Earnings - 5th Jan 2009

4:25PM Mosaic beats by $0.10, reports revs in-line (MOS) 37.61 +0.75 : Reports Q2 (Nov) earnings of $1.53 per share, excluding $0.41 charge and a $1.03 gain, $0.10 better than the First Call consensus of $1.43; revenues rose 36.9% year/year to $3.01 bln vs the $3 bln consensus. The average second quarter DAP selling price, FOB plant, was $1,083 per tonne (versus the co's prior guidance of $1,020-1,080), which was a $666 per tonne increase compared with a year ago and a $70 per tonne increase compared with Q1 of FY09. The average Q2 MOP selling price, FOB plant, was $529 per tonne, which is a $355 per tonne increase compared with a year ago and a $41 per tonne increase compared with Q1 of FY09. As previously disclosed, this was below The co's prior guidance range of $560-620 per tonne, primarily due to fewer high-priced spot sales in certain locations. The Potash segment's total sales volume was 1.7 mln tonnes for Q2 compared with Q2 volume of 2.0 mln tonnes a year ago. MOS expects the Phosphate segment's results to be much weaker at least through Q3 because of lower selling prices and margins, soft sales volumes, and lower production levels. As previously announced, MOS reduced phosphate production by ~1 mln tonnes through December 2008 and plans to reduce production by up to an additional one mln tonnes through fiscal 2009. MOS ended Q2 with $2.8 bln in cash and cash equivalents. Co's total debt as of November 30, 2008 was $1.4 bln compared to $1.7 bln as of November 30, 2007. Co says long-term world grain and oilseed use is expected to continue to increase at a faster pace than historical trends due to steady population growth, higher per capita incomes and further increases in biofuels production. This will require additional harvested area and steady increases in yields, which can be accomplished through more intensive and balanced crop nutrient use and improved crop genetics.

4:19PM Imation lowers Q4 guidance below consensus (IMN) 14.41 +0.41 : Co issuesdownside guidance for Q4 (Dec), sees Q4 (Dec) revs of $530-540 vs. $570.00 mln First Call consensus. Driven by these revenue levels and margin pressures, the Company clearly will not meet its prior earnings outlook and could report a fourth quarter operating loss of up to $7 million before restructuring and other charges. In addition, the Company is currently finalizing its impairment testing on intangible assets including goodwill and it is likely that substantial impairments will be identified and recorded in the fourth quarter of 2008. On October 21, 2008, Imation issued an outlook for the fourth quarter for revenue between $560 million and $580 million, operating income between $7 million and $14 million, and earnings per share between $0.11 and $0.23, prior to any restructuring charges.

9:02AM Grubb & Ellis predicts challening '09 for commercial real estate; believes loan delinquencies and foreclosures will increase (GBE) 1.12 : Co releases its 2009 Global Real Estate Forecast, which indicates that 2009 will be a challenging year for commercial real estate with the economy starting the year 13 months into what may become the longest recession since the 1930s. The investment market, which saw transaction volume plummet in 2008 as the financial markets collapsed and the credit markets froze, is expected to see a 15% increase in sales volume in 2009 as distressed properties are brought to market, particularly those acquired in the past couple of years with floating rate debt. Loan delinquencies and foreclosures will increase with more properties returning to lenders, who will be anxious to sell them. Debt capital will remain expensive and tight in 2009, but more of it will be available than in 2008, and there will be a slow increase in equity capital flowing into the market from private, institutional and offshore investors waiting on the sidelines. The coming year should be more active as the gap between buyers and sellers gradually narrows, with sellers making up most of that difference. Debt will be the hot investment type in 2009. Investments could be made in CMBS, collateralized debt obligations or funds investing in these assets. Or debt investments could be made at the property level with owners seeking to refinance their properties. More equity investments will be made as well in 2009 as investors holding an estimated $300-$400 bln in institutional, private and offshore equity begin to deploy their capital in response to falling prices.

8:49AM EMS Tech guides above consensus for FY09 (ELMG) 26.02 : Co issues upside guidance for FY09 (Dec), sees EPS of $1.55-1.65 vs. $1.54 First Call consensus. Co noted that at the present time, the Company cannot appropriately confirm or modify its guidance on earnings from continuing operations for full year 2008. However, to provide context, the midpoint of the guidance range for 2009 would represent earnings-per-share growth of approximately 19% over the midpoint of the most recent earnings guidance range for 2008. Co said, "The guidance for the full year 2009 is based on expectations for organic revenue growth of 15% to 20% for our SATCOM and Defense sectors. For LXE, with the current economic conditions, our plan is based on flat revenue compared with 2008. We also believe that the profitability of all of our businesses will increase in 2009 as compared with 2008, as a result of the expected favorable mix of contracts and the benefit of successful initiatives to reduce costs and improve operating margins."

7:03AM Multi-Fineline guides Q1 revs above consensus; announces 2.25 mln share (roughly 9%) buy back (MFLX) 12.28 : Co issues upside guidance for Q1 (Dec), sees Q1 (Dec) revs of $215 mln vs. $194.31 mln First Call consensus. In addition, the Company's current business outlook indicates that strong customer demand for its products is continuing into the fiscal second quarter. MFLEX also announced that its board of directors has approved a share repurchase program for up to 2,250,000 shares in the aggregate of the Company's common stock.