EQUITY UPDATE: 27 JULY 2012

ASIA

Nomura Holdings Inc – Co. named Koji Nagai as their new CEO after the insider trading charges faced by the co. saw former CEO Kenichi Watanabe’s resignation today. His lieutenant Takumi Shibata also resigned as part of the shake-up. (Reuters)

INDIA

According to a Reuters poll, the Reserve Bank of India is expected to hold its policy rates steady at its upcoming quarterly review. The poll showed 19 out of 20 economists expected repo rates to remain unchanged at 8 per cent. (Reuters)

The Indian government could ask Coal India to import coal in order to meet rising domestic demand especially for power companies. (Economic Times)

FII’s made gross purchases of INR 2,831.49cr and sales of total INR 4,012.19cr. DII’s made gross purchases of INR 1,634.25cr and sales of INR 1,211.55cr. (Business Standard)

Maruti Suzuki – Co.’s problems arising from the strikes is set to extend further, affecting its sales and affect its profits. Shutdown of its Manesar factory costs the co about USD 15 m a day as forecasted by analysts hampering its sales in October, a key period. Co. is slated to report its 1Q12 earnings this Saturday and is expected to report a fourth consecutive loss on weaker demand and rupee depreciation. (Economic Times)

Tata Steel – The rating agency Standard and Poor’s cut co.’s and its European subsidary’s outlook to ‘negative’ from ‘Stable’ due to weak financial position of the firm. The rating agency affirmed co.’s long terms credit rating at ‘BB’. (Yahoo/IANS)

Suzlon – Co. has successfully completed the sale of its wind farms assets. Co. was expected to raise approximately USD 40m from the sale. (The Hind Business Line)

MTNL/BEML/Orchid/Sintex Industries/IRB Infrastructure/Shree Renuka – Macquire sold 2.54 lacs shares in BEML for INR 8.28cr; 17.28 lacs shares in MTNL for INR 5.13cr and 4.18 lacs shares in Orchid chemicals for INR 4.58cr. Additionally the co. sold 35.96 lacs in Sintex Industries for INR 20.83cr; 18.83 lacs shares in IRB Infrastructure for INR 22cr and sold 44.89 lacs shares in Shree Renuka Sugar for INR 14cr. (MoneyControl)

SKS Microfinance – Deutsche Securities Mauritius picked up 9.15 per cent stake in co. for estimated value of INR 78cr. (Business Standard)

INDIAN EARNINGS

Sterlite Indistries – Co, reported 1Q12-13 net profit at INR 1,202cr vs. previous INR 1,640cr. Net Sales at INR 10,591cr vs. previous INR 9,863cr. (Financial Express)

ACC Cement – Co. reported 2Q12 net profit of INR 415cr vs. previous INR 328cr. Total consolidated turnover at INR 2,918.98cr vs. previous INR 2,539.41cr. (The Hindu Business Line)

Ambuja Cement – Co. reported 2Q12 net profit at INR 468cr vs. previous INR 348cr. Net sales at INR 2,566cr vs. previous INR 2,176cr. (Business Standard/PTI)

Bajaj Electricals – Co, reported 1Q12-13 net profit at INR 11.98cr vs. previous INR 11.06cr. Net income at INR 666.19cr vs. previous INR 544.36cr. (Financial Express)

Alstom India – Co. reported 1Q12-13 net profit at INR 12.88cr vs. previous INR 6.30cr. Total income at INR 441.36cr vs. previous INR 281.11cr. (Business Standard/PTI)

Excel Crop – Co. reported 1Q12-13 net profit at INR 10.96cr vs. previous 1Q11-12 at INR 6.27cr. Sales turnover at INR 213.58cr vs. previous INR 164.05cr. (MoneyControl)

Forbes Gokak – Co. reported 1Q12-13 net profit at INR 52.62cr vs. previous INR 3.39cr in 1Q11-12. Sales turnover at INR 63.92cr vs. previous INR 68.42cr. (MoneyControl)

Uflex – Co. reported 1Q12-13 net profit at INR 41.15cr vs. previous 1Q11-12 at INR 33.10cr. Sales at INR 865.11cr vs. previous INR 789.82cr. (MoneyControl)

Zensar Tech – Co. reported 1Q12-13 net profit at INR 40.86cr vs. previous INR 20.39cr. Sales at INR 213.06cr vs. previous INR 196.39cr. (MoneyControl)

Gandhi Special Tubes – Co. reported 1Q12-13 net profit at INR 6.78cr vs. previous 1Q11-12 net profit at INR 7.73cr. Sales turnover at INR 26.33cr vs. previous INR 26.68cr. (MoneyControl)

EUROPE

According to the ECB, deposits in Greek banks fell to six year lows as investors doubted the bank’s stability. Deposits declined to EUR 156.2 b for period ended June vs EUR 163.1 b a month ago. Private sector deposits declined 5 percent on m/m basis. (Reuters)

Spain has stated that it would not immediately seek assistance from the EU until the troika of institutions takes stock of its condition. (Reuters)

According to Greece’s finance ministry, Greece had identified EUR 11.6b in spending cuts over the next two years. (Economuc Times/AFP)

EUROPEAN EARNINGS

BG Group – Co. took a USD 1.3 b in writedown on its US natgas assets to report lower profits.  2Q12 revenues rose to USD 5.6 b vs USD 5.1 b previously. Operating profits excl charges declined marginally to USD 1.9 b vs USD 2 b a year ago. Otherwise, net profits came in significantly lower at USD 609 m vs USD 2.2 b. The co. raised its interim dividend by 10 percent to USD 11.88 a share. (Financial Times)

Banco Santander – Co. saw its 1HY12 profit decline to EUR 100 m (USD 122 m) vs EUR 1.39 b a year ago. The 93 percent decline was on rise in bad loans in the property market. Asset quality in its Brazilian and UK units suffered severe deterioration, which contributed to writedowns. The bank set aside EUR 2.78 b to mitigate the losses. (Bloomberg)

Roche – Pharma co. saw its 1HY12 profits decline 17 percent y/y as it was hit by a one-off restructuring charge of Swiss Franc (SFr) 1.68 b. Its attempts at job cuts cost the co. SFr 858 m and the overhaul of its diabetes and applied sciences amounted to SFr 289 m and other charges amounted to SFr 530 m. The impact drove down profits to SFr 4.4 b vs SFr 5.3 b a year ago. Diluted EPS came in lower from 6.04 to 4.99 a share. Revenues rose 3 percent y/y to SFr 21.7 b on higher demand for its cancer, hepatitis and rheumatoid arthritis medicines. The co. however maintained its sales target for FY2012 inspite of the market conditions. (Financial Times)

NORTH AMERICA

Index measuring resale of  homes in the U.S declined 1.4 percent to 99.3 in June vs a revised gain of 5.4 percent in May. Forecasts came in at a gain of 0.3 percent. Purchases decreased by 5.4 percent to 4.37 m units on an annual rate. (Bloomberg)

US durable goods orders rose more than expected for June on rising demand for aircraft and military hardware. Dat showed a 1.6 percent rise vs expectations of a 0.3 percent gain. Orders excl transport declined 1.1 percent. Business investments declined but were offset by other factors.

NORTH AMERICAN EARNINGS

Dow Chemical Co. – Co. reported 2Q12 net profits at USD 734 m vs USD 1.07 b a year ago. EPS came in at 55 cents vs 84 cents a year ago vs expectations of 64 cents. Revenues declined to USD 14.5 b vs expectations of USD 15.6 b vs prv USD 16 b. Co. saw the prices of plastic decline in the quarter and its plans to spend a total of USD 24 b on two projects, one in Saudi Arabia and one in Texas. (Bloomberg)

3M Co. – Co. saw its earnings come at USD 1.17 b vs USD 1.16 b a year ago as its healthcare, industrial and transportation businesses registered double digit growth. EPS came in at 1.66 a share vs 1.60 a share, beating expectations of 1.65 a share. Sales declined 2 percent y/y to USD 7.53 b vs expectations of USD 7.28 b. (Reuters)

Sprint Nextel Corp – Co. reported a 2Q12 loss of USD 1.37 b vs prv USD 847 m. EPS came in at loss of 46 cents vs 28 cents a share, previously. The co. took a one time depreciation charge of USD 782 m on network decommissioning and impairment charge related to Clearwire Corp as the co. tries to divest its operations with Nextel’s older networks, the co. saw a loss of 246,000 in customer base vs expectation of a loss of 203,000 customers. Operating revenue came in at USD 8.8 b vs USD 8.3 b previously vs expectations of USD 8.727 b. Co. raised its target for FY12’s adjusted operating income to range between USD 4.5 – USD 4.6 b from its previous forecast of USD 3.7 – USD 3.9 b. (Reuters)

Colgate-Palmolive – Toothpaste maker saw a 2 percent y/y rise in sales to USD 4.3 b, beating expectations, but was affected by exchange rate fluctuations. Diluted EPS came in at USD 1.33 a share, in line with expectations. Profits came 0.8 percent higher at USD 627 m. Co. stated that the impact of forex rates, in continuity, could see it report EPS data lower by 6-7 percent. Market share of the co. came in at 45 percent, its highest. (Financial Times)

Zynga – Co.’s saw its earnings decline, share price fall by 40 percent and slash its outlook for FY12. Net loss for 2Q12 came in at USD 22.8 m vs net profit of USD 1.4 m. Revenues came in 19 percent higher at USD 332.5 m, missing expectations of USD 344.8 m. The share price tanked 40 percent to USD 3.03 a share, as it stated that Facebook Inc. used a different software for its gaming network from Zynga’s competitors. Hence the co. slashed its FY12 EPS guidance to 4 – 9 cents from forecasts of 26 cents. (Financial Times)

United Airline – co. reported 2Q12 net income at USD 339m vs. previous 2Q11 net income at INR 538m. EPS at USD 1.41 per share vs. estimated USD 1.70 per share. Revenue at USD 9.9b vs. estimated USD 10b. (Economic Times/AFP)



Categories: Earnings, European Earnings, Indian Earnings, North American Earnings

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