Toyota Profit Rises 34%

Elena
07 Feb, 2006
New York City

Toyota Motor announced 34% rise in Q3 net profit on solid sales and a weaker yen. BP reported a 22% increase in quarterly profit, missing forecasts. Coca-Cola reported 28% decline in Q4, hurt by a repatriation charge, but still beat analyst expectations, excluding items. Toll Bros posted 35% home building revenue rise in Q1, but lowered its guidance for home deliveries for 2006. Disney posted 7% income growth in Q1, beating earnings and revenue estimates.

U.S. MARKET AVERAGES

Stocks fell Tuesday as commodity stocks dropped, following a strong run-up this year. A drop in oil prices and upbeat earnings news from Coca-Cola Co. and Walt Disney Co., which had supported the Dow Jones industrial average, failed to impress investors. A lowered home sales outlook from home builder Toll Brothers Inc. also weighed on sentiment.

Coca-Cola ((KO)) reported 28% decline in Q4, hurt by a repatriation charge, but still beat analyst expectations, excluding items.

Disney ((DIS)), entertainment company, reported a 7% increase in first-quarter profit after the market close on Monday. Disney also announced it expected $2.7 billion deal to sell most of its radio assets to Citadel Broadcasting Corp.

Home builder Toll Brothers Inc. ((TOL)) reported quarterly profit growth but cut its sales view for 2006. citing a decline in signed contracts and difficulty obtaining building permits.

In corporate news, General Motors Corp ((GM)) said it is cutting in half its yearly dividend to $1 a share and reducing the salaries of its senior leadership, citing significant losses in North America.

Energy stocks dropped in the early going with the oil service sector standing out as the worst performer in the group with a decline of about 3.3%. The gold sector was another notable mover to the downside, falling more than 4.5% to its lowest level in a week.

There are few significant standouts to the upside. The HMO space is reversing part of Monday's decline by posting a modest gain. There is mild strength among insurance, broker/dealer and drug stocks.

Emerson ((EMR)) jumped to a new 52-week high on upbeat earnings report. Alcan ((AL)) added to recent gains to extend its peak. Micron ((MU)) stretched its high, building on yesterday's advance.

JetBlue ((JBLU)) fell more than 4% on negative analyst comments, adding to last week's earnings-related slide to set a new low. Toll Brothers ((TOL)) also dropped to a fresh low on lowered guidance. Dow component General Electric ((GE)) moved to a new nadir as well.

In midday trading, the Dow Jones industrial average fell 11.69, or 0.11%. The Standard & Poor's 500 index fell 5.88, or 0.46%, and the Nasdaq composite index fell 10.99, or 0.49%.

Bonds fell, with the yield on the 10-year Treasury note rising to 4.57%, up from 4.54% late Monday.

MOVERS AND SHAKERS

Apple Computer ((AAPL)) unveiled a 1 gigabyte version of its iPod Nano portable music player priced at $149 and reduced the price of its iPod shuffle player to $69 for the 512 megabyte model, and $99 for the 1 gigabyte model. The company also unveiled a programming agreement with Showtime Networks to sell the shows ‘Sleeper Cell’ and ‘Weeds’ at its iTunes Music Store. The stock gained 1.4%.

Myriad Genetics ((MYGN)) reported narrower Q2 net loss of $8 million or 22 cents a share from a net loss of $10 million or 33 cents a share last year, citing better performance at its predictive medicine division on 39.3%. Quarterly revenue rose to $27.3 million. Analysts expected a net loss of 32 cents a share on revenue of $27 million. The company’s shares jumped 8.5%.

Under Armour Inc ((UARM)), athletic products maker, reported Q4 net income rose $7 million or 8 cents a share, up 14% from $6.2 million, or 15 cents a share a year before, beating estimates of 7 cents a share. The earnings per share result was reduced by an increase in outstanding stock. Revenue rose to $87.3 million from $69.6 million. The company projected revenue and earnings growth in the 20% to 25% range for 2006. The stock dropped 17%.

Occidental Petroleum Corp ((OXY)) posted Q4 earnings jump of 55% amid record-high prices and the highest production output in a single three-month period. The company earned $1.152 billion, or $2.84 a share vs. $742 million, or $1.86 a share in 2004. Production averaged 589,000 barrels of oil equivalent per day, the highest quarterly production rate in Occidental''s history. The company’s shares fell 2.1%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks finished mixed, following a slide on Wall Street Monday, despite easing oil prices. The Nikkei slipped 0.2% with Sumitomo Insurance and tech stock TDK among the decliners. South Korea’s Kospi fell 0.7% on weak bank, automobile and brokerage stocks. India’s Stock Exchange’s 30-share Sensex reached an all-time high of 10066.55 points to close up 1%. Singapore Straits Times advanced 0.3%.

European stocks closed mixed after gains in the telecom sector offset declines in the oil and gas sectors. Markets were also pressured by lower opening on Wall Street. The German DAX 30 added 0.1%, the French CAC 40 ended flat, and London’s FTSE 100 dropped 0.5% as BP earnings failed to meet forecasts.

OIL, METALS, CURRENCIES

Crude oil prices dropped over $1 after the U.S. Department of Energy lowered its global oil demand estimates and concerns about possible disruptions to the oil supply from Iran eased. Light sweet crude for March delivery fell $1.51 to $63.60 a barrel. Heating oil lost 5 cents to $1.7580 a gallon, while gasoline declined 4 cents to $1.6050. Natural gas dropped 25 cents to $7.75 per 1,000 cubic feet.

European gold prices dropped to a year-low after a slide in oil prices eased concerns of accelerating inflation. In London gold fell to $555.90 bid per troy ounce, down from $572.80. In Zurich the precious metal traded at $556.50, down from $573.10. In Hong Kong gold fell 40 cents to close at $569.60. Silver closed at $9.45, down from $9.83.

The U.S. dollar gained strength against most other major currencies. The euro was quoted at $1.1957, down from $1.1964. The dollar bought 118.04 yen, down from $118.97. The British pound stood at $1.7419, down from $1.7474.

EARNINGS NEWS

The Walt Disney Co, ((DIS)), media conglomerate, reported Q1 net income of 37 cents per share, up from 33 cents per share in the same period last year despite a plunge in profits from its studio division. Disney announced that revenue advanced slightly to $8.854 billion from $8.666 billion in the same quarter last year. The current quarter includes a one-time gain of 2 cents per share, related to the sale of assets.

Polo Ralph Lauren Corp, ((RL)), clothing and accessories company, reported that Q3 profit advanced to 84 cents a share, from 72 cents in the year-ago period on revenue growth, topping analyst estimate of 76 cents a share.

Ariad Pharmaceuticals, ((ARIA)), pharmaceutical company, reported a Q4 loss of 23 cents a share, down from the year-ago loss of 20 cents a share on higher research and development expenses, beating analyst expectations of a loss of 25 cents a share.

Fortune Brands, ((FO)), alcohol producer, reported Q4 net income of $1.17 a share, down 30% from $1.68 a share in the year-earlier period. Before charges and gains earnings came to $1.22 a share, topping analyst forecasts of $1.20 a share. Revenue advanced 24%.

Hillenbrand Industries Inc, ((HB)), health care industry manufacturer reported Q1 net income from continuing operations of 79 cents a share, up from 69 cents a share in the year-earlier period, beating analyst forecasts of 65 cents a share. Adjusted net income came to 79 cents a share, up vs. 71 cents a share. Revenue inched up 0.6% to $477.5 million.

Benchmark Electronics Inc, ((BHE)), outsourced manufacturing services to the electronics industry provider, reported that Q4 net income advanced 22% to 57 cents a share, while sales grew 19.3%. Analysts were expecting earnings of 51 cents a share.

Performance Food Group Co, ((PFGC)), food and non-food products producer and distributor, posted earnings of 44 cents a share, nearly three times the year-ago profit of 18 cents a share, beating analyst estimate of 31 cents a share. Consolidated net sales from continuing operations in the fourth quarter advanced 7%, while Q4 inflation was approximately 1%.

MeriStar Hospitality Corp, ((MHX)), real estate investment fund, reported a Q4 loss of $1.30 a share, down from a year-ago loss of 20 cents a share. On an adjusted basis, the company reported funds from operations of 17 cents a share, beating on that basis analyst predictions of 15 cents a share. Revenue grew to $183.4 million from $159.4 million in the same time a year earlier.