Global Investing Roundups: Friday, April 25th, 2008

William Patalon III — Fri, 25 Apr 2008 11:55:37 +0000

Pepsi Chugs Along on Foreign Sales; Credit Suisse Continues its Struggles; Peltz is Thinkin’ Wendy’s; Drugmakers’ Earnings Sedated; Dubai Aerospace to Dump $2 Billion on More Planes; Merrill Maintains Dividend; Mining CEO Bullish on Gold; Celestica’s Profit Comeback.

PepsiCo Inc. (PEP) announced yesterday (Thursday) that a big rise in international revenue helped offset higher commodity costs and boost its first-quarter profit by 5%. Net income for the first quarter jumped to $1.15 billion (70 cents per share), up from $1.10 billion (65 cents per share) last year. Revenue in the international division grew the most, rising 27%, the Associated Press reported.

Credit Suisse Group (CS), Switzerland’s second-largest bank, announced a ($2.1 billion) loss for the first quarter. The bank also said it had net writedowns of $5.3 billion for big buyout loans and mortgage-backed securities. The bank, which employs 48,000 people worldwide, said earlier this week that it was cutting a further 500 employees in addition to the 1,000 jobs it has already eliminated in investment banking, the Associated Press reported.

Billionaire Nelson Peltz’s Triarc Companies Inc. agreed to buy Wendy’s International Inc. for about $2.4 billion, bring the third-biggest U.S. hamburger chain under the same umbrella as his Arby’s Restaurant Group Inc. restaurants, Bloomberg News reported. Wendy’s put itself up for sale last June, under pressure from Peltz, who controls nearly 10% of Wendy’s and has repeatedly pressed the chain for better financial results.

Earnings for AstraZeneca PLC (AZN), Bristol-Myers Squibb Co. (BMY) and Bayer AG (OTC:BAYRY) declined for the first quarter, as the drugmakers faced increased competition from generic manufacturers. AstraZeneca’s net income unexpectedly fell 3.7% to $1.50 billion. Bristol-Myers’ first-quarter net income fell 4.2% to $661 million. Bayer reported that profit that beat analyst estimates, but net income fell 73% to $1.21 billion.

State-owned aviation company Dubai Aerospace Enterprise said it plans to spend a further $2 billion through 2009 to expand its fleet. In November, the company ordered 200 Airbus SAS and The Boeing Co. (BA) planes, Bloomberg reported.

Merrill Lynch & Co. Inc. (MER) shares gained after the securities firm announced it would maintain its dividend yesterday (Thursday). The board of directors declared a regular quarterly dividend of 35 cents per common share payable May 28, 2008, to shareholders of record on May 8, 2008, the company announced in a statement.

Newmont Mining Corp. (NEM) Chief Executive Officer Richard O’Brien said yesterday (Thursday) that gold could reach $1,100 an ounce in 2009, Reuters reported. O’Brien went on to cite a number of factors that make him bullish on gold, including “diminishing mine output, strong jewelry demand, inflation and the dollar weakness.”

Celestica Inc. (CLS), maker of Microsoft Corp.’s (MSFT) Xbox 360 video-game console, earned $29.8 million in profit for the first quarter compared to a $34.3 million loss for the same period on the prior year. Earnings of 13 cents per share compared to a loss of 15 cents per share the year prior beat analyst expectations, sending the stock up over 30% prior to the close yesterday (Thursday).

Global Investing Roundups: Tuesday, April 22nd, 2008

William Patalon III — Tue, 22 Apr 2008 12:27:48 +0000

Merck Doubles Profit; Arch Coal Heats Up First Quarter; Northwest Bankcorp Bolstered by Visa IPO; Profit Dives for Bank of America; National City Posts Loss, Slashes Dividend; Mattel Profit Drops; Strong Hasbro Results; Lowered Expectations for MF Global.

Merck & Co. Inc. (MRK) reported yesterday (Monday) that it its first-quarter profit rose to $3.3 billion ($1.52 per share), nearly double the $1.7 billion (78 cents per share) earned a year ago. The drug maker cited a $1.4 billion payment from AstraZeneca PLC, a partner drug company. Excluding that and other one-time items, Whitehouse Station, N.J.-based Merck earned 89 cents per share in the latest quarter the Associated Press reported.

Arch Coal Inc. (ACI) turned in one of its best quarters ever yesterday (Monday) after earnings nearly tripled in the first quarter to $81.1 million. The company earned just $28.7 million over the same period last year. With demand for coal rising due to Asia’s rapidly expanding economies, Arch estimates that global coal demand will outstrip supply by 25 million to 35 million metric tons, according to Forbes.

Northwest Bancorp Inc. (NWSB) reported first-quarter earnings of $12.6 million, up from $11.3 million last year, Thomson Financial reported. The bank holding company said its profit in the latest quarter reflects a gain of $409,000 related to Visa Inc.’s (V) initial public offering.

First quarter profit for Bank of America Corp. (BAC), the second largest bank in the United States, dropped 77%, the third consecutive quarterly profit decline and short of analysts’ expectations. “The first quarter was much worse than our expectations three months ago,” Chief Executive Officer Kenneth Lewis said on a conference call, Bloomberg reported. “It’s too early to strike up the band and say that happy days are here again.”

Shares for Ohio-based bank National City Corp. (NCC) plummeted almost 28% yesterday (Monday) after the company slashed its dividend to 1 cent and agreed to sell a $7 billion stake in the company at a 40% discount to a group of investors. The bank’s previous dividend was 21 cents. The bank also reported a first-quarter loss of $171 million, BusinessWeek reported.

Mattel Inc. (MAT), the largest global toymaker, announced its first loss in three years yesterday (Monday) due to higher production costs in China. Mattel posted a net loss of $46.6 million, or 13 cents per share for the first quarter, missing analyst estimates that had anticipated a 1 cent profit per share. The stock dropped over 8% to close at $20.00.

Hasbro Inc. (HAS) posted a surprise gain yesterday (Monday) on the strength of movie-related toys such as Transformers action figures. The toy firm beat analyst expectation with a 13% increase in revenue to $704.2 million. Earnings were $37.5 million or 25 cents per share. The stock soared 9% to close at $34.65.

Shares of MF Global Ltd. (MF) dropped over 10% yesterday (Monday) to close at $12.88 on news that several analysts lowered profit guidance on the exchange-listed futures and options broker. Analysts polled by Thomson Financial, on average, estimate a fourth-quarter loss of 6 cents per share, The Associated Press reported.

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Global Investing Roundups: Friday, April 25th, 2008

Global Investing Roundups: Tuesday, April 22nd, 2008