JDfn Daily Digest - August 28, 2008
Gross domestic product increased at a 3.3 percent annual rate in the April-June quarter. The revised reading was much better than the government's initial estimate of a 1.9 percent pace and exceeded economists' expectations for a 2.7 percent growth rate.
The Labor Department reported that applications for unemployment benefits dropped to a seasonally adjusted 425,000, down 10,000 from the previous week. That was a slightly better figure than the 427,000 analysts expected.
Energy companies and governments are preparing for a possible major hit on the heart of U.S. offshore oil and natural gas production in the Gulf of Mexico from Tropical Storm Gustav. Energy companies began shutting down production with the region's largest producer, Shell, pulling all of its 1,300 workers off the offshore rigs.
Toyota (TM) lowered its global sales target for 2009 by 700,000 vehicles to 9.7 million, showing that even one of the world's most durable automakers is being hurt by rising material costs, a slowing U.S. market and soaring gas prices. Toyota Motor Corp had previously set a 2009 global sales goal of 10.4 million vehicles.
Caterpillar Inc. (CAT) expects record sales this year as booming demand for construction and mining equipment in China and other emerging economies offsets weakness in its home U.S. market.
The Iraqi Oil Ministry said China and Iraq have signed a $3 billion deal revising an earlier agreement for China's biggest oil company to help develop an Iraqi oil field. Major oil companies have been reluctant to commit to deals in Iraq because Baghdad has yet to enact a law to govern the oil industry.
Scheduled U.S. Economic Reports (Friday)
Personal Income & Spending, Chicago PMI, Consumer Sentiment
In Earnings News
Tiffany (TIF) posted a higher-than-expected profit and raised its full-year forecast on strong sales overseas. Net profit at Tiffany nearly doubled to $80.8 million, or 63 cents per share, in its fiscal second quarter. Analysts were expecting 55 cents.
Sears Holdings Corp. (SHLD) reported a 62 percent drop in second-quarter profit as the retailer continues to struggle to attract customers to its stores despite a high-stakes restructuring. The retailer, which operates Kmart and Sears, Roebuck and Co. stores, said that it earned $65 million, or 50 cents per share.
Benihana's (BNHN) profit declined to $1.9 million, or 12 cents per share, from $3.9 million, or 25 cents per share, in the first quarter of fiscal 2008. Revenue rose 5 percent to $94.5 million from $89.9 million, but expenses climbed 9 percent. Analysts expected 16 cents a share.
Brown-Forman Corp. (BF-A) said its first-quarter profit fell 7 percent. For the quarter, earnings totaled $88.2 million, or 73 cents per share, compared to $95.3 million, or 77 cents a share, in the year-ago period.
Fred's Inc. (FRED) reported its second-quarter profit fell 66 percent. The company earned $1 million, or 3 cents per share, in the quarter. Analysts expected 10 cents a share.
Scheduled Earnings Reports (Friday)
Benetton Group, Cavalier Corp, Greentech Energy, John B. Sanfilippo, Rubicon Limited, The Restaurant Group, Vitesse Semiconductor
Stocks in the News
Fannie Mae (FNM) named David Hisey chief financial officer. Its current CFO, Stephen Swad, is leaving the company.
Bank of America (BAC) will buy back $43 million in auction-rate securities from government agencies in Massachusetts.
Siemens (SI) has held talks with sovereign wealth funds in the Middle East and Russia in a bid to expand its long-term investor base.
Zale Corp (ZLC) posted a fourth-quarter loss of $4.9 million, or 15 cents a share, compared with earnings of $1.5 million, or 3 cents a share, in the year-earlier period.
Coldwater Creek (CWTR) second-quarter profit fell to $3.1 million or 3 cents a share, from $8.7 million, or 9 cents a share, in the year-ago period.
TiVo (TIVO) reported a second-quarter profit as subscriber-acquisition costs declined.
Men’s Wearhouse (MW) fiscal second-quarter net income fell to $32.8 million or 63 cents a share, from $54.2 million, or $1, in the year-earlier quarter.
VimpelCom (VIP), a Moscow telecommunications-service provider, reported second-quarter net income rose 31% on 52% higher revenue.
The Labor Department reported that applications for unemployment benefits dropped to a seasonally adjusted 425,000, down 10,000 from the previous week. That was a slightly better figure than the 427,000 analysts expected.
Energy companies and governments are preparing for a possible major hit on the heart of U.S. offshore oil and natural gas production in the Gulf of Mexico from Tropical Storm Gustav. Energy companies began shutting down production with the region's largest producer, Shell, pulling all of its 1,300 workers off the offshore rigs.
Toyota (TM) lowered its global sales target for 2009 by 700,000 vehicles to 9.7 million, showing that even one of the world's most durable automakers is being hurt by rising material costs, a slowing U.S. market and soaring gas prices. Toyota Motor Corp had previously set a 2009 global sales goal of 10.4 million vehicles.
Caterpillar Inc. (CAT) expects record sales this year as booming demand for construction and mining equipment in China and other emerging economies offsets weakness in its home U.S. market.
The Iraqi Oil Ministry said China and Iraq have signed a $3 billion deal revising an earlier agreement for China's biggest oil company to help develop an Iraqi oil field. Major oil companies have been reluctant to commit to deals in Iraq because Baghdad has yet to enact a law to govern the oil industry.
Scheduled U.S. Economic Reports (Friday)
Personal Income & Spending, Chicago PMI, Consumer Sentiment
In Earnings News
Tiffany (TIF) posted a higher-than-expected profit and raised its full-year forecast on strong sales overseas. Net profit at Tiffany nearly doubled to $80.8 million, or 63 cents per share, in its fiscal second quarter. Analysts were expecting 55 cents.
Sears Holdings Corp. (SHLD) reported a 62 percent drop in second-quarter profit as the retailer continues to struggle to attract customers to its stores despite a high-stakes restructuring. The retailer, which operates Kmart and Sears, Roebuck and Co. stores, said that it earned $65 million, or 50 cents per share.
Benihana's (BNHN) profit declined to $1.9 million, or 12 cents per share, from $3.9 million, or 25 cents per share, in the first quarter of fiscal 2008. Revenue rose 5 percent to $94.5 million from $89.9 million, but expenses climbed 9 percent. Analysts expected 16 cents a share.
Brown-Forman Corp. (BF-A) said its first-quarter profit fell 7 percent. For the quarter, earnings totaled $88.2 million, or 73 cents per share, compared to $95.3 million, or 77 cents a share, in the year-ago period.
Fred's Inc. (FRED) reported its second-quarter profit fell 66 percent. The company earned $1 million, or 3 cents per share, in the quarter. Analysts expected 10 cents a share.
Scheduled Earnings Reports (Friday)
Benetton Group, Cavalier Corp, Greentech Energy, John B. Sanfilippo, Rubicon Limited, The Restaurant Group, Vitesse Semiconductor
Stocks in the News
Fannie Mae (FNM) named David Hisey chief financial officer. Its current CFO, Stephen Swad, is leaving the company.
Bank of America (BAC) will buy back $43 million in auction-rate securities from government agencies in Massachusetts.
Siemens (SI) has held talks with sovereign wealth funds in the Middle East and Russia in a bid to expand its long-term investor base.
Zale Corp (ZLC) posted a fourth-quarter loss of $4.9 million, or 15 cents a share, compared with earnings of $1.5 million, or 3 cents a share, in the year-earlier period.
Coldwater Creek (CWTR) second-quarter profit fell to $3.1 million or 3 cents a share, from $8.7 million, or 9 cents a share, in the year-ago period.
TiVo (TIVO) reported a second-quarter profit as subscriber-acquisition costs declined.
Men’s Wearhouse (MW) fiscal second-quarter net income fell to $32.8 million or 63 cents a share, from $54.2 million, or $1, in the year-earlier quarter.
VimpelCom (VIP), a Moscow telecommunications-service provider, reported second-quarter net income rose 31% on 52% higher revenue.
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