3M Profit Soars 58%

Elena
30 Jan, 2007
New York City

The company said its profit increased to $1.18 billion, or $1.57 a share, from $746 million, or 97 cents a share, earned a year ago. The latest quarter''s per-share figure includes 47 cents on the sale of its pharmaceutical unit. 3M

[R]8:00AM 3M Co. reported soaring Q4 profit.[/R]
3M Inc. ((MMM)), maker of industrial adhesives, said its Q4 net income soared 58%, including a $354 million gain from selling its pharmaceutical business. The company said its profit increased to $1.18 billion, or $1.57 a share, from $746 million, or 97 cents a share, earned a year ago. The latest quarter''s per-share figure includes 47 cents on the sale of the unit. Sales rose 9% to $5.78 billion. 3M’s quarterly results exceeded analyst expectations of earnings of $1.14 a share on revenue of $5.76 billion, on average. The company projected 2007 earnings in the range of $5.20 and $5.45 a share, or between $4.60 and $4.75 on an adjusted basis. The 2007 adjusted forecast includes 21 cents to reflect stock-option expenses. The average analyst forecast stands at $4.99 a share for 2007.


[R]7:30AM Asian markets advance Tuesday with exporters leading gainers.[/R]
Asian markets mostly advanced on Tuesday. Japanese Nikkei Index ended 0.1% higher at 17,490. Japan Airlines rose 1.2%. Semiconductor companies and auto stocks enjoyed a good run, as Kyocera advanced 1.6% and Honda Motor moved up 1.5%. Sony closed 1.7% lower, though. After the closing bell, the company announced on Tuesday its group net profit declined 5.3% in October-December from a year earlier, on losses at its games division.

The Hong Kong Hang Seng Index advanced 1.1% to 20,460. China Travel International Investment soared 22% after JPMorgan issued an upbeat report on the stock, and Property developer Cheuk Nang Holdings surged 28% ahead of book closing on Thursday on a bonus warrant issue. The Shanghai Composite Index, however, lost 0.5% to 2,931. Property firms pulled the stock market lower on concerns there will be more government moves to restrict growth in the sector. China Merchants Property Development dipped by the daily 10% limit and Poly Real Estate Group shed 8.3%.

South Korean Kospi Index advanced 0.6% to 1,371. Hyundai Marine & Fire Insurance gained 4.8%, while Samsung Fire & Marine Insurance added 2.2% ahead of its Q3 results. Korea Exchange Bank gained 2.1% ahead of Q4 earnings due in February. Australian S&P/ASX 200 ended 0.9% higher at 5,813. Takeover activity continued to aid the market, with Veda Advantage and Symbion Health being the latest targets. Veda Advantage advanced 18% after receiving a takeover approach from a private equity consortium, and Symbion Healthcare soared 10% on news of a takeover approach from Primary Health Care.


[R]6:30AM Europe was lower on Tuesday on losses in banks and telecoms.[/R]
European markets declined on Tuesday. In early trade, the FTSE 100 in London shed 0.3% to 6,2238, Frankfurt Xetra Dax was little changed at 6,724.37, and the CAC 40 in Paris fell 0.2% to 5,609.54.

Advancers

Air France-KLM, which has cross-shareholdings with Alitalia, gained 3.6% after it said the conditions were not right for a bid. Lufthansa, which on Monday was upgraded by JPMorgan, gained 1.4%, and budget carrier Ryanair added 1.4%. Alitalia jumped 3.3% after receiving 11 expressions of interest. The deadline for first-round offers ended yesterday.

Decliners

The worst performing sectors were basic resources like oil groups and mining stocks as prices fell on commodity markets. Norway Statoil fell 1.2 %, while Austrian OMV lost 0.5% and Italian Eni lost 0.4%. London-listed mining stocks added to the losses as metals prices fell. Kazakhmys lost 2.4%. Steelmakers were also lower, with French steel pipe maker Vallourec off 1.2%, and German ThyssenKrupp down 0.6%.

Oil and gold

Crude oil for March delivery rose 40 cents, or 0.7%, to $54.41 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract traded at $54.27 in early trade in London. Brent crude for March gained 47 cents, or 0.9%, to $54.15 a barrel in electronic trading on the ICE Futures exchange and last traded at $53.98 in London.

Gold for immediate delivery in London fell $2.40, or 0.4%, to $641.30 an ounce, and traded $642.50 in early trade.

Currencies

The 13-nation euro rose slightly against the U.S. dollar Tuesday ahead of a meeting of the U.S. Federal Reserve that could set the tone for future interest rate hikes. In morning European trading, the euro bought $1.2960, compared with $1.2956 late Monday in New York. The British pound rose to $1.9675 from $1.9595, while the dollar fell to 121.92 Japanese yen from 121.94 yen.