Marsh & McLennan Returns to Profit

Elena
14 Feb, 2001
New York City

Asian benchmarks closed broadly in the positive with the Nikkei surging to 1.9%. European averages lost ground at mid-day. The biggest decliner was the French CAC 40, down 0.5%. Citigroup upgraded Circuit City to buy from hold, saying the retailer is expected to post another two or three years of dramatic earnings growth. Marsh & McLennan Companies reported Q4 profits of $35 million, an improvement from the year-earlier loss of $680 million but below estimates.

U.S. MARKET AVERAGES

U.S. stock futures traded higher ahead of monthly data expected to show improving retail sales growth. A brokerage upgrade on electronics retailer Circuit City Stores and weakness in energy futures also provided support.

Concerns over Google's valuation amid intensifying competition and uncertainty about the Federal Reserve's view on the economy pulled stocks down Monday with the Nasdaq losing over 1%.

On the U.S. data front, January retail sales are seen higher by 0.9% from 0.7% last month. In addition, crude oil inventories are expected to continue their growth, reaching a 5% rise .

Circuit City was upgraded by Citigroup to buy from hold as it is expected to post another two or three years of dramatic earnings growth.

In corporate news, Nokia and Sanyo Electric Co. announced a joint venture to make phones for the U.S. market in an attempt to steal a market share from Motorola Inc. and Samsung Electronics.

Dow Jones futures were recently up 31 points, S&P 500 futures rose 2.8 points, and Nasdaq 100 futures added 4 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks rebounded from steep morning losses to finish the session mostly higher. The Nikkei reversed from 15,690.00 points drop to climb 1.9%, supported by strong industrial consumer stocks, gaining on higher-than-expected trade surplus data. Across the region, Australia’s All Ordinaries rose 0.9%, Taiwan’s Weighted index surged 0.8%, and South Korea’s Kospi gained 0.6% reversing from 0.7% loss.

European stocks lost ground at mid-day, losing early gains on weak energy and auto stocks. However, the slide was limited by France Telecom which announced profit rise and a job-cuts plan. The German DAX 30 fell 0.2%, the French CAC 40 slipped 0.5%, and London’s FTSE 100 lost 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices dropped to a month-and-a-half low on expectations petroleum stocks will continue to increase. Light sweet crude for March delivery dropped 46 cents to $60.78 a barrel. London Brent fell 8 cents to $60.54.

European gold further declined. In London gold fell to $540.50 bid per troy ounce from $544.60. In Zurich the precious metal traded at $539.70, down from $545.20. In Hong Kong gold dropped $6.50 to close at $538.80. Silver opened at 9.13, down from $9.28.

The U.S. dollar traded mixed against other major currencies. The euro was quoted at $1.1899, down from $1.1909. The dollar bought 117.45 yen, down from $117.66. The British pound stood at $1.7368, down from $1.7428.

EARNINGS NEWS

Playboy Enterprises Inc, ((PLA)), media firm, reported Q4 net income of 14 cents a share, down 68% from 43 cents a share in the year-earlier period, which included a $5.6 million insurance recovery, missing analyst estimate for earnings of 18 cents a share. Revenue advanced 2% to $91 million and licensing segment income advanced nearly 90%, but, as anticipated, was more than offset by a $4.1 million decline in publishing group results.

Jarden Corp., ((JAH)), maker of camping gear, reported Q4 income of 4 cents a share, reversing from a loss of 8 cents a share. On a non-GAAP basis, adjusted net income came to 50 cents a share for Q4 of 2005, missing analysts’ forecasts of 52 cents a share.

Waste Management Inc, ((WMI)), hauler, reported Q4 net income of 52 cents a share, up 8% from 47 cents a share in the year-earlier quarter on revenue growth. Adjusted net income came to 46 cents a share, up from 39 cents a share, topping analyst view of 40 cents a share.

Qwest Communications, ((Q)), communications services provider, reported a Q4 loss of 28 cents a share, down from a year-ago loss of 8 cents a share, missing analyst estimate for a loss of 5 cents a share. If not for special items, such as restructuring charges and a loss related to debt extinguishment, the company posted a loss of $8 million for Q4, breaking even on a per share basis. Revenue slipped 0.7% in Q4.

Omnicom Group Inc, ((OMC)), advertising company, reported that Q4 net income increased 7% to $1.41 a share on 5% revenue growth, in line with forecasts from analysts. The company announced that growth was particularly strong in the domestic market, where revenue climbed 9% to $1.58 billion. International revenue grew 1%.

Macerich Co, ((MAC)), real estate investment trust, reported that Q4 funds from operations advanced 17.8% to $1.32 a share. Quarterly net income available to common stock holders dropped 21.3% to 39 cents a share, with revenue before impairments from the disposal of long-lived assets climbing 36%. The company attributed the FFO growth to high occupancy levels and leasing activity.

Jakks Pacific Inc, ((JAKK)), designer of toys, writing instruments and other consumer products, reported that Q4 net income declined 14% to 30 cents a share, from 35 cents a share in the year-ago period on 10% lower sales. If not for the repatriation of $175 million of profit from its overseas subsidiaries, Jakks earned 53 cents a share. Sales declined to $166.3 million from $184.8 million.

Inco Ltd, ((N)), miner of nickel and copper, reported that Q4 earnings advanced 4% to $1.06 a share, up from $1.08 in the year-ago quarter despite 3.4% lower sales net.. Excluding special items, Q4 earnings were 76 cents against $1.21, beating analyst estimate of 62 cents a share.

Masco Corp, ((MAS)), home improvement and building products manufacturer, reported that Q4 net income soared 64.8% to 41 cents a share. Income from continuing operations gained 2.2% to 34 cents a share as sales from continuing operations climbed 6%. Excluding impairment charges earnings were 50 cents a share, compared to 54 cents a share in the same quarter the prior year, in line with analyst estimate. The company announced that its results benefited from a strong construction market, which more than offset rising costs.