U.S. Stocks Fall; Medtronic Net Soars

Arthi Gupta
24 Aug, 2010
New York City

U.S. stocks declined amidst concerns of economic recovery. AIG repaid $3.95 billion in loans to the Federal Reserve Bank of New York. Trina Solar Ltd second quarter net soared 108%. Big Lots quarterly net soared 37%.

[R]9:35 AM New York – U.S. stocks declined amidst concerns of economic recovery. AIG repaid $3.95 billion in loans to the Federal Reserve Bank of New York. Trina Solar Ltd second quarter net soared 108%. Big Lots quarterly net soared 37%.[/R]

Asian markets declined with the Nikkei index in Japan dropping more than 20% from the peak in April signaling bear market. European markets traded lower on worries of global economic slowdown.

Australian index declined more than 1% as both parties struggle form a minority government after the recent Parliament election.

Intel, Nokia Corp. and the University of Oulu announced the establishment of a joint research center, employing about two dozen R&D professionals and becoming a member of Intel''s European Research Network, Intel Labs Europe.

BP engineers and U.S. government scientists are determining the best way to remove the damaged blowout preventer from the site of the now-plugged oil leak in the Gulf of Mexico.

Retired Coast Guard Admiral Thad Allen told reporters on Monday that several days of ""fishing"" experiments involving sending a remote camera into the device were nearing completion. The goal of the fishing, Allen said, was to determine what remained in the blowout preventer and whether that might impede efforts to remove the device above the ""static kill"" plug that has initially sealed the leak.

The fishing experiments have determined that there are three segments of pipe in the BOP, Allen said. One piece, more than 3,000 feet long, is part of the original drilling pipe that is believed to have fallen into the preventer during the accident.

The other two pieces, he said, are much smaller and are likely the results of earlier efforts to cut through the BOP during earlier efforts to seal the leak.

Allen said that BP has also acknowledged his order to ensure that federal investigators have unfettered access for their observations and that the next stages would be operated with continuous surveillance by television cameras on remotely operated vehicles.

BP said it made claim payments of nearly $400 million during the 16 weeks it managed claims related to the oil spill in the Gulf of Mexico.

American International Group, Inc. repaid $3.95 billion in loans to the Federal Reserve Bank of New York Revolving Credit Facility, reducing its outstanding principal balance to slightly more than $15 billion.

International Lease Finance Corporation, a wholly-owned subsidiary of American International Group Inc. completed the sale of $4.4 billion in secured and unsecured notes. ILFC noted that it used the bulk of the proceeds to repay in full $3.9 billion in loans extended to ILFC by AIG Funding Inc. from the Federal Reserve Bank of New York.

The payment also reduces the size of the Federal Reserve Bank of New York credit line available to AIG from around $34 billion to about $30 billion. In 2008, the U.S. government committed about $180 billion to AIG.

Canada''s Globe & Mail Web site said Potash Corp is in talks with a handful of Chinese firms and other international companies to trump BHP Billiton''s $39 billion hostile bid for the fertilizer giant.

Earnings Review

ACME Communications, Inc. ((ACME.PK)), the owner and operator of six broadcast television stations said second quarter net revenues decreased 0.7% to $6.80 million from $6.85 million in the prior-year quarter. Net loss in the quarter narrowed 24.4% to $0.90 million or 6 cents per diluted share, compared to a net loss of $1.19 million or 7 cents per share in the year-ago quarter.

American Defense Systems, Inc. ((EAG)), the defense and security products company said second quarter revenues decreased 18.5% to $11.4 million from $14.0 million in the prior-year Net loss in the quarter widened 42.3% to $3.7 million or 8 cents per diluted share, compared to a net loss of $2.6 million or 6 cents per share in the year-ago quarter.

American Woodmark Corporation ((AMWD)), the manufacturer and distributor of kitchen cabinets reported first quarter net sales increased 8.4% to $109.30 million from $100.83 million in the comparable period. Net loss in the quarter narrowed 46.6% to $3.42 million or 24 cents per diluted share compared to net loss of $6.41 million or 45 per share last year.

Big Lots, Inc. ((BIG)), the closeout retailer reported second quarter net sales increased 5.1% to $1.142 billion, from $1.087 billion for the same period in fiscal 2009 on comparable store sales rise of 3.8%. Net income in the quarter rose 37% to $38.9 million or 48 cents per diluted share compared to net income of $28.4 million or 34 cents per share for the second quarter of fiscal 2009.

Eastern Light Capital, Incorporated ((ELC)), the real estate investment trust said second quarter revenue slumped 71.3% to $36,767 versus $128,165 a year ago. Net loss in the quarter was $386,298 or $1.10 per share compared to net income of $45,958 or 12 cents per share a year ago.

Medtronic, Inc. ((MDT)), the medical technology company stated first-quarter net sales decreased to 4.1% to $3.77 billion from $3.93 billion in the comparable period. Net earnings in the quarter surged 86.5% to $830 million or 76 cents per diluted share as against net income of $445 million or 40 cents per share last year.

Security National Financial Corp. ((SNFCA)), the holding company operating in three business segments reported second quarter total revenue fell 25% to $43.43 million from $58.01 million a year ago. Net earnings in the quarter plummeted 86% to $419,000 or 5 cents per diluted share, compared to net earnings of $3.1 million or 38 cents per share for the year-ago quarter.

Trina Solar Limited ((TSL)), the integrated solar-power products manufacturer stated second quarter net revenues soared 147.2% to $370.76 million compared with $150.0 million in the comparable period. Net income surged 108% to $38.71 million or 52 cents per ADS compared to net income of $18.6 million or 35 cents per ADS in the prior-year period.