Global Earnings; Generali, RBS, Tenaris

123jump.com Staff
06 Nov, 2009
New York City

Global corporations are still struggling as the U.S. financial crisis expands to a global economic slowdown. Banks in China, India, Brazil and Australia are reporting rising earnings and revenues. Software services providers in India have returned to growth.

[R]9:55 AM New York – Global corporations are still struggling as the U.S. financial crisis expands to a global economic slowdown. Banks in China, India, Brazil and Australia are reporting rising earnings and revenues. Software services providers in India have returned to growth.[/R]

Global economies are still struggling as consumers hold back and companies hoard cash and lower investment commitment.

Companies are reporting falling sales, weaker profits or losses in Japan, Europe and the U.S.

However banks and home builders are reporting higher sales and earnings in China and software services providers, banks and infrastructure companies in India are reporting rising sales.

Banks and retailers are still growing earnings and sales in Brazil and Australia.

Earnings Review

Assicurazioni Generali SpA, the insurer said third quarter net earned premiums rose 8.6% to €15.2 billion from €14 billion a year ago. Net profit in the quarter rose 85.5% to €390.2 million compared to net profit of €210.3 million a year ago.

Cap Gemini SA, the outsourcing, technology and local professional services provider said third quarter sales fell 7% to €1.95 billion from €2.10 billion a year ago and fell 9% on like-for-like basis.

British Airways Plc, said first-half revenues fell 13.7% to £4.1 billion from £4.75 billion a year ago. Net loss for the first-half was £208 million or 18.8 pence per diluted share compared to net loss of £42 million or 4.3 pence per share a year ago.

Kubota Corporation, the manufacturer of farm equipment company said first-half revenues fell 22.3% to ¥444.6 billion from ¥572.3 billion a year ago. Net profit for the first-half fell 46% to ¥19.3 billion or ¥75.91 per diluted share compared to net profit of ¥35.7 billion or ¥139.75 per share a year ago.

Kubota Corporation, in the last one year traded as high as ¥872.00 in July 2009 and as low as ¥423.00 in February 2009. Based on the yesterday’s closing price of ¥709.00 the company has market cap of ¥901.87 billion.

Magna International Inc., the automotive supplier said third quarter sales fell 15.6% to $4.67 billion from $5.53 billion a year ago. Net income in the quarter was $51 million or 45 cents per diluted share compared to net loss of $215 million or $1.93 per share a year ago.

The Royal Bank of Scotland Group plc, said third quarter total income fell 17.4% to £7.1 billion from £8.6 billion a year ago. Net loss for the quarter was £1.8 billion compared to net profit of £871 million a year ago.

Sanyo Electric Co., Ltd, the electronics giant said first-half sales fell 22% to ¥784.0 billion from ¥1.00 trillion a year ago. Net loss for the first-half was ¥37.4 billion compared to net profit of ¥32.6 billion a year ago.

Smith & Nephew plc, the medical device maker said third quarter revenues fell 1.6% to $915 million from $930 million a year ago. Net profit for the quarter rose 73% to $128 million or 14.4 cents per diluted share compared to net profit of $74 million or 8.3 cents per share a year ago.

Starbucks Corporation, the coffee chain reported fourth quarter revenues fell 4% to $2.42 billion from $2.52 billion a year ago. Net income in the quarter was $150 million or 20 cents per diluted share compared to net income of $5.4 million or 1 cent per share a year ago.

Total net revenues for the fiscal year 2009 fell 6% to $9.77 billion from $10.38 billion a year ago. Net income for the year rose 24% to $390.8 million or 52 cents per diluted share compared to net income of $315.5 million or 43 cents per share a year ago.

Tenaris S.A., the producer of seamless steel pipes for the energy industry said third quarter sales fell 42.3% to $1.77 billion from $3.07 billion a year ago. Net income in the quarter fell 60% to $229.9 million or 19 cents per diluted share compared to net income of $570.6 million or 48 cents per share a year ago.

Toyota Motor Corporation, the carmaker said second quarter revenues fell 24.3% to ¥4.54 trillion from ¥16 trillion a year ago. Net profit for the quarter fell 84% to ¥21.8 billion or ¥6.96 per diluted share compared to net profit of ¥139.8 billion or ¥44.52 per share a year ago.