Exxon Mobil Profit up 36%

Elena
27 Jul, 2006
New York City

U.S. stock futures pointed to a higher opening, boosted by optimism about second-quarter earnings. Exxon Mobil posted Q2 profit jump of 36% to $10.36 billion, the second largest quarterly profit ever recorded by a publicly traded U.S. company. Earnings rose to $1.72 per share vs. $1.20 per share last year, beating estimates of $1.64 per share. DaimlerChrysler posted Q2 profit of 1.81 billion euros, compared to 737 million euros in 2005.

[R]9:00AM Stock futures pointed to a higher opening[/R]
U.S. stock futures pointed to a higher market opening, boosted by optimism about second-quarter earnings, despite some high-profile disappointments. Positive sentiment was generated by better-than-expected quarterly results, with Dow component ExxonMobil ((XOM)) among the companies that exceeded analyst estimates. The oil giant reported Q2 net income jump of 36% to $10.36 billion, the second largest quarterly profit ever recorded by a publicly traded U.S. company. The company said that the profit growth reflected higher crude oil and natural gas prices. Drug maker Bristol-Myers Squibb ((BMY)) also reported Q2 earnings that came in above analyst estimates. The company said net sales fell to $4.87 billion but beat analyst estimates of $4.76 billion.

DaimlerChrysler ((DCX)) announced Q2 profit more than doubled due to an improvement at its Mercedes unit. The German-U.S. automaker earned 1.81 billion euros, compared to 737 million euros in 2005. Boston Scientific ((BSX)) swung to Q2 loss on costs related to its recent $27 billion acquisition of Guidant Corp. The company reported a loss of $3.21 per share vs. a profit of 24 cents per share a year ago. S&P 500 futures were up 5.6 points, above fair value. Dow Jones industrial average futures rose 46 points, and Nasdaq 100 futures gained 9.75 points.

ExxonMobil ((XOM)), oil company, reported Q2 net income jump of 36% on 12% revenue growth, the second largest quarterly profit ever recorded by a publicly traded U.S. company. The oil giant reported profit rise to $10.36 billion, or $1.72 per share compared to $7.64 billion or $1.20 per share last year, beating estimates of $1.64 per share.

Cummins Inc. ((CMI)), engine maker, said that its second-quarter net income increased to $220 million, or $4.38 a share, from $141 million, or $2.83 a share, a year ago. Sales grew 14% in the quarter to $2.84 billion from $2.49 billion last year. The company said it sees third quarter earnings in the range of $3.35 to $3.45 a share and raised its fiscal 2006 outlook to $14 to $14.20 a share, up from the earlier issued guidance of $12.40 to $12.60 a share.

AutoNation ((AN)), auto retailer, said it earned $72.7 million, or 32 cents a share, in the second quarter, down from $194.8 million, or 73 cents a share a year ago. Earnings from continuing operations dropped to 33 cents a share from 40 cents. Revenue dipped to $5.01 billion from $4.94 billion.

Teledyne Technoloies Inc. ((TDY)) posted second-quarter net income of $20.9 million, or 59 cents a share, up from $16.1 million, or 47 cents a share a year ago due to favorable business mix. Sales climbed to $348.1 million from $303.3 million last year.

Jarden Corp. ((JAH)), consumer products maker, said that its second-quarter earnings advanced to $13.3 million or 20 cents a share, from $5.7 million, or 12 cents a share, a year ago. Excluding non-recurring items, earnings would have risen to 60 cents a share from 58 cents a share last year. Revenue climbed to $962 million from prior-year''s $754.4 million.

Bowater Inc. ((BOW)), newsprint producer, said that its second-quarter loss expanded to $10.6 million or 18 cents a share, from $3.6 million, or 6 cents a share, a year ago. Sales increased fractionally in the quarter to $899.4 million vs. $897.5 million last year. After a loss related to sale of assets, a tax adjustment and foreign exchange gain, adjusted quarterly income would have totaled 31 cents a share.

Coca-Cola Enterprises ((CCE)) said second-quarter net income rose 1.8% to $339 million, or 71 cents a share, from $333 million, or 70 cents a share a year ago. Revenue jumped 6% to $5.5 billion. Earnings per share totaled 57 cents after adjustments. The bottling company expects full-year earnings in the range of $1.27 to $1.32 a share, excluding restructuring costs and favorable tax items.

Ethan Allen Interiors Inc. ((ETH)), home furnishings retailer, said fiscal fourth-quarter income increased to $22.4 million, or 66 cents a share, from $19.5 million, or 56 cents, a year earlier. Sales for the quarter climbed to $272 million from $242.3 million last year. For fiscal 2007 the company expects earnings per share to grow in the range of 10% to 12%.

Southern Co. ((SO)) said that its second-quarter net income fell to $385.2 million, or 52 cents a share, from $386.8 million, or 52 cents, a year ago. Revenue advanced 15% to $3.59 billion from $3.12 billion reported in the prior-year comparable period.


[R]8:00AM Oil prices slightly advanced.[/R]
Crude oil prices slightly advanced Thursday, with traders keeping an eye on Middle East developments. Light, sweet crude for September delivery rose 14 cents to $74.08 a barrel in electronic trading on the Nymex, after closing slightly higher after U.S. government data showed a large drop in gasoline supplies. September Brent on London''s ICE Futures exchange gained 10 cents to $74.10 a barrel. In other Nymex trading Thursday, gasoline futures fell 0.72 cents to $2.2890 a gallon and natural gas futures were up 10.4 cents to $6.991 per 1,000 cubic feet. Heating oil futures rose slightly to $1.96 a gallon.

In its weekly petroleum report Wednesday, the U.S. Energy Department said summer gasoline demand in the U.S. was almost 2% higher than last year despite $3-a-gallon pump prices. Gasoline inventories fell last week by 3.2 million barrels to 211 million barrels, just 500,000 barrels more than last year. Over the past four weeks, average U.S. gasoline demand was 9.6 million barrels a day, or 1.8% higher than last year.

Prices have fluctuated rather mildly this week as traders watched to see whether the violence would affect other countries in the oil-rich market. Oil prices hit a record $78.40 high on July 14, two days after fighting broke out between Israel and Hezbollah militants in Lebanon, on fears that the violence would escalate into a regional war and disrupt supplies, particularly from Iran.