Maytag Extends Losses

Elena
03 Feb, 2006
New York City

Asian-Pacific benchmarks ended mostly down, led by South Korean Kospi with a steep drop of 3%. The Nikkei lost 0.3%, while heavy-tech Taiwan''''s Weighted index rose 0.96% resuming rade after the extended holiday. European shares gained at mid-day with the Geman DAX 30% rising 0.5%. Maytag posted wider Q4 net loss of 93 cents a share, despite 7% sales growth, missing estimates. Moody reported 22% income rise in Q4 on 21% revenue growth.

U.S. MARKET AVERAGES

U.S. stock futures gained ground, predicting higher start of Friday trading session ahead of key payrolls data, expected to show a job growth rebound after December’s decline.

On Thursday stock markets ended lower on disappointing productivity data and disappointing quarterly news from Tyco and Comcast Corp.

At 8:30 am ET, the government will release its employment report for January, with economists expecting a payroll increase of 275,000. There's also non-manufacturing data from the Institute for Supply Management with the index seen falling to 59.7 from 61.0.

On the earnings front, Amazon.com Inc. dropped 9% in Frankfurt after its 17% quarterly sales rise came in below consensus expectations.

Electronic Arts Inc., video-games maker, reported a 31% profit fall that came in below already-lowered forecasts and guided toward a loss in the fiscal fourth quarter. But the stock may not necessarily see pressure on Friday as it's already down 25 percent from its 52-week peak.

Dow Jones futures were recently up 13 points, S&P 500 futures rose 1.9 points and Nasdaq 100 futures added 4 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks closed largely in the red with tech shares in the spotlight after positive earnings news from electronics giant Matsushita and resumed post-holiday trading in tech-heavy Taiwan. Taiwan’s Weighted index surged 0.96%, shrugging off U.S. markets losses. The most notable decliner was South Korea’s Kospi ending deeply down 3%. The Japanese Nikkei lost 0.3% hurt by weak major consumer electronics shares, following recent gains.

European stocks traded in the positive territory at mid-day dealings, reflecting lower oil prices, mixed corporate news from Volvo Group and British Airways and expectations of U.S. payrolls data. The German DAX 30 rose 0.5%, the French CAC 40 gained 0.2%, and London’s FTSE 100 added 0.1%.

OIL, METALS, CURRENCIES

Crude oil advanced as market kept watch over IAEA which was to decide whether to refer Iran to the UN Security Council over its nuclear program. Light sweet crude for March delivery gained 27 cents to $64.95 a barrel. Heating oil edged up a cent to $1.7825 a gallon, while gasoline inched up to $1.6730. Natural gas added 1 cent to $8.360 per 1,000 cubic feet. London Brent rose 24 cents to $63.12.

European gold traded mixed. In London gold traded at the fixed price of $571.85 bid per troy ounce, down from $572.15. In Zurich the precious metal traded at $571.90, down from $572.80. In Hong Kong gold rose 95 cents to close at $572.90. Silver opened at $9.86, up from $9.83.

The U.S. dollar gained ground against other major currencies. The euro was quoted at $1.2079, down from $1.2098. The dollar bought 118.50 yen, unchanged. The British pound stood at $1.7762, down from $1.7804.

EARNINGS NEWS

THQ Inc, ((THQI)), video game publisher, reported a Q3 profit of 72 cents a share, down from $1.05 a share a year-ago on revenue decline, topping analyst estimate of 65 cents a share.

Moody''s Corp, ((MCO)), credit ratings, research and risk analysis provider, reported Q4 net income of 50 cents a share, up about 22% from 40 cents a share in the year-earlier period on 21% revenue growth, beating analyst estimate for earnings of 46 cents a share.

Carbo Ceramics Inc, ((CRR)), provider of equipment and services for natural-gas and oil wells, reported Q4 net income of 43 cents a share, down from 45 cents in the same period the previous year. Revenue grew to $63.6 million from $62.2 million while Q4 operating profit dropped to $15.8 million from $16.6 million. Analyst forecast earnings of 48 cents a share.

Maytag Corp, ((MYG)), home and commercial appliances manufacturer, reported a Q4 net loss of 93 cents a share, down from a net loss of 18 cents a share in the year-earlier period despite 6.6% sales growth, missing analysts’ expectations of a loss of 13 cents a share. Q4 results were affected by restructuring charges in connection with the closing of the Florence, S.C., plant, a non-cash asset impairment charge related to a laundry product line and a goodwill impairment charge involving a commercial cooking business were recorded in Q4

B/E Aerospace Inc., ((BEAV)), aircraft cabin products maker, reversed to a Q4 profit of 96 cents a share, benefiting from a $52 million tax benefit. If not for the tax benefit and one-item items, it would have earned 18 cents a share, while sales rose 18% to $223 million.

Volvo Group, ((VOLVY)), truck maker, reported that Q4 net income dropped 15% to 7.37 kronor a share, while sales grew 15%. The company announced that operating margin in Q4 fell to 6.5% from 8.2% last year on account of extensive product launches. Volvo stated its income was affected by a 430 million kronor capital gain from the sale of Celero and a 550 million kronor write down of its holdings in Blue Bird.