Federated's Income up Fivefold

Elena
09 Nov, 2005
New York City

Asian-Pacific markets closed mixed with the Nikkei up 0.3%, supported by tech stocks. Hong Kong was the biggest gainer, up 1.4%. European stocks turned lower at mid-day, dragged by telecom stocks. Pharmaceutical company Bayer released strong quarterly eranings of 493 miillion euros compared with 52 million a year ago on 19% revenue growth, beating estimates of 291 million.

U.S. MARKET AVERAGES

U.S. stock futures point to a flat or slightly higher opening on Wednesday, ready to continue consolidating gains. Oil prices edged lower ahead of key U.S. inventory data, expected to show an increase in crude and fuel stocks.

Pixar Animation Studios Inc. ((PIXR)) reported Tuesday a rise in quarterly profit and revenue above Wall Street expectations. Its shares jumped 9.7% after hours on the Inet the electronic brokerage system after ending

American International Group Inc. ((AIG)), the world''s largest insurer by market value, said it will delay the release of its third-quarter results until November 14, giving it time to correct errors.

Internet equipment company Cisco Systems Inc. ((CSCO)) is due to release its first-quarter results after the close.

S&P 500 futures (SPZ5) were up 0.2 point, slightly above their fair value. Dow Jones industrial average futures were up 2 points, while Nasdaq 100 futures were up 2.5 points.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended mixed. The Nikkei advanced 0.3% on tech stocks after three sessions of decline. The tech sector got a boost from news that Samsung Corp. would spend $45 billion on research and development in the following 5 years. Across the region, Hong Kong’s Hang Seng was the biggest gainer, up 1.4%. South Korea’s Kospi inched up 0.1%, while Australia’s All Ordinaries fell 0.6%.

European markets traded mostly lower at mid-day, hurt by weaker telecom sector with Deutshe Teliecom posting losses on earnings news and France Telecom down on takeover speculations. Solid earnings from chemicals companies, including Bayer AG, only cushioned declines. The German SAX 30 inched up 0.03%, the French CAC 40 lost 0.3%, and London’s FTSE shed 0.2%.

OIL, METALS, CURRENCIES

Crude oil prices eased back ahead of oil inventory report, expected to show an inventories increase. Light sweet crude December delivery fell 21 cents to $59.50 a barrel on the Nymex. Heating oil lost a penny to trade at $1.7647 a gallon. Gasoline slightly fell to $1.5562. Natural gas traded steady at $11.801 per 1,000 cubic feet. London Brent rose 15 cents to $57.96.

Gold prices climbed in European trading. In London the precious metal was fixed at $462.60, up from $461.30. In Zurich gold rose to $462.85 from $460.30. In Hong Kong gold gained $4.90 to close at $462.25. Silver traded at $7.61, down from $7.462.

The U.S. dollar advanced against all major currencies. The euro was quoted at $1.1755, down from $1.1785. The dollar bought 117.54 yen, up from 117.12. The British pound traded at $1.7376, down from $1.7434.

EARNINGS NEWS

Bayer ((BAY)), pharmaceutical company, reported that Q3 net income soared to 493 million euros from 52 million euros in the same period last year on 19.1% revenue growth euros, topping analysts’ forecasts of 291 million euros. The company raised earnings expectations for the second time this year in view of its net income growth and with EBIT before special items doubling to 691 million euros. If not for special gains of 179 million euros, mostly from pension plan changes, Bayer stated that its healthcare and material science divisions had the biggest earnings contribution.

Steris Corp. ((STE)), medical products maker, announced Q2 net income dropped 13.1% to 24 cents a share on higher raw material costs and fuel prices and despite 7.4% revenue growth The company expects earnings between $1.30 and $1.34 a share on a 6% to 8% revenue rise for the fiscal year.

[Foster Wheeler ((FWLT)), fuels facilities designer, posted a Q3 loss of 35 cents a share, up vs. a loss of $103.23 a share in the same period a year ago despite revenue decline. The results include a $40.2 million accounting charge. Unfilled orders advanced to $3.07 billion from $1.81 billion while new orders booked increased to $942.2 million from $280.6 million.

Mills Corp ((MLS)), real estate investment trust, reported a Q3 loss of 61 cents a share, down from a year-agonet income of 95 cents a share. The company’s funds from operations per share for Q3 were 45 cents a share, down vs. 97 cents a year before, missing on that basis analyst estimate of $1.06 a share.

King Pharmaceuticals, Inc. ((KG)), pharmaceutical products manufacturer, reported that it reversed to a Q3 profit of 50 cents a share, up from a loss of 3 cents a share in the same period last year on 31% revenue growth. If not for one-time items, the company’s earnings would have been 52 cents a share, up from 34 cents a share in the year-earlier quarter, topping analyst forecast for earnings of 33 cents a share.