2010. Revenue increased 3.7 percent to $1.25 billion in the quarter. Excluding acquisition costs and other special items, Quanta said adjusted earnings were 29 cents for the quarter.

The results beat Wall Street forecasts. Analysts, who typically exclude special items, had expected earnings of 25 cents per share on revenue of $1.21 billion, according to FactSet.

The company said revenue grew 54.5 percent in its electric power business, 50.3 percent in its telecommunications business and 1.2 percent in its fiber optic licensing business. Revenues fell 53.1 percent in its natural gas and pipeline business, however, and the segment posted an operating loss of $3.95 million, compared with a profit of $53.1 million in last year's quarter. Quanta said it expects to earn between 32 and 36 cents per share in the final three months of the year on revenue between $1.35 and $1.45 billion.

Separately, Quanta, a contractor for the electrical, natural gas and telecommunications industries, said it was tapped for a joint venture that will build 1,179 miles of pipeline and related infrastructure from Hardisty, Alberta, to Steele City, Neb. The project, known as the TransCanada Keystone XL Pipeline, is headed by TransCanada, which is still awaiting final approval for the pipeline's construction. Quanta said it would hire at least 2,000 construction workers for the project.

Shares of Quanta rose $2.62, or 13.21 percent, to $22.46 in morning trading.

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Peanut Butter Prices Skyrocketing

Tallahassee, FL 11/1/11 (StreetBeat) --Trick-or-treaters might want to hold on to those Reese's Cups this Halloween as sharp increases in peanut butter prices have begun going into effect following one of the worst peanut harvests in decades.

Kraft (NYSE: KFT) will raise prices for its Planters brand peanut butter by 40% starting Monday, while ConAgra (NYSE: CAG) has instituted increases of more than 20% for its Peter Pan brand that went into effect this month. J.M. Smucker (NYSE: SJM), which makes Jif, will introduce price hikes of around 30% starting Tuesday.

Consumers, meanwhile, are already seeing these increases reflected at grocery stores. Maria Brous, a spokeswoman for the Publix chain, said the store had already made slight increases in retail prices and expects them to go higher "as the cost of goods continue[s] to rise". Dick Roberts, a spokesman for Giant Eagle grocery stores, said that "like all retailers," the store is "being affected by industry factors on peanut butter pricing". Chris Brand, a spokesman for Giant food stores, said the "outlook does not look good until next year's crop is harvested and produced". Peanuts usually get harvested in the fall, around September and October.

While spokespeople for several grocery chains declined to provide specific pricing figures, the peanut industry is clearly under pressure this year after one of the worst harvests in recent memory. Prices for a ton of runner peanuts, commonly used to make peanut butter, hit nearly $1,200 this month, according to the U.S. Department of Agriculture. That's up from just $450 per ton a year ago. Overall, the USDA projects that American peanut production will hit 3.6 billion pounds this year, down 13% from last year.

Analysts attribute this drop to the intense heat and drought that hit the southern U.S. this year, as well as to high prices for other crops that led farmers to focus their efforts elsewhere.

Americans spend almost $800 million on peanut butter and consume an average of more than six pounds of peanut products each year, according to The National Peanut Board, a farmer-funded research group.

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Radian Group Inc. (NYSE: RDN) Reports Higher Q3 Profits, Trading +18%

Tallahassee, FL 11/1/11 (StreetBeat) -- U.S. mortgage insurer Radian Group Inc (NYSE: RDN) reported a higher third-quarter profit, as it recorded gains from securities, spent less on claims and set aside less money on loss provisions.

Radian paid $329.9 million in mortgage insurance claims in the quarter, down from $494.2 million a year ago. It expects to pay claims of $400 million in the fourth quarter. The Philadelphia-based company expects to write new mortgage insurance worth more than $5 billion in the fourth quarter as well.

Radian, which competes with MGIC Investment Corp , PMI Group and Genworth Financial , said its risk-to-capital ratio rose to 21.4 to 1 at Sept. 30 from 19.8 to 1 at June 30. The maximum permissible risk-to-capital ratio for mortgage insurers in most states is 25 to 1.

MGIC, Radian, PMI Group, Genworth and Old Republic International Corp insured millions of mortgages during the housing boom. But when the loans went bust, they were left taking large losses, lowering their capital and raising risk ratios. Rival MGIC posted a wider-than-expected quarterly loss in October, hurt by higher defaults, and reported a risk-to-capital ratio that is inching towards the maximum permissible limit. At the end of September, MGIC Investment's combined insurance operations' risk-to-capital ratio was 24 to 1. PMI Group's main unit was seized by Arizona insurance regulators, two months after two of its units were stopped from writing new insurance due to their failure to meet capital requirements.

Radian's July-September profit rose to $183.6 million, or $1.37 per share, from $112.2 million, or 84 cents per share, last year. Third-quarter earnings included a gain from securities of about $206.6 million. New mortgage insurance written by the second largest mortgage insurer in the United States rose to $4.1 billion in the quarter from $3.2 billion a year ago. Radian's provision for losses fell almost 28 percent to $249.6 million from last year.

Radian's shares, which have lost almost three-fourths of their value since the beginning of the year, are currently trading at $2.79, up 18% on the day. They closed at $2.35 on Monday on the New York Stock Exchange.

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Wave Systems Corp. Announces Global Distribution Agreement

Tallahassee, FL 11/1/11 (StreetBeat) -- Wave Systems Corp. (NASDAQ: WAVX) today announced a strategic distribution agreement with Ingram Micro Inc. (NYSE: IM), the world's largest distributor of information technology (IT) solutions. Under the terms of the agreement, Wave's EMBASSY® security software for managing hardware-based data protection and authentication will be available worldwide through Ingram Micro beginning November 1.

"We are thrilled to have the opportunity to work with such an established global leader as Ingram Micro and look forward to offering our management tools for trusted computing around the world," said Brian Berger, Wave's Executive Vice President of Marketing and Sales.

Ingram Micro is the world's largest technology distributor and a leading technology, sales, marketing and logistics company for the IT industry worldwide. As a vital link in the technology value chain, Ingram Micro connects technology solution providers with vendors worldwide, supporting global operations through an extensive sales and distribution network throughout North America, Europe, the Middle East and Africa (EMEA), Latin America and Asia-Pacific. Ingram Micro serves more than 150 countries on six continents and maintains the world's most comprehensive portfolio of IT products and services.

Ingram Micro is authorized to distribute Wave's EMBASSY management software, including EMBASSY Remote Administration Server (ERAS), an enterprise-grade console for the centralized management of endpoint security for data protection and authentication. Wave enables organizations to remotely set up Trusted Platform Modules (TPMs) for strengthening wireless network security and VPN access. Wave's EMBASSY client software also includes functions for managing the pre-boot environment on select OEM platforms.

For data protection, ERAS manages the full lifecycle of self-encrypting drives (SEDs), where encryption is built into the drive itself for better security and minimal impact on performance compared with software encryption. Wave supports commercially available SEDs from Seagate, Hitachi and Toshiba, as well as solid-state versions from Samsung and Micron. Wave also provides Cloud management for self-encrypting drives. For organizations that have not transitioned to hardware-based encryption, Wave for BitLocker® Management facilitates the deployment and activation of Microsoft's native encryption feature on Windows 7 and is included in the same management console as ERAS.

Wave software is available on leading PC OEMs purchased via Ingram Micro.

"This agreement allows us to offer Wave's comprehensive management for data protection and authentication to more IT resellers around the world," said Eric Kohl, Director, Ingram Micro Advanced Technology Division. "Ingram Micro is very excited to offer Wave's robust management tools for embedded hardware security -- SEDs for protecting data and TPMs for strengthening authentication -- to its network of partners and our partners' customers."

Wave counts among its customers the world's largest chemical company, one of the largest automotive manufacturers, healthcare systems, financial institutions and government agencies.

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Archer Daniels Midland Co. Q1 Profit Squeezed By High Corn Costs

Tallahassee, FL 11/1/11 (StreetBeat) --Archer Daniels Midland Co. (NYSE: ADM), the world’s largest grain processor, reports fiscal first-quarter profit that missed analysts’ estimates amid “weak” oilseed- processing margins and tight U.S. corn supplies.

Net income gained 33 percent to $460 million, or 68 cents a share, in the three months ended Sept. 30, from $345 million, or 54 cents, a year earlier. Earnings excluding inventory gains and debt-exchange costs were 58 cents a share, trailing the 66- cent average of 13 estimates compiled by Bloomberg. Sales rose 30 percent to $21.9 billion from $16.8 billion a year earlier. “The first quarter presented a difficult and challenging market environment,” Chief Executive Officer Patricia Woertz said in the statement. “Margin conditions in our global oilseeds segment were generally weak, and net corn costs were high.”

Global corn inventories at the end of the 2011-2012 crop year will drop 5 percent to 123.19 million metric tons, the smallest since 2006-2007, the U.S. Department of Agriculture said Oct. 12. Oilseed margins narrowed amid excess processing capacity and lower soybean-meal demand, according to BMO Capital Markets.

‘Tighter’ Supply
While volumes at the corn-processing unit rose 5 percent, costs more than doubled amid “tighter” global supply, ADM said. Its operating profit, or sales minus the costs of goods sold and administrative expenses, fell 48 percent.
Oilseed-processing operating profit fell 28 percent as a “weak margin environment” for global soybean and European rapeseed crushing offset improvements in the Americas.

The corn processing and oilseed units accounted for 12 percent and 33 percent of ADM’s sales in fiscal 2011 respectively.

The agricultural-services unit, which trades and transports grains and other commodities, posted an 85 percent increase in operating profit as rising exports from the Black Sea region countered lower U.S. shipments. The unit is ADM’s biggest by revenue, generating 47 percent of fiscal 2011 revenue.

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Pfizer Inc. (NYSE: PFE) Reports Q3 Profits

Tallahassee, FL 11/1/11 (StreetBeat) --Pfizer Inc. (NYSE: PFE) reported better-than-expected quarterly results, helped by sales growth of its prescription drugs in emerging markets and its animal health, nutritionals and consumer healthcare products. International revenues, which account for 60% of Pfizer’s sales, also grew by 15% year-on-year, while US sales declined by 3%.

The world's biggest drugmaker said on Tuesday it earned $3.74 billion, or 48 cents per share in the third quarter, including a $1.3 billion after-tax gain on the recent sale of its Capsugel business. That compared with a profit of $866 million, or 11 cents per share, in the year-earlier period, when the company took a big charge for asbestos litigation.

Excluding special items, Pfizer earned 62 cents per share. Analysts on average expected 56 cents per share, according to Thomson Reuters I/B/E/S.
Global revenue rose 7 percent to $17.19 billion, well above Wall Street expectations of $16.42 billion.

“Overall, I am very pleased with our financial performance despite the impact of product losses of exclusivity totalling approximately $950m this quarter and the challenges posed by current global market and economic conditions,” Ian Read, chief executive, said. “Excluding the impact of product losses of exclusivity, all of our businesses generated revenue growth while effectively managing their cost structures.”

Later this month, Pfizer will lose exclusive rights to sell Lipitor, its top-selling cholesterol drug, in the US. Mr Read said the company is “well prepared” for the loss, arguing that Pfizer’s drug pipeline is strong.

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3 Midday Market Losers (Nasdaq: NPSP, DWA) (NYSE: L)

Tallahassee, FL 10/31/11 (StreetBeat) --Nps Pharmaceuticals Inc. (Nasdaq: NPSP), a maker of drugs for gastrointestinal illnesses, plunged as much as 38 percent after saying three people in a clinical trial for its Gattex drug got cancer and two of them died. The shares are currently down $2.67, trading at $5.09 per share.

Shares of DreamWorks Animation SKG (Nasdaq: DWA) fell 10% Monday after the company's latest theatrical film, "Puss In Boots," turned in the worst opening weekend for a DreamWorks movie since "Antz" in 1998. The film earned $34 million at the U.S. box office. Cowen & Co. analyst Doug Creutz wrote to client that the film's underperformance "is further evidence that increasing competition in the animated film space has significantly degraded the domestic box office otential for individual animated films." Creutz, who rates DreamWorks Animation neutral, noted that this is the fifth of the studio's films in a row to open to lackluster business "despite generally positive reviews."

Loews Corp's (NYSE: L) third-quarter earnings surged as its CNA Financial Corp. insurance unit swung to the black. But shares dropped 2.4% as the conglomerate's earnings results fell short of analysts' expectations. It is currently trading at $40.46 per share.

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Panasonic Corp. (NYSE: PC) Forecasts Full Year Net Loss

Tallahassee, FL 10/31/2011 (StreetBeat) --Panasonic Corp. (NYSE: PC) stayed in the red in the latest quarter and projected a huge annual loss due to slumping TV sales and a strong yen. The company, which makes consumer electronics such as Viera TVs and Lumix cameras, on Monday reported a loss of 105.8 billion yen ($1.34 billion) for the July-September quarter. Panasonic now expects a loss of 420 billion yen ($5.3 billion) for the fiscal year through March 2012, down sharply from an earlier projection of a 30 billion yen ($380 million) profit.

Panasonic had slumped to a 30.4 billion yen loss in the April-June quarter, hit by damages and lost sales from the March 11 earthquake and tsunami that devastated Japan's northern coast and killed nearly 20,000 people.
Despite signs of recovery from the disaster, the company faces new challenges, including the global economic slump, slowing demand in emerging markets and the strong yen. Sales were down in flat panel TVs, auto electronics, cellphones as well as electronics parts and components.

Earlier Monday, Japanese authorities intervened in the currency market to weaken the yen against the dollar and ease pressure on Japanese exporters. That caused the dollar to jump nearly 5 percent to above 79 yen after earlier touching a post World War II-low of 75.32 yen -- a level that is excruciating for exporters.

Panasonic said its sales dropped 6 percent to 2.08 trillion yen ($26.3 billion) during the July-September quarter from a year earlier. The company suffered a loss of 136.2 billion yen ($1.72 billion) during the first six months of the business year, compared to 74.7 billion yen profit a year earlier. Its sales fell by 8 percent to 4 trillion yen ($50.6 billion). Overseas sales fell more than those at home, the company said.

The loss for the half-year period was largely due to restructuring of flat-panel TV operations and other efforts related to cost cutting. In April, Panasonic said it would cut 17,000 jobs and close up to 70 plants. Sources have said it will slash plasma TV panel output and drop plans for a solar panel factory and a battery plant expansion in Japan.

Shares of the company closed 2.1 percent lower before the results. They have fallen 31 percent so far this year, compared with a 13 percent decline in the broader market.

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Samsung Takes the #1 Spot in Smart Phone Sales

Tallahassee, FL 10/31/2011 (StreetBeat) -- Samsung Electronics Co. (SSNLF.PK) overtook Apple Inc. (Nasdaq: AAPL) in the third quarter to become the world's largest seller of smartphones, data released Friday by market research firm Strategy Analytics show.

Samsung, the world's largest technology firm by revenue, sold a total of 27.8 million smartphone during the quarter, while Apple shipped 17.1 million. Nokia Corp. (NYSE: NOK) held third place with 16.8 million units.

Samsung's share of the smartphone market rose to 23.8% in the third quarter from 9.3% a year earlier, while Apple's market share fell to 14.6% from 17.4%, the research firm said in a statement. Nokia saw its share fall sharply to 14.4% from 32.7%.

The global smartphone shipments in the third quarter grew 44% on year to reach a record 117 million units, the research firm added.

The report came after Samsung released its third-quarter earning results earlier in the day. Samsung's net profit fell 23% in the third quarter from a year earlier because of weakness at its ailing display unit. But the result was better than expected as strong sales of its smartphones offset weakness in other consumer products and electronic components.

Samsung's telecom division, which accounted for 36% of revenue, provided more than half of the firm's operating profit and posted its best profit margin since 2004.

"After just one quarter in the top spot, Apple slipped behind Samsung to second position and captured 15 percent share. Apple's global smartphone growth rate slowed to just 21 percent annually in Q3 2011, its lowest level for two years," said Neil Mawston, Director at Strategy Analytics.

"We believe Apple's growth during the third quarter was affected by consumers and operators awaiting the launch of the new iPhone 4S in the fourth quarter, volatile economic conditions in several key countries, and tougher competition from Samsung's popular Galaxy S2 model," he added.

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Cablevision Systems (NYSE: CVC) Drops 14% On Earnings Miss

Tallahassee, FL 10/28/11 (PennyPayDay) -- Cablevision Systems Corp's (NYSE: CVC) quarterly earnings widely missed Wall Street estimates as its programming and sales costs rose and it faced competition from phone companies offering TV services. The company’s shares fell more than 11 percent on the profit miss of 14 cents per share.

Cable companies have been losing video customers to phone companies such as Verizon Communications, which offers FiOs TV, satellite providers as well Internet companies such as Netflix Inc. and Hulu. The New York cable operator said it lost 19,000 video subscribers in the third quarter. This was better than some deeper losses analysts were expecting. Analysts on average were expecting losses of 30,000 subscribers, according to StreetAccount data.

"Cablevision's numbers are very weak," said Brean Murray analyst Todd Mitchell. "They are having trouble in their New York clusters."

Verizon competes with Cablevision in the greater New York area and in the same period it added 131,000 video customers. Earlier this month, Verizon said it expects to add 200,000 FiOS TV customers in the fourth-quarter.

Cablevision said its revenue took a hit of $16 million because of Hurricane Irene, a storm that affected the New York area in August.

One bright spot for Cablevision was its Internet additions. Analysts were expecting it to add 5,000 new Internet customers and it added 17,000 in the quarter. Cablevision posted a profit of $39.3 million or 14 cents per share, down from $68.4 million, or 23 cents per share, a year earlier. Adjusted for various charges, the company reported an EPS of 17 cents, which missed analysts' expectations of 31 cents per share.

Cablevision, which is controlled by the Dolan family, saw its total revenue increase 8 percent to $1.67 billion, which was in line with analysts' estimates, according to Thomson-Reuters I/B/E/S.

The company's shares fell 14 percent to $14.72 in morning trading on the New York Stock Exchange.

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3D System's (NYSE:DDD) Q3 Misses, Shares Fall

Tallahassee, FL 10/28/11 (PennyPayDay) -- Three-dimensional printer maker 3D Systems Corp's (NYSE: DDD) third-quarter profit fell short of analyst estimates as higher costs offset strong sales, sending its shares down 9 percent.

The company's net income rose to $7.2 million, or 14 cents per share, from $5.4 million, or 11 cents per share, a year ago.

Revenue rose to $57.5 million from $41.5 million a year ago.

Analysts on average had expected earnings of 16 cents per share on revenue of $57.7 million, according to Thomson Reuters I/B/E/S.
While revenue from the services segment almost doubled, product sales rose 15 percent.

Shares of the company, after falling as much as $17.5 yesterday, are now trading lower at $15.87, down 16% for the day.

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Advanced Micro Devices Inc. (NYSE: AMD) Gains in After-Hours Trading

Tallahassee,FL 10/28/11 (PennyPayDay) -- Shares of Advanced Micro Devices Inc. (NYSE: AMD) jumped in premarket trading Friday after the chip maker's strong quarterly results, and an analyst said it had the opportunity to gain share in the notebook market.

It posted 3Q earnings and revenue growth that beat analyst expectations thanks to increasing demand in China, India and other emerging markets, and demand for its laptop chips. The notebook numbers were the real surprise for the quarter, said Citi Investment Research analyst Glen Yeung in a note to investors. AMD's notebook revenue grew 35 percent growth compared to the second quarter despite recent manufacturing problems, which had led it to cut its outlook last month. Yeung said he was worried that AMD's "mis-execution would cause irreparable damage" to its opportunities in the notebook computer market.

"But AMD made the right strategic decision to aggressively divert resources to (notebooks) and thereby keep the window of opportunity to gain share open," Yeung said. He kept a "Buy" rating on AMD's stock and raised his target price to $8 from $7.

The company said Thursday that it expected fourth-quarter revenue to increase 1 to 5 percent, a range that straddles the average analyst estimate. Shares rose 57 cents, or 10.7 percent, to $5.90 in premarket trading Friday. The stock closed at $5.33 on Thursday before the earnings report. Shares have dropped 35 percent this year.

AMD is the No. 2 maker of microprocessors, the "brains" of computers; making about a fifth of the world's supply.

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Whirlpool Corp (NYSE: WHR) Plans Jobs Cuts, Lowers Forecast

Tallahassee, FL 10/28/11 (PennyPayDay) --Whirlpool Corp (NYSE: WHR), the world's largest maker of household appliances, is responding to "recessionary" demand in major developed markets by cutting jobs and manufacturing capacity, following a similar move by rival AB Electrolux. Whirlpool will cut more than 5,000 positions, about a tenth of its workforce in North America and Europe, close a plant in Arkansas, and reduce its overall manufacturing capacity by about 6 million units.

The maker of Maytag and KitchenAid appliances, which slashed its annual profit forecast and reported weak quarterly results, has been hurt by high material costs and by shoppers cutting back on big-ticket buys such as washing machines and dishwashers. "Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions," Chief Executive Jeff Fettig said in a statement.

Whirlpool, which employs 71,000 staff globally, expects industry demand in North America to fall more than it previously estimated, and it predicted no growth in shipments in Europe, the Middle East and Africa this year. July-September adjusted profit was $2.35 a share, below the average analyst forecast for $2.68 a share, according to Thomson Reuters I/B/E/S. "Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs," Fettig said.

Whirlpool now expects full-year profit of $4.75-$5.25 per share, down from its previous estimate at the low-end of $7.25-$8.25 a share. The company will take a restructuring charge of about $500 million from the next quarter through 2013 related to the cost-cutting moves, which will remove $400 million from annual costs by end-2013.

Whirlpool shares were signaled down around 15 percent in pre-market trade, after closing at an 8-week high of $60.47 in New York on Thursday. Currently, the company is trading down $7.26 or 12% at $53.21.

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McDermott International Inc. (NYSE: MDR) Trading Down 32%

10/27/11 (PennyPayDay) --McDermott International Inc. (NYSE: MDR), which engineers and builds offshore drilling sites, said on Wednesday that its third quarter net income and revenue would be less than expected, and its shares fell 20 percent in aftermarket trading.

The company said it now expects third-quarter earnings per share of 3 cents to 5 cents, with revenue of $870 million to $880 million. Analysts surveyed by FactSet had been expecting a profit of 29 cents per share with revenue of $891.2 million.

McDermott said the lower expectations were prompted by its management's recent operating reviews. It said that about three-quarters of the project losses that led to the shortfall are in its Atlantic segment. It said it is still reviewing the root causes of the charges. The company will report final results after markets close on Nov. 8.

Stephen M. Johnson, the president's chairman, president, and CEO, said the third quarter results "are not indicative of our outlook for the future." Clearly, we are disappointed with the operating and net income expected for the quarter, he said in a written statement.

McDermott shares fell $2.94 to $11.69 in aftermarket trading. Before the news about its third-quarter profits, shares had risen 53 cents, or 3.8 percent, to close at $14.63. Currently, it is trading at $9.88, down 32% for the day.

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Penske Automotive Group (NYSE: PAG) Anticipates 3Q Profts

Tallahassee, FL 10/27/11 (PennyPayDay) --Penske Automotive Group (NYSE: PAG), the second largest automotive retailer in the U.S., appears well positioned to weather the current supply constraints. It has substantial exposure to premium/luxury brands, and the company should also benefit from a recovery in the new-vehicle market. It is prepared to profit from consolidation that has taken place in the franchised dealership industry and resulted in record profit margins as a recovery gains speed.

On Wednesday morning, November 2, the company is scheduled to release its 3Q (September) financial results, followed by a conference call at 2pm ET. Penske expects to report a 21% increase in 3Q EPS from continuing operations on an 8% rise in total revenue. The revenue forecast is based on a 7% expected increase in same-store sales and a top-line contribution of about $125 million from acquisitions consummated during the past year. Although same-store new Japanese vehicle sales are declining by 2% in the 3Q, Penske offsets that with used-vehicles sales for the same vehicles rising by roughly 15%.

The company anticipates that a higher gross margin will more than offset any new-vehicle sales weakness. Inventories of many popular brands are very low, causing most dealerships to exhibit discipline on pricing and advertising spending. Penske looks to take advantage of this fact, and believes its premium/luxury exposure (68% of new-vehicle sales) should cushion the company from supply constraints. Consequently, it projects a 26 base point gross margin increase in 3Q, with significant improvements both in new and used vehicle margins.

Key components of Penske's operations, most notably the sale of new vehicles, are vulnerable to the strength and weakness of the economy, both national and regional, as well as credit market conditions. The purchase of a car, even a used vehicle, is a big-ticket item that prompts most buyers to finance much of the purchase price. Penske remains encouraged that there appears to be healthy underlying demand for new vehicles that should result in improving sales momentum in 2012. Despite the weak economy, tight supply, and volatile financial markets, the company is happy to ‘settle’ with a $13 million annual sales rate.

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Lockheed Martin (NYSE: LMT) 3Q profits up 5%

Tallahassee, FL 10/26/11 (PennyPayDay) -- Lockheed Martin Corp (NYSE:LMT), the world's biggest defense contractor, reported that quarterly profit rose along with sales, and it raised its full-year forecast.

Net income came to $700 million, or $2.10 a share, for the third quarter, compared with $560 million, or $1.54 a share, a year earlier. Quarterly revenue rose nearly 7 percent to $12.1 billion, compared with $11.74 billion expected by analysts.

Lockheed said its third quarter was boosted by its aeronautics division, where revenue rose 21 percent to $4 billion, from $3.3 billion last year. Operating income in the division rose 15 percent to $447 during the quarter.

The better-than-expected quarter prompted Lockheed to raise its outlook for the year, toward the high end or above what most analysts expected. The company raised its earnings forecast for the year to a range between $7.40 and $7.60 per share, from between $7.35 and $7.55 per share. Analysts had expected full-year net income of $7.52 per share.

Lockheed, developer of the F-35 Joint Strike Fighter, F-16 fighter jet and C-130J military transport plane, is cutting jobs and holding down discretionary expenses as U.S. defense spending comes under pressure. It’s aimed its development at high-tech weapons products and has courted foreign business and the health-care sector as Pentagon spending loses steam. The company said it expected flat sales for 2012, assuming the U.S. defense budget is approved in a timely manner with funding at levels consistent with President Barack Obama's proposed budget.

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