Updates, advisories and surprises - UPDATE 3 10.09.2004 14:01 Headlines
Alcoa's Q3 warning prompts Morgan Stanley downgrade (7:58 AM ET) NEW YORK
(AFX) -- Alcoa's third quarter profit warning overnight has prompted investment
bank Morgan Stanley to slash its rating on the aluminum producer to "equal
weight" from "overweight." Analyst Wayne Attwell said the downward revision
reflects concern that higher energy, healthcare and freight costs will have a
negative impact on earnings over the next 18 months. After the market close
Thursday, Alcoa said it expects to report third-quarter operating earnings of 30
cents to 35 cents per share. Analysts polled by Thomson First Call had been
expecting 52 cents a share. The company blamed the shortfall on a strike, a
fire, restructuring costs and weaker-than-expected demand in some of its
markets. The analyst cut his own earnings forecast for the third quarter to 42
cents a share to reflect the company's new estimates. However Attwell said Alcoa
should be considered a core long-term metals holding as it is one of the few
metals companies that should be able to earn its cost of capital. The cost of
capital is the required return necessary to make investment in a capital project
worthwhile. Shares of Alcoa were down 6.9 percent at $30.98 in pre-market
trading in Instinet.
Chip designer Transmeta lowers Q3 rev. outlook (6:15 AM ET) LONDON (AFX)
-- Chip designer Transmeta Corp. lowered its third quarter revenue outlook to a
range of $6.8 million and $7.5 million against its earlier estimate at $8
million to $8.7 million. "Our current quarter sales will reflect our constrained
product availability as we moved through our 90nm product qualification
process," said the company. "In addition, our sales will be significantly
affected by softening demand in the enterprise sector and by our customers'
product lifecycle-related transitions within their Transmeta-based product
lines."
Premier Foods H1 sales up 14% to 96 mln pounds (2:49 AM ET) LONDON (AFX)
-- Premier Foods , the maker of Branston Pickle, said pre-tax profits before
exceptional items rose 17.7 percent to 96.5 million pounds for the half-year to
July 3. Revenue increased 14.4 percent to 425.8 million pounds. Operating profit
on continuing operations rose 28.9 percent to 35.6 million pounds. In its first
results since listing on the stock exchange in July, Premier said: "We have
grown sales, cut costs and developed our margin ahead of last year and in line
with our strategy." It said the IPO enabled it to reduce net debt and its
interest payments, which stand at 38.8 million pounds for the first half, should
be "significantly" reduced. Looking ahead, it said: "While the trading
environment remains tough, the second half of the year is looking positive,
where seasonally better trading, brand performance and cost cutting measures are
expected to contribute to our full-year results."
Aga Foodservice: Orders for Rangemaster higher (2:18 AM ET) LONDON (AFX)
-- Aga Foodservice Group , the U.K. kitchen appliance and food services
provider, posted a 9.8 percent rise in sales in the first half of the year to
204.4 million pounds. Pre-tax profit rose 7.6 percent to 12.7 million pounds.
Looking ahead, it said U.K. and European "consumer activity remains strong with
Aga home surveys up and
Rangemaster seeing a strong order book for the autumn. In the U.S., Domain's
orders are edging up." In foodservice, it said U.K. and European order books
"are healthier and are expected to deliver better results... U.S. foodservice
markets are patchy but the focus on bakery products brings new opportunities."
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com. Greetz f-h
http://www.anmeldung.boerse-total.de