Earnings Update 04/25/07

After the bell: Apple, Pulte Homes, Qualcomm.

Anheuser Busch (BUD) Worlds #2 brewer with Q1 profit +3.7% Yoy, on higher prices for domestic beer as well as fewer discounts, with sales growing marginally.

Net sales +2.7% Yoy, falling short of expectations. US Market share falling 50.2% vs 50.9%. Marketing, distribution & admin expenses rising +8%. Inventories rising 15.5% sequentially. EPS puffed up 3 cents on a 9 million share buyback.

Black & Decker (BDK) power tools maker with a Q1 slide in net earnings on a "weak demand environment in the U.S." Looking forward, flat sales citing weak housing industry and increasing commodity inflation.

Boeing (BA) Q1 net earnings +27%, revenue +8%. Raytheon (RTN) Q1 profit +21% Yoy; net sales +6%; EPS +13% Yoy. General Dynamics Q1 earnings +16% Yoy; net sales +13.6% Yoy

The defense industry has benefited greatly from a rapid expansion in government spending on military hardware and repairs to equipment as the U.S. continues to be involved in conflicts in Iraq and Afghanistan. Budget cuts may be coming.

BP, Europe's #2 oil company, reported a 17% drop in Q1 earning; revenue -3% and net profit -18% ($1 Billion) on lower Yoy oil prices, rising costs and declining production.

Conoco Phillips (COP) #3 oil & gas producer, Q1 profit +7.7%; revenue -12% on lower volumes & lower Yoy oil prices; EPS -9.4% on higher operating costs; lowered estimates for Q2 production.

Hess (HES) oil & gas producer, Q1 profit -47% on lower volumes & lower Yoy oil prices.

GlaxoSmithKline worlds #2 pharmaceutical taking a Q1 sales hit -4%, with net profit falling and EPS taking a 12% hit on a strong Sterling pound.

Honda Motor #2 Japanese carmaker & worlds #1 carmaker, a 27% decline in Q4 operating profit with net income falling and US sales rising 6%. Nissan, #3 Japanese carmaker, will probably see an earnings decline of -33%.

Norfolk Southern (NSC) railroad Q1 net profit -6.5%, Yoy income -4.2%, Yoy operating revenues -2%.

Continued weakness in the automotive and housing sector contributed to a 4% reduction in freight volumes for Q1. The CEO: "results were encouraging, especially in light of the softness in the economy."

Ryder (R) #1 US truck leasing co. Q1 net income +8% & revenue +7% Yoy. Ryder gave lowered forward guidance and commented:

"gains in contractual revenue, which includes full service lease and contract maintenance, were offset by a decrease in commercial rental revenue due to generally weak freight demand for its customers in North America."

United Airlines (UAUA) #2 US airline, Yoy revenue -2% and a worse than expected Q1 loss ($152M) on weaker demand, its 2nd straight quarterly loss since emerging from BK.

United Parcel Service (UPS), worlds #1 shipping carrier, despite a 3.3% rise in sales, a disappointing Q1 earnings drop -13.5%.

Scott Davis, UPS CFO "the economy slowed more than anticipated 3 months ago."

Sanmina-SCI Corp. (SANM) a provider of customized, integrated electronics manufacturing services, #2 manufacturer of electronics for other companies reported a narrowed Q1 loss of ($26M) vs Q4 ($76M)

Gross profit, revenue and third quarter earnings per share guidance all slid as SANM blamed "a higher than anticipated decline in demand from the communications and high end computing markets".

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