GM Posts Wider Q3 Loss

Elena
17 Oct, 2005
New York City

Asian-Pacific markets finished down on banking shares decline, with the Nikkei down 0.2% and Seoul's Kospi down 1.2%. European stocks were steady at mid-day. Citigroup posted 35% Q3 earnings rise of $1.38 per share on higher revenue. Commerce Bancorp released Q3 13%earnings growth of 45 cents a share, meeting estimates. GM posted wider Q3 loss of $1.92 a share, missing estimates of a loss of 87 cents.

U.S. MARKET AVERAGES

U.S. stock futures point to a flat market opening on Monday. The earlier declines, which resulted from rising crude oil prices, were offset by news that Dow component General Motors Corp. had reached a tentative agreement with the United Auto Workers union to cut health-care costs.

After falling sharply earlier, S&P 500 futures were down 0.5 point, slightly below their fair value. Dow Jones industrial average futures were down 5 points, while Nasdaq 100 futures were up 2 points

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed largely in the negative territory on a fourth-day decline in bank shares as Prime Minister Junichiro Koizumi’s controversial visit to a shrine, provoked criticism from neighboring countries, causing concerns over the successful completion of the economic reforms. The Nikkei lost 0.2%, South Korea’s Kospi shed 1.2%, while Taiwan’s Taipei’s Weighted Index was the biggest loser, down 2.4%, dragged by tech stocks, hurt by the disappointing fourth-quarter earnings.

European markets traded steadily at mid-day. Rising crude oil prices lifted energy stocks, such as BP, Royal Dutch Shell, and Total, but sent down auto-sector stocks like Daimler Chrysler and Peugeot. The market sentiment was also supported by a strong earnings report from Philips Electronics. The German DAX 30 lost 0.1%, the French CAC 40 added 0.1%, and London’s FTSE 100 traded flat.

ENERGY, METALS, CURRENCIES

Oil prices moved up as anther topical storm, called Wilma, gathered strength in the Caribbean, threatening to hit the vulnerable oil platforms and refineries in the Gulf of Mexico.. Light sweet crude for November delivery rose $1.42 to $64.05 a barrel on the Nymex. London Brent gained $1.48 to $60.96.

In European trading gold prices advanced. In London gold December contract traded at the recommended price of $472.35 per troy ounce, up from $466.70. In Hong Kong gold gained $1.70 to close at $472.4. Silver opened at $7.80, up from $7.762

In European trading the U.S. dollar traded higher against most of its major counterparts. The euro was quoted at $1.12037, down from $1.2092. The dollar changed hands at 114.60 yen, up from 113.92. The British pound was trading at $1.7593, down from $1.7689.

EARNINGS NEWS

General Motors ((GM)) reported a Q3 loss of $1.92 per share, down vs. a profit of $0.56 per share in the year-ago period despite 5 % revenue growth, missing analyst estimate of a loss of 87 cents a share. The company also stated that it is searching for options to further enhance the liquidity position of General Motors Acceptance Corp., its financing unit.

Commerce Bancorp Inc. ((CBH)), banking services company, reported a Q3 net income of 45 cents a share, 13% up from 42 cents a share in the year-earlier period, matching analyst estimate of 45 cents a share.

Citigroup Inc (C), financial services company, posted that Q3 earnings advanced 34.6% to $1.38 a share on 14.7% revenue growth up boosted by a 34.6% rise in corporate and investment banking revenue. Earnings from continuing operations of 97 cents a share missed expectations for 99 cents despite that the revenue figure topped forecasts of $20.5 billion.

Eaton Corporation ((ETN)), diversified industrial manufacturer, reported Q3 net income of $1.30 per share, a rise of 19 %, compared with net income of $1.09 per share in the same time last year on 10% sales growth. Net income in both periods incorporated charges for restructuring activities related to the integration of acquisitions. Before these restructuring charges, Q3 operating earnings per share were $1.33, an 18% rise compared with $1.13 per share in the year-ago period.

Hasbro Inc. ((HAS)), toymaker, reported Q3 earnings of 47 cents per share, up 4 % from 43 cents per share in the year-ago period on 4 % revenue growth, boosted by strong sales of games and 'Star Wars'products, though the company missed analysts’ forecasts of earnings of 51 cents per share. The year-ago results were restated in view of the adoption of new accounting rules.

Wachovia Corp. ((WB)), banking and retail brokerage firm, reported Q3 net income of $1.06 per share, up from 96 cents in the year-earlier period on 19% revenue growth and an increase in consumer banking and its other segments. Excluding merger-related charges, earnings reached $1.09 per share. The company's adjusted profit beat the analyst estimate of $1.07 per share.