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PARIS (Reuters) – BNP Paribas (BNPP.PA), France’s biggest bank by market value, posted higher second-quarter profit on Tuesday, helped by its purchase of Fortis assets, and expressed some optimism over prospects for financial markets.
Net profit rose 6.6 percent from a year earlier to 1.604 billion euros ($2.29 billion), while gross operating profit rose 44.7 percent to 4.06 billion euros, beating the average forecast of 3.67 billion euros in a Reuters poll of 12 analysts.
BNP Paribas said its acquisition of some of the key assets of struggling European bank Fortis (FOR.BR) contributed 261 million euros to net profit. The French group added that its integration of Fortis was on track.
Rival French bank Societe Generale (SOGN.PA) reports on August 5, while Credit Agricole (CAGR.PA) and Natixis (CNAT.PA) publish figures at the end of the month.
While many of the world’s biggest banks have reported solid profits this quarter — leading some analysts to believe that the worst of the financial crisis might be over — UBS (UBSN.VX) and Morgan Stanley (MS.N) have continued to post losses.
Earlier this week, HSBA (HSBA.L) posted lower first-half profits, while smaller British rival Barclays (BARC.L) reported a rise in interim profits.
BNP Paribas Chief Executive Baudouin Prot told French radio station BFM on Tuesday that he was feeling more confident.
“I am relatively positive about the markets,” he said.
TO TAKE CONTROL OF FINDOMESTIC
BNP Paribas added it would buy majority control of Italian consumer finance group Findomestic, currently jointly owned by BNP and Italian bank Intesa Sanpaolo (ISP.MI).
In Italy, BNP already owns the BNL retail bank.
The French bank said it would buy an extra 25 percent stake in Findomestic in the second half of this year for 625 million euros, bringing its shareholding up to 75 percent.
It added it could buy the remaining 25 percent of Findomestic in two to four years.
BNP Paribas also said it was “well placed to deal with the challenges of the current economic environment.”
BNP Paribas shares closed up 2.7 percent at 52.53 euros on Monday, giving the bank a market capitalization of around 57 billion euros. The stock has risen 74 percent so far this year, having fallen 59 percent last year. Continued…
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CHICAGO (Reuters) – CVS Caremark Corp (CVS.N) posted a bigger-than-expected jump in quarterly profit on Tuesday, aided by new stores and increased demand as consumers bought Easter treats and products to combat the H1N1 flu.
The drugstore operator and pharmacy benefit manager also raised its 2009 profit forecast, with Chief Financial Officer Dave Rickard citing strong results so far and “optimism for the rest of the year.”
CVS Caremark, whose drugstore rivals include Walgreen Co (WAG.N) and Rite Aid Corp (RAD.N), has benefited from its “Maintenance Choice” program. The program allows customers to pick up 90-day prescriptions in CVS stores at the same lower price they would pay if getting the drugs through the mail.
CVS earned $886.5 million, or 60 cents per share, in the second quarter, up from $771.2 million, or 53 cents per share, a year earlier. Adjusted earnings from continuing operations rose to 65 cents per share and topped analysts’ average forecast of 64 cents, according to Reuters Estimates.
CVS, which snapped up smaller drugstore chain Longs Drug Stores in October, said net revenue jumped 17.6 percent to $24.9 billion.
Pharmacy services revenue jumped 22.1 percent to $13 billion. Revenues in the retail pharmacy segment, which includes nearly 7,000 drugstores, climbed 17.2 percent to $13.8 billion.
Those figures combined are higher than the total net revenue since both segments record revenue when a pharmacy services customer buys products covered under his plan in a CVS store.
Sales at stores open at least a year rose a strong 6.1 percent after rising 3.3 percent in the first quarter and 3.1 percent in last year’s second quarter.
Pharmacy same-store sales jumped 7.5 percent, while same-store sales of general merchandise rose 3 percent. Sales were helped by the timing of Easter, which fell in the second quarter after falling in the first quarter of 2008, as well as higher cigarette prices.
They were also helped by sales of hand sanitizers and anti-viral medications to fight the H1N1 flu.
CVS expects to report 2009 adjusted earnings from continuing operations of $2.59 to $2.64 per share, up from a previous forecast of $2.55 to $2.63.
Analysts on average had been expecting $2.52 per share…..
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Berry Petroleum beats by $0.09, misses on revs (BRY) 25.80 : Reports Q2 (Jun) earnings of $0.38 per share, $0.09 better than the First Call consensus of $0.29; revenues fell 32.8% year/year to $125 mln vs the $140.8 mln consensus. For the same period, operating costs were lower by $9.32 per BOE due to lower natural gas prices which reduces the cost of steam in California and the continued results of company-wide cost reduction initiatives. General and administrative costs were higher than the second quarter of 2008 primarily due to a liability accrued for a penalty in a regulatory matter. While the initial proposed penalty for this matter was substantial, the company believes its ultimate liability will not exceed $2.1 million. “We deployed resources during the second quarter to improve our balance sheet and position the company to take advantage of opportunities in the current commodity price environment. We issued $325 million of 101/4 % notes due 2014, and our liquidity today is over $400 million. We expect to further improve our liquidity by approximately $60 million by the end of 2009 from excess cash flow.”
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Adjusted net income for the second quarter of 2009 excludes a net unrealized pre-tax gain of $4.6 million from economic hedges that do not qualify for hedge accounting. There were $127.3 million of similar adjustments for the second quarter of 2008.
Adjusted net income is a non-GAAP financial measure. For information on the calculation of adjusted net income for all periods, see the attached reconciliations of non-GAAP financial measures.
“We reported solid results in the second quarter despite the weak economy, mild weather and unusually low power prices,” said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy. “Adjusted pre-tax income matched last year’s results due to increased cost recovery in Virginia and higher generation rates. However, earnings per share were down due to higher income taxes. We remain focused on executing our business plans, particularly expanding transmission, controlling costs and maintaining a strong financial condition.”
Second Quarter Consolidated Results
Adjusted net income for the second quarter of 2009 decreased by $6.7 million compared with the same period in 2008. Key factors contributing to the results include:
- Adjusted operating revenues decreased by $16.1 million, reflecting reduced generation volume and lower power prices, partially offset by higher rates in Pennsylvania and Maryland and increased purchased power cost recovery in Virginia.
- Fuel expense decreased by $28.5 million due to lower generation volume, partially offset by higher coal prices.
- Purchased power costs were higher by $15.0 million due to increased purchases from third parties to serve Maryland customers.
- Deferred energy expense decreased by $8.7 million due to a fuel and energy cost recovery clause in West Virginia.
- Operations and maintenance costs increased by $10.6 million, largely due to higher special maintenance expense at the power plants.
- Taxes other than income taxes decreased by $6.4 million, primarily due to favorable state tax settlements.
- Adjusted income tax expense increased by $7.0 million, reflecting a higher effective tax rate. In the second quarter of 2008, the 34 percent effective tax rate on adjusted income was lower than normal, primarily due to an increase in estimated future benefits from net operating loss carryforwards under Pennsylvania tax rules.
Adjusted EBITDA for the second quarter of 2009 was $243.2 million, a decrease of $0.9 million compared to the same quarter of the prior year. EBITDA and adjusted EBITDA are non-GAAP financial measures. Details on the calculation of EBITDA and adjusted EBITDA, as well as reconciliations of these financial measures to net income, are attached to this release.
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Segment Results _________________________________________________________________________________________________________ |
DECATUR, Ill. (AP) — Archer Daniels Midland says its fiscal fourth-quarter profit tumbled 83 percent as its results were pressured by higher corn costs, lower average selling prices and softer demand.
The Decatur, Ill.-based agribusiness company earned $64 million, or 10 cents per share, compared with $372 million, or 58 cents per share, in the same period a year ago.
Analysts forecast profit of 45 cents per share for the period ended June 30.
Revenue fell 24 percent to $16.53 billion but beat Wall Street’s estimate of $15.24 billion.
Archer Daniels Midland Co. says lower average selling prices reduced sales by about $5.8 billion.
Corn processing operating profit fell partly on higher corn costs, while weakening demand hurt oilseeds processing and agricultural services results. Additionally, in the year-ago period ADM benefited from crop prices that hit all-time highs.
TOKYO (AP) – Toyota reported a smaller-than-expected 77.82 billion yen ($819 million) quarterly loss and expects less red ink for the full year even as the world’s top automaker battles plunging sales and a strong yen.
The maker of the Corolla subcompact and Lexus luxury models said Tuesday it expects a 450 billion yen ($4.7 billion) loss for the fiscal year through March 2010, better than the 550 billion yen ($5.8 billion) loss initially projected.
The result for the April-June quarter underlines that Toyota Motor Corp. is getting some traction from aggressive cost-cutting. Analysts surveyed by Thomson Reuters had forecast a fiscal first quarter loss of 210 billion yen.
Toyota, which dethroned General Motors Corp. as the world’s top selling automaker in 2008, raised its global vehicle sales forecast for the fiscal year by 100,000 to 6.6 million vehicles. The increase reflected improved sales in Japan, partly because of government measures to boost green car sales.
The better forecast is still markedly below the 7.57 million vehicles Toyota sold worldwide for the fiscal year ended March, showing how far Toyota has to go to stop the flow of red ink, now into its third straight quarter.
Toyota sold 1.4 million vehicles around the world during the quarter, a decrease of 785,000 vehicles from a year earlier. Quarterly sales dropped 38.3 percent to 3.836 trillion yen ($40.4 billion) as vehicle sales slipped in almost all regions, including North America, Europe, Japan and the rest of Asia.
Other Japanese automakers have also reported better-than-expected earnings, with No. 2 Honda continuing to stay in the black, bucking expectations for losses. Analysts say Toyota, because of its bigger size, may need longer for a full recovery.
Tatsuo Yoshida, auto analyst at UBS Securities Japan, said a solid recovery can come only when the global economy starts improving and people start buying cars again.
“The damage was great at Toyota because it was heading toward aggressive expansion with its foot slammed on the accelerator,” he said, comparing the global financial crisis to a car wreck.
The growing popularity of environment-friendly vehicles has given Toyota some respite from the meltdown in auto demand. The automaker’s new Prius gas-electric hybrid has been the top-selling model in Japan, for two months straight, the first time a hybrid clinched that spot, and is reportedly on track to take that spot again for July.
The Japanese government recently made hybrids tax-free and began a cash-for-clunkers program, helping boost sales of all ecological vehicles, including rival Honda Motor Co.’s Insight.
The last fiscal year, Toyota posted its worst loss ever in its seven-decade history, running up 436.94 billion yen of red ink. For the April-June quarter last year, it had posted a 353.6 billion yen profit.
Toyota had appeared almost unstoppable before the global financial crisis, with sales booming on its reputation for mileage and quality.
It planned to sell 9.85 million vehicles in calendar 2008, but its annual sales ended up dropping for the first time in a decade to just short of 9 million vehicles, as the financial crisis on Wall Street morphed into a global recession.
The automaker has aggressively cut costs to ride out the downturn – slashing jobs and production, trimming managerial pay, reducing investment and foregoing travel and other expenses.
Still, vehicle sales continued to suffer as the recession crushed demand.
Japan quarterly sales totaled 407,000 vehicles, down 105,000 from the previous year, while Toyota said it sold 387,000 vehicles in North America, down 342,000.
“Although we were able to make certain improvements in fixed cost and cost reduction efforts, the decline in vehicle sales and the appreciation of the Japanese yen had a severe impact on our earnings,” said Toyota Senior Managing Director Takahiko Ijichi.
Toyota, based in Toyota city, central Japan, lost 140 billion yen ($1.5 billion) during the quarter ended June 30 because of the appreciation of the yen. It lost another 650 billion yen ($6.8 billion) in operating income because of miserable auto sales.
Other Japanese automakers are also reporting signs that the worst may be over.
Honda posted a 7.5 billion yen ($79.8 million) profit for the April-June period, and raised forecasts for the full year on optimism auto sales will improve.
Nissan Motor Co., the nation’s third-biggest car maker, reported a smaller-than-expected 16.5 billion yen ($175.5 million) loss for April through June.
Earlier this year, Toyota chose Akio Toyoda, the grandson of the automaker’s founder, as its new president in an effort to use his charisma to bring the ranks of workers, dealers and suppliers together.
Toyoda has said the automaker will be making more managerial decisions by region, to stay nimble despite its size but has yet to give details of a turnaround strategy.
Toyota shares slipped 1.5 percent to 4,030 yen ($42) in Tokyo. Earnings were announced before trading ended.
ZURICH (AP) – Hard-hit Swiss bank UBS AG (27500), beset by a U.S. tax evasion probe, posted a second quarter loss of 1.4 billion Swiss francs ($1.3 billion) Tuesday in an improvement over the first three months of the year.
The bank, which has been struggling to recover from major losses in the U.S. mortgage crisis, said the result was more than three times the 395 million franc loss for the same period of 2008, when UBS was also saddled with writedowns of $5.1 billion.
The bank has been in the middle of a U.S.-Swiss legal battle over the Internal Revenue Service’s search for U.S. tax evaders. The two governments said Friday they reached a settlement in the case in which thousands of wealthy Americans are suspected of hiding billions of dollars with the Swiss banking giant.
Swiss media have reported that under the deal, whose details are still being worked out, the bank will escape paying a fine, but will have to hand over the names of 5,000 investors where there is strong evidence of tax evasion.
Chief Executive Oswald J. Gruebel and Chairman Kaspar Villiger said the results were in line with expectations that it will take time to turn the business around.
“While our second quarter results were clearly unsatisfactory, they show significant progress towards returning to profitability and restoring client trust,” they said in a letter to shareholders.
The bank said that on the bright side it had achieved a “significant reduction in legacy risk positions and associated losses, including lower credit loss expenses.”
The bank, once the largest wealth manager in the world, said the outflows of money rose sharply in the quarter as investors pulled out assets. The net new money outflow in the quarter was 39.4 billion francs ($37 billion), compared with 14.9 billion francs in the first quarter.
The bank’s payroll dropped 4,400 employees during the quarter to 71,806.
UBS said the results were an improvement over the first quarter, when the loss was 1.98 billion francs. The second quarter benefited from lower losses on risk positions from businesses now exited or in the process of being exited.
It said the second quarter results were significantly affected by a charges of over 2 billion francs (dollars) for own credit on financial liabilities designated at fair value, restructuring and goodwill impairment for the sale of a subsidiary.
The bank had said it would report a loss, and the amount was in the range expected by analysts. The UBS share price rose 0.8 percent to 16.13 francs ($15.13).
NEW YORK (AP) – Homebuilder D.R. Horton Inc. shows its fiscal third-quarter loss shrank from the year-ago period, topping Wall Street’s estimates.
The company said Tuesday it lost $142.3 million, or 45 cents a share, in the period ended June 30, compared to a loss of $399.3 million, or $1.26 a share.
Analysts polled by Thomson Reuters expected a loss of 23 cents a share.
Quarterly revenue fell by 36 percent to $914.1 million from $1.43 billion in the previous year. However, the figure still beat analyst expectations of $792.1 million for the quarter.
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INDIANAPOLIS, Aug. 4 /PRNewswire-FirstCall/ — Simon Property Group, Inc. (the “Company” or “Simon”) (NYSE: SPG – News) today announced results for the quarter ended June 30, 2009. Funds from operations (“FFO”) for the quarter were $313.1 million, or $0.96 per share diluted. Results for the quarter were impacted by a non-cash impairment charge of $0.42 per share. Excluding the impact of this charge, FFO was $453.6 million, or $1.38 per share diluted. FFO for the second quarter of 2008 was $427.9 million, or $1.49 per share diluted.
In the second quarter of 2009, the Company recognized a non-cash impairment charge of $140.5 million, or $0.42 per share diluted, representing the decline in the value of the Company’s investment in Liberty International, PLC (“Liberty”). As of June 30, 2009, the Company owned 35.4 million shares at a weighted average price of 574 pence. Liberty’s quoted market price as of June 30, 2009 was 397 pence. As of August 3, 2009, Liberty shares were trading at 436 pence.
FFO for the second quarter of 2009 reflects dilution of $0.14 per share as a result of the issuance of 17.25 million shares of common stock by the Company in March and an additional 23 million shares in May of 2009.
Net loss attributable to common stockholders for the quarter ended June 30, 2009 was $(20.8) million, or $(0.08) per share diluted. Excluding the impact of the non-cash impairment charge, net income attributable to common stockholders was $93.9 million, or $0.35 per share diluted. Net income attributable to common stockholders for the quarter ended June 30, 2008 was $76.6 million, or $0.34 per share diluted.
“Our operating fundamentals remained sound, which resulted in a solid second quarter in the face of a difficult retail environment,” said David Simon, Chairman and Chief Executive Officer. “Our 2009 capital activity, including the issuance of 40.25 million shares of common stock and $1.25 billion of unsecured notes, strengthened one of the industry’s leading balance sheets and resulted in a current liquidity position of approximately $6 billion, including $2.9 billion of cash. The cash raised through these transactions demonstrated the Company’s ability to access capital and positions SPG for future growth.”
U.S. Portfolio Statistics(1)
As of As of
June 30, 2009 June 30, 2008
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Occupancy
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Regional Malls(2) 90.9% 91.8%
Premium Outlet Centers® (3) 97.0% 98.3%
Comparable Sales per Sq. Ft.
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Regional Malls(4) $442 $494
Premium Outlet Centers(3) $493 $510
Average Rent per Sq. Ft.
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Regional Malls(2) $40.29 $38.81
Premium Outlet Centers(3) $32.74 $26.66
(1) Statistics do not include the community/lifestyle center properties
or the Mills portfolio of assets.
(2) For mall stores.
(3) For all owned gross leasable area (GLA).
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(4) For mall stores less than 10,000 square feet.
Dividends
The Company announced today that the Board of Directors approved the declaration of a quarterly common stock dividend of $0.60 per share, consisting of a combination of cash and shares of the Company’s common stock. The Company intends that the cash component of the dividend will not exceed 20% in the aggregate, or $0.12 per share. The dividend is payable on September 18, 2009 to stockholders of record on August 17, 2009.
In accordance with the provisions of IRS Revenue Procedure 2008-68, stockholders may elect to receive payment of the dividend all in cash or all in common shares. To the extent that more than 20% of cash is elected, the cash portion will be prorated. Stockholders who elect to receive the dividend in cash will receive a cash payment of at least $0.12 per share. Stockholders who do not make an election will receive this dividend 20% in cash and 80% in common stock. The Company reserves the right to pay the dividend entirely in cash.
The number of shares issued as a result of the dividend will be calculated based on the volume weighted average trading prices of the Company’s common stock on September 9, September 10 and September 11, 2009.
An information letter and election form will be mailed to stockholders of record promptly after August 17, 2009. The properly completed election form to receive cash or common shares must be received by the Company’s transfer agent prior to 5:00 p.m. Eastern Daylight Time on September 8, 2009. Registered stockholders with questions regarding the dividend election may call BNY Mellon Shareowner Services, the Company’s transfer agent, at (800) 454-9768. If your shares are held through a bank, broker or nominee, and you have questions regarding the dividend election please contact such bank, broker or nominee, who will also be responsible for distributing to you the letter and election form and submitting the election form on your behalf.
Today the Company also declared dividends on its two outstanding public issues of preferred stock:
- 6% Series I Convertible Perpetual Preferred (NYSE:SPGPrI – News) dividend of $0.75 per share is payable on August 31, 2009 to stockholders of record on August 17, 2009.
- 8 3/8% Series J Cumulative Redeemable Preferred (NYSE:SPGPrJ – News) dividend of $1.046875 per share is payable on September 30, 2009 to stockholders of record on September 16, 2009.
Financing Update
During the second quarter of 2009, the following transactions were completed:
- On May 12th, the Company completed the sale of 23 million shares of common stock at a public offering price of $50 per share.
- On May 15th, the Company’s majority-owned partnership subsidiary, Simon Property Group, L.P. (“SPGLP”), issued $600 million aggregate principal amount of 6.75% senior unsecured notes due 2014 in an underwritten public offering. The notes were priced at 98.960% of the principal amount to yield 7.00% to maturity.
- On June 30th, the Company retired $85 million of SPGLP’s 8% cumulative redeemable preferred units, at par value.
- The Company completed two refinancings during the quarter for $230 million, and on July 30, 2009, closed an additional $400 million of mortgage financings for three regional malls.
As of June 30, 2009, the Company had over $2.9 billion of cash on hand, including its share of joint venture cash, and over $3.0 billion of available capacity on its revolving credit facility.
U.S. New Development and Redevelopment Activity
On April 23rd, the Company opened The Promenade at Camarillo Premium Outlets in Camarillo, California. The 220,000 square-foot expansion brings the property to a total of 674,000 square feet of gross leasable area and 160 stores. New stores at The Promenade include Neiman Marcus Last Call, Aldo, Charlotte Russe, Columbia Sportswear Company, Converse, Crocs, DC Shoes, Ecco, Esprit, Etnies:exs, Journeys, Karen Kane, Le Creuset, Loft Outlet, Michael Brandon, New Balance, Papaya, Rack Room Shoes, Robert Wayne Footwear, Tommy Bahama, Vans, and Zumiez.
The Company continues construction on the following development projects:
- Cincinnati Premium Outlets, a 400,000 square foot upscale manufacturers’ outlet center serving the greater Cincinnati and Dayton markets. The center is 100% owned by Simon and is scheduled to open on August 6, 2009.
- A 600,000 square foot Phase II expansion of The Domain in Austin, Texas. The expansion will include Dillard’s, a Village Road Show theater, Dick’s Sporting Goods (scheduled to open in October of 2009), 136,000 square feet of small shops and restaurants, and 78,000 square feet of office space. The Company owns 100% of this project, slated for an opening in February of 2010.
- Addition of Nordstrom, Target and 146,000 square feet of small shops at South Shore Plaza in Braintree (Boston), Massachusetts. Nordstrom and the small shops are scheduled to open in March of 2010, with Target scheduled to open in October of 2010. The center is 100% owned by Simon.
International Activity
On July 7th, the Company opened Ami Premium Outlets, the eighth Premium Outlet Center in Japan. The 225,000 square-foot first phase of the project opened fully leased to over 100 merchants including Adidas, Beams, BCBG Max Azria, Brooks Brothers, Coach, Cole Haan, Diesel, Fauchon, Lanvin en Bleu, Mayson Grey, Pal Zileri, Ray Ban, Tommy Hilfiger, True Religion and Viaggio Blu. Simon owns 40% of this property.
Construction continues on the following international development projects:
- Argine (Naples, Italy) – a 300,000 square foot shopping center scheduled to open in March of 2010. Simon owns a 24% interest in this project.
- Catania (Sicily, Italy) – a 642,000 square foot shopping center scheduled to open in June of 2010. Simon owns a 24% interest in this project.
- Three projects in China located in Hangzhou, Suzhou, and Zhengzhou. The centers range in size from 310,000 to 750,000 square feet, will be anchored by Wal-Mart, and are scheduled to open in the fall of 2009. Simon owns a 32.5% interest in each of these projects.
2009 Guidance
Today the Company reaffirmed the guidance provided on May 1, 2009, after giving effect to the impact of the mid-May equity and senior notes offerings and the second quarter non-cash impairment charge, estimating that diluted FFO will be within a range of $5.35 to $5.50 per share for the year, and that diluted net income will be within a range of $1.05 to $1.20 per share.
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