Earnings - 30th April 2009(3)

4:33PM MetLife misses by $0.14, misses on revs (MET) : Reports Q1 (Mar) earnings of $0.20 per share, $0.14 worse than the First Call consensus of $0.34; revenues fell 12.1% year/year to $10.22 bln vs the $11.93 bln consensus. Book Value per Share $25.98, BVPS ex-AOCI $44.93. Net investment income declined to $3.3 bln from $4.3 bln in the year-ago quarter. The lower result was largely due to a decline in variable investment income, which was negative and lower than plan by $508 million, or $321 million ($0.40 per share) after income tax, the impact of deferred acquisition costs and other offsets. The lower variable investment income was driven mostly by negative returns from corporate joint ventures and real estate funds. For the quarter, the company had net realized investment losses, net of income tax, of $618 million. The net realized investment losses were across a broad range of asset classes, including corporate credits and hybrid securities, and included $584 million, net of income tax, in credit-related losses and impairments.

4:28PM CardioNet beats by $0.01, reports revs in-line; reaffirms FY09 EPS guidance, revs guidance, reaffirms outlook beyond 2009 (BEAT) 20.75 +0.04 : Reports Q1 (Mar) earnings of $0.04 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.03; revenues rose 40.0% year/year to $35.7 mln vs the $35.6 mln consensus. Co reaffirms guidance for FY09, sees EPS of $0.69-0.73 vs. $0.67 consensus; sees FY09 revs of $170-175 mln vs. $172.88 mln consensus. "Beyond 2009, we are comfortable with our previous guidance of revenue growth of at least 50% combined with earnings growth of 100% in 2010, with earnings per diluted share that could reach $2.00 in 2011" (Current 2011 EPS consensus is $1.88). "We continue to view 2009 as an inflection point in our business and believe that we can achieve accelerated growth and profitability in 2010 and beyond through strategic investments in our sales organization and corporate infrastructure... We are ahead of our sales force expansion plans and expect to substantially complete our expansion by mid-year 2009. As we continue to expand our sales organization, we anticipate being well positioned to gain significant market share in the future as our new account executives become fully established and proficient in marketing our services primarily to cardiologists and electrophysiologists. Our infrastructure enhancements have already translated to improvements in customer service and monitoring operations. Continued investments in the business will be a high priority for CardioNet, particularly as our customer base grows, to insure that CardioNet is the leader in all aspects of ambulatory cardiac monitoring and diagnosis."

4:27PM Correction: Vistaprint beats by $0.07, beats on revs; guides in-line Q4 (VPRT)34.35 +1.44 : Reports Q3 (Mar) earnings of $0.44 per share, excluding non-recurring items,$0.07 better than the First Call consensus of $0.37; revenues rose 20.5% year/year to $127.5 mln vs the $125.1 mln consensus. Co issues in-line guidance for Q4, sees EPS of $0.35-0.39, excluding non-recurring items, vs. $0.37 consensus; sees Q4 revs of $123-129 mln vs. $126.34 mln consensus. Earlier we did not include the high end of Q4 guidance. The original post has been removed.e economic downturn, we remain on track to achieve our financial targets for this fiscal year."

4:19PM AMAG Pharma misses by $0.25, beats on revs (AMAG) : Reports Q1 (Mar) loss of $1.55 per share, $0.25 worse than the First Call consensus of ($1.30); revenues rose 56.2% year/year to $1 mln vs the $0.4 mln consensus. As of March 31, 2009, co's cash, cash equivalents, investments and settlement rights associated with certain auction rate securities totaled $194.6 million. Revenues for the quarter ended March 31, 2009 were $1.0 million as compared to revenues of $0.6 million for the same period in 2008.

4:18PM NetScout Systems misses by $0.02, misses on revs; guides FY10 EPS in-line, revs in-line (NTCT) 8.99 +0.14 : Reports Q4 (Mar) earnings of $0.20 per share, excluding non-recurring items, $0.02 worse than the First Call consensus of $0.22; revenues rose 4.4% year/year to $66.8 mln vs the $70.6 mln consensus. Co issues in-line guidance for FY10, sees EPS of $0.80-0.95 vs. $0.89 consensus; sees FY10 revs of $260-280 vs. $277.93 mln consensus. Co says, "Despite our strength in the market, our outlook for 2010 remains cautious, as we are anticipating stable revenue with growing margins and EPS assuming that the economy remains at current levels. We are driving operating margin expansion through cost reductions and improved operating efficiencies. Our caution about the economy does not alter our confidence in the underlying value proposition of our products and market leadership or our ability to build on our technological and financial strength. We expect to see good order flow continue from our major verticals: wireless service providers, financial services, including high-speed trading, and government. Of the nine customers who ordered over one mln dollars in the fourth quarter, eight were from wireless and financial services."

4:17PM Affiliated Computer beats by $0.07, misses on revs (ACS) 48.38 -0.20 : Reports Q3 (Mar) earnings of $1.00 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.93; revenues rose 4.4% year/year to $1.61 bln vs the $1.65 bln consensus. "We signed a record level of new business, we grew revenues and profit, and we generated the highest level of adjusted earnings per share in our history. These results can be attributed to our diverse client base, hard working employees and resilient business model which continues to perform at a very high level."

4:16PM PerkinElmer beats by $0.06, beats on revs, reaffirms guidance (PKI) 14.57 +0.64 : Reports Q1 (Mar) earnings of $0.26 per share, $0.06 better than the First Call consensus of $0.20; revenues fell 5.9% year/year to $431.6 mln vs the $411.1 mln consensus. Co says "While several of our end markets appear to be stabilizing, we believe there continues to be risk in the global economy. Therefore, despite our strong first quarter financial performance, we feel it prudent, at this time, to keep our full year revenue and adjusted earnings guidance unchanged," The Company forecasted for the full year 2009 organic revenue growth relative to 2008 to be flat to down mid-single digits. The Company forecasted 2009 earnings per share relative to 2008 to be down mid-single digits to mid-teens on both a GAAP and non-GAAP basis, which includes the impact of stock option expense in both periods

4:16PM Genoptix beats by $0.09, beats on revs; guides FY09 EPS in-line, revs above consensus (GXDX) 29.08 -0.03 : Reports Q1 (Mar) earnings of $0.33 per share, includes a $2.0 million benefit from changes in accounting estimates relating to prior periods, $0.09 better than the First Call consensus of $0.24; revenues rose 75.8% year/year to $39.2 mln vs the $36.5 mln consensus. Co issues mixed guidance for FY09, sees EPS of $1.20-1.25 vs. $1.22 consensus; sees FY09 revs of $170-175 mln vs. $170.78 mln consensus. "We have continued to develop and strengthen the organization in the first quarter, moving forward with our growth initiatives and our hiring plan. In the first quarter, our sales team grew to 62 field representatives, up from 55 at the end of 2008 and moving us closer to our goal of 85 representatives by the end of 2009,"

4:13PM Union Drilling beats by $0.03, beats on revs (UDRL) 5.99 -0.79 : Reports Q1 (Mar) loss of $0.01 per share, $0.03 better than the First Call consensus of ($0.04); revenues fell 15.3% year/year to $54.3 mln vs the $51.2 mln consensus. Co says "We expect results early in the second quarter to be a near-term bottom for Union Drilling. May and June will benefit from the contribution of our new rigs as well as a firming of utilization and earnings in Appalachia as the weather improves. We are in a solid financial position and do not expect to experience any liquidity problems, even if industry conditions do not improve until early 2010. The balance on our revolving credit facility has not exceeded $50 mln and the final payments on new rigs are behind us."

4:12PM McAfee beats by $0.06, reports revs in-line; guides Q2 EPS in-line, revs in-line (MFE) 37.54 +0.33 : Reports Q1 (Mar) earnings of $0.54 per share, including $0.02 per share dilution resulting from the acquisition of Secure Computing, excluding a $0.03 benefit from an insurance reimbursement, $0.06 better than the First Call consensus of $0.48; revenues rose 21.1% year/year to $447.7 mln vs the $448.5 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.54-0.58, including $0.01-0.02 of dilution from the Secure Computing acquisition, vs. $0.54 consensus; sees Q2 revs of $455-475 mln vs. $466.02 mln consensus.

4:09PM General Cable beats by $0.44, misses on revs; guides Q2 EPS above consensus, revs in-line (BGC) 27.36 +2.67 : Reports Q1 (Mar) earnings of $1.00 per share, excluding non-recurring items, $0.44 better than the First Call consensus of $0.56; revenues fell 33.6% year/year to $1.04 bln vs the $1.14 bln consensus. Co issues upside EPS guidance for Q2, sees EPS of $0.70-0.90, excluding non-recurring items, vs. $0.69 consensus; sees Q2 revs of $1.20-1.25 bln vs. $1.21 bln consensus.

4:08PM Dolby Labs beats by $0.14, beats on revs; guides FY09 revs in-line (DLB)40.13 +0.08 : Reports Q2 (Mar) earnings of $0.60 per share, $0.14 better than the First Call consensus of $0.46; revenues rose 18.3% year/year to $204.1 mln vs the $181.2 mln consensus. Co issues guidance for FY09, sees GAAP EPS of 1.76-1.91, may not be comparable to $1.79 consensus; sees FY09 revs of $650-700 mln vs. $668.23 mln consensus.

4:08PM Sourcefire beats by $0.03, beats on revs; guides Q2 above consensus (FIRE)10.83 -0.17 : Reports Q1 (Mar) net of breakeven, excluding non-recurring items, $0.03 better than the First Call consensus of ($0.03); revenues rose 36.3% year/year to $18.6 mln vs the $17.2 mln consensus. Co issues upside guidance for Q2, sees EPS of $0.00-0.03, excluding non-recurring items, vs. ($0.02) consensus; sees Q2 revs of $18.7-20.2 mln vs. $18.2 mln consensus.

4:04PM AthenaHealth reports EPS in-line, misses on revs; sees 2009 rev growth in line with 2008 growth (ATHN) 31.80 +1.48 : Reports Q1 (Mar) earnings of $0.12 per share,in-line with the First Call consensus of $0.12; revenues rose 41.3% year/year to $42.1 mln vs the $43.2 mln consensus. "Our strong performance in the first quarter of 2009 demonstrates our growing significance as a unique software-enabled service in healthcare," said Jonathan Bush, the Company's Chairman, President, and Chief Executive Officer. "We have strengthened our position as a leader in revenue cycle management and continue to extend our expertise in managing complexity and cash flow within the electronic health record (EHR) space... Given favorable trends in our business, we believe that our full year 2009 revenue will grow in line with the full year revenue percentage growth rate we achieved last year." (Briefing.com note: The co's revs grew by ~38% in 2008; currenct consensus is for ~36.5% growth in 2009)

12:38PM Lancaster Colony earnings correction: Reports Q3 EPS $0.27 better than consensus (LANC) 44.12 -0.17 : Earlier today we incorrectly excluded at $0.20 gain from the company's earnings. This was incorrect because the gain was for a prior period. We have deleted the original comment. Co reports Q3 (Mar) earnings of $0.76 per share, $0.27 better than the First Call consensus of $0.49; revenues rose 6.5% year/year to $246 mln vs the $250 mln consensus. Co said, "In our food group, future trends in consumer demand remain uncertain but we expect to see continuing benefits from lower material costs and current retail pricing. The later Easter this year may also add modestly to fourth quarter sales volumes. While candle sales may also increase in the coming months, our candle operations typically experience a seasonally slow period in our fourth quarter."

9:07AM Expedia beats by $0.06, beats on revs (EXPE) 10.59 : Reports Q1 (Mar) earnings of $0.21 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.15; revenues fell 7.6% year/year to $635.7 mln vs the $588.3 mln consensus. Gross bookings decreased 11% (down 7% excluding the estimated impact from foreign exchange) for the 1Q09 compared with 1Q08, driven by a decrease in the leisure segment. Domestic bookings decreased 11% and international bookings decreased 13% (down 1% excluding the estimated impact from foreign exchange). Revenue as a % of gross bookings (revenue margin) was 12.17% for Q1, an increase of 51 bps. Co says, "Our results for the first quarter, especially the improved momentum in transaction and hotel room night volumes, prove that Expedia can successfully drive unit growth despite an undeniably difficult environment."

9:03AM Safeway misses by $0.06, misses on revs; guides FY09 EPS in-line (SWY)21.28 : Reports Q1 (Mar) earnings of $0.34 per share, $0.06 worse than the First Call consensus of $0.40; revenues rose 824.7% year/year to $9.24 bln vs the $9.86 bln consensus. Co issues in-line guidance for FY09, sees EPS of 2.10-2.30 vs. $2.23 consensus. Separately, the company announced a 21% increase in its quarterly dividend

Earnings - 4th Feb 2009

6:14PM FMC Corp beats by $0.16, misses on revs; guides Q1 EPS below consensus; guides FY09 EPS in-line (FMC) 44.47 -0.37 : Reports Q4 (Dec) earnings of $1.02 per share, excluding non-recurring items, $0.16 better than the First Call consensus of $0.86; revenues rose 9.4% year/year to $737.7 mln vs the $761.2 mln consensus. Co issuesdownside guidance for Q1, sees EPS of $1.15-1.30, excluding non-recurring items, vs. $1.50 consensus. Co issues in-line guidance for FY09, sees EPS of $4.60-5.00, excluding non-recurring items, vs. $4.97 consensus.

5:50PM Enersys beats by $0.23; sees Q4 EPS below consensus (ENS) 9.48 -0.18 : Reports Q3 (Dec) earnings of $0.63 per share, $0.23 better than the First Call consensus of $0.40; revenues fell 16.7% year/year to $460.9 mln vs the $460.7 mln consensus. Co issuesdownside guidance; co sees Q4 EPS of $0.30-0.34, excluding $0.25 in charges, vs $0.35 consensus.

5:43PM Atwood Oceanics beats by $0.07, beats on revs (ATW) 16.95 +0.35 : Reports Q1 (Dec) earnings of $1.22 per share, $0.07 better than the First Call consensus of $1.15; revenues rose 49.1% year/year to $165.5 mln vs the $162.9 mln consensus.

5:17PM WGL Holdings beats by $0.06, beats on revs; raises FY09 EPS above consensus (WGL) 33.25 -0.03 : Reports Q1 (Dec) earnings of $1.03 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.97; revenues rose 9.3% year/year to $821.5 mln vs the $761.1 mln consensus. Co issues upside guidance for FY09, sees EPS of $2.41-2.53, excluding non-recurring items, vs. $2.34 consensus, up from prior $2.27-2.39.

4:43PM Visa beats by $0.12, beats on revs; sees 2009 rev growth in high single digits, reaffirms 2010 outlook (V) 49.13 +0.74 : Reports Q1 (Dec) earnings of $0.78 per share, $0.12 better than the First Call consensus of $0.66; revenues rose 16.8% year/year to $1.74 bln vs the $1.68 bln consensus. Payments volume grew 12% over the prior year to $701 bln; total volume, inclusive of cash volume was $1.1 trln, an increase of 16% over the prior year; total cards carrying the visa brands rose 10% worldwide over the prior year to 1.7 bln; and total payment transactions increased by 13% over the prior year to 14.5 bln... Cosees 2009 annual net revenue growth in the high single-digits (consensus is for rev growth of 8.5%). Co reaffirms its financial outlook through 2010, with the caveat that annual net revenue growth may be somewhat challenged in 2010 if the current economic environment in the U.S. and around the globe persists beyond 2009. Sees 2010 annual net revenue growth at the lower end of the 11% to 15% range; annual adjusted operating margin in the mid-to-high 40% range; annual adjusted diluted class a common earnings per share growth of greater than 20%; annual free cash flow in excess of $1 bln; and capital expenditures in the range of $300 to $350 mln in 2009 and representing 3 to 4% of gross revenues in 2010.

4:15PM Cisco Systems beats by $0.02, beats on revs (CSCO) 15.84 +0.22 : Reports Q2 (Jan) earnings of $0.32 per share, excluding non-recurring items, $0.02 better than the First Call consensus of $0.30; revenues fell 7.1% year/year to $9.1 bln vs the $9.0 bln consensus. Q3 gross margins came in at ~63.0% vs ~64.0% company guidance. "We remain comfortable with our long-term vision and strategy as we move into new market adjacencies and prioritize our existing opportunities. We intend to accelerate the alignment of our resources to prioritize future growth opportunities, gradually decrease our operating expenses, while building even stronger customer relationships to position Cisco for ongoing, long-term market leadership."

4:10PM Dolby Labs beats by $0.13, beats on revs; guides FY09 EPS in-line, revs in-line (DLB) 25.87 +0.24 : Reports Q1 (Dec) earnings of $0.56 per share, excluding a $0.12 non-recurring gain, $0.13 better than the First Call consensus of $0.43; revenues rose 20.0% year/year to $180.3 mln vs the $165.6 mln consensus. Co issues in-line guidance for FY09, sees EPS of $1.57-1.82 vs. $1.68 consensus; sees FY09 revs of $630-700 vs. $690.59 mln consensus. "We are pleased with our first quarter performance, and we continue to position ourselves for the long-term by pursuing new innovations and opportunities. However, we are also very mindful of the worldwide economic slowdown, and have adjusted our outlook in light of reduced consumer spending."

4:07PM Badger Meter beats by $0.16, beats on revs (BMI) 24.09 -0.20 : Reports Q4 (Dec) earnings of $0.42 per share, $0.16 better than the First Call consensus of $0.26; revenues rose 18.2% year/year to $67.6 mln vs the $59.8 mln consensus.

4:06PM Hain Celestial misses by $0.08, misses on revs; guides FY09 EPS below consensus, revs below consensus (HAIN) 14.34 -0.49 : Reports Q2 (Dec) earnings of $0.36 per share, excluding non-recurring items, $0.08 worse than the First Call consensus of $0.44; revenues rose 14.3% year/year to $315.6 mln vs the $319.1 mln consensus. Co issuesdownside guidance for FY09, sees EPS of $1.38-1.42 vs. $1.50 consensus; sees FY09 revs of $1.175-1.20 bln vs. $1.21 bln consensus.

4:06PM Akamai Tech beats by $0.04, beats on revs (AKAM) 14.17 -0.03 : Reports Q4 (Dec) earnings of $0.44 per share, $0.04 better than the First Call consensus of $0.40; revenues rose 16.0% year/year to $212.6 mln vs the $205.5 mln consensus. "As the external environment has become more challenging, we're pleased that we were able to grow revenue and earnings throughout the year while broadening our portfolio of solutions to improve Internet performance for our customers." The number of customers under long-term service contracts at the end of the fourth quarter increased by 50 to a record 2,858, an 8 percent increase year-over-year.

4:05PM Hain Celestial misses by $0.08, misses on revs; guides FY09 EPS below consensus, revs below consensus (HAIN) 14.34 -0.49 : Reports Q2 (Dec) earnings of $0.36 per share, excluding non-recurring items, $0.08 worse than the First Call consensus of $0.44; revenues rose 14.3% year/year to $315.6 mln vs the $319.1 mln consensus. Co issuesdownside guidance for FY09, sees EPS of $1.38-1.42, excluding non-recurring items, vs. $1.50 consensus; sees FY09 revs of $1.175-1.20 bln vs. $1.21 bln consensus. "Inventory reductions, grain costs at Hain Pure Protein ("HPP") and the lag in fully realizing our August price increase impacted our earnings by almost $0.11 per share this quarter."

4:04PM Rightnow Tech beats by $0.06, misses on revs; guides Q1 EPS above consensus, revs below consensus; guides FY09 EPS above consensus, revs below consensus (RNOW) : Reports Q4 (Dec) earnings of $0.06 per share, excluding non-recurring items, $0.06 better than the First Call consensus of ($0.00); revenues rose 17.6% year/year to $36.1 mln vs the $36.9 mln consensus. Co issues mixed guidance for Q1, sees EPS of $0.02-0.04 vs. $0.01 consensus; sees Q1 revs of $36-37 mln vs. $37.84 mln consensus. Co issues mixed guidance for FY09, sees EPS of $0.15-0.23, excluding non-recurring items, vs. $0.12 consensus; sees FY09 revs of $150-155 mln vs. $160.74 mln consensus. "We're pleased with a second consecutive quarter of non-GAAP profitability, which was ahead of our guidance and driven by focused expense management. Our sales teams turned in a great quarter. Despite the fact total revenue was lowered by a $1.6 million foreign exchange impact, this was our eighth consecutive quarter of operating margin improvement, and a 300 basis point improvement over last quarter."

10:18AM Philip Morris International beats by $0.09, beats on revs; guides FY09 EPS below consensus (PM) 36.15 -2.17 : Reports Q4 (Dec) earnings of $0.71 per share, $0.09better than the First Call consensus of $0.62; revenues, excluding excise tax on products, rose 3.6% year/year to $6.12 bln vs the $5.54 bln consensus. Co issues downside guidance for FY09, sees EPS of $2.85-3.00 vs. $3.43 consensus. Co notes that excluding an adverse currency impact of $0.80 per share, 2009 guidance is projected to increase by 10%-14%. Co, "Our operating performance in 2008 was exceptionally strong and our results exceeded our constant currency growth targets for both the full year and the fourth quarter. Our first year as an independent company was also marked by significant progress on numerous strategic fronts and specifically behind our efforts to improve our speed to market and enhance the vibrancy and equity of our strong brand portfolio... The global economic crisis obviously results in uncertainty, particularly on the currency front, and at current exchange rates we face a steep hurdle."

9:01AM Allergan beats by $0.03, beats on revs; guides Q1 EPS below consensus; guides FY09 EPS in-line (AGN) 39.80 : Reports Q4 (Dec) earnings of $0.76 per share, excluding non-recurring items, $0.03 better than the First Call consensus of $0.73; revenues fell 3.1% year/year to $1.06 bln vs the $1.04 bln consensus. Co issues downside guidancefor Q1, sees EPS of $0.50-0.52 vs. $0.61 consensus. Co issues in-line guidance for FY09, sees EPS of $2.69-2.75 vs. $2.71 consensus.

8:32AM Clorox beats by $0.05, misses on revs; guides FY09 EPS in-line (CLX) 51.82 : Reports Q2 (Dec) earnings of $0.62 per share, $0.05 better than the First Call consensus of $0.57; revenues rose 2.5% year/year to $1.22 bln vs the $1.24 bln consensus. Co issues in-line guidance for FY09, sees EPS of $3.60-3.75 vs. $3.72 consensus. For fiscal year 2009, Clorox now anticipates total sales growth in the range of 3-5%, rather than the previously communicated range of 4-6% due to retailer inventory reductions and consumer reaction to the economic environment. The company now anticipates year-over-year gross margin improvement in the range of 50-100 basis points, rather than the previously communicated range of 25-75 basis points, due to anticipated lower commodity costs and higher cost savings.

8:02AM Natl Oilwell Varco beats by $0.11, beats on revs (NOV) 25.62 : Reports Q4 (Dec) earnings of $1.44 per share, excluding $0.04 charge related to its merger with Grant Prideco,$0.11 better than the First Call consensus of $1.33; revenues rose 43.3% year/year to $3.81 bln vs the $3.76 bln consensus.

7:39AM Goodrich beats by $0.21, misses on revs; guides FY09 EPS below consensus, revs below consensus (GR) 38.97 : Reports Q4 (Dec) earnings of $1.23 per share, excluding $0.12 of income from a Rolls-Royce joint venture, $0.21 better than the First Call consensus of $1.02; revenues rose 1.6% year/year to $1.7 bln vs the $1.73 bln consensus. Co issues downside guidance for FY09, sees EPS of $4.50-$4.90 vs. $4.94 consensus; sees FY09 revs of $7.1-7.2 bln vs. $7.57 bln consensus. For 2009: Large commercial airplane original equipment sales are expected to increase by about 3 - 5 percent; regional, business and general aviation airplane original equipment sales are expected to decrease by approximately 10 percent; defense and space sales of both original equipment and aftermarket products and services are expected to increase by about 5 percent; co expects cap-ex to be in range of $230-270 mln, vs $275-3000 previously.

7:07AM ITT Industries beats by $0.05, beats on revs (ITT) 43.13 : Reports Q4 (Dec) earnings of $0.82 per share, excluding items, $0.05 better than the First Call consensus of $0.77; revenues rose 16.5% year/year to $2.94 bln vs the $2.74 bln consensus. "And while we expect 2009 to be more difficult, we take great pride in having achieved another record year of revenue and earnings growth in 2008."

7:02AM Snap-On beats by $0.01, misses on revs (SNA) 29.11 : Reports Q4 (Dec) earnings of $1.01 per share, $0.01 better than the First Call consensus of $1.00; revenues fell 10.1% year/year to $667.8 mln vs the $721.6 mln consensus. The challenges posed by the global economy increased significantly during the fourth quarter, furthering the impact on Snap-on's sales of higher priced products, such as tool storage and vehicle repair equipment. Additional slowdowns in the economies of Europe, particularly Southern Europe, negatively impacted volume at the European-based tools business. Furthermore, the general economic difficulties are now spreading across more industries and to additional geographies, creating more widespread pressure on business activity. In the near term, Snap-on anticipates no change in this environment and, as a result, expects sales and credit originations in the first quarter of 2009 to be down year over year. Additional headwinds in 2009 now include ~$3.0 mln per quarter of higher year-over-year pension expense due to declines in pension asset values. Assuming foreign currency exchange rates remain at recent levels, the company also anticipates approximately $8.0 million of unfavorable foreign exchange impact on first quarter operating earnings.