UAL, JNJ, DuPont, Ambac, KeyCorp, National City, Wachovia, Bank Of America & Procter & Gamble
Beating the number: CSX, Eaton. Later Today: Texas Instruments, Apple, Washington Trust Bancorp.
The Unfriendly Skies... Last week, American Airlines parent AMR Corp. said...
that higher oil prices pushed the world's largest carrier to a Q4 loss of $69 million, today...
United Airlines, #2 US Airline, parent UAL Corp.'s Q4 loss narrowed to $53 vs $61 million a year ago.
The third loss in the seven full quarters since UAL left bankruptcy in February 2006, shares down 32% in the last year.
UAL posted a $64 million loss from operations vs $23 million profit a year earlier.
The pressure on earnings industrywide from surging jet-fuel prices, up 49% in the past 12 months, is spurring some carriers to consider merging.
Tampons & Toothpaste... Johnson & Johnson reported annual earnings decrease of 4.3% at $10.6 billion, and -2.7% decrease in EPS to $3.63.
A positive currency impact of 10.5% helped Q4 international sales achieve an increase of 25.8%YOY. Currency contributed 4.7% of overall sales growth for Q4.
DuPont, #3 U.S. chemical maker..., said Q4 profit rose as increased sales of seeds and chemicals in emerging markets...
more than made up for weak demand from domestic homebuilders and automakers. 66% of sales in the quarter came from outside the U.S.
Ambac #2 Debt Guarantor... posted a Q4 net loss of $3.26 billion, after writing down the value of credit-derivatives by $5.21 billion.
The Q4 loss took the 2007 deficit to $3.23 billion, the company's first ever annual loss.
On Friday, Ambac which guarantees $556 billion of municipal and structured finance debt lost its AAA rating at Fitch. Stock down 93% in the last year.
Fifth Third Bancorp #3 Ohio lender... said Q4 earnings dropped 42% to $38 million...
on an increase in costs for bad loans and an insurance-related writedown.
KeyCorp, # 2 Ohio lender... net income declined 83% on soured loans to homebuilders in California and Florida.
The Cleveland-based bank is halting lending to construction companies in some regions and said it would eliminate 740 jobs.
National City Corp. #1 Ohio lender... reported a Q4 loss of $333 million vs profit of $842 million a year earlier,
cut 900 jobs and reduced the quarterly dividend by 50% the first reduction since 1935.
Wachovia, #4 US Bank... Q4 profit fell 98% net income declined to $51 million, vs $2.3 billion on $1.7 billion of writedowns.
The corporate and investment bank had a loss of $596 million after the costs. Q4 revenue fell 17% to $7.2 billion. Return on equity was 0.28% vs 13.1% a year earlier.
Credit loss provision up to $1.5 billion vs $408 million. Falling prices for securities backed by mortgages...
cut the value of Wachovia's holdings by $1 billion, vs $350 million. Stock has dropped more than 45% since Oct 06 acquisition of Golden West Financial.
Bank of America #2 US Bank... Q4 profit sank 95%, ($268 million vs $5.26 billion)
hurt by more than $7 billion of losses tied to write-downs and poor trading decisions.
$5.28 billion write down related to collateralized debt obligations, which the bank said reduced trading profit by $4.5 billion and other income by about $750 million.
BofA set aside $1.74 billion for credit losses, including a $1.33 billion addition to reserves.
Incurred $800 million of losses and write-downs to help money market mutual funds exposed to risky debt maintain the $1 per share net asset value.
The bank said it ended the year with $15.65 billion of net exposure to super senior CDOs, before write-downs. Stock down 7% today, 33% in the last year.
The bank's Tier-1 capital ratio, fell to 6.87% in Q4 from 8.22% in Q3. Can't wait for the Countrywide acquisition to hit the books in the coming quarters.
The Nattering One muses... ETrade reported a five year high for the number of traders logged in. More on Tampons & Toothpaste...
We have tracked PG's market countertrend and warned to watch this bellweather closely.
09/17/07: "Watch PG closely, if it hits $68 and falls...";
10/21/07: "At least PG is still up there, watch it cuz when it starts sinking, then everything will tank."
Last THUR: "10/30 to 12/12 flight to safety countertrend, blow off top since, cracked 150DMA $68 today.
If PG breaks 200 DMA $67 & 300 DMA $66, the end is nigh."
Fri PG broke $68 to the downside, today it broke $67 & $66, falling 2.6% in a single day.
Today's surprise Fed Cut prevented a 1000+ point sell off and further global market collapse... for today only.
After opening down 460, the recovery of 340 Dow points was a dead cat bounce on short covering.
As stated yesterday and many times, go ahead TOMORROW and: cut rates to ZERO, freeze ARM resets,
raise GSE limits to support $1 Million McMansions, mail a $1000 stimulus check to everyone, print up a Trillion in new currency...
inject a Trillion into the insolvent banking system, eliminate all corporate and capital gains taxes for the rich to get richer...
None of this, which is only more of the same which got us into trouble, can stop what is coming. Even free money will no longer be lent to suspect borrowers.
You danced, and now the piper needs to be paid, and it will take time to work off the excesses built up in the system.
The leveraging of debt, contraction of credit and reversion to the mean, will take their toll.
Yes, PG is under $66, and who would have thought that the "good news" would be oil under $90? So get ready for more stagflation and downside.
The Unfriendly Skies... Last week, American Airlines parent AMR Corp. said...
that higher oil prices pushed the world's largest carrier to a Q4 loss of $69 million, today...
United Airlines, #2 US Airline, parent UAL Corp.'s Q4 loss narrowed to $53 vs $61 million a year ago.
The third loss in the seven full quarters since UAL left bankruptcy in February 2006, shares down 32% in the last year.
UAL posted a $64 million loss from operations vs $23 million profit a year earlier.
The pressure on earnings industrywide from surging jet-fuel prices, up 49% in the past 12 months, is spurring some carriers to consider merging.
Tampons & Toothpaste... Johnson & Johnson reported annual earnings decrease of 4.3% at $10.6 billion, and -2.7% decrease in EPS to $3.63.
A positive currency impact of 10.5% helped Q4 international sales achieve an increase of 25.8%YOY. Currency contributed 4.7% of overall sales growth for Q4.
DuPont, #3 U.S. chemical maker..., said Q4 profit rose as increased sales of seeds and chemicals in emerging markets...
more than made up for weak demand from domestic homebuilders and automakers. 66% of sales in the quarter came from outside the U.S.
Ambac #2 Debt Guarantor... posted a Q4 net loss of $3.26 billion, after writing down the value of credit-derivatives by $5.21 billion.
The Q4 loss took the 2007 deficit to $3.23 billion, the company's first ever annual loss.
On Friday, Ambac which guarantees $556 billion of municipal and structured finance debt lost its AAA rating at Fitch. Stock down 93% in the last year.
Fifth Third Bancorp #3 Ohio lender... said Q4 earnings dropped 42% to $38 million...
on an increase in costs for bad loans and an insurance-related writedown.
KeyCorp, # 2 Ohio lender... net income declined 83% on soured loans to homebuilders in California and Florida.
The Cleveland-based bank is halting lending to construction companies in some regions and said it would eliminate 740 jobs.
National City Corp. #1 Ohio lender... reported a Q4 loss of $333 million vs profit of $842 million a year earlier,
cut 900 jobs and reduced the quarterly dividend by 50% the first reduction since 1935.
Wachovia, #4 US Bank... Q4 profit fell 98% net income declined to $51 million, vs $2.3 billion on $1.7 billion of writedowns.
The corporate and investment bank had a loss of $596 million after the costs. Q4 revenue fell 17% to $7.2 billion. Return on equity was 0.28% vs 13.1% a year earlier.
Credit loss provision up to $1.5 billion vs $408 million. Falling prices for securities backed by mortgages...
cut the value of Wachovia's holdings by $1 billion, vs $350 million. Stock has dropped more than 45% since Oct 06 acquisition of Golden West Financial.
Bank of America #2 US Bank... Q4 profit sank 95%, ($268 million vs $5.26 billion)
hurt by more than $7 billion of losses tied to write-downs and poor trading decisions.
$5.28 billion write down related to collateralized debt obligations, which the bank said reduced trading profit by $4.5 billion and other income by about $750 million.
BofA set aside $1.74 billion for credit losses, including a $1.33 billion addition to reserves.
Incurred $800 million of losses and write-downs to help money market mutual funds exposed to risky debt maintain the $1 per share net asset value.
The bank said it ended the year with $15.65 billion of net exposure to super senior CDOs, before write-downs. Stock down 7% today, 33% in the last year.
The bank's Tier-1 capital ratio, fell to 6.87% in Q4 from 8.22% in Q3. Can't wait for the Countrywide acquisition to hit the books in the coming quarters.
The Nattering One muses... ETrade reported a five year high for the number of traders logged in. More on Tampons & Toothpaste...
We have tracked PG's market countertrend and warned to watch this bellweather closely.
09/17/07: "Watch PG closely, if it hits $68 and falls...";
10/21/07: "At least PG is still up there, watch it cuz when it starts sinking, then everything will tank."
Last THUR: "10/30 to 12/12 flight to safety countertrend, blow off top since, cracked 150DMA $68 today.
If PG breaks 200 DMA $67 & 300 DMA $66, the end is nigh."
Fri PG broke $68 to the downside, today it broke $67 & $66, falling 2.6% in a single day.
Today's surprise Fed Cut prevented a 1000+ point sell off and further global market collapse... for today only.
After opening down 460, the recovery of 340 Dow points was a dead cat bounce on short covering.
As stated yesterday and many times, go ahead TOMORROW and: cut rates to ZERO, freeze ARM resets,
raise GSE limits to support $1 Million McMansions, mail a $1000 stimulus check to everyone, print up a Trillion in new currency...
inject a Trillion into the insolvent banking system, eliminate all corporate and capital gains taxes for the rich to get richer...
None of this, which is only more of the same which got us into trouble, can stop what is coming. Even free money will no longer be lent to suspect borrowers.
You danced, and now the piper needs to be paid, and it will take time to work off the excesses built up in the system.
The leveraging of debt, contraction of credit and reversion to the mean, will take their toll.
Yes, PG is under $66, and who would have thought that the "good news" would be oil under $90? So get ready for more stagflation and downside.
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