DOW JONES NEWSWIRES
Below is a synopsis of major earnings releases from Tuesday
morning:
Pfizer Income Up 26% Amid 2006 Charge; Sales Drop
Pfizer Inc.'s (PFE) third-quarter profit rose 26% from the
year-earlier period, weighed down by a litigation charge, while
sales dipped 3% on generic competition and unfavorable currency
rates. The world's biggest drug maker's earnings topped Wall Street
expectations, and shares rose nearly 2%.
Caterpillar Profit Smashes Views On Cost Cutting
Caterpillar Inc.'s (CAT) earnings fell 53%, much less than
analysts expected, amid a 44% sales slump thanks to the company's
cost-cutting. But Caterpillar said its sales skid has likely
reached a bottom, and that helped send shares up 3.5%.
DuPont Earnings Up 11%, Topping Estimates
DuPont Co.'s (DD) profit rose a better-than-expected 11%, as
cost-cutting and lower material, energy and freight expenses helped
boost the chemical company's bottom line. Chief Executive Ellen
Kullman added that market conditions are beginning to firm, but its
stock still fell 2%.
Coke Earnings Flat; N America Volume Drops 4%
Coca-Cola Co.'s (KO) earnings were flat and revenue declined as
the beverage giant continued to be hurt by fluctuations in global
currencies, but sales of its namesake soda grew worldwide. Sales
came in a notch below analysts' views, hurt by the effects of
foreign exchange and a 4% volume decline in North America. Earnings
exceeded estimates as the company cut costs. Shares dropped nearly
2%.
UAL Red Ink Narrows Amid 2008 Hedging Losses
UAL Corp.'s (UAUA) loss narrowed significantly on big
year-earlier fuel-hedging losses. Results for the parent of United
Airlines beat analysts' predictions, sending shares up 9%. The
company also gave a better outlook for 2009 costs.
Lockheed Earnings Posts Surprise Rise; 2010 View Cautious
Lockheed Martin Corp.'s (LMT) profit increased 1.9%, soundly
beating analysts' predictions. The aerospace company raised its
2009 earnings view but gave an initial 2010 below estimates amid a
likely spending-growth slowdown at the Pentagon. Its stock slid
5%.
Bank Of New York In Red On $4.8B Of Investment Losses
Bank of New York Mellon Corp. (BK) unexpectedly swung to the red
on $4.8 billion of investment losses at the asset manager and
securities adviser. Chief Executive Robert Kelly said the company
"got the message" on the investors' concerns over the bank's levels
of unrealized losses, resulting in the sale or restructuring of $12
billion in risky investments. Shares rose 5%.
UnitedHealth Earnings Jump On Cost Cuts; Membership Down
UnitedHealth Group Inc.'s (UNH) earnings rose a
bigger-than-expected 13% as cost controls more than offset
commercial enrollment losses and the growth of its lower margin
government business. The company also saw higher medical costs
year-over-year as a percentage of premium revenue, citing the H1N1
flu virus and an increasing proportion of members receiving care
under programs to extend benefits for those who lost jobs. Its
stock climbed 5%.
BlackRock Income Jumps 46% On Cost Controls, Tax Gain
BlackRock Inc.'s (BLK) profit rose a greater-than-expected 46%,
helped by cost controls and a tax-related gain, while stronger
equity and fixed-income markets led to $14.5 billion in fund
inflows. Its stock gained 2%.
Peabody Energy Income Slumps 71%, But Tops Estimates
Peabody Energy Corp.'s (BTU) third-quarter profit slumped 71% on
sharply lower margin, but results beat expectations as the coal
producer shipped record amounts of metallurgical coal. The company
also gave an upbeat view and said it plans to double its exports of
Australian metallurgical and thermal coal over the next five years
to serve its fast-growing Asian markets. Shares added 3%.
State Street Earnings Rise On Investment Gains
State Street Corp.'s (STT) profit jumped 8.2% on prior-year
charges as the money manager recorded gains in the latest period
from investment securities. The latest results, which were slightly
better than expected, further highlighted stabilization seen by the
parent of State Street Global Advisors, which raised capital to
repay its taxpayer-funded capital investment. Still, shares fell
7%.
Coach Results Top Estimates As Cheaper Handbags Work
Coach Inc.'s (COH) fiscal first-quarter earnings dropped 3.4% as
the luxury-goods purveyor posted better-than-expected results, with
efforts to boost its North American operations showing success. The
company has been cutting handbag prices in an attempt to drive
results and in the process help sales of other items such as
wallets and shoes. Its stock fell 3%.
Biogen Earnings Up 34% Amid Cost Cuts, Tysabri Sales
Biogen Idec Inc.'s (BIIB) third-quarter profit rose 34%, as
earnings topped expectations amid cost cutting and strong sales of
the biotechnology company's Tysabri multiple sclerosis drug. But it
cut its revenue-growth projection for the year, and shares fell
2%.
A&P Results Worse Than Expected; CEO Departs
Great Atlantic & Pacific Tea Co.'s (GAP) fiscal
second-quarter loss widened amid a prior-year gain while
joblessness, price competition and deflation made business hard for
the supermarket operator. The company, whose results were weaker
than expected, also said President and Chief Executive Eric Claus
is leaving the company, effective immediately. The stock slumped
18%.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com