(Source: Business Week)
Alcoa (AA) posts $0.33, vs. $0.63 a year ago, third quarter EPS [including items] on 5.3% sales drop. Says aluminum prices have fallen steeply, demand has softened further, while input costs remain high. Says given sharp decline in metal prices, increasingly soft demand in its key markets, AA is stopping all non-critical capital projects, making targeted reductions to match market conditions, adjusting its mfg capacity to meet demand. Suspends buyback program. S&P downgrades to sell from buy. FBR Capital cuts ests, target, keeps outperform.
Merrill Lynch (MER) and other financials are seen under pressure on report Federal Reserve Bank of Philadelphia President Charles Plosser said today that it will not be easy for the central bank to unwind many of its liquidity providing efforts. "We have expanded our interventions" on a wide variety of fronts and "it is going to be a challenge" to reverse some of those initiatives when conditions improve, Plosser said.
Bank of America (BAC) announces that its offering of $10 billion, or 455 million shares, of common stock, was priced at $22 per share. S&P Equity Research notes that the offering price is well below where the company had originally anticipated; S&P cuts estimate, target, maintains hold.
Bank of New York Mellon (BK) enters agreement with JPMorgan Chase (JPM) to buy all issued and outstanding shares in JPMorgan Trust Bank Limited in Japan. Terms of the deal were not disclosed. The transaction is a result of BK's acquisition of JPMorgan Chase's global corporate trust business in 2006.
Wal-Mart Stores (WMT) posts 2.4% higher September same-store sales without fuel, 2.8% higher with fuel, 5.8% higher total company sales. Expects U.S. same-store sales growth for October to be between 1% and 2%. Maintains third quarter EPS from continuing operations guidance of $0.73-$0.76.
Citigroup downgrades General Motors (GM) and Ford Motor (F) to sell from hold. Citigroup cites deteriorating global credit conditions and unappealing valuations.
Monsanto Company (MON) posts $0.32 fourth quarter loss, vs. $0.52 loss from continuing operations, on a 33% sales rise. Street was looking for $0.09 fourth quarter loss. Sees fiscal year 2009 EPS, on as-reported basis, of $4.20-$4.40, expects free cash flow for fiscal year 2009 of $1.8 billion.
MetLife (MET) sees $0.83-$0.93 third quarter operating EPS on about 16% higher premiums, fees and other revenues. Street was looking for $1.44. For third quarter, it expects $490 million, net, in credit-related losses, including impairments. About $375 million net, or 77%, of the credit-related impairments were related to major financial services credits such as Lehman Brothers, Washington Mutual and AIG.
