BHP Hikes Dividend, Lowe's Net Falls 8%

123jump.com Staff
18 Aug, 2008
New York City

U.S. stocks opened higher tracking fractional gains in the European markets. Markets in overnight trading in Asia closed mixed with Japan index trading up 1% but index in Hong Kong fell more than 1%. In the UK trading, commodities and energy stocks traded higher with a slight pick up in crude oil and metals prices. BHP Billiton increased its dividend by 49% after it reported annual earnings rise of 15% and revenue gain of 25%. Lowes, home improvement

[R]9:25AM New York – U.S. stocks edged higher tracking gains in the European markets.[/R]

U.S. stock market indexes inched higher in the pre-market trading as European markets gain by mid-day trading.

Lowe’s Earnings Decline 8%

The second largest home-improvement retailer Lowe’s Companies, Inc. ((LOW)) net sales rose 2.4% from a year ago to $14.5 billion and net income decreased 8% to $938 million or 64 cents a share from 67cents a share. The company estimated earnings in the third quarter to be between 27 cents a share and 31 cents a share.

The retailer guided same store sales decline between 5% and 7% in the third quarter and plans to open 38 new stores or increase sales square footage by 10%. For the year the company expects sales to rise 1% and comparable sales to decline between 6% and 7%.

BHP Hikes Dividend 49%

BHP Billiton jumped 2% in the UK trading after it reported second half profit to increase 30% on a sustained rise in demand from China. The mining giant increased its full-year to dividend by 49% to 70 cents a share. For the fiscal year ending in June 30 revenues rose 25% to 59.4 billion and earnings increased 14.8% to $15.4 billion.

Operating cash flow in the quarter rose 14% to $18.2 billion and return on capital employed surged to 37.5% despite a record capital investment. In the last three years the dividend has increased 150%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 146.04 or 1.12% to 13,165.45, Hang Seng index in Hong Kong decreased 229.91 or 1.09% closed to 20,930.67. ASX 200 index in Australia increased 3.30 or 0.07% to close 4,985.00. The KL Composite index in Malaysia decreased 10.69 or 0.98% closed to 1,084.36.

The Kospi Index in South Korea decreased 4.48 or 0.28% to close at 1,567.71, SET index in Thailand closed lower 10.25 or 1.45% to 697.23 The Sensex index in India decreased 78.52 or 0.53% closed to 14,645.66. Markets of Indonesia were closed today.

Europe Markets Review

In London FTSE 100 Index traded higher 2.90 or 0.05% to 5,457.70, in Paris CAC 40 Index increased 23.46 or 0.53% to 4,477.08 and in Frankfurt DAX index traded higher 15.14 or 0.23% to 6,461.16. In Zurich trading SMI increased 29.22 or 0.40% to 7,265.15.

Musharraf Forced to Resign

Former dictator of Pakistan Pervez Musharraf who installed himself as President and generally acted as a puppet of the United States was forced to resign from his position to avoid impeachment. The recently elected coalition government was preparing charges for firing judges. Musharraf, 65 years old came to power by overthrowing democratically elected Nawaz Sharif in 1999 and installed military in power.

Musharraf is widely reviled in Pakistan for siding with the U.S. and carrying out attacks in the North West Frontier of Pakistan and is seen as acting in the foreign interest and not in the interest of people of Pakistan. The nine year reign of the dictator produced economic progress in the first five years as the U.S. pumped $10 billion in ‘aid’ to the country that was nothing but the payment for Musharraf’s readiness to use Pakistan military to fight Afghan terrorist.