The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009.

DETROIT | Thu Feb 14, 2013 3:49pm EST

DETROIT (Reuters) - General Motors Co (GM.N) reported a weaker-than-expected fourth-quarter profit on Thursday, citing wider losses in Europe and lower vehicle prices plus higher costs in its core North American market.

The largest U.S. automaker also made an accounting change in the quarter, intended to signal confidence that it will continue to be profitable in coming years. The move resulted in a $26 billion charge for the quarter, however.

Shares of GM, which did not change its 2013 profit outlook, initially bounced between positive and negative territory and were off 3.4 percent at $27.69 in late trading.

"An entrenched GM investor may see no need to sell, while a prospective investor may see no need to rush in," Morgan Stanley analyst Adam Jonas said in a research note.

GM went public in the autumn of 2010, after its 2009 bankruptcy restructuring and $50 billion U.S.-taxpayer bailout.

Several analysts said GM's $699 million operating loss in Europe in the quarter was wider than they had expected.

Conditions in the region will be challenging for another few years, said Edward Jones analyst Christian Mayes, who has a "hold" rating on GM's stock. "They're moving in the right direction, but it's difficult over there to move fast because it's so challenging to shut down plants."

GM posted a profit of 48 cents per share before one-time items, 3 cents shy of the analysts' average estimate, according to Thomson Reuters I/B/E/S.

Operating losses in Europe last year more than doubled to $1.8 billion, reflecting rapid deteriorating vehicle demand and weak economic conditions there. It was the 13th straight year of losses in Europe.

"Europe was a little lighter, although I don't think people are going to really punish the stock for a few pennies' miss in Europe, just because we're probably at or near the bottom of that cycle," said Jefferies analyst Peter Nesvold, who rates GM shares at "hold."

Chief Financial Officer Dan Ammann said GM still expects industry sales in Europe to decline in 2013 and is "not betting on" a pickup later in the year, but Chief Executive Dan Akerson reiterated the company's goal of breaking even in the region by mid-decade.

"It's not like we're just hoping for the best," he said about Europe on a conference call. "We have certain levers that we can pull.

"We're going to be smart about how we cut costs. It isn't just 'close plants.' We're trying to play offense."

Akerson pointed to the new Opel Mokka SUV and Adam minicar in Europe, where GM has said it will introduce 23 new vehicles between 2012 and 2016.

Barclays analyst Brian Johnson said in a research note that "investors should take some comfort," as GM Europe will show a $600 million drop in depreciation and amortization expenses due to a writedown of assets. As a result, he now expects GM Europe's loss this year to be closer to a range of $1.1 billion to $1.2 billion, instead of the $1.4 billion he previously anticipated.

LOWER PRICING AT HOME

During the fourth quarter, costs rose by $400 million in North America, GM's most profitable region. But combined vehicle pricing fell by $300 million there as the company offered incentives to cut through its inventory of trucks on dealer lots ahead of its introduction of redesigned versions this year.

It was the first drop in North American pricing for GM since the first quarter of 2011.

Jefferies' Nesvold said the weaker Japanese yen and the deteriorating European market would probably lead to more competitive pricing in North America.

That would continue the trend seen in the fourth quarter, when GM lost one percentage point of U.S. market share despite raising its incentives slightly, according to research firm TrueCar.com.

GM's revenue in the fourth quarter rose 3 percent to $39.3 billion, above the $39.15 billion analysts had expected.

Net income at the Detroit company almost doubled to $892 million, or 54 cents a share, from $472 million, or 28 cents a share, a year earlier.

Operating profit fell 6.8 percent to almost $1.4 billion in North America, but jumped almost 27 percent to $473 million at the international operations unit, which is dominated by China, where GM is a market leader. South America swung to a $99 million profit from a year-earlier loss of $225 million.

The quarterly results included a $34.9 billion reversal of a valuation allowance on U.S. and Canadian deferred tax assets. The move, which rival Ford Motor Co (F.N) made in late 2011, reflects confidence in GM's ability to generate taxable income in those markets.

GM took a non-cash goodwill asset impairment charge of $26.2 billion related to the valuation allowance, wrote down $5.2 billion worth of assets in Europe, and took a charge of $2.2 billion for its action last summer to cut its U.S. salaried pension obligation.

The company also wrote down $220 million, or about half, of its investment in French alliance partner PSA Peugeot Citroen (PEUP.PA). GM, which paid $423 million for its 7 percent stake in Peugeot, warned last August that it might take such an action due to the deepening fiscal crisis in Europe.

Ammann said on Thursday that GM had no plans to put more cash into Peugeot, with which Akerson said the company has a good relationship.

GM did not change its 2013 outlook from last month, when it forecast its operating profit to rise modestly.

For the first quarter, Ammann said GM expects to take a $200 million charge for the devaluation of the Venezuelan currency. He also said the company has no plans to contribute to its U.S. pension plans this year.

Akerson also said the company would probably not fill its vacant global marketing chief position. Instead, it will have global heads for each brand.

GM would like to boost the number of plants in North America operating on three shifts to increase output and reduce structural costs, a strategy it is following globally, said Chuck Stevens, CFO for the region. Eight of GM's 19 plants there currently operate a third shift.

GM also is targeting a full-size pickup truck market share in the United States of 36 percent to 38 percent this year, Stevens said. That would be up from 36 percent last year.

Ammann told reporters in a later conference call that GM had completed the repurchase of a 1 percent stake in its joint venture with its top Chinese partner SAIC Motor Corp (600104.SS). He said the Chinese government approved the purchase last year.

The deal restored GM's stake in Shanghai GM to 50 percent. However, SAIC retains a 51 percent share in the sales side of the business. In the run-up to its 2009 bankruptcy filing, GM sold the 1 percent share to SAIC for $85 million.

For all of 2012, GM earned $4.9 billion, down from a record $7.6 billion in 2011 due to higher tax rates and weakness in Europe. The results in 2011 included $1.2 billion in gains from asset sales, while 2012 had $500 million in unfavorable items.

(Reporting By Ben Klayman and Deepa Seetharaman; Editing by Lisa Von Ahn, John Wallace, Maureen Bavdek and Nick Zieminski)

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Fri Dec 21, 2012 12:24pm EST

n">(Reuters) - Walgreen Co (WAG.N) posted an unexpected decline in quarterly profit on Friday as the largest U.S. drugstore chain worked on winning back former customers and changed how it accounts for its first international acquisition.

The company stands to get a bit of a sales lift in the current quarter as a strong flu season brings shoppers in for flu shots and medications.

Walgreen lost millions of customers due to a contract dispute with pharmacy benefits manager Express Scripts Holding Co (ESRX.O) and is trying to lure them back with offers such as $25 gift cards. It is seeing an increasing pace of Express Scripts patients returning to its stores.

Earnings in the latest quarter were hurt by a decision to report results from Walgreen's stake in Europe's Alliance Boots Holding Ltd ABN.UL on a one-quarter lag rather than a one-month lag. The decision was based on regulatory, audit and business concerns, the company said.

Shares of Walgreen, which has 8,000 U.S. drugstores, fell 3.75 percent to $36.14 in midday trading.

"It was messy," Gabelli & Co research analyst Jeff Jonas said of the quarterly results, noting they included items such as the change in reporting results from Alliance Boots as well as a charge for costs stemming from Hurricane Sandy.

"If you give them credit for everything, it was actually a good quarter," he said.

FLU UP, PROFIT DOWN

The Centers For Disease Control is projecting the worst flu season in 10 years, and Walgreen has seen strong demand for flu shots and other immunizations continue into December, Chief Executive Greg Wasson said.

Through the end of its fiscal first quarter on November 30, Walgreen had given more than 5 million flu shots, up from a year earlier. It has also seen sales of cough and cold medications pick up.

A strong flu season should help the industry in December and likely for the next couple of months, said Jonas.

Walgreen earned $413 million, or 43 cents per share, in the first quarter, down from $554 million, or 63 cents per share, a year earlier.

Earnings before unusual items fell to 58 cents per share from 71 cents a year earlier, missing analysts' average forecast of 70 cents, according to Thomson Reuters I/B/E/S.

Unusual items in the latest quarter included costs related to acquisitions, an inventory provision, and the effects of Hurricane Sandy.

Results from Alliance Boots cut adjusted earnings per share by 7 cents, rather than adding 3 cents as was expected if results had been reported using a one-month lag.

Walgreen paid $7 billion in cash and stock for a 45 percent stake in the European pharmacy operator in August and has an option to buy the rest of the company in about three years.

Walgreen's first-quarter sales fell 4.6 percent to $17.32 billion, with sales at stores open at least a year, or same-store sales, down 8 percent.

The sales performance was slightly worse than Walgreen reported earlier this month. At that time, it said sales fell 4.5 percent to $17.34 billion and same-store sales declined 7.7 percent.

Since settling its dispute with Express Scripts, Walgreen has stepped up its marketing to bring back Express Scripts patients and also has been promoting a new loyalty card, signing up more than 45 million shoppers in a few months.

Rivals CVS Caremark Corp (CVS.N) and Rite Aid Corp (RAD.N) are trying to hold onto the customers they gained when Walgreen lost its Express Scripts patients.

On December 13, CVS said it still expected to retain at least 60 percent of the Walgreen patrons that switched to its chain, which should boost CVS' fourth-quarter earnings by at least 12.5 cents per share.

On Thursday, Rite Aid said it has retained "the lion's share" of patients it gained during the dispute.

(Reporting by Jessica Wohl in Chicago; Editing by Jeffrey Benkoe and John Wallace)

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Fri Oct 12, 2012 5:41pm EDT

n">(Reuters) - Two of the nation's biggest banks, Wells Fargo & Co and J.P. Morgan Chase & Co, made record profits over the last three months from a sharp rise in mortgage lending, though performance stumbles elsewhere left investors worried about how long those profits can last.

Both banks reported double-digit increases in third-quarter earnings on Friday, as record-low interest rates and an uptick in the housing market drove a boom in mortgages.

But analysts said those record earnings might not be sustainable, as each bank posted declining margins that suggest they may have a harder time earning as much in the future.

J.P. Morgan shares closed the day down 1.1 percent at $41.62, while Wells Fargo declined 2.6 percent to $34.25. Both underperformed the broader market, which was essentially flat.

The issue is the "net interest margin," or the spread between what the banks earn from loans and what they pay out on deposits. That margin contracted in both cases.

"You have a battle between net interest margin and mortgage banking," said Marty Mosby, an analyst at Guggenheim Securities, referring to the tension between profit-drivers now and potential future results.

MORTGAGES ON THE MOVE

The mortgage market dragged on banks during the worst of the financial crisis but has become a bright spot of late. After the Federal Reserve said in September it would buy huge quantities of mortgage bonds every month for the foreseeable future, rates fell sharply and loan applications soared.

Wells Fargo, by far the largest mortgage lender in the country - three times the size of its closest peer - made $139 billion in mortgages in the three months ending in September, up $50 billion from a year earlier.

There is a limit to that growth, though, warned J.P. Morgan Chief Executive Jamie Dimon.

"We don't expect to count on high margins and mortgage origination forever," Dimon said on Friday. The refinancing trend, he added, will continue "next quarter, maybe for a couple of quarters after that, but it won't last much longer."

SMALLER WHALES

Besides the good news about the housing market, J.P. Morgan also reported that losses are shrinking rapidly from the bad trades engineered by the so-called London Whale, which cost the bank almost $6 billion in the first half of the year.

The losses cast a harsh light on Dimon, the chief executive viewed by some as a potential leading candidate for U.S. Treasury secretary in a second Obama administration. He has apologized repeatedly, and at length, for failing to catch the problem before it grew so big.

The nation's largest bank by assets posted net income of $5.71 billion, or $1.40 a share, up 34 percent from a profit of $4.26 billion, or $1.02 a share, a year earlier.

Analysts on average had expected a profit of $1.24 a share, according to surveys by Thomson Reuters I/B/E/S. Barclays Capital said it was the 17th time in the last 18 quarters that the bank beat Wall Street's forecasts.

Net interest margin contracted to 2.43 percent in the quarter, 4 basis points less than the prior quarter and 23 basis points lower than a year earlier.

Wells Fargo, the nation's fourth-largest bank by deposits, earned $4.9 billion in the quarter, 22 percent more than a year earlier. Per-share earnings of 88 cents just beat the average Wall Street forecast of 87 cents, although revenue missed estimates by some $270 million.

Wells, Warren Buffett's favorite bank, stumbled on the net interest margin. It fell 25 basis points to 3.66 percent in the third quarter. That was a sharper drop than expected, though bank executives insisted they were unconcerned and that investors should focus on overall profitability.

Keefe, Bruyette & Woods analyst Frederick Cannon, in a research report for clients, said the strength in mortgages was good but the weakness in the interest margin was more important.

(Reporting by David Henry in New York and Rick Rothacker in Charlotte, N.C.; additional reporting by Dan Wilchins and Jed Horowitz in New York; writing by Ben Berkowitz; editing by Matthew Lewis)

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Traders work on the floor of the New York Stock Exchange September 18, 2012.

NEW YORK | Sun Oct 7, 2012 5:26am EDT

NEW YORK (Reuters) - Wall Street may be bracing for a pullback as U.S. earnings season begins next week - if the clouds of profit warnings from bellwethers ranging from FedEx to Hewlett-Packard lead to a downpour of lower profits - or even losses.

Thanks to aggressive stimulus plans from central banks around the world, the Standard & Poor's 500 index .SPX gained 5.8 percent over the third quarter. That sharp rally occurred even as companies were struggling. Earnings for that period are forecast to fall 2.4 percent from the year-ago quarter. If that happens, this would be the first earnings decline in three years, according to Thomson Reuters data.

Market strategists and investors say U.S. stock valuations are broadly out of sync with earnings estimates. They forecast a pullback in stocks in the coming weeks as more companies report results and reduce expectations for the fourth quarter and beyond.

Fourth-quarter estimates for S&P 500 companies show a 9.5 percent gain in profit from a year ago, according to Thomson Reuters data. Analysts say that outlook is too high, given what investors are already hearing from the corporate world.

"It's a divergence right now where the valuations as far as equity prices (are concerned) have soared, and are really putting in place a stronger economy and stronger fundamentals," said Alan Lancz, president of Alan B. Lancz & Associates Inc., an investment advisory firm in Toledo, Ohio.

"But earnings will be the telltale sign," Lancz added. "And if the guidance isn't particularly strong, the market might be setting itself up for a little disappointment. I don't see a major correction, but I do see a pullback."

The earnings season will kick off on Tuesday with results from Dow component Alcoa (AA.N) after the bell. Analysts expect Alcoa's third-quarter results to show it broke even, down from a profit of 15 cents per share a year earlier, according to Thomson Reuters I/B/E/S. [ID:nL1E8KQHC5]

JPMorgan Chase & Co (JPM.N) and Wells Fargo (WFC.N), the first big financial names to report, are also on tap next week.

BLAME EUROPE

Nearly half of S&P 500 companies guiding lower for third- quarter earnings blamed weakness in Europe, according to a Thomson Reuters survey. Another 11 percent blamed the weak global economy, 8 percent cited strength in the U.S. dollar, and 6 percent cited the slowdown in China, the survey showed.

Weakness in the U.S. economy hasn't helped. The final read on U.S. second-quarter gross domestic product last month showed growth of just 1.3 percent, weaker than an expected 1.7 percent.

On Thursday, software maker Informatica Corp (INFA.O) issued a profit warning and said business conditions were worsening in Europe. The software company is considered a bellwether because its products are used alongside those made by larger software companies. [ID:nL3E8L44YO]

"Parts of Europe aren't just in recession, they're in depression," said Jeff Kleintop, chief market strategist at LPL Financial in Boston. "I think (analysts) underestimated the extent of the global slowdown, and maybe are still underestimating it."

TECH FEELS CHILL FROM CHINA

While estimates have come down sharply in all 10 S&P 500 sectors since the start of the year, technology is one area where the lower expectations are most notable. Slower growth in China is a big factor in that trend.

Earnings growth in the tech sector is expected to be just 2.3 percent for the quarter, compared with a July 1 forecast of 13.1 percent. Apple Inc (AAPL.O) is a big driver of those gains.

Technology's profit growth has been crucial for the S&P 500. Minus technology, S&P 500 earnings are expected to be down 3.4 percent.

The tech sector is where the slowdown in China's economy is having the biggest impact, Kleintop said.

"They consume a lot of U.S. technology products," he said.

Recent data shows that the pace of growth in China, the world's second-largest economy, may slow for a seventh quarter, straining earnings in the tech and materials sectors. [ID:nL1E8L4DUF]

Applied Materials Inc (AMAT.O) lowered its third-quarter estimates in August, citing China and Europe. On Wednesday, the chip gear maker said it planned to cut its global work force by 6 percent to 9 percent.

FedEx Corp (FDX.N), the world's second-largest package delivery company, cut its fiscal 2013 forecast on September 18, saying a weakening global economy gives its customers a reason to switch to less expensive and slower shipping options. FedEx said its earnings could drop as much as 6 percent for its fiscal 2013 year, which will end in May. [ID:nL1E8KI5V0]

On Wednesday, shares of Hewlett-Packard Co (HPQ.N) fell a whopping 13 percent to a nine-year low after it forecast a far steeper-than-expected drop in 2013 profit. The slide in HP's stock price sharply cut the Dow industrials' gains for the day. [ID:nL1E8L39JP]

The S&P 500 sectors showing the biggest projected earnings decline are materials, forecast down 24 percent, and energy, expected down 18.8 percent, Thomson Reuters data show, with those declines tied largely to the global slowdown.

In contrast, consumer discretionary stocks are expected to have the strongest profit growth for the quarter, with Thomson Reuters data showing a gain of 7.7 percent. But in that sector, too, companies, including apparel retailer Express Inc (EXPR.N) - not an S&P 500 component - have warned about the third quarter. [ID:nL3E8L26XS]

ANEMIC REVENUE OUTLOOK

With tepid revenue growth, U.S. companies have been topping Wall Street's earnings expectations in recent quarters through cost reductions. That path to beating profit forecasts, however, will become increasingly difficult as many companies have already made most of the obvious cuts.

"Forward expectations are just too high," said Barry Knapp, managing director of equity research at Barclays Capital in New York.

Revenue for the third quarter is expected to be down 0.1 percent from a year ago for S&P 500 companies, and down 0.4 percent minus Apple, Thomson Reuters corporate earnings research analyst Greg Harrison said.

In all, the negative-to-positive ratio for earnings forecasts is 4.3 to 1, the most negative since the third quarter of 2001, he said.

Tech and materials were also among sectors with the most negative outlooks for the quarter, with tech's negative-to-positive guidance at 5.4 to 1 and materials at 7 to 1.

Corporate America's concerns were exemplified by General Electric Co (GE.N) Chief Executive Jeff Immelt, who told a meeting of analysts and investors last week: "I think the United States is OK. Europe, we remained concerned about. Asia - our part of Asia, particularly China, is not that bad."

(Reporting by Caroline Valetkevitch; Additional reporting by Steve James and Chuck Mikolajczak in New York and Scott Malone in Boston; Editing by Tiffany Wu and Jan Paschal)

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* Jan-June net profit $312 mln, beats consensus

* Core operating profit falls 22 pct, Europe weak

* Shares up 3 percent ahead of results

HONG KONG, Aug 9 (Reuters) - Supply chain manager Li & Fung Ltd, whose global distribution and trading centres make it a useful barometer of consumer sentiment, reported its half-year core operating profit slipped by more than a fifth due to a slower-than-expected turnaround of its LF USA unit and weak demand in Europe.

The Hong Kong-based group, which manages supply chains for major retailers such as Wal-Mart Stores Inc and Target Corp, said, however, that net profit rose by a third as it booked write-backs on two 2010 acquisitions.

Analysts had predicted that U.S. retailers would be actively re-stocking as consumer confidence improves, boosting top-line growth at Li & Fung this year, but latest data showed spending by consumers fell in June for the first time in nearly a year.

January-June net profit rose to US$312 million from a restated $235.5 million a year ago, beating an average forecast for $272.4 million from five analysts polled by Thomson Reuters. Li & Fung reports every six months in U.S. dollars. Core operating profit fell 22 percent to $221 million.

The company, valued at $16.7 billion, was founded early last century as a trader in porcelain, jade and silk. It now provides one-stop supply chain management - from product design, raw material sourcing and manufacturing to shipping and wholesale.

It is halfway through an ambitious 3-year growth plan and aims to expand its sourcing network to generate higher profits.

In a statement, the company said that while first-half core operating profit was relatively weak, the group was "very focused on taking the necessary steps to improve the second-half results and set the stage for 2013, the last year of its current three-year plan."

U.S. contributions to revenue for Li & Fung are the lowest ever at 60 percent, while Europe's is at a 5-year low at 21 percent as of end-December, Thomson Reuters data shows.

Li & Fung employs more than 28,000 staff worldwide and has a sourcing network of over 15,000 suppliers. The United States and Europe traditionally account for about 90 percent of its business.

The company said in May that its orders had not been affected by a slowing China economy, and it expected China to remain its main sourcing market over the next three years.

EARNINGS REVISED

Analysts have revised down their full-year Li & Fung earnings estimates on concern that high operating costs will keep margin growth in check. They say Li & Fung will have to rely on acquisitions to meet its targeted core operating profit of $1.5 billion in 2013.

Li & Fung's January-June core operating profit margin fell to 2.4 percent from 3.2 percent.

The company is seen as a potential bidder for Los Angeles-based J Brand, a women's apparel maker which hired Morgan Stanley to help it explore its strategic options, including a sale or an initial public offering.

Last month, analysts at Citi raised longer-term concerns over Li & Fung losing customers after U.S. clients such as children's clothing firm Carter's Inc and Gymboree Corp moved towards direct sourcing.

Eleven of the 20 analysts covering Li & Fung rate the stock a 'buy' or 'strong buy', with four recommending investors 'sell' the stock, according to Thomson Reuters data.

Li & Fung shares have risen around 17 percent since hitting a 9-month low late last month. The stock ended up 3.1 percent at a 13-week closing high of HK$15.98 ahead of the results on Thursday.

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* Plans to pay minimum 2012 dividend of 0.70 euro/shr

* Q2 adj. EBITDA flat at 4.7 bln euros

* Still sees 2012 adj. EBITDA at around 18 bln euros

* Shares up 0.85 percent in early trade

By Harro Ten Wolde

FRANKFURT, Aug 9 (Reuters) - Deutsche Telekom stuck by plans to pay a dividend of at least 0.70 euros per share for 2012 as cost-cutting in its German and U.S. markets helps it buck a trend among competitors who have been slashing their payouts to shareholders.

The company posted second-quarter operating profit on Thursday that was in line with estimates and kept its outlook for 2012 underlying earnings excluding special items to ease to around 18 billion euros from 18.7 billion last year.

Most European telecom groups saw profits fall in the first half of the year and were forced to cut dividends as a cocktail of tough price competition, regulatory changes, and lower spending by recession-weary consumer hurt revenues.

"We are keeping our word and providing a good deal of reliability to the market with very solid figures," said Chief Executive Rene Obermann.

Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items, were flat at 4.7 billion euros ($5.8 billion) in the three months through June, at the high end of a range of forecasts in a Reuters poll.

Deutsche Telekom shares opened up 0.85 percent, ahead of a 0.3 percent rise on the German blue chip index.

"We expect these generally solid results to be taken well against a weak European peer backdrop," said analyst Simon Weeden at Citi Research.

OUTPERFORMING

The European telecom index is roughly flat so far this year, largely underperforming most other big sectors like pharma, media, and chemicals.

But Deutsche Telekom's shares have done better than those of peers because of its unchanged dividend policy, while Telefonica and France Telecom shares have fallen because of tough domestic markets.

Deutsche Telekom's shares trade at 15 times 12-month forward earnings, above France Telecom and Telefonica, which trade at multiples of 9 and 8.4 respectively.

The company said revenues and operating profits in Europe suffered from the economic crisis, while its U.S. operation T-Mobile USA improved its operating profit due to cost-cutting.

At the same time it lost 205,000 customers in the United States after adding 187,000 clients in the first quarter.

Deutsche Telekom tried to sell its U.S. business, once a strong growth engine, to AT&T for $39 billion but fierce regulatory opposition scuppered the deal, leaving the German company with a $6 billion breakup package.

Over the next two years, network investments at T-Mobile USA will increase by about $1.4 billion. Over time, T-Mobile USA will spend a total of $4 billion on upgrading its network for high-speed wireless services based on a technology known as Long Term Evolution (LTE).

In Europe smartphones such as Apple's iPhone and Samsung's Galaxy now account for 60 percent of all devices sold, fuelling mobile data revenues, which grew by 21.2 from last year, Deutsche Telekom said.

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TOKYO | Thu Aug 9, 2012 2:42am EDT

TOKYO Aug 9 (Reuters) - Olympus Corp reported a 60 percent fall in quarterly operating profit and a deterioration in a key barometer of its ability to meet financial obligations, adding pressure on the scandal-hit Japanese company to enter into a capital deal.

For the April-to-June quarter, operating profit was 2.12 billion yen ($27.05 million), the company said on Thursday. Shareholders' equity fell to 2.2 percent of total assets.

The drop in the shareholders' equity ratio from 4.6 percent in March further pushes Olympus away from the 20 percent level widely regarded by analysts as indicative of corporate financial stability.

The 93-year-old manufacturer of cameras and medical equipment, has been in talks with several Japanese companies including FujiFilm Holdings on a capital tie-up as it tries to mend its severely depleted balance sheet hit by a massive accounting scandal last year.

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n" readability="49">Aug 2 (Reuters) - Oilfield services provider Hornbeck Offshore Inc's second-quarter profit missed analysts' estimates on higher operating costs and lower dayrates in its downstream segment.

Operating costs shot up 31 percent to $63.46 million.

The company, which provides offshore supply vessels to oil and gas companies, said it expects maintenance capital spending of $58.2 million and other capital expenditures of $9.4 million, for the current year.

April-June net profit was $12 million, or 33 cents per share, compared with a loss of $ 7 million, or 26 cents p er share, a year ago.

Excluding items, the company earned 35 cents per share.

Revenue jumped 63 percent to $131.6 million.

Analysts on average had expected earnings of 43 cents a share, on revenue of $132.6 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $41.64 on Wednesday on the New York Stock Exchange.

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n">Aug 1 (Reuters) - Insurer Cigna Corp reported a better-than-expected profit, as its takeover of Medicare specialist HealthSpring helped boost premiums and fees, and the company raised its 2012 earnings forecast.

Cigna on Thursday reported second-quarter net income of $380 million, or $1.31 per share, compared with $391 million, or $1.43 per share, in the year-earlier period.

Excluding special items, Cigna earned $1.52 per share. Analysts, on average expected $1.42 per share, according to Thomson Reuters I/B/E/S.

The company bought HealthSpring for $3.8 billion earlier this year.

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* H1 sales 3.06 bln eur, up 2.6 pct

* H1 adj EBIT up 11.6 percent to 390 mln

* Sees 2012 sales up 3 pct

* Says China to return to profit ahead of schedule

* Shares rise 5 pct, top Dax gainer

FRANKFURT, Aug 2 (Reuters) - Beiersdorf, the maker of Nivea skin care products, said it would return to profit in China a year earlier than scheduled after a haircare buy failed to deliver while announcing a slightly disappointing outlook for 2012 sales growth of 3 percent.

Like rivals Henkel and Unilever, Beiersdorf on Thursday said emerging markets had helped mitigate a 4 percent fall in second-quarter sales at its main consumer products division in western Europe.

But its new forecast for 2012 sales growth of 3 percent fell short of the average expectations for growth of 5 percent, according to a Reuters poll.

In China, Beiersdorf had fallen behind rivals' expansion and last year took a 140 million euro ($172 million) writedown and replaced management.

"We see a much improved situation in China and we are approaching breakeven in the foreseeable future," new Chief Executive Stefan Heidenreich told analysts.

Its shares were up 4.20 percent at 55.80 euros at 1027 GMT, the top gainer on the Dax index of leading German shares .

Beiersdorf shares already trade at a premium because of speculation the controlling Herz family could sell out to Procter & Gamble, and have a price to forward earnings ratio of 24.28. That compares with 19.31 for L'Oreal, 15.3 for Henkel, and 14.13 for Reckitt Benckiser.

"The specified outlook for sales growth is below consensus for both the Consumer and the Tesa (adhesives) division and may require a downward revision of consensus," said DZ Bank analyst Thomas Maul.

Heidenreich admitted Beiersdorf, which also makes Labello lip balm and La Prairie luxury skin creams, had fallen behind in terms of innovative creams and lotions and vowed to bring more new products to the market.

"The innovation did not come out in the previous year and that is why we are not growing enough," Heidenreich said. "The pipeline looks a lot better for 2013, I believe some real hits will come through."

Procter & Gamble, the world's largest household products maker, warned on profits after failing to deliver enough new products and cost cuts to make up for weak demand in Europe, the United States and China.

Beiersdorf said on Thursday that first-half sales rose 2.6 percent to 3.06 billion euros and adjusted earnings before interest and tax (EBIT) rose 11.6 percent to 390 million.

It forecast a 2012 operating margin of 12 percent, compared with a previous range of between 11 and 12 percent.

View the original article here

n">Aug 2 (Reuters) - Westlake Chemical Corp's quarterly net profit rose 42 percent on lower feedstock and energy costs.

The company, which makes basic chemicals, vinyls, polymers and fabricated building products, said net income rose to $115.5 million, or $1.72 per share, from $81 million, or $1.21 per share.

Revenue dipped 1 percent to $914 million.

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n" readability="49">Aug 2 (Reuters) - Oilfield services provider Hornbeck Offshore Inc's second-quarter profit missed analysts' estimates on higher operating costs and lower dayrates in its downstream segment.

Operating costs shot up 31 percent to $63.46 million.

The company, which provides offshore supply vessels to oil and gas companies, said it expects maintenance capital spending of $58.2 million and other capital expenditures of $9.4 million, for the current year.

April-June net profit was $12 million, or 33 cents per share, compared with a loss of $ 7 million, or 26 cents p er share, a year ago.

Excluding items, the company earned 35 cents per share.

Revenue jumped 63 percent to $131.6 million.

Analysts on average had expected earnings of 43 cents a share, on revenue of $132.6 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $41.64 on Wednesday on the New York Stock Exchange.

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TOKYO | Thu Aug 2, 2012 2:14am EDT

TOKYO Aug 2 (Reuters) - Sony Corp said first-quarter operating profit slid from a year earlier as the iconic consumer electronics brand continued to struggle with weak demand for its TVs and other devices amid biting competition from foreign rivals.

In the three months to June 30, Sony posted a 77 percent fall in operating profit to 6.28 billion yen ($80.27 million), well below the average 17.6 billion yen profit estimated by 5 analysts surveyed by Thomson Reuters I/B/E/S.

The three-month performance gives investors their first marker on the performance of Sony's new boss, Kazuo Hirai. He took the helm of the inventor of the Walkman music player in April, vowing to turnaround the struggling company by spurring profit growth from cameras, gaming and mobile devices.

Following a 67 billion yen loss in the previous business year, Sony lowered i ts full-year operating profit forecast to 130 billion yen compared with a consensus estimate of 139 billion yen of 18 analysts surveyed by Thomson Reuters.

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