Earnings - 15th Jan 2009

6:22PM Agrium announced that it expects to record a write-down in Retail in Q4 of 2008 of ~$96-mln ($0.41 diluted EPS) (AGU) 32.30 +1.20 : Co announced that it expects to record a write-down in Retail in Q4 of 2008 of ~$96-mln ($0.41 diluted earnings per share), of which $11-mln is for our South American Retail operation and $85-mln is for our North American Retail operations. The adjustment to our North America Retail operations is primarily related to the difference in the value between anticipated nutrient sales prices and prices that North America Retail has contracted for prepayments and other committed crop nutrient tonnes in 2009. AGU also expects a further $21-mln ($0.09 diluted EPS) write-down in its Wholesale Purchase For Resale (PFR) business. These adjustments are indicative of the unprecedented volatility in global economic and commodity markets, and the decline in certain nutrient prices since early December 2008 when we issued updated guidance. AGU does not expect any write-down with respect to manufactured wholesale volumes. The write-downs of $96-mln for Retail and an additional $21-mln in PFR were not included in the update to guidance issued December 8, 2008. Our December 2008 update to guidance did include a write-down of ~$90-mln for our PFR business in North America, South America and Europe.

4:35PM Meridian Bioscience lowers FY09 revs guidance below consensus, guides Q1 EPS and revs below consensus (VIVO) 23.20 +0.31 : Co lowers FY09 revs to $151-156 mln vs $159.4 mln consensus, down from $157-160 and reaffirms EPS of $0.86-0.90 vs $0.89 consensus. Co issues downside Q1 guidance; co sees Q1 EPS of $0.20 vs $0.22 consensus, revs of $34.3 mln vs $38.1 mln consensus. Co says, "During the quarter, sales to our largest distributor were essentially flat. However, shipments to customers from this distributor continued at a double-digit pace. Revenues from the European Diagnostics segment grew 1% on a local currency basis but were adversely impacted by lower H.pylori sales in Italy and reflect a 7% decline on a US dollar basis due to the effects of the strengthening dollar. Life Science comparable revenues declined 7% due in part to a large order in the first quarter of 2008 that did not repeat this year. The recent strengthening of the dollar will continue to have a negative effect on European Diagnostics sales denominated in the Euro. Natural hedging programs mitigate the impact of currency at the operating income line on a consolidated basis. Customers reducing inventory levels to conserve cash and reduce costs will also likely have a negative effect on fiscal 2009 revenues. As a result, VIVO lowered guidance.

4:20PM Intel reports EPS in-line, revs in-line; co does not provide rev outlook (INTC)13.29 +0.21 : Reports Q4 (Dec) earnings of $0.04 per share, in-line with the First Call consensus of $0.04; revenues fell 22.8% year/year to $8.27 bln vs the $8.21 bln consensus, in-line with company's preliminary Q4 results of $8.2 bln issued last week (01/07). The results included a billion-dollar negative impact from the previously announced reduction in the carrying value of the company's Clearwire investments. Due to economic uncertainty and limited visibility, Intel is not providing a revenue outlook at this time. For internal purposes, the company is currently planning for revenue in the vicinity of $7 billion ($7.27 bln consensus). The gross margin percentage is expected to decline to the low 40s (vs 51% consensus) primarily due to higher underutilization charges and 32nm start-up costs.  

8:40AM ConAgra reaffirms FY09 EPS guidance of "slightly above $1.50" vs. First Call Consensus of $1.46 (CAG) 16.76 :  

6:38AM JP Morgan Chase reports Q4 results (JPM) 25.91 : Reports Q4 (Dec) earnings of $0.07 per share, vs the breakeven First Call consensus. Excluding extraordinary gains the co reports a loss of $0.28. The co says a $4.1 bln (pretax) increase to loan loss reserves, resulting in coverage ratios of 4.24% for consumer businesses and 2.64% for wholesale businesses $2.9 bln (pretax) net markdowns due to leveraged lending exposures and mortgage-related positions in the Investment Bank $1.1 bln (after tax) benefit from merger-related items $854 mln (after tax) benefit from MSR risk management results $680 mln (after tax) private equity write-downs $627 mln (after tax) gain due to dissolution of Paymentech joint venture Maintained strong balance sheet, with Tier 1 capital of $136.2 bln, or 10.8% (estimated), at year-end. Revenues fell 0.9% year/year to $17.23 bln vs the $18.83 bln consensus. As of December 31, 2008, the firm reported a Tier 1 capital ratio of 10.8% (estimated). During the year, the firm increased its total allowance for loan losses to $23.2 bln, resulting in a firmwide coverage ratio of 3.16%. The provision for credit losses was $3.6 bln, an increase of $2.5 bln from the prior year, as housing price declines continued to result in significant increases in estimated losses, particularly for high loan-to-value home equity and mortgage loans. In card services, the managed net charge-off rate for the quarter was 5.56%, up from 3.89% in the prior year and 5.00% in the prior quarter. The 30-day managed delinquency rate was 4.97%, up from 3.48% in the prior year and 3.91% in the prior quarter. Excluding Washington Mutual, the managed net charge-off rate for the fourth quarter was 5.29% and the 30-day delinquency rate was 4.36%. Co says, "Our fourth-quarter financial results were very disappointing, driven by a loss in Investment Banking largely attributable to continued markdowns on leveraged loans and mortgage trading positions, as well as weak trading results. We also faced higher credit costs associated with continued deterioration across our loan portfolios, including a $4.1 bln addition to loan loss reserves. However, we continued to see underlying growth in many business areas. The integration of our recently-acquired Washington Mutual franchise has progressed well, and we continued to grow in Treasury & Securities Services and Commercial Banking. We also opened mlns of new checking and credit card accounts, experienced net inflows in assets under management, and gained Investment Banking market share in all major fee categories... While the diversified nature of our franchise and strong capital position have enabled us to weather the recessionary environment so far, we added $13.9 bln to our allowance for loan losses in 2008 to keep this important component of our fortress balance sheet firmly intact.... If the economic environment deteriorates further, which is a distinct possibility, it is reasonable to expect additional negative impact on our market-related businesses, continued higher loan losses and increases to our credit reserves... We are doing our part to help stabilize the financial markets and hasten recovery. We assumed risk and expended resources to assimilate Bear Stearns and Washington Mutual. We continued to lend in a safe and sound manner - extending more than $100 bln in new credit in the fourth quarter alone to consumers, businesses, municipalities, and non-profit organizations."