Earnings - 28th Jan 2009

5:23PM Trinity Industries reports that it delivered ~7,050 railcars in the fourth quarter of 2008; sees Q1 EPS of $0.25-0.35 vs $0.48 First Call consensus (TRN) 13.31 +0.33 : Co reports that it delivered ~7,050 railcars in the fourth quarter of 2008. This represents an increase as compared to ~6,740 railcar deliveries in the fourth quarter of 2007. The Company received orders for approximately 1,180 railcars during the fourth quarter of 2008. The Company has elected to indefinitely defer the investment of $800 million in approximately 10,000 railcars for multiple lessees in the ethanol industry that were scheduled for delivery to Trinity's leasing company in 2010 and 2011. Following the removal of these railcars, TrinityRail's order backlog at December 31, 2008 totaled approximately $720 million, representing approximately 8,260 railcars. Co's order backlog now includes approximately 7,010 railcars scheduled for delivery in 2009 and approximately 1,250 railcars scheduled for delivery in 2010. Railcars for use in the ethanol industry comprise approximately 1,740 of the railcars in the updated order backlog... As a result of the declining demand for railcars, the Company has idled, or is in the process of idling, four railcar manufacturing facilities. Co has also idled a wind tower facility in Oklahoma, consolidating capacity. At this time, the Company does not plan to convert any railcar facilities to wind tower operations... Co sees Q1 EPS of $0.25-0.35 vs $0.48 First Call consensus

4:20PM Norfolk Southern beats by $0.03, misses on revs (NSC) 37.65 +2.35 : Reports Q4 (Dec) earnings of $1.21 per share, $0.03 better than the First Call consensus of $1.18. The fourth-quarter operating ratio reached a record 67.5%, a 4.5 percentage point improvement compared with the same period last year. During 2008, NS purchased and retired 19.4 mln shares of common stock at a cost of $1.1 bln. Co says, "Norfolk Southern delivered strong financial results in the fourth quarter, despite economic conditions that reduced freight volumes... While it is unclear how long the downturn will last, long-term trends point to freight railroads as the preferred way to move goods and relieve highway congestion. We will continue to make investments in our company and, in 2009, plan to invest $1.4 bln in capital improvements to maintain the safety and quality of our franchise, improve operational efficiency and service, and support the business growth we expect in future years."

4:07PM DeVRY reports EPS in-line, beats on revs (DV) 59.57 -1.27 : Reports Q2 (Dec) earnings of $0.59 per share, in-line with the First Call consensus of $0.59; revenues rose 35.0% year/year to $369.6 mln vs the $364.2 mln consensus. As previously announced in December 2008, DeVry University new undergraduate enrollment increased 19.7% and total undergraduate enrollment rose 16.9%. At Keller Graduate school of Management, the number of coursetakers in November 2008 increased 13.7%... Becker's operations were affected by the continued deterioration in the financial services sector during the quarter. It expects these market conditions will persist at least through calendar 2009. Becker remains focused on long-term growth and is exploring additional markets and industries to further leverage its leadership in education for accounting and finance professionals... "We are mindful of the challenging economic environment we face and continue to invest in our growth opportunities while maintaining an appropriately conservative capital structure," added CEO Daniel Hamburger. "We believe this prudent approach to the execution of our strategic plan creates a balance that allows us to make investments in academic quality, student services and further diversification."

4:03PM Stryker reports EPS in-line, revs in-line; guides FY09 EPS above consensus (SYK) 41.05 +1.49 : Reports Q4 (Dec) earnings of $0.74 per share, excluding non-recurring items, in-line with the First Call consensus of $0.74; revenues rose 3.6% year/year to $1.72 bln vs the $1.72 bln consensus. Co issues upside guidance for FY09, sees EPS of $3.12-3.22 vs. $3.12 consensus. The financial forecast for 2009 anticipates a constant currency net sales increase in the range of 6% to 9%. If foreign currency exchange rates hold near current levels, the Company anticipates an unfavorable impact on net sales of approximately 4.5% to 5.5% in the first quarter of 2009 and an unfavorable impact on net sales of approximately 3.5% to 4.5% for the full year of 2009.

4:02PM Diamond Foods raises Jan quarter guidance to $0.29-0.35 vs $0.27 First Call consensus; raises FY09 guidance (DMND) 24.90 -0.03 : Co raises Q2 (Jan) quarter guidance to $0.29-0.35 vs $0.27 First Call consensus; raises FY09 guidance to $1.25-1.32 vs $1.28 First Call consensus. Firm cites the strength of improving gross margins, which are now expected to be more than 400 basis points above the prior year's level. "Based on the solid performance of our Diamond culinary nut business and our snack portfolio, which consists of Emerald snack nuts and Pop Secret microwave popcorn, we now expect to achieve EPS growth of between 37 to 45 percent for the fiscal year. We are pleased by the complimentary nature of our expanded snack portfolio, and believe we will benefit from the synergy of the larger business in the future."

8:41AM Avery Dennison beats by $0.22, misses on revs (AVY) 27.84 : Reports Q4 (Dec) earnings of $0.65 per share, excluding non-recurring items, $0.22 better than the First Call consensus of $0.43; revenues fell 11.8% year/year to $1.51 bln vs the $1.6 bln consensus. Co elects not to provide FY09 earnings forecast due to decreased visibility. Co say raw costs declined 4% in FY08. Co provides two scenarios for 2009:  If revenue declines 8% on an organic basis, co sees adjusted EPS of $1.00 and FCF of $260.0 mln. If revenue declines 3% on an organic basis, co sees adjusted EPS of $2.00 and FCF of $300.0 mln. Briefing.com note:  First Call consensus calls for FY09 EPS of $2.66.

8:36AM Temple-Inland beats by $0.14, beats on revs (TIN) 4.46 : Reports Q4 (Dec) earnings of $0.11 per share, excluding tax adjustments, $0.14 better than the First Call consensus of ($0.03); revenues rose 3.8% year/year to $973 mln vs the $908.3 mln consensus. Co says, "As we enter 2009, economic conditions continue to be uncertain. However, the actions we took in 2008 to lower our cost structure significantly throughout our co, drive down our inventories and grow our business will serve us well in 2009... In Building Products, shipments for all of our products declined in the fourth quarter due to difficult market conditions and the seasonal slowdown in demand. We took action in the quarter to further drive down our costs including exiting the hardboard siding business and reducing our headcount by an additional 11%. We also successfully introduced a new fiberglass-faced gypsum sheathing product, GreenGlass, for use in commercial and residential applications during the quarter... In Corrugated Packaging, fourth quarter 2008 was our most profitable quarter of the year. We operated well and benefited from our box plant transformation, acquisition of PBL, higher box prices and lower input costs. We took 108,000 tons of mill downtime in the quarter to match our production to our demand as our box shipments were down approximately 7% compared with year ago levels. We enter 2009 with the lowest inventory levels in the last three years."

8:28AM Peabody Energy beats by $0.37, beats on revs (BTU) 23.84 : Reports Q4 (Dec) earnings of $1.11 per share, $0.37 better than the First Call consensus of $0.74; revenues rose 61.0% year/year to $1.88 bln vs the $1.71 bln consensus. Co said,  "While the world faces significant near-term economic challenges, Peabody's middle- to long-term outlook remains positive," said Boyce. "We believe that inventories will rebalance, steel demand will recover, new coal plants will come on line and existing plants will run at higher utilization, while difficult geology and lack of capital access will deplete supply and limit infrastructure development. As recent global outlooks have forecast, nations will continue to turn to coal in increasing quantities, and Peabody remains best positioned in the industry to serve this growing demand."

8:11AM Energizer beats by $0.20, misses on revs (ENR) 44.04 : Reports Q1 (Dec) earnings of $1.93 per share, excluding non-recurring items, $0.20 better than the First Call consensus of $1.73; revenues fell 12.4% year/year to $1.04 bln vs the $1.08 bln consensus. At prevailing currency rates as of January 20, 2009, co expects the overall operating profit impact of currency translation to be unfavorable $105 to $115 mln for the remainder of FY09 as compared to the same period in FY08.

8:05AM Rayonier beats by $0.05, beats on revs (RYN) 28.89 : Reports Q4 (Dec) earnings of $0.53 per share, $0.05 better than the First Call consensus of $0.48; revenues rose 25.7% year/year to $353.9 mln vs the $336.5 mln consensus. Co says, "Despite uncertain economic times, we expect our diverse mix of businesses to generate strong cash flows well in excess of our $2.00 per share dividend. With conservative debt levels, manageable debt maturities and a solid balance sheet, we should have significant operating flexibility... Due to the weak economy, we anticipate 2009 results will be below 2008 across our three major business units... We expect that the weakened housing market will negatively impact our timber and real estate businesses, but anticipate continued interest in our non-strategic timberlands. In Performance Fibers, earnings are expected to be solid although below 2008 as strong demand for our cellulose specialties products is more than offset by higher costs and weakening fluff prices."

7:38AM Bristol-Myers beats by $0.05, misses on revs; reaffirms FY09 EPS guidance (BMY) 22.25 : Reports Q4 (Dec) earnings of $0.46 per share, $0.05 better than the First Call consensus of $0.41; revenues rose 4% year/year to $5.25 bln vs the $5.42 bln consensus. Co reaffirms guidance for FY09, sees EPS of $1.85-2.00 vs. $1.95 consensus. Key non-GAAP guidance assumptions include low single-digit revenue growth (mid-to-high single digit growth excluding foreign exchange); slight improvement in gross margins; advertising and promotion increase in the low-to-mid single-digit range; marketing, sales and administrative expense decrease in the low-to-mid single digits; research and development expense growth in the mid single-digit range; and an effective tax rate of approximately 24%. The company reaffirms guidance that it expects non-GAAP earnings per share from continuing operations to grow at a minimum of 15% compounded annual growth rate, from the 2007 base through 2010 without rebasing for the sale of the ConvaTec business, excluding costs associated with the PTI and other specified items that have not yet been identified and quantified.

7:33AM St. Jude Medical beats by $0.02, beats on revs; guides Q1 EPS in-line; guides FY09 EPS in-line (STJ) 31.68 : Reports Q4 (Dec) earnings of $0.60 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.58; revenues rose 11.2% year/year to $1.13 bln vs the $1.1 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.57-0.59 vs. $0.59 consensus. Co issues in-line guidance for FY09, sees EPS of $2.48-2.54 vs. $2.51 consensus.

7:31AM FPL Group beats by $0.01, beats on revs; guides FY09 EPS in-line (FPL) 48.94 : Reports Q4 (Dec) earnings of $0.90 per share, $0.01 better than the First Call consensus of $0.89; revenues rose 8.7% year/year to $4 bln vs the $3.87 bln consensus. Co issues in-line guidance for FY09, sees EPS of $4.05-4.25 vs. $4.08 consensus.

7:28AM Verizon reports EPS in-line, revs in-line (VZ) 30.99 : Reports Q4 (Dec) earnings of $0.61 per share, excluding non-recurring items, in-line with the First Call consensus of $0.61; revenues rose 3.4% year/year to $24.64 bln vs the $24.74 bln consensus. Coreports that it added 1.4 million wireless net customer additions, 303,000 net new FiOS TV customers and 282,000 net new FiOS Internet customers.

7:11AM Waters beats by $0.11, reports revs of $418.3 mln vs the $416.8 mln consensus (WAT) 36.85 : Reports Q4 (Dec) earnings of $1.07 per share, excluding intangibles amortization & a litigation adjustment, $0.11 better than the First Call consensus of $0.96; revenues fell 4.3% year/year to $418.3 mln vs the $416.8 mln consensus. Co says, "Overall, 2008 was a very successful year for Waters as non-GAAP E.P.S. were up 20% and cash from operations reached a record high. The challenges that we faced in the fourth quarter reflect the tougher economic environment that we are likely to continue to encounter in 2009. We are confident that we can manage our business effectively through this difficult period and we remain committed to new product research and customer support programs to ensure our long term growth and continued strong market position."

7:03AM BJ Services beats by $0.10, reports revs in-line (BJS) 11.92 : Reports Q1 (Dec) earnings of $0.56 per share, excluding $0.05 charge related to the settlement of a frozen US defined benefit pension plan, $0.10 better than the First Call consensus of $0.46; revenues rose 11.4% year/year to $1.43 bln vs the $1.43 bln consensus. "U.S. activity was bolstered somewhat by projects that had been delayed in the previous quarter due to hurricane activity along the Gulf Coast. Our Canada pressure pumping operations experienced higher volume and some pricing improvement sequentially. International pressure pumping activity was down sequentially, primarily as a result of anticipated customer and weather-related slowdowns, but showed marked year over year improvement in revenue and profitability, as a result of new contracts added during fiscal 2008 and more favorable weather conditions in most international markets between the two periods."

6:37AM Kinetic Concepts beats by $0.13, misses on revs; guides FY09 EPS above consensus, revs in-line (KCI) 21.83 : Reports Q4 (Dec) earnings of $0.98 per share, $0.13 better than the First Call consensus of $0.85; revenues rose 63.0% year/year to $492.5 mln vs the $505.7 mln consensus. Co issues mixed guidance for FY09, sees EPS of $3.95-4.10 vs. $3.42 consensus; sees FY09 revs of $2.0-2.06 bln vs. $2.03 bln consensus. In October 2008, KCI's Board of Directors authorized a share repurchase program for the repurchase of up to $100.0 mln in market value of KCI common stock through the third quarter of 2009. Through December 31, 2008, the co had repurchased $50.1 mln of KCI common stock at an average price of $24.12 per share. Gross profit margin for the fourth quarter of 2008 was 50.1% compared to 49.3% for the same period one year ago.

6:09AM DuPont misses by $0.04, misses on revs; guides Q1 EPS below consensus; guides FY09 EPS in-line (DD) 23.18 : Reports Q4 (Dec) loss of $0.28 per share, excluding non-recurring items, $0.04 worse than the First Call consensus of ($0.24); revenues fell 16.7% year/year to $5.82 bln vs the $6.17 bln consensus. Co issues downside guidance for Q1, sees EPS of $0.50-0.70 vs. $0.72 consensus. Co issues in-line guidance for FY09, sees EPS of $2.00-2.50 (prior range $2.25-2.75) vs. $2.19 consensus. Co expects that global macroeconomic conditions for Q109 will be similar to Q408, with very weak demand in most of the key markets, excluding agriculture. While favorable conditions in global agriculture markets are expected in 2009, lower demand for non-agriculture products and the impact of currency is expected to limit revenue growth in FY09. The co expects to continue an appropriate level of spending for high-growth, high-margin businesses, including seed products and photovoltaics.

1:26AM Jacobs beats by $0.01, beats on revs; guides FY09 EPS in-line (JEC) 40.56 : Reports Q1 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.89; revenues rose 30.8% year/year to $3.23 bln vs the $3.12 bln consensus. Co issues in-line guidance for FY09, sees EPS of 3.55-3.90 vs. $3.67 consensus (co reduces upper end of EPS guidance to $3.90). Co announces backlog totaling $16.0 bln at December 31, 2008, including a technical professional services component of $7.9 bln. This compares to total backlog and technical professional services backlog of $15.0 bln and $7.1 bln, respectively, at December 31, 2007. During Q109, JEC was notified by certain clients that they were cancelling projects that had been included in backlog. Accordingly, $840 mln of revenues was removed from backlog during the recent quarter.

1:04AM Allegiant Travel beats by $0.21, reports revs in-line; announces $25 mln share repurchase program (ALGT) 37.91 : Reports Q4 (Dec) earnings of $0.88 per share,$0.21 better than the First Call consensus of $0.67; revenues rose 21.3% year/year to $122.4 mln vs the $121.4 mln consensus. Co estimates that for Q109 scheduled total average air fare (the sum of air fare plus ancillary revenue per passenger), will be down 4% to 6% over the prior year or between $4 and $7. Decline in RPM should be more than offset by expected reduction in fuel cost per passenger and non-fuel cost per passenger (due to increased aircraft utilization) in the first quarter. Co announces $25 mln share repurchase program. "Our fourth quarter fuel price per gallon was down 21% year-over-year and a stunning 40% sequentially. The resulting reduction in fourth quarter operating cost helped pave the way to a record operating margin, with operating profit surging close to 400% year-over-year."

Earnings - 22nd July 2008 (2)

4:59PM Zimmer Hldgs misses by $0.04, reports revs in-line; lowers FY08 EPS and revs guidance (ZMH) 70.88 +0.52 : Reports Q2 (Jun) earnings of $0.99 per share, $0.04 worse than the First Call consensus of $1.03; revenues rose 11.3% year/year to $1.08 bln vs the $1.07 bln consensus. Co lowers guidance for FY08, sees EPS of $4.05-4.10, down from previous guidance of $4.20-4.25, vs. $4.19 consensus; sees FY08 revs growth of 8.5-9% (which calculates to ~$4.23-4.25 bln vs. $4.28 bln consensus), down from previous guidacne of 10-11%.

4:59PM Broadcom on call sees Q3 revs of $1.25-1.3 bln vs $1.16 bln First Call consensus (BRCM) 27.64 +0.20 :

4:30PM Axsys Technologies beats by $0.06, beats on revs; guides FY08 EPS above consensus, revs above consensus (AXYS) 63.32 -1.43 : Reports Q2 (Jun) earnings of $0.54 per share, $0.06 better than the First Call consensus of $0.48; revenues rose 40.4% year/year to $60.3 mln vs the $56.2 mln consensus. Co issues upside guidance for FY08, sees EPS of $2.09-2.15, previous $1.88-1.92, vs. $1.92 consensus; sees FY08 revs of $237-241 mln, previous $224-228 mln, vs. $227.91 mln consensus.

4:23PM ADC Telecom lowers FY08 revenue guidance, sees Q3 revs below Q2 revs; lowers FY08 EPS (ADCT) 13.37 +0.24 : Co lowers FY08 revs guidance to $1.50-1.52 bln vs $1.53 bln consensus, down from $1.52-1.54 bln prior guidance. Co sees Q3 revs 3-5% below Q2 revw, which equates to ~$383.2-391.3 vs $403.9 mln consensus. Co lowers FY08 GAAP EPS to $1.12-1.20, excludes $0.94 in charges, vs $1.33 consensus. Co says due to the change in sales volume and product mix, ADC's gross margins in 2008 are now expected to be around 34% for the second half and around 35% for the full year compared to previous guidance of 36% for the full year... says "the updated financial outlook primarily reflects lower sales of copper and fiber connectivity products in the United States resulting mainly from customers' recent budget reviews and ordering patterns, as well as the resulting effects on original equipment manufacturers' demand for ADC products. "We remain firmly committed to managing our business strategically for the long term, but the inherent short-lead time nature of our business sometimes results in quarter-to-quarter market-related movements, up or down, in our sales expectations."

4:22PM PPD Inc. beats by $0.02, beats on revs (PPDI) 40.95 : Reports Q2 (Jun) earnings of $0.41 per share, $0.02 better than the First Call consensus of $0.39; revenues rose 16.3% year/year to $407 mln vs the $374.2 mln consensus. "I am very pleased with our financial and operating performance for the quarter," said Fred Eshelman, chief executive officer of PPDI. "The management team made substantial progress on various internal initiatives, as evidenced by the expansion in our development segment operating margin, robust cash flow, improved DSO and solid earnings." Eshelman added, "We believe the market for CRO services is strong, even though our new authorizations came in lower than expected for the quarter. Request-for-proposal volume remains high, and we will continue to focus our efforts on operational excellence and sales execution."

4:18PM VMware reports EPS in-line, revs in-line; guides Q3 & FY08 revs below consensus (VMW) 37.97 +1.03 : Reports Q2 (Jun) earnings of $0.23 per share, in-line with the First Call consensus of $0.23; revenues rose 53.7% year/year to $456.1 mln vs the $458.6 mln consensus. Q2 non-GAAP operating margins 24.6% vs. the 24.4% Street expectation and 24.3% in Q1. Co issues downside guidance for Q3, sees Q3 revs of $462-468 vs. $497.34 mln consensus. VMW says 2008 revenues are targeted to grow approximately 42-45% compared to 2007 vs consensus ests of ~48% (42-45% growth equates to $1.88-1.92 bln vs $1.96 bln consensus). VMW says Q3 GAAP operating margin is targeted to be between 11-13% (no ests).

4:17PM Washington Mutual misses by $2.29 (WM) 5.86 +0.38 : Reports Q2 (Jun) loss of $3.34 per share, excluding $3.24 related to the co's capital issuance in April, $2.29 worse than the First Call consensus of ($1.05). Co increased its loan loss reserves by $3.74 bln to $8.46 bln. The quarter's provision was $5.9 bln compared with $2.2 bln of net charge-offs. The co now expects the remaining cumulative losses in its residential mortgage portfolios to be toward the upper end of the range it disclosed in April, and continues to expect 2008 to be the peak year for provisioning. Co now expects to realize annualized cost savings of approx $1 bln which will contribute to improved pretax, pre-provision earnings. The co's tangible equity to total tangible assets capital ratio increased during Q2 to 7.79% from 6.40% in Q1, resulting in approx $7 bln of capital in excess of its targeted 5.50%. The increase reflects the effects of the $7.2 bln capital raise, the reduction of the co's balance sheet by $10 bln and the loss for the quarter. The co had over $40 bln of readily available liquidity at quarter end.

4:17PM Norfolk Southern beats by $0.13, beats on revs (NSC) 65.69 +2.15 : Reports Q2 (Jun) earnings of $1.18 per share, $0.13 better than the First Call consensus of $1.05; revenues rose 16.3% year/year to $2.77 bln vs the $2.65 bln consensus. "Norfolk Southern delivered record financial results during the quarter, reporting continuing strength in our coal, agriculture, and metals markets," said Norfolk Southern CEO Wick Moorman. "Looking ahead, our franchise should continue to benefit from a broad and balanced customer base as well as from rail's inherent advantages over other transportation modes - safety and reliability, fuel efficiency, and environmental sustainability."

4:11PM E*TRADE misses by $0.05, beats on revs (ETFC) 4.05 : Reports Q2 (Jun) loss of $0.19 per share, $0.05 worse than the First Call consensus of ($0.14); revenues fell 15.9% year/year to $342.8 mln vs the $332.5 mln consensus. "While economic conditions are still challenging, we consider loan delinquency trends to be encouraging." Total delinquencies increased by 9 percent or $111 mln during the quarter, representing the slowest increase in four quarters. Home equity loan delinquencies increased by 4% or $25 mln during the quarter, down from an increase of 8 percent in the prior quarter. Provision for loan losses increased by $85 mln quarter over quarter, driven primarily by an increase in home equity-related charge-offs. Total allowance for loan losses increased to $636 mln, as provision exceeded charge-offs by $70 mln during the quarter. The Company increased its allowance for loan losses across all three categories of its loan portfolio. "While the current economic environment may impede our expectations to return to profitability from continuing operations this year, we are executing well on our Turnaround Plan and continue to make progress toward returning to profitability."

4:06PM Intuitive Surgical beats by $0.10, beats on revs (ISRG) : Reports Q2 (Jun) earnings of $1.28 per share, $0.10 better than the First Call consensus of $1.18; revenues rose 56.3% year/year to $219.2 mln vs the $208.6 mln consensus. Intuitive ended the second quarter of 2008 with cash, cash equivalents and investments of $740 million, up $104 million from December 31, 2007.

4:04PM Edwards Lifesci beats by $0.02, beats on revs; guides Q3 EPS in-line; guides FY08 EPS above consensus, revs above consensus (EW) 65.25 +0.10 : Reports Q2 (Jun) earnings of $0.66 per share, $0.02 better than the First Call consensus of $0.64; revenues rose 20.2% year/year to $327.6 mln vs the $311.9 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.53-0.57 vs. $0.56 consensus. Co issues upside guidance for FY08, sees EPS of $2.50-2.58 vs. $2.50 consensus; sees FY08 revs of $1.24-1.28 bln vs. $1.23 bln consensus. "... all of our franchises reported double-digit sales growth. This quarter was also highlighted by the strong uptake of our Edwards SAPIEN valve in Europe where procedural success continues to be impressive. Our base heart valve business, which excludes transcatheter heart valve sales, performed well this quarter, driven by strong double-digit international sales growth and improved U.S. performance..."

8:38AM Avery Dennison beats by $0.03, beats on revs; guides FY08 EPS below consensus (AVY) 45.24 : Reports Q2 (Jun) earnings of $1.03 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $1.00; revenues rose 20.0% year/year to $1.83 bln vs the $1.8 bln consensus. Co issues downside guidance for FY08, sees EPS of $3.75-3.95, excluding non-recurring items, compared to previous guidance of $4.00-4.30, vs. $4.03 consensus. Co is reducing its Y08 guidance primarily due to a significant increase in inflation expectations coupled with greater economic weakness. To help offset the impact of inflation, co accelerated productivity efforts and is raising prices. However, expectations for raw material inflation in Y08 have risen to approx $110 mln, representing a 60% increase since April. Because the majority of the benefit from pricing actions is expected to materialize later in the year, raw material inflation will significantly outpace price increases realized in the full year. Co's earnings expectations reflect revenue flat to slightly down on an organic basis for Y08. Slowing in European and Asian markets is expected, in addition to the slower U.S. market.

8:37AM AK Steel beats by $0.14, beats on revs (AKS) 51.06 : Reports Q2 (Jun) earnings of $1.29 per share, $0.14 better than the First Call consensus of $1.15; revenues rose 19.6% year/year to $2.24 bln vs the $2.10 bln consensus. Co says the yr-over-yr operating profit improvement was primarily due to higher spot market shipments and overall higher selling prices in all markets, coupled with continued strong cost controls. Co does not provide specific EPS guidance for Q3, but says it expects shipments of 1.55 mln tons which will be lower than Q2 due to seasonally lower automotive shipments and a planned five-day outage at its Middletown Works hot strip mill. The co also expects higher raw material and energy costs in Q3. Average per-ton selling prices should rise 10% sequentially in Q3.

8:36AM XTO Energy beats by $0.04, beats on revs (XTO) 57.98 : Reports Q2 (Jun) earnings of $1.09 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $1.05; revenues rose 45.7% year/year to $1.94 bln vs the $1.85 bln consensus. Second quarter 2008 daily gas production averaged 1.80 Bcf, up 35% from second quarter 2007 daily production of 1.33 Bcf. Daily oil production for the second quarter was 51.3 thousand barrels, an 11% increase from the second quarter 2007 level of 46.1 thousand barrels. During the quarter, natural gas liquids production was 15.6 thousand barrels per day, a 3% increase from the prior year quarter rate of 15.2 thousand barrels per day.

8:32AM USG Corp beats by $0.09, beats on revs (USG) 26.02 : Reports Q2 (Jun) loss of $0.27 per share, excluding non-recurring items, $0.09 better than the First Call consensus of ($0.36); revenues fell 11.2% year/year to $1.25 bln vs the $1.21 bln consensus. Co said, "The steep decline in the U.S. housing market, combined with unprecedented increases in the cost of key raw materials and energy, resulted in losses in our core wallboard business... Our other businesses are performing reasonably well, despite their own challenging market conditions."

8:11AM PACCAR beats by $0.02, beats on revs (PCAR) 42.72 : Reports Q2 (Jun) earnings of $0.86 per share, $0.02 better than the First Call consensus of $0.84; revenues rose 10.3% year/year to $3.78 bln vs the $3.72 bln consensus.

8:08AM Wabtec beats by $0.04, beats on revs; guides FY08 EPS above consensus, revs in-line (WAB) 53.40 : Reports Q2 (Jun) earnings of $0.69 per share, $0.04 better than the First Call consensus of $0.65. Co raises guidance for FY08, sees EPS of $2.65 vs. $2.61 consensus, from $2.55 previously; sees FY08 revs of $1.52-1.55 bln vs. $1.55 bln consensus, from high-single-digits previously. "Although we remain cautious about the economic outlook in the U.S. and abroad, we are confident in our growth prospects for the rest of 2008 and beyond."