Baidu Profit Fivefold Higher

Elena
15 Feb, 2007
New York City

China''''s leading Internet search engine reported earnings rise of 122.8 million yuan ($15.7 million), or 3.54 yuan (45 cents) per American Depositary Share, from 24.5 million yuan, or 0.71 yuan per ADS a year ago. The quarterly profit exceeded estimates for earnings of 32 cents per ADS.

[R]8:00 AM Baidu said its Q4 earnings rose fivefold.[/R]
China''s leading Internet search engine, Baidu.com Inc. ((BIDU)), said that its Q4 net income increased fivefold, as online marketing revenue more than doubled. Baidu reported earnings rise of 122.8 million yuan ($15.7 million), or 3.54 yuan (45 cents) per American Depositary Share, from 24.5 million yuan, or 0.71 yuan per ADS a year ago. The quarterly profit exceeded estimates for earnings of 32 cents per ADS. Baidu''s Q4 revenue more than doubled to 271.3 million yuan ($34.8 million), up from 114.9 million yuan last year. Online marketing revenue more than doubled to 269.9 million yuan ($34.6 million).

The company released first-quarter revenue forecast that fell short of analyst estimates. The company said it expects Q1 revenue between 265 million yuan ($34 million) and 275 million yuan ($35 million), while analysts project revenue of $38.9 million. Baidu, which holds more than 60% of the Chinese Internet search market, plans to spend $15 million in 2007 on its expansion into Japan.


[R]6:30AM European markets dipped on Thursday on weakness in the banking stocks.[/R]
European markets were lower on Thursday. . By mid morning, Frankfurt Xetra Dax added 0.1% to 6,964.2, the CAC 40 in Paris fell 0.1% to 5,722.8 and London FTSE 100 shed 0.2% to 6,409.1.

Advancers

DaimlerChrysler, German carmaker, advanced 5.3% after the board of the company on Wednesday proposed a restructuring of the ailing US Chrysler unit. The company also stated that all options were on the table, raising the possibility of a full or partial sale of the division, or a spin off.

Michelin, French tyre maker, added 6% as it targeted between 1.5 billion euros and 1.7 billion euros in cost reductions in the period to 2010 as it struggled with the violent impact of raw materials prices.

Reed Elsevier, Anglo-Dutch publishing group, said it about to sell its underperforming education arm after posting full-year pre-tax profit that missed expectations. The company announced that the sale would result in a more cohesive and predictable business that would generate earnings per share growth of around 10% a year. The shares gained 6%.

Luxury goods group LVMH gained 4.2 % after releasing record full year profits, despite the negative impact of a strong euro, and said it expected further growth in 2007 so long as foreign exchange conditions did not deteriorate. Christian Dior, which owns around 42% of LVMH, also reported strong 2006 results. Its shares gained 4.4%.

Swiss bank Credit Suisse gained 3.6% after posting record Q4 profits that easily topped market forecasts, thanks to a 130 % rise in trading revenues.

Decliners

Banks retreated on concerns over the French retail banking division of BNP Paribas. The bank tooped forecasts with its Q4 net profit, although operating profit was a little weaker than expected due to unforseen costs related to its takeover of Italy’s BNL last year. BNP Paribas fell 3.4%.

Société Générale, which declined in the previous session as similar concerns were raised after it posted full-year results, was down 1.8 %. Credit Agricole shed 2.6%.

Oil and gold

Oil inched above $58 a barrel on Thursday in volatile trade that has trapped prices in a narrow range. U.S. crude for March delivery was 29 cents higher at $58.29 a barrel in early trade in London. Brent crude for April was up 34 cents at $57.77. Gold for immediate delivery was little changed, up 52 cents, or 0.1% at $669.55 an ounce in early trading in London.

Currencies

The euro bought $1.3137 in morning European trading, up slightly from $1.3128 in New York late Wednesday. The British pound rose to $1.9663 from $1.9625. The dollar fell to 120.17 yen from 120.78 yen.