Earnings - 15th Oct 2008

6:56PM Brasil Telecom reports Q3 (BRP) 36.90 -1.66 : BRP registered consolidated net revenue of R$2,841.6 million in 3Q08, 3.4% up on 3Q07. Consolidated net income came to R$164.1 mln, 9.2% higher than in 3Q07, and equivalent to R$0.4527 per share.

6:32PM Encore acquisition authorizes a $40 mln stock repurchase; reiterates 2009 hedging plan; announces Q3 operating results (EAC) 18.97 -7.11 : Co announced production volumes were 39,617 barrels of oil equivalent per day in Q3 of 2008, which exceeded the high-end of the co's previously announced production guidance. The production volumes were comprised of 26,975 barrels of oil per day and 75,847 Mcf of natural gas per day. The co has executed a hedge plan that protects over 95% of its estimated oil production for 2009. The hedges include floors at $110.00 per barrel ("Bbl") for 11,630 barrels of oil per day ("BOPD"), swaps at $86.21 per Bbl for 6,000 BOPD, and floors at $80.00 per Bbl for 8,000 BOPD. The counterparties to these hedges are a diverse group comprising eleven institutions, all of which are rated A- or better by Standard & Poor's and/or Fitch with the majority rated AA- or better.

6:16PM Steel Dynamics misses by $0.12, misses on revs; co is withdrawing its previous 2008 earnings guidance (STLD) 7.33 -1.62 : Reports Q3 (Sep) earnings of $0.98 per share, $0.12 worse than the First Call consensus of $1.10; revenues rose 121.7% year/year to $2.56 bln vs the $2.63 bln consensus. Third quarter steel shipments of 1.4 mln tons were 12% lower than Q2 2008 and 9% lower than Q3 2007 shipments. Reduced volume was due primarily to a 19% sequential decrease in flat-rolled steel shipments by the Flat Roll Division and The Techs. Flat-rolled steel shipments for late September were below our expectations as steel customers reduced order entry and deferred order releases when steel selling prices started to fall. Lower September prices resulted in reduced margins for the Flat Roll Division while working down mill scrap inventories that had been purchased at higher prices. Co says, "Raw materials inventories for our long products mills were relatively low going into Q4, but our flat products scrap inventories were relatively high, suggesting it will take longer to work them down with lower anticipated volumes in this part of our steel business. Accordingly, we would expect our overall earnings could be about half that of our earnings in Q3. Nevertheless, given the current uncertainties about steel demand and pricing for Q4, we are not providing specific Q4 guidance at this time, but will provide an update as the quarter progresses. We are withdrawing our previous full-year 2008 earnings guidance of $3.80 to $3.90 per diluted share as market circumstances have changed dramatically. We believe that our steel shipments (primarily flat-rolled) will be significantly lower in Q4, but I would emphasize that the low, variable-cost structure of our steel operations enables us to operate profitably at lower operating rates than most of our peers." Regarding the co's capital structure, long-term debt was $2.2 bln at the end of the quarter with only $65 mln of principal due in the next twelve months.

5:23PM Badger Meter misses by $0.08, misses on revs (BMI) 32.35 -5.31 : Reports Q3 (Sep) earnings of $0.39 per share, $0.08 worse than the First Call consensus of $0.47; revenues rose 9.6% year/year to $68.8 mln vs the $73.4 mln consensus.

4:17PM eBay beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus (EBAY) 15.33 -2.41 : Reports Q3 (Sep) earnings of $0.45 per share, $0.04 better than the First Call consensus of $0.41; revenues rose 12.1% year/year to $2.12 bln vs the $2.13 bln consensus. Q3 marketplace revenue grew 4% y/y, compares to 13% growth in prior qtr; gross merchandise volume declined 1% y/y, compares to 8% growth in prior qtr; Q3 active users 85.7 mln vs. 84.5 mln in prior qtr. Co issues downside guidance for Q4, sees EPS of $0.39-0.41, excluding non-recurring items, vs. $0.47 consensus; sees Q4 revs of $2.02-2.17 vs. $2.43 bln consensus.

4:02PM WD-40 Company misses by $0.19, misses on revs; guides Q1 EPS in-line, revs in-line; guides FY09 EPS below consensus, revs below consensus (WDFC) 28.10 -4.11 : Reports Q4 (Aug) earnings of $0.28 per share, $0.19 worse than the First Call consensus of $0.47; revenues fell 2.6% year/year to $76.9 mln vs the $83.9 mln consensus. Co issues in-line guidance for Q1, sees EPS of $0.40-0.45 vs. $0.41 consensus; sees Q1 revs of $81.5-84.7 mln vs. $83.84 mln consensus. Co issues downside guidance for FY09, sees EPS of $1.65-1.85 vs. $2.00 consensus; sees FY09 revs of $323-343 mln vs. $344.90 mln consensus.

11:45AM AMR Corp beats by $0.01, beats on revs; provides outlook for Q4 and FY08 (AMR) 9.21 +0.42 : Reports Q3 (Sep) loss of $1.39 per share, excluding non-recurring items, $0.01 better than the First Call consensus of ($1.40); revenues rose 8.0% year/year to $6.42 bln vs the $6.34 bln consensus. AMR expects its full-year mainline capacity to decrease by 3.7% in 2008 compared to 2007, with a 6.2% reduction in domestic capacity and a 0.6% increase in international capacity compared to 2007 levels. On a consolidated basis, AMR expects full-year capacity to decrease by 3.9% in 2008 compared to 2007. AMR expects mainline capacity in the fourth quarter of 2008 to decrease by 8.3% year over year, with domestic capacity expected to decline by 12.5% and international capacity expected to decline by 0.6% compared to fourth quarter 2007 levels. It expects consolidated system capacity to decrease by 8.4% in the fourth quarter of 2008 compared to the prior-year period. AMR expects regional affiliate capacity to decline by 10.8% in the fourth quarter of 2008 compared to the prior-year period and expects 2008 regional affiliate capacity to decline by 5.7% compared to 2007 levels. AMR is planning for an average system price of $2.76 per gallon in the fourth quarter of 2008 and $3.07 per gallon for all of 2008. AMR has 38% of its anticipated fourth quarter 2008 fuel consumption capped at an average crude equivalent of $116 per barrel, with 37% of its anticipated full-year consumption capped at an average crude equivalent of $91 per barrel. Consolidated consumption for the fourth quarter is expected to be 707 mln gallons of jet fuel. For the fourth quarter of 2008, mainline unit costs are expected to increase 9.9% compared to the fourth quarter of 2007, while fourth quarter consolidated unit costs are expected to increase 9.8% compared to the fourth quarter of 2007. In the fourth quarter of 2008, mainline unit costs excluding fuel are expected to increase 7.7% year over year while consolidated unit costs excluding fuel are expected to increase 7.8% from the fourth quarter of 2007. Full-year mainline unit costs are expected to increase 16.8% in 2008 compared to 2007, while full-year consolidated unit costs are expected to increase 16.6% in 2008 compared to 2007. AMR expects mainline unit costs excluding fuel to be 4.9% higher in 2008 versus 2007, while 2008 consolidated unit costs excluding fuel are expected to increase 5.2% year over year.

8:37AM Marshall & Ilsley beats by $0.11 (MI) 19.00 : Reports Q3 (Sep) earnings of $0.32 per share, $0.11 better than the First Call consensus of $0.21. Provision for loan and lease losses totaled $155 mln, exceeding net charge-offs of $152 mln. The Corporation's net interest income (FTE) rose $37.3 mln to $447.5 mln in the third quarter of 2008 -- up 9 percent compared to the third quarter of 2007. The net interest margin was 3.06 percent, down 8 basis points on a linked quarter basis, and 1 basis point from the same period last year.

8:11AM Wells Fargo beats by $0.08 (WFC) 33.52 : Reports Q3 (Sep) earnings of $0.49 per share, $0.08 better than the First Call consensus of $0.41; revenues fell 9.4% year/year to $10.38 bln vs the $10.96 bln consensus. Tier 1 capital of 8.58%, up from 8.24% in second quarter 2008. Total nonperforming assets were $6.29 bln (1.53% of total loans) at September 30, 2008, compared with $5.23 bln (1.31%) at June 30, 2008. "Despite the dramatic changes in our industry and economy, the Wells Fargo team rose to the challenge this quarter and achieved solid growth in loans and deposits, a truly remarkable accomplishment... We also built our credit reserves by an additional $500 mln ($0.10 per share), bringing the allowance for credit losses to $8.0 bln, a $4.0 bln increase in the allowance since the credit crunch began a year ago. Business momentum remained strong in the quarter, with double-digit loan and earning asset growth (both up 15 percent year over year), double-digit growth in core deposits (up 10 percent from September 30, 2007), and 30 percent (annualized) from June 30, 2008, double-digit growth in assets under management, primarily mutual funds (up 12 percent year over year) and a record 5.7 cross-sell in our retail banking business. In addition, we continued to fortify our already strong balance sheet... Our net interest margin remained among the best of the large bank holding companies at 4.79%, reflecting the decline in our funding costs since last year and continued above-market growth in core deposits. Finally, despite the strong growth in earning assets, investment write-downs and higher credit costs in the quarter, our capital ratios increased, with Tier 1 capital rising to 8.58%, one of the strongest capital positions in the industry. The strength of our franchise, earnings and balance sheet positions us well for the exciting merger about to take place with Wachovia... We saw a tremendous inflow of deposits in the latter part of the quarter, especially at the end of September reflecting what we believe is a significant flight to quality." Loans 90 days or more past due and still accruing totaled $8.44 bln, $7.26 bln, and $5.53 bln at September 30, 2008, June 30, 2008, and September 30, 2007, respectively.

8:04AM Hudson City Banc beats by $0.01 (HCBK) 16.07 : Reports Q3 (Sep) earnings of $0.25 per share, $0.01 better than the First Call consensus of $0.24. Net loans increased $4.32 bln to $28.52 bln at September 30, 2008 from $24.20 bln at December 31, 2007. The efficiency ratio was 19.21% for the third quarter of 2008 and 21.21% for the first nine months of 2008. Net loans increased $4.32 bln to $28.52 bln at September 30, 2008 from $24.20 bln at December 31, 2007. Total liabilities increased $7.18 bln, or 18.0%, to $46.99 bln at September 30, 2008 from $39.81 bln at December 31, 2007. The increase in total liabilities primarily reflected a $5.14 bln increase in borrowed funds and a $2.14 bln increase in deposits.

8:03AM Trina Solar sees Q3 of revs $285-294 mln vs $260.47 mln First Call consensus; believes its on track to meet or exceed FY08 rev guidance (TSL) 13.35 : The co announces announced its selected estimated unaudited financial results for the third quarter of 2008. For the third quarter of 2008, the Company expects its net revenues to be in the range of approximately $285 million to $294 million, exceeding its previously forecasted range of $250 million to $265 million. The new range, which includes non-module income, represents an approximately 40% to 44% increase from its net revenues in the second quarter of 2008. During the quarter, the Company shipped approximately 66 MW of PV modules, compared to its previously forecasted range of 62 MW to 66 MW. As guided previously, the Company's gross margin for the third quarter is expected to be in the range of approximately 23.0% to 25.0%, and its operating margin is expected to be in the range of approximately 15.0% to 17.0%. Based on customer commitments in signed contracts and the Company's current operating and market conditions, the Company believes it is on track to meet or exceed its full year 2008 targeted total net revenues of between $850 million and $900 million vs. $854.6 mln First Call Consensus.

7:38AM Delta Air Lines misses by $0.07, reports revs in-line (DAL) 7.35 : Reports Q3 (Sep) loss of $0.07 per share, excluding non-recurring items, $0.07 worse than the First Call consensus of ($0.00); revenues rose 9.4% year/year to $5.72 bln vs the $5.69 bln consensus. Special charges that were excluded from their earnings totaled $24 mln and were related to merger fees and early termination fees. DAL's operating expenses increased $814 mln, or 17%, compared to the September 2007 quarter, which reflects a more than $800 mln increase in fuel costs due to higher prices. Non-operating expenses increased $90 mln in the September 2008 quarter. This increase includes $26 mln in foreign exchange losses, $25 mln in FAS 133 charges related to fuel hedges, and a $13 mln impairment charge related to DAL's investment in the Reserve Primary Fund money market fund (Primary Fund). During the September 2008 quarter, DAL hedged 51% of its fuel consumption, resulting in an average fuel price of $3.45 per gallon.

7:33AM LeCroy beats by $0.02, beats on revs; guides FY09 revs in-line (LCRY) 6.90 : Reports Q1 (Sep) earnings of $0.18 per share, $0.02 better than the First Call consensus of $0.16; revenues rose 5.2% year/year to $40.7 mln vs the $39.3 mln consensus. Co issues in-line guidance for FY09, sees FY09 revs of $167-173 mln vs. $169.80 mln consensus. "LeCroy began the fiscal year with a solid quarter of revenue driven largely by oscilloscope sales," said President and Chief Executive Officer Tom Reslewic. "Our overall first-quarter fiscal 2009 revenue increased 5.2 percent from the first quarter a year ago and was up slightly from the fourth quarter of fiscal 2008. This reflects the impact our new products are having in the market, as the first quarter is typically our seasonally slowest of the year. In fact, our total first-quarter revenue represented the strongest sales performance in the past 11 quarters and a company record for first-quarter oscilloscope sales."

7:31AM St. Jude Medical reports EPS in-line, revs in-line; guides Q4 EPS in-line; guides FY08 EPS in-line (STJ) 37.75 : Reports Q3 (Sep) earnings of $0.57 per share, excluding non-recurring items, in-line with the First Call consensus of $0.57; revenues rose 17.0% year/year to $1.08 bln vs the $1.07 bln consensus. Co issues in-line guidance for Q4, sees EPS of $0.59-0.61 vs. $0.61 consensus. Co issues in-line guidance for FY08, sees EPS of $2.30-2.32 vs. $2.31 consensus.

7:28AM Abbott Labs beats by $0.02, beats on revs; guides FY08 EPS above consensus (ABT) 54.78 : Reports Q3 (Sep) earnings of $0.79 per share, ex-items, $0.02 better than the First Call consensus of $0.77; revenues rose 17.6% year/year to $7.5 bln vs the $7.35 bln consensus. Co issues upside guidance for FY08, sees EPS of $3.31-$3.33 vs. $3.28 consensus, and up from previous guidance of $3.20-$3.25. Worldwide pharmaceutical sales increased 16.7% driven by double-digit growth in HUMIRA, TriCor, Niaspan and Kaletra. Global HUMIRA sales exceeded $1.2 billion; ABT now expects full-year 2008 global HUMIRA sales of more than $4.4 bln.

7:08AM JP Morgan Chase reports Q3 (Sep) results (JPM) 40.71 : Reports Q3 (Sep) earnings of $0.11 per share including items, may not be comparable to the First Call consensus of ($0.21); revenues fell 8.5% year/year to $14.74 bln vs the $16.01 bln consensus. Results included estimated losses of $640 mln (after-tax) for Washington Mutual merger-related items: $1.2 bln charge to conform loan loss reserves and a $581 mln extraordinary gain. Co reported EPS of ($0.06) before the extraordinary gain... Co increased credit reserves by $1.3 bln firmwide to $15.3 bln, resulting in loan loss allowance coverage of 3.18% for consumer businesses and 2.11% for wholesale businesses, before Washington Mutual. Reported net markdowns of $3.6 bln due to mortgage-related positions and leveraged lending exposures in the Investment Bank. "We expect the Washington Mutual transaction to create long-term value for shareholders while also being immediately accretive, adding 50 cents per share to earnings in 2009. In light of the unprecedented challenges and risks facing the housing market, we have incorporated expectations of significant credit losses from Washington Mutual's home-lending portfolio into the structure of the transaction. We also raised $11.5 billion of common equity to support the transaction and add to our already substantial capital base... Given the uncertainty in the capital markets, housing sector and economy overall, it is reasonable to expect reduced earnings for our firm over the next few quarters. However, with a total loan loss allowance of $19 bln (including Washington Mutual) and an 8.9% Tier 1 capital ratio, we feel well-positioned to handle the turbulent environment and, most importantly, to continue to invest in our businesses and serve our clients well."

7:03AM Coca-Cola beats by $0.06, misses on revs (KO) 43.73 : Reports Q3 (Sep) earnings of $0.83 per share, $0.06 better than the First Call consensus of $0.77; revenues rose 9.1% year/year to $8.39 bln vs the $8.54 bln consensus. Co said, "Our system's ability to adapt to changing economic and consumer environments was key to our success during the quarter, and we believe that this adaptability will continue to be crucial to the business going forward. Our International operations, in particular the emerging markets, continue to drive our growth, more than offsetting the challenges that we are addressing in North America. We anticipate that the operating environment, especially in North America, will continue to be challenging as we finish 2008 and move into 2009. However, we have been diligent in taking the evolving landscape into account as we are planning for 2009, and believe that the solid fundamentals of our business, our strong balance sheet and cash generating capability, the experience of our management team and the strength of our brands will drive the business through these difficult economic times."

6:06AM State Street beats by $0.04, reports revs in-line (STT) 56.69 : Reports Q3 (Sep) earnings of $1.24 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $1.20; revenues rose 12.4% year/year to $2.54 bln vs the $2.51 bln consensus. Addressing the future outlook, CEO Ronald E. Logue concluded, "Due to our strong performance in the first nine months of 2008, we continue to confirm our earlier statements regarding our performance to our financial goals for 2008. We continue to expect our growth in operating EPS to be approaching the high end of the 10 to 15% range; growth in operating revenue to be above the high end of the 14 to 17% range and our operating ROE to approach the high end of the 14 to 17% range."

12:00AM China Netcom announces results for first three quarters of 2008 (CN) 38.23 : Co announces number of broadband subscribers was 24.859 mln, or a net addition of 5.091 mln over the end of last year, representing a year/year growth of 35.4%. As of September 30, 2008, the number of active subscribers of "CNC MAX" Client was over 3.80 mln. Revenue was RMB60.679 bln, including upfront connection fees of RMB710 mln. Excluding upfront connection fees, revenue was RMB59.969 bln, representing a year/year decrease of 1.80%