Cummins increases dividend; lowered FY12 revenue outlook and issues Q2 revs guidance below consensus (93.00 -2.74)
Co lowered its full-year revenue outlook for 2012 and now expects 2012 revenues to be in line with 2011 compared to previous guidance of an increase of 10 percent (consensus is for FY12 revs +10.0%). Based on preliminary results, and subject to normal quarterly financial statement closing procedures, second quarter revenues are expected to be ~$4.45 billion (vs $5.08 bln consensus). The Company does not provide quarterly revenue or earnings guidance… Co approved an increase quarterly cash dividend on common stock of 25 percent to 50 cents per share from 40 cents per share. “Order trends in the U.S. for trucks and power generation equipment have softened and demand in Brazil, China and India is not improving as we had previously expected. Our revenues have also been negatively impacted by the appreciation of the U.S. dollar against a number of currencies. We are making adjustments within our business to manage costs, while continuing to fund our critical growth programs and will continue to focus on execution and improving operating margins.”
$JCP Get Taken to the Wood Shed As Credit Suisse Lowers Estimates
JC Penny is getting hit hard as sales are tracking less than that of Q1, which was poor to begin with, and there are reports that shelves are stocked so much that orders are being canceled.
Comments »Who’s Next on the Biotech Chopping Block ?
RIM Comes Up With a Plan to Save Itself
$220 Million of Customer Funds Goes Missing at PFGBest
The founder of the firm attempted suicide and a broker is missing. A mini MF Global drama for investor confidence….
Comments »What Does $AA & $AMD Earnings Have to Say About China ?
Looking into $AA earnings we get some clues about China.
$AMD is out this morning with a warning blaming China for their woes.
Comments »Gapping Up and Down This Morning
Gapping up
BMTI +11.1%, SHLM +6.8%, CWTR +5.8%, ASML +9.4%, MT +3.3%,
BCS +2.1%, TS +1.8%, LNG +1.6%, BBL +1.3%, THLD +2.5%, LUV +2.1% ,
CE +1.4%, AMZN +1%, CGV +4%,
Gapping down
PCX -44.6%, MAKO -39.3%, JRCC -12.9%, AMD -9.3%, PSMT -6.4%, BZH -6.2%,
OSUR -5.8%, DRH -5%, WDFC -4.4%, BEBE -3.7%, ARR -3.2%, ACI -2.7%,
SNH -2.1%, GEVA -1.6%, SYNC -1.1% , IR -1.2% , BPI -2.3%,
Comments »Intel to Inject $4 Billion into ASML
“Intel Corp. (INTC), the world’s largest semiconductor maker, agreed to invest as much as $4.1 billion in Dutch chip-equipment maker ASML Holding NV (ASML) in an effort to shave two years from the time to adopt new production techniques.”
Comments »Google Said to be Near a Settlement for Data Breach
$GOOG is said to be close to a settlement of $22 million for a Trade Commission probe over a data breach.
Comments »Why the U.S. Does Not Need to Worry Over Insolvency
“The first question on the new Q&A page was:
Can you explain why you don’t think the USA is going to have a Greek style debt crisis?
Good question! This is one of those things that really confuse people because they understand how their own lives and businesses work as revenue constrained entities. But the autonomous currency issuer to household or business analogy doesn’t hold true. The reasoning is actually quite simple.”
Comments »Coffee Break: The Tesla Model S
Wall Street Banks Decline Bernanke’s Twist, Hoard Treasurys
“Wall Street banks are increasingly choosing to hoard their U.S. bonds rather than sell them to the Federal Reserve as speculation grows that a slowing economy and global financial turmoil will only make them more dear.
The world’s biggest bond dealers offered an average of $7.2 billion in Treasuries a day to the central bank in June, down 40.5 percent from a high of $12.1 billion in October, data compiled by Bloomberg show. The amount tendered has fallen even as the dealers almost doubled their holdings of the securities.”
Comments »Kayak Prices IPO Between $22-$25
“Kayak’s perpetually-delayed IPO finally moved forward today, as the company has officially announced it has priced its shares between $22 and $25, and will begin trading on the NASDAQ under the ticker symbol “KYAK.”
In the most recent SEC filing, the company said it’s going to offer 3.5 million shares, in a deal led by Morgan Stanley – Stanley’s first since the Facebook IPO. Other banks participating include Deutsche Bank, Piper Jaffray, Stifel Nicolaus and Pacific Crest.”
Comments »Gapping Up and Down This Morning
Gapping up
FX +19.7%, FHCO +1.7%, NSPH +6.6%, TC +3.3% , APC +0.9%, WFR +1.5%,
TXT +2.4%, SIRI +4.9%, YOKU +3.5%, GP +39.3%, WLP +1.8%, HGSI +3.5%,
ARNA +2.1% ,
Gapping down
CEL -7.2%, SAN -4.4%, BBVA -3.8%, SPNS -3.6%, NOK -3.1%, TOT -1.3%, MT -1.1%,
TSN -0.5%, V -2.1%, MA -2% , ADM -0.6%, BCS -0.9%, NOK -3.1%, LNKD -2.9% ,
TOT -1.3%, RDS.A -0.9%, SDRL -0.7%, BP -0.6%, HIMX -8.6%, ATR -2.0%,
Comments »Bombadier Aerospace Gets $1B Order
(Reuters) – Canada’s Bombardier Aerospace (BBD-B.TO) said Sunday a new customer, which has requested to remain unidentified, has placed a conditional order for five CS100 and 10 CS300 jetliners.
Based on the list prices of CS100 and CS300 aircraft, the contract is valued at about U.S. $1.02 billion.
Earlier Sunday, Bombardier said it was in talks with AirAsia (KLS:AIRASIA) about a more densely packed 160-seat version of its CSeries jet in a bid to loosen the stranglehold on Asia’s largest low-cost carrier held by European giant Airbus (EAD.PA).
Read more here:
Comments »IBM: Companies Will Continue To Exploit ‘Big Data’
Companies are sitting on ever-expanding mountains of data that could potentially help them run their businesses better, David McQueeney, IBM’s head of software research, told CNBC.
Like oil or any other natural resource, companies need to exploit what has come to be called “Big Data,” he said.
“In most big enterprises, whether it’s a private enterprise or a government agency, there is typically a mountain of data, typically unstructured data, that contains potential insights about how to serve their clients better, how to engage with citizens better and make the processes run more efficiently,” McQueeney said.
Because it takes a certain amount of computing power to analyze the data and pull out and use those insights, the IBM (IBM) executive thinks of it “as a natural resource that can be extracted and refined and turned into something powerful.”
Indeed, the results can be powerful. McQueeney highlighted a hospital project where, instead of taking readings every few hours, they continuously recorded data from all the medical instruments in a ward that took care of premature infants.
Read more here:
Comments »Hey Bloomberg, Drink Soda Pop For Breakfast
Dynegy Files for Bankruptcy
“(AP NEW YORK – Dynegy Inc. has filed for bankruptcy protection after years of wrestling with falling electricity prices.
The Houston power company, which operates in the Midwest, Northeast and the West, tried to buy Enron in 2001 before that company’s collapse.
The parent company of Dynegy Holdings says that a New York bankruptcy court has already approved its reorganization plan.”
Comments »Judge Orders JPMorgan to Explain Withholding Emails
“A U.S. judge has ordered JPMorgan Chase to explain why the court should not force the bank to turn over 25 internal emails demanded as part of an investigation into whether it manipulated electricity markets in California and the Midwest.”
Comments »Pfizer Sued by Retailers for Generic Lipitor Delay -$PFE
“(Reuters) – Five big U.S. retailers filed an antitrust lawsuit against Pfizer Inc and India’s Ranbaxy Laboratories Ltd on Thursday, accusing them of conspiring to delay sales of generic versions of Lipitor, the best-selling drug in history.
Walgreen Co, Kroger Co, Safeway Inc, SuperValu Inc and HEB Grocery Co accused the defendants of running an “overarching anticompetitive scheme” to keep generic versions of the cholesterol drug off the market until November 30, 2011, 20 months after the original patent expired.
They said the defendants did this by obtaining a fraudulent patent, engaging in sham litigation, entering a price-fixing agreement to delay cheaper generics, and entering arrangements with pharmacy benefit managers to force retailers to buy more Lipitor, whose chemical name is atorvastatin calcium.”
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