Earnings - 8th Dec 2008

6:46PM Broadcom lowers Q4 guidance (BRCM) 15.46 +0.52 : Co says due to the current global economic environment, customers across each of Broadcom's targeted end markets have requested adjustments in their deliveries for the fourth quarter, resulting in significant pushouts and cancellations since the co originally provided guidance for the quarter in October 2008. Co now sees Q4 revs $1,050 to $1,100 mln including AMD Digital TV (DTV) acquisition, may not be comparable to $1.19 bln consensus, down from $1,170-1,235 mln excluding AMD DTV acquisition. Co's BRCD's gross margin is expected to be down 105 to 130 basis points sequentially excluding the AMD DTV business. Including a negative 20 basis point impact associated with acquisition related accounting for AMD's DTV business inventory, gross margin is expected to be down 125 to 150 basis points. Down 50 to 75 basis points sequentially excluding the AMD DTV acquisition. Co says, "Despite the recent impact of the slowing economy, BRCM experienced a very strong fiscal year from a product, financial and customer perspective. BRCM continues to be in a very strong financial position and is committed to protecting our operating cash flow in this current environment"

4:32PM FedEx sees Q2 EPS of $1.58 vs $1.54 First Call consensus; sees FY09 $3.50-4.75 vs $5.15 First Call consensus (FDX) 74.43 : The co announces that it expects to report earnings of $1.58 per diluted share for the second quarter ended November 30. Previous earnings guidance for the quarter was $1.40 to $1.60 per diluted share. For fiscal 2009, the company has reduced its earnings guidance to $3.50 to $4.75 per diluted share from the previous guidance of $4.75 to $5.25, as significantly weaker macroeconomic conditions are expected to offset the benefits from lower fuel prices and the announced departure of DHL from the U.S. domestic package market. This outlook assumes stable fuel prices. "Second quarter results benefited from rapidly declining fuel prices and continued cost management," said Alan Graf, Jr., executive vice president and chief financial officer. "However, demand for our services weakened sequentially throughout the quarter and global economic trends continue to worsen, substantially reducing our second half outlook. We are adjusting our expense plans to more closely align with the weaker business conditions, and are now targeting capital spending of $2.5 billion for fiscal 2009, down from $3.0 billion at the start of the year."

4:31PM Texas Instruments lowers Q4 EPS and revs guidance below consensus (TXN) 14.82 +0.26 : Co lowers Q4 EPS to $0.10-0.16 vs $0.31 First Call consensus, from prior guidance of $0.30-0.36; sees revs $2.3-2.5 bln vs $2.91 bln First Call consensus, from prior guidance of $2.83-3.07 bln. Briefing.com note: TXN will hold a conf call at 5:30 ET to discuss this update. (Stock is halted)

4:27PM H & R Block reports EPS in-line, misses on revs; guides FY09 EPS in-line (HRB) 20.35 +0.17 : Reports Q2 (Oct) loss of $0.40 per share, in-line with the First Call consensus of ($0.40); revenues fell 1.5% year/year to $351.5 mln vs the $397.3 mln consensus. Co issues in-line guidance for FY09, sees EPS of $1.60-1.70 vs. $1.63 consensus.

4:17PM Con-way lowers FY08 EPS guidance below consensus (CNW) 25.77 +0.88 : Co lowers FY08 EPS to $2.20-2.35 vs $2.79 First Call consensus, down from $2.60-2.80. Co says with three weeks remaining to the end of the year, the co is maintaining a relatively wide range in guidance, due to turbulent market conditions and lack of reliable visibility into an economy which continues to deteriorate. Co says, "While we are focused on aggressive cost-reduction measures, over the past two months the effect of decelerating volumes in the LTL market, coupled with pricing pressures and lower fuel surcharges have significantly curtailed expectations for 2008 earnings, Q4 in particular." CNW reduced its nationwide workforce by ~8%, or about 1,450 positions. The reduction is in line with lower tonnage volumes which were down 3.8% in October and 9.2% in November, respectively, from last year's levels. The workforce reductions, which occurred on Dec. 5, were spread across most of the co's 303 operating locations in North America. They included the elimination of 78 staff positions at CNW's Ann Arbor, Mich., general office; 60 positions at an administrative center in Texas; and a realignment of its area and regional division structure to streamline management. The Dec. 5 workforce reductions will result in an estimated Q4 charge to earnings of ~$7.5 mln, primarily for severance and other payroll-related expenses. The charge for the Dec. 5 workforce reduction is in addition to an earlier-disclosed Q4 charge of $20 mln for costs associated with Con-way Freight's network re-engineering initiative. Dicussing the impairment charge, co says "the based on preliminary estimates, the co expects to record an impairment charge of $30-35 mln to write down the value of its investment in Chic Holdings Ltd., a Shanghai, China-based transportation and logistics co.

4:15PM Altera lowers Q4 revs guidance (ALTR) 23.62 -0.08 : Co announces its mid-quarter update for the fourth quarter of 2008. Co sees Q4 sales down 9 to 12% compared to the Q3 of 2008, down from prior guidance for Q4 of up 1% to down 3% compared to Q3 of 2008 (current consensus is Q4 revs growth of +2.3% over Q3). Co is experiencing slower than anticipated sales across all market segments, with particular weakness in the Computer & Storage and Consumer market segments. Inventory reductions by a broad range of end customers are occurring across all market segments. Fourth quarter gross margin is now expected to be 69% +/- .5%, an increase from prior guidance of 68% +/- .5%. The expected gross margin increase is due to the ongoing cost savings initiatives and expected market segment mix. As a result of additional ongoing cost savings initiatives, the company now expects that fourth quarter operating expense will be in the range of $134-135 mln versus prior guidance of $137-140 mln.

12:31PM Titan Intl reaffirms it could exceed $1 bln in revenue for the year 2008 (TWI) 7.91 +0.44 : Co stated that it should end 2008 with $920 mln to $1 bln in revenue (FY08 rev single analyst est is $1.012 bln). As mentioned on the third quarter conference call, co believes Titan could exceed $1 bln in revenue for the year 2008. Co sees sales revenue goal for 2009 at $1.175 to $1.35 bln. The co says "While a large spread, material cost is expected to be down in the second quarter of 2009, lowering pricing. Material cost for the second half of the year could be more unpredictable and may possibly require higher pricing. "If you were to base this on unit sales, I believe 2009 would show a 20 to 30% growth over 2008," said Taylor. "Titan's group presidents Ron Schildt and Bill Campbell will base the year on these goals, all the while striving to maximize them." Titan's EBITDA goal has been set at $170 to $190 mln for 2009 by Taylor. This goal will require better efficiency at the company's tire facilities, which should happen as a result of the completion of the super giant tire project realignment. Capital expense is also expected to drop after first quarter 2009 due to the completion of the super giant tire project. Taylor has set Titan's goal for positive operating cash flow at over $100 mln in 2009..."

12:28PM KHD Humboldt Wedag announces results of its initial review of economic crisis impacts on its order backlog (KHD) 8.50 +0.53 : Co announces results of its initial review of economic crisis impacts on its order backlog. As mentioned in third-quarter conference call, co says the rapid and dramatic changes in world credit markets and the global recession have had an impact on customers' capital expenditure programs and some have requested variations in their contractual arrangements. Co says "... We have now had an opportunity to evaluate the effects of those changes on our order backlog. Our order backlog at September 30, 2008 was $1.068 billion. As of December 5, 2008 we can confirm that officially cancelled orders amounted to $50.8 million and orders officially postponed by more than one year amount to $18.0 million. We have another $164.2 million of contract value at risk, meaning we have had verbal indications from customers that contract variations or cancellations are a possibility. This is an interim report; there may be further negative impacts of the economic crisis on our backlog..."

7:33AM 3M lowers guidance for FY08 below consensus; issues guidance for FY09 below consensus (MMM) 59.85 : Co issues downside guidance for FY08 (Dec), sees EPS of $5.10-5.15 vs. $5.44 First Call consensus, prior guidance $5.40-5.48. Co issues downside guidance for FY09 (Dec), sees EPS of $4.50-4.95 vs. $5.31 consensus. Given the uncertain duration and depth of the global slowdown, the company estimates full-year 2009 organic volumes to decline in the range of -3% to -7%. In addition, foreign exchange impacts are expected to reduce sales in the range of -6% to -7%.