Bilibala: I think the management resturcture is more like an annoucement to help the shareholders to have a clear understand about Google's senior management team's role & responsiblities.
4q10 results looks great even assume FX rate are constant.
http://www.reuters.com/article/idUSTRE70I0BX20110121?feedType=nl&feedName=usmorningdigest
Google's Page brings change and questions
Reuters) - Larry Page will need a rare combination of vision and solid management skills when he takes over at Google in April.
One day after Google's surprise announcement that Page would replace Eric Schmidt as chief executive officer, investors and industry insiders are grappling with how the change will affect the world's No.1 Internet search company.
"What's going to change under Larry?" said BGC Partners analyst Colin Gillis, asking the question on the minds of executives from Silicon Valley to New York City.
"In our opinion, Larry is likely to increase investments as a priority. It could be a long-term positive, but short term it's a negative."
The company hopes 38-year-old Page will help streamline decision-making as it tries to deal with tougher competition from Facebook and Twitter.
Within technology circles, the move to replace Eric Schmidt left some wondering if Page can make a successful comeback to the company he helped create during the first dot-com boom. For a list of tech executive departures and hires see: r.reuters.com/pyh67r
"Founder becoming CEO ... Is this like a Steve Jobs returning or a Jerry Yang returning?" tweeted Chris Dixon, a technology veteran who has invested in Skype and Foursquare.
Steve Jobs returned to Apple Inc in the 1990s to save the company he founded. Yahoo Inc's Jerry Yang made a similar comeback, returning to his Internet company during a troubled stretch, but failed to restore its fortunes.
"It is important to note that, although the titles have changed, the core team remains the same ... this new team structure makes a lot of sense and could result in faster decision making," JP Morgan analysts led by Imran Khan said.
Some analysts believe Google's stock could gain another 20 percent from current levels.
Brokerage UBS said it was bullish on Google's long-term prospects and expects the company's focus on its emerging display network business, YouTube, Android and enterprise customers to deliver healthy returns in 2011.
Fourth-quarter operating margins were slightly weaker than expected at 53 percent on higher sales and marketing expenses.
JP Morgan's Khan, who lowered his 2011 operating margin estimates by less than a percentage point to 52.4 percent, said the expenses are necessary to promote future growth.
Evercore Partners, however, said it was still concerned about Facebook's growth trajectory and deepening integration with third party sites. Investors have speculated Facebook could cut into Google's business if advertisers shift to the social network.
Google Inc shares -- which gained 2 percent following Thursday's better-than-expected quarterly results and the announcement of the CEO change -- finished Friday's regular trading session 2.4 percent down at $611.83. The shares of Mountain View, California-based Google have risen 16 percent since Google reported third-quarter results mid-October and are up almost 45 percent from its 52-week low of $433.63 touched in July 2010.
(Reporting by Paul Thomasch in New York, Alexei Oreskovic in San Francisco and Sayantani Ghosh and Mary Meyase in Bangalore; editing by Joyjeet Das, Phil Berlowitz and Andre Grenon)
Showing posts with label 06 Press Release. Show all posts
Showing posts with label 06 Press Release. Show all posts
1.19.2011
Wells Fargo 4q10 earning release
Bilibala: 4q10 EPS $0.61 sightly off than what I expected $0.63. Mainly because its net interest income $11.1B looks flat compare to 3q10. While loan provision down further by 14% to 3.0B, its non interest expenses also move up to 13.3B or 8%. Excluded the 0.4B of the expense related to a 3 years charible donation, expenses up 5%, still higher than expected.
To Bilibala, i think Wells Fargos price over book ratio 1.38 is higher than peers, and since price move up from around $25 (3 months ago) to $32 now, I will change my recommendation from Strong Buy to Buy.
http://www.reuters.com/article/idUSTRE70I3FN20110119?feedType=nl&feedName=usbusinessearly
(Reuters) - Wells Fargo & Co (WFC.N) and U.S. Bancorp (USB.N) said low interest rates were squeezing lending profits, but improving credit quality helped both banks post higher fourth-quarter earnings.
Analysts and investors shrugged off the bottom-line figures and focused on the impact of low interest rates and a reluctance by businesses to tap their credit lines.
"It's a mixed bag looking at these banks," said analyst Shannon Stemm of Edward Jones in St. Louis. "There's improving fee income, but loan demand and interest income still remains weak."
Shares of Wells Fargo, the No. 4 U.S. bank by assets, fell 2 percent to $31.81, while U.S. Bancorp, the fifth-largest U.S. commercial bank, fell 2.9 percent to $26.52.
The banking industry is making more new loans to consumers and businesses.
U.S. Bancorp said average total loans increased 2 percent from a year earlier, and Wells Fargo said total loans grew 0.4 percent from the third quarter.
Analysts and economists have said an uptick in business borrowing is a key cog in the continuing economic recovery. But early fourth-quarter figures suggest businesses -- while taking out new loans -- are hesitant to use them.
U.S. Bancorp said companies were getting credit lines from the bank, but were not actively borrowing on them.
Commercial line utilization -- or the amount of money businesses borrowed under available credit -- fell to 26 percent in fourth quarter, an all-time low and down from 30 percent in the third quarter.
"We're looking forward to the day usage goes up," U.S. Bancorp Chief Executive Officer Richard Davis said on a conference call with analysts.
ASSET QUALITY
Analysts said that despite the slow loan growth, banks' balance sheets were beginning to show signs of health after three years of crisis and recession.
"The banks are building a foundation back to normal earnings," said Guggenheim Securities LLC analyst Marty Mosby. "Right now, asset quality has to get healthy, and that's happening at a much faster rate than I think a lot of us expected."
Wells Fargo's fourth-quarter profit increase stemmed in part from the release of $850 million in loan loss reserves, as the bank said its problem loans continued to shrink. Net charge-offs declined 29 percent from a year earlier.
U.S. Bancorp released $25 million in loan loss reserves during the period, the company's first such move since 2008.
Citigroup (C.N) also took a large reserve release in the fourth quarter, raising concerns among analysts about the quality of its results.
MARGIN PRESSURE
But improving credit did not offset the squeeze in net interest margin, or the money a bank receives in interest from loans against what it pays for deposits.
As the Federal Reserve continues to hold U.S. interest rates at record low levels, banks have little leeway on what they charge for loans and what they pay out for deposits.
Heading into 2011, both U.S. Bancorp and Wells Fargo said net interest margins would remain stagnant or shrink.
Davis said U.S. Bancorp's net interest margin of 3.83 percent, which declined from 3.91 percent in third quarter, would continue to contract at the same rate in the first three months of 2011.
Wells Fargo's net interest margin also shrank, to 4.16 percent from 4.25 percent in third quarter.
The bank posted a 21 percent increase in fourth-quarter profit to $3.4 billion, or 61 cents a share, meeting analysts' expectations, according to Thomson Reuters I/B/E/S.
U.S. Bancorp posted a 61 percent jump in net income. Earnings per share of 49 cents beat the analysts' average estimate by 3 cents.
Hudson City Bancorp (HCBK.O) and Fifth Third Bancorp (FITB.O) also reported results on Wednesday.
Hudson City beat expectations, but warned that net interest margins in 2011 may decline from fourth-quarter levels. Hudson shares sank 8.5 percent.
Fifth Third beat analysts' expectations, as delinquencies hit their lowest level in nearly four years. The bank also said it would launch a stock offering and use the proceeds to repay the aid it received under the government's Troubled Asset Relief Program.
(Reporting by Joe Rauch and Jonathan Spicer; writing by Ben Berkowitz and Joe Rauch; Editing by Lisa Von Ahn, John Wallace, Phil Berlowitz)
To Bilibala, i think Wells Fargos price over book ratio 1.38 is higher than peers, and since price move up from around $25 (3 months ago) to $32 now, I will change my recommendation from Strong Buy to Buy.
http://www.reuters.com/article/idUSTRE70I3FN20110119?feedType=nl&feedName=usbusinessearly
(Reuters) - Wells Fargo & Co (WFC.N) and U.S. Bancorp (USB.N) said low interest rates were squeezing lending profits, but improving credit quality helped both banks post higher fourth-quarter earnings.
Analysts and investors shrugged off the bottom-line figures and focused on the impact of low interest rates and a reluctance by businesses to tap their credit lines.
"It's a mixed bag looking at these banks," said analyst Shannon Stemm of Edward Jones in St. Louis. "There's improving fee income, but loan demand and interest income still remains weak."
Shares of Wells Fargo, the No. 4 U.S. bank by assets, fell 2 percent to $31.81, while U.S. Bancorp, the fifth-largest U.S. commercial bank, fell 2.9 percent to $26.52.
The banking industry is making more new loans to consumers and businesses.
U.S. Bancorp said average total loans increased 2 percent from a year earlier, and Wells Fargo said total loans grew 0.4 percent from the third quarter.
Analysts and economists have said an uptick in business borrowing is a key cog in the continuing economic recovery. But early fourth-quarter figures suggest businesses -- while taking out new loans -- are hesitant to use them.
U.S. Bancorp said companies were getting credit lines from the bank, but were not actively borrowing on them.
Commercial line utilization -- or the amount of money businesses borrowed under available credit -- fell to 26 percent in fourth quarter, an all-time low and down from 30 percent in the third quarter.
"We're looking forward to the day usage goes up," U.S. Bancorp Chief Executive Officer Richard Davis said on a conference call with analysts.
ASSET QUALITY
Analysts said that despite the slow loan growth, banks' balance sheets were beginning to show signs of health after three years of crisis and recession.
"The banks are building a foundation back to normal earnings," said Guggenheim Securities LLC analyst Marty Mosby. "Right now, asset quality has to get healthy, and that's happening at a much faster rate than I think a lot of us expected."
Wells Fargo's fourth-quarter profit increase stemmed in part from the release of $850 million in loan loss reserves, as the bank said its problem loans continued to shrink. Net charge-offs declined 29 percent from a year earlier.
U.S. Bancorp released $25 million in loan loss reserves during the period, the company's first such move since 2008.
Citigroup (C.N) also took a large reserve release in the fourth quarter, raising concerns among analysts about the quality of its results.
MARGIN PRESSURE
But improving credit did not offset the squeeze in net interest margin, or the money a bank receives in interest from loans against what it pays for deposits.
As the Federal Reserve continues to hold U.S. interest rates at record low levels, banks have little leeway on what they charge for loans and what they pay out for deposits.
Heading into 2011, both U.S. Bancorp and Wells Fargo said net interest margins would remain stagnant or shrink.
Davis said U.S. Bancorp's net interest margin of 3.83 percent, which declined from 3.91 percent in third quarter, would continue to contract at the same rate in the first three months of 2011.
Wells Fargo's net interest margin also shrank, to 4.16 percent from 4.25 percent in third quarter.
The bank posted a 21 percent increase in fourth-quarter profit to $3.4 billion, or 61 cents a share, meeting analysts' expectations, according to Thomson Reuters I/B/E/S.
U.S. Bancorp posted a 61 percent jump in net income. Earnings per share of 49 cents beat the analysts' average estimate by 3 cents.
Hudson City Bancorp (HCBK.O) and Fifth Third Bancorp (FITB.O) also reported results on Wednesday.
Hudson City beat expectations, but warned that net interest margins in 2011 may decline from fourth-quarter levels. Hudson shares sank 8.5 percent.
Fifth Third beat analysts' expectations, as delinquencies hit their lowest level in nearly four years. The bank also said it would launch a stock offering and use the proceeds to repay the aid it received under the government's Troubled Asset Relief Program.
(Reporting by Joe Rauch and Jonathan Spicer; writing by Ben Berkowitz and Joe Rauch; Editing by Lisa Von Ahn, John Wallace, Phil Berlowitz)
3.05.2010
巴(不得)飛凸
周六晨早近 8點, 不是做懶訓豬, 而是 refresh 呀 refresh 在床邊的 laptop. 皆因今日(2/28)是股神巴菲特主理的公司 Berkshire Hathaway Inc(巴郡)派成績表和巴菲特出 chairperson's letter 的大日子. 已經和巴菲特作了三年* 伙伴(股神是這樣稱呼其小股東)的 Bilibala 自然要先睹為快.* Bilibala 當其 B股$4,900跌至 $2,300 時曾分了大半年手 :P還記得上年今日, 當所有人信心跌到谷底, 當所有數據同股/債市跌到似乎仍未見底的時侯. 神就借著巴郡的年報大大安慰了 Billy 和 Bilibala. Bilibala 在今年巴郡的年報又學習了不少:
- 巴菲特對 book value 的理解: 巴菲特認為 book value 雖然無法完全反映甚至低估其內在價值, 但比起隱含市場心理, 波動非常的 stock price/market value 更反映企業的成果. 金融風暴, 傳媒集中佈導巴菲特如何老貓燒鬚, 巴郡book value 跌 9.6% . 忘記了同期 S&P 500 跌了 37%. 兩年打下來, 巴郡book value升8.3%, S&P 500 仍是跌20.3%. 可見傳媒愛嘩眾取寵, 有時非常誤導
- 對企業收購合併(即投資企業)的合理值有新體會. 依家收購合併以股換股方式合併, 何謂合理收購價變得難以計算. 但巴菲特有他獨到見解. 他還笑言有次他投資的大銀行高價收購一迷你銀行. 巴菲特:「似乎太貴」那大銀行 CEO:「不打緊, 那只是間迷你銀行, 無關痛癢.」巴菲特的拍擋芒果:「我們是否因為吠我們的惡狗是狗仔而非聖班納而鼓掌?」(哈哈)
巴菲特亦好謙虛, 值得牙刷刷的 Bilibala 羞愧和學效:
- 之前GEICO的員工反對我(巴菲特)開信用咭生意, 我不聽勸, 結果虧損. 我一直以為我越老越聰明, 原來我只是老了
- 假如我, 芒果和 Ajit (Mid America Energy CEO)坐沉船一齊掉下海, 而你只能救一個, 請你救 Ajit. 因為你最需要他
- Netjet 由收購至今虧損不少, 負債不斷加, 沒有及時向你們報告是我的不是
- CEO應為企業過失負 100% 責任
巴郡仍有 $5B(稅後) derivative liabilities, 除掉浮盈 net earnings 每年大約是$4B, $56B的股票未來 5年大約會再升 $12B(稅後), 再加 $8B 新股, 所以, 5年後 shareholders equity 應有 $180B. 以 1.6倍 book value計, 巴郡值 $288B, 較現在$193B 市值高 49%, 每股內在值應是 US$123.78.
3.01.2010
HSBC 2009 results
Bilibala comments: quite disappointed result, net interest income down, loss provision up, and deposit down. The only good is thx to its AOCI balance up, equity balance up 37% compare to last year. Further investigation is required to determine HSBC's updated fair value.
Underlying performance significantly ahead
Underlying performance significantly ahead
- Underlying pre-tax profit up US$4.7 billion or 56 per cent to US$13.3 billion, after excluding the goodwill impairment in North America in 2008.
- On a reported basis, pre-tax profit down 24 per cent to US$7.1 billion.
- Reported profit attributable to shareholders up 2 per cent to US$5.8 billion.
- Positive jaws, with revenues up 8 per cent, costs down 4 per cent, and cost efficiency ratio 47.5 per cent on an underlying basis, after excluding the goodwill impairment in North America in 2008.
- Dividends in respect of 2009 totalled US$5.9 billion, or US$0.34 per ordinary share, with a fourth interim dividend for 2009 declared of US$0.10 per ordinary share.
- One of leading dividend payers in financial services. HSBC has declared dividends in respect of last three years totalling more than US$24 billion.
- Earnings per share down 17 per cent to US$0.34 (2008: US$0.41).
Capital advantage and strong liquidity position maintained
- Generated capital in every quarter. US$10.2 billion added to capital base through underlying profit generation.
- Successful rights issue. US$17.8 billion added to shareholders' equity.
- Enhanced capital position. Tier 1 ratio improved to 10.8 per cent, ahead of target range.
- Distinctive liquidity position maintained. Held over US$1 trillion in deposits and ratio of customer advances-to-deposits was 77.3 per cent at 31 December 2009.
Diversified business model delivering profits through the cycle
- Profitable in all regions excluding North America, but performance constrained by lower demand and deposit spread compression.
- Loan impairment charges improved in US. In run-off consumer finance business, loan impairment charges fell by US$1.6 billion, offset by a rise in other regions.
- Achieved very strong results in Global Banking and Markets.
- Commercial Banking delivered profits in every region despite economic challenges.
- Built on position as leading international bank in mainland China. Market value of strategic investments increased to US$25.4 billion and expanded our own network to 98 outlets.
Supported our customers through downturn. In the UK we made available £15 billion of new mortgage lending.
Well positioned for economic recovery
- Two-speed economy. Expect emerging markets to grow three times faster than developed ones in 2010.
- CEO's principal office relocated to Hong Kong, at heart of our most strategically important region.
- Regulatory environment remains uncertain, but HSBC's strong capital and liquidity position and transparent structure position us strongly.
- World's most valuable banking brand and Euromoney's 'Best Global Bank'.
HSBC HOLDINGS REPORTS PRE-TAX PROFIT OF US$7,079 MILLION
2.22.2010
Lowe's 4q09 results
Bilibala: Better than expected earning suggest that recession / the bottom of USA economy and house market was behind us. Even recovery will be a long journey, but Lowe's is great in terms of increase market share and cost management.
http://www.bizjournals.com/triangle/stories/2010/02/22/daily1.html
Lowe’s Cos. Inc., which operates 18 Lowe’s home improvement stores in the 13-county Triangle area, on Monday reported increased earnings for its fourth quarter, ended Jan. 29. But results for the full year were down.
In another announcement Monday, Lowe’s (NYSE:LOW) said it has authorized a $5 billion share-buyback program. The company expects to purchase the stock over the next three years.
Lowe’s shares have traded between $13 and $24.50 over the last year. The stock closed Friday at $23.13 per share.
The earnings report Monday morning showed that Lowe’s earned $205 million, or 14 cents per diluted share, in the latest quarter, up from $162 million, or 11 cents per diluted share, in the fourth quarter of 2008.
Lowe’s exceeded analysts’ consensus estimate of 12 cents per share.
Sales grew 1.8 percent, to $10.2 billion. Sales at stores in operation for more than a year dropped 1.6 percent, but that improved on the downward trend earlier in the year.
“While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable-store sales trends, including improvement in many bigger-ticket, project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects,” Chief Executive Robert Niblock said in a statement Monday morning.
For the full year, Lowe’s earnings fell 18.8 percent to $1.78 billion, or $1.21 per diluted share, from nearly $2.2 billion, or $1.49 per diluted share, the previous year.
On average, analysts had forecast that the company would earn $1.23 per share in fiscal 2009.
Revenue declined 2.1 percent, to $47.2 billion.
For its first quarter ending April 30, Lowe’s expects earnings to range between 27 cents and 29 cents per diluted share. Lowe’s earned 32 cents per diluted share in the first quarter of 2009.
Lowe’s operates more than 1,700 stores in North America. On Feb. 8, it opened its first two stores in Mexico — both in Monterrey. The company expanded into Canada in 2007 and now has 16 stores there.
http://www.bizjournals.com/triangle/stories/2010/02/22/daily1.html
Lowe’s Cos. Inc., which operates 18 Lowe’s home improvement stores in the 13-county Triangle area, on Monday reported increased earnings for its fourth quarter, ended Jan. 29. But results for the full year were down.
In another announcement Monday, Lowe’s (NYSE:LOW) said it has authorized a $5 billion share-buyback program. The company expects to purchase the stock over the next three years.
Lowe’s shares have traded between $13 and $24.50 over the last year. The stock closed Friday at $23.13 per share.
The earnings report Monday morning showed that Lowe’s earned $205 million, or 14 cents per diluted share, in the latest quarter, up from $162 million, or 11 cents per diluted share, in the fourth quarter of 2008.
Lowe’s exceeded analysts’ consensus estimate of 12 cents per share.
Sales grew 1.8 percent, to $10.2 billion. Sales at stores in operation for more than a year dropped 1.6 percent, but that improved on the downward trend earlier in the year.
“While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable-store sales trends, including improvement in many bigger-ticket, project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects,” Chief Executive Robert Niblock said in a statement Monday morning.
For the full year, Lowe’s earnings fell 18.8 percent to $1.78 billion, or $1.21 per diluted share, from nearly $2.2 billion, or $1.49 per diluted share, the previous year.
On average, analysts had forecast that the company would earn $1.23 per share in fiscal 2009.
Revenue declined 2.1 percent, to $47.2 billion.
For its first quarter ending April 30, Lowe’s expects earnings to range between 27 cents and 29 cents per diluted share. Lowe’s earned 32 cents per diluted share in the first quarter of 2009.
Lowe’s operates more than 1,700 stores in North America. On Feb. 8, it opened its first two stores in Mexico — both in Monterrey. The company expanded into Canada in 2007 and now has 16 stores there.
12.09.2009
Reitmans Canada 3q09 result
(Source: Canada Newswire)MONTREAL, Dec. 8 /CNW Telbec/ - Sales for the nine months ended October 31, 2009 were virtually unchanged at $788,407,000 as compared with $789,060,000 for the nine months ended November 1, 2008. In a challenging retail environment, same store sales decreased 1.8%. Operating earnings before depreciation and amortization (EBITDA(1)) for the period decreased 19.9% to $121,171,000 as compared with $151,192,000 last year. Net earnings and diluted earnings per share decreased to $53,148,000 or $0.77 per share as compared to $76,825,000 or $1.08 per share for the same period last year. The Company had 981 stores in operation at the end of this period compared to 978 stores at the same time last year.
=> I think mainly due to fall in US dollars
Sales for the third quarter ended October 31, 2009 decreased 0.2% to $270,684,000, as compared with $271,240,000 for the third quarter ended November 1, 2008. Same store sales for the comparable 13 weeks decreased 2.2%. EBITDA for the period decreased 12.1% to $42,098,000 as compared with $47,873,000 last year. Net earnings and diluted earnings per share decreased to $18,921,000 or $0.28 per share as compared to $23,004,000 or $0.32 per share for the same period last year.
=> I think mainly due to fall in US dollars, result looks reasonable but not impressive. As stock price rise to $16-17.0 level, my recommenation is HOLD instead of BUY.
Sales for the month of November (four weeks ended November 28, 2009), as a result of the continuing difficult retail environment, decreased 2.6% with same store sales decreasing 4.0%.
During the third quarter, the Company opened 12 new stores comprised of 3 Reitmans, 3 Smart Set, 3 RW & CO., 1 Cassis, 1 Penningtons and 1 Addition Elle; 2 stores were closed. Accordingly, at October 31, 2009, there were 981 stores in operation, consisting of 370 Reitmans, 167 Smart Set, 65 RW & CO., 76 Thyme Maternity, 17 Cassis, 163 Penningtons and 123 Addition Elle. An additional 3 stores are scheduled to open this year and 9 stores will be closed.
At the Board of Directors meeting held on December 8, 2009, a quarterly cash dividend (constituting eligible dividends) of $0.18 per share on all outstanding Class A non-voting and Common shares of the Company was declared, payable January 28, 2010 to shareholders of record on January 8, 2010.
As reported in the November 25, 2009 press release, the Company received approval from the Toronto Stock Exchange to proceed with a normal course issuer bid, under which the Corporation may purchase up to 2,728,972 Class A non-voting shares, representing 5% of the issued and outstanding Class A non-voting shares as at November 23, 2009. The bid commenced on November 28, 2009 and may continue to November 27, 2010.
=> I think mainly due to fall in US dollars
Sales for the third quarter ended October 31, 2009 decreased 0.2% to $270,684,000, as compared with $271,240,000 for the third quarter ended November 1, 2008. Same store sales for the comparable 13 weeks decreased 2.2%. EBITDA for the period decreased 12.1% to $42,098,000 as compared with $47,873,000 last year. Net earnings and diluted earnings per share decreased to $18,921,000 or $0.28 per share as compared to $23,004,000 or $0.32 per share for the same period last year.
=> I think mainly due to fall in US dollars, result looks reasonable but not impressive. As stock price rise to $16-17.0 level, my recommenation is HOLD instead of BUY.
Sales for the month of November (four weeks ended November 28, 2009), as a result of the continuing difficult retail environment, decreased 2.6% with same store sales decreasing 4.0%.
During the third quarter, the Company opened 12 new stores comprised of 3 Reitmans, 3 Smart Set, 3 RW & CO., 1 Cassis, 1 Penningtons and 1 Addition Elle; 2 stores were closed. Accordingly, at October 31, 2009, there were 981 stores in operation, consisting of 370 Reitmans, 167 Smart Set, 65 RW & CO., 76 Thyme Maternity, 17 Cassis, 163 Penningtons and 123 Addition Elle. An additional 3 stores are scheduled to open this year and 9 stores will be closed.
At the Board of Directors meeting held on December 8, 2009, a quarterly cash dividend (constituting eligible dividends) of $0.18 per share on all outstanding Class A non-voting and Common shares of the Company was declared, payable January 28, 2010 to shareholders of record on January 8, 2010.
As reported in the November 25, 2009 press release, the Company received approval from the Toronto Stock Exchange to proceed with a normal course issuer bid, under which the Corporation may purchase up to 2,728,972 Class A non-voting shares, representing 5% of the issued and outstanding Class A non-voting shares as at November 23, 2009. The bid commenced on November 28, 2009 and may continue to November 27, 2010.
11.19.2009
Manulife Financial 3q09 press release
• Charges due to lower corporate bond yields and changes in actuarial assumptions offset strong
operational results and gains due to equity market increases, resulting in a modest net loss for the quarter
• Margins improved through increased pricing, adjustments to sales compensation and more favourable reinsurance terms
• Strong sales growth across most products other than variable annuities generated a more balanced business mix
• Equity risk profile improved through hedging, pricing, product and asset mix changes
• Excellent credit experience given challenging markets – asset quality remains a competitive strength
• Two attractive acquisitions – AIC mutual funds and Pottruff & Smith travel insurance
• Equity markets, interest rates and credit will continue to impact the Company’s balance sheet and earnings
• Focused on building to fortress capital levels over time – expect benefits from merging U.S. operating subsidiaries at the end of 2009
=> 3q09 results is lower than Bilibala's expectation
TORONTO – Manulife Financial Corporation (“MFC”) today reported a net loss attributed to shareholders of $172 million for the third quarter ended September 30, 2009, compared to net income of $510 million in the third quarter of 2008. The loss per share was $0.12 compared to fully diluted earnings per share of $0.33 in 2008. Current quarter results reflect equity market increases offset by lower corporate bond rates and changes in actuarial assumptions. The Manufacturers Life Insurance Company (“MLI”) reported a Minimum Continuing Capital and Surplus Requirements (“MCCSR”) ratio of 229 per cent as at September 30, 2009, up from 193 per cent last year.
In its second quarter earnings release, the Company included a forward-looking statement that estimated normalized earnings to be between $750 million and $850 million per quarter for the remainder of 2009 and 2010. The third quarter’s adjusted earnings from operations1 under this definition was approximately $803 million.
Chief Executive Officer Donald A. Guloien said, “Underlying earnings and performance were solid this quarter, but our results were negatively impacted by lower corporate bond rates and strengthening of reserves for changes in actuarial assumptions. We took actions to improve margins, increased our sales of products other than variable annuities, further improved our equity risk profile and continued to build toward fortress capital levels. We announced two attractive acquisitions and see numerous opportunities for strategic growth across a variety of markets. We remain highly disciplined and will continue to build upon Manulife’s scale and key strengths including our superior asset quality, well recognized brands, leading products and distribution, excellence in investment management, and strong positioning in key growth markets.”
FINANCIAL RESULTS
Chief Financial Officer Michael W. Bell said, “Continued declines in corporate bond rates required a further strengthening of actuarial reserves this quarter. We also increased reserves for changes in actuarial assumptions including those related to policyholder behaviour for variable annuity products. As a result of the decline in interest rates and changes in lapse assumptions, our interest rate sensitivity has increased.
Nevertheless, Manulife’s underlying business growth remains strong, and the quality of our investment portfolio remains a competitive strength. MLI’s MCCSR remains strong at 229 per cent, and we continue to take focused action to improve our risk profile and strengthen our capital flexibility as we grow our Company.
We anticipate that, at year end and subject to regulatory approvals, we will complete a reorganization of our U.S. subsidiaries which will deliver capital and operating efficiencies.”
Increases in equity markets in North America, where the S&P 500 increased 15 per cent and the TSX increased 10 per cent in the quarter, generated non cash gains of $1.2 billion. Of this, $1.0 billion related to segregated fund guarantees and the remainder was attributable to future fees assumed on variable universal life products and gains on equities supporting policy liabilities.
The Company reported a non cash charge of $1.2 billion resulting from the decrease in interest rates and corporate spreads during the quarter. Changes in interest rates impact the actuarial valuation of in-force policies by changing the assumption for future returns on the investment of net future cash flows. The decline in interest rates also impacted the investment returns assumed for new business written in the quarter, particularly in U.S. Insurance.
As indicated in the prior quarter, the Company completed its annual review of all actuarial assumptions in the third quarter. This resulted in a charge to earnings of $783 million, including $469 million due to changes in assumptions of policyholder behaviour for segregated fund guarantee products (a charge that was within the Company’s previously communicated expectations of less than $500 million). The remainder of the charge included assumption changes related to morbidity and other policyholder behaviour, partially offset by assumption changes related to mortality, expenses and investment related items.
The Company’s investment portfolio continued to perform well relative to overall market conditions, with $111 million of impairments in the quarter. The third quarter results included charges of $30 million for credit losses, $6 million for credit downgrades, $32 million in other than temporary impairments (“OTTI”) on equity positions in the Corporate and Other Segment, as well as $43 million on private equity investments.
MLI reported a MCCSR ratio of 229 per cent as at September 30, 2009, up from 193 per cent last year. Significant progress has also been made in the reorganization of the Company’s U.S. subsidiaries, with a planned merger of the main U.S. operating companies, under MLI, on track to be completed effective as of year end. The merger will result in a more efficient capital structure and provide improved operating efficiencies. Post reorganization, MLI expects to benefit from more stable capital ratios and a more diversified risk profile. While MLI’s MCCSR ratio is expected to decline as a result of the re-organization, the Company’s cushion for equity market declines over minimum regulatory requirements is expected to remain approximately unchanged because of the reduced equity sensitivity.
Bilibala's adjusted earning:
Bilibala's adjusted earning included all the market volatile items, because the nature of insurance business is market driven, there is no point to exclude them.
* Bilibala will exclude impairment because that is controled by management business decision.
GAAP EPS ($0.12)
add back:
Impact of annual basis changes $0.55
Impairment $0.08
Others $0.02
Bilibala's adjusted EPS $0.53
Bilibala's estimated EPS $0.64
Earning still look solid, as yield curve start heading up and US dollar get stablized, I think 4q09 results should look significantly better than 3q09.
operational results and gains due to equity market increases, resulting in a modest net loss for the quarter
• Margins improved through increased pricing, adjustments to sales compensation and more favourable reinsurance terms
• Strong sales growth across most products other than variable annuities generated a more balanced business mix
• Equity risk profile improved through hedging, pricing, product and asset mix changes
• Excellent credit experience given challenging markets – asset quality remains a competitive strength
• Two attractive acquisitions – AIC mutual funds and Pottruff & Smith travel insurance
• Equity markets, interest rates and credit will continue to impact the Company’s balance sheet and earnings
• Focused on building to fortress capital levels over time – expect benefits from merging U.S. operating subsidiaries at the end of 2009
=> 3q09 results is lower than Bilibala's expectation
TORONTO – Manulife Financial Corporation (“MFC”) today reported a net loss attributed to shareholders of $172 million for the third quarter ended September 30, 2009, compared to net income of $510 million in the third quarter of 2008. The loss per share was $0.12 compared to fully diluted earnings per share of $0.33 in 2008. Current quarter results reflect equity market increases offset by lower corporate bond rates and changes in actuarial assumptions. The Manufacturers Life Insurance Company (“MLI”) reported a Minimum Continuing Capital and Surplus Requirements (“MCCSR”) ratio of 229 per cent as at September 30, 2009, up from 193 per cent last year.
In its second quarter earnings release, the Company included a forward-looking statement that estimated normalized earnings to be between $750 million and $850 million per quarter for the remainder of 2009 and 2010. The third quarter’s adjusted earnings from operations1 under this definition was approximately $803 million.
Chief Executive Officer Donald A. Guloien said, “Underlying earnings and performance were solid this quarter, but our results were negatively impacted by lower corporate bond rates and strengthening of reserves for changes in actuarial assumptions. We took actions to improve margins, increased our sales of products other than variable annuities, further improved our equity risk profile and continued to build toward fortress capital levels. We announced two attractive acquisitions and see numerous opportunities for strategic growth across a variety of markets. We remain highly disciplined and will continue to build upon Manulife’s scale and key strengths including our superior asset quality, well recognized brands, leading products and distribution, excellence in investment management, and strong positioning in key growth markets.”
FINANCIAL RESULTS
Chief Financial Officer Michael W. Bell said, “Continued declines in corporate bond rates required a further strengthening of actuarial reserves this quarter. We also increased reserves for changes in actuarial assumptions including those related to policyholder behaviour for variable annuity products. As a result of the decline in interest rates and changes in lapse assumptions, our interest rate sensitivity has increased.
Nevertheless, Manulife’s underlying business growth remains strong, and the quality of our investment portfolio remains a competitive strength. MLI’s MCCSR remains strong at 229 per cent, and we continue to take focused action to improve our risk profile and strengthen our capital flexibility as we grow our Company.
We anticipate that, at year end and subject to regulatory approvals, we will complete a reorganization of our U.S. subsidiaries which will deliver capital and operating efficiencies.”
Increases in equity markets in North America, where the S&P 500 increased 15 per cent and the TSX increased 10 per cent in the quarter, generated non cash gains of $1.2 billion. Of this, $1.0 billion related to segregated fund guarantees and the remainder was attributable to future fees assumed on variable universal life products and gains on equities supporting policy liabilities.
The Company reported a non cash charge of $1.2 billion resulting from the decrease in interest rates and corporate spreads during the quarter. Changes in interest rates impact the actuarial valuation of in-force policies by changing the assumption for future returns on the investment of net future cash flows. The decline in interest rates also impacted the investment returns assumed for new business written in the quarter, particularly in U.S. Insurance.
As indicated in the prior quarter, the Company completed its annual review of all actuarial assumptions in the third quarter. This resulted in a charge to earnings of $783 million, including $469 million due to changes in assumptions of policyholder behaviour for segregated fund guarantee products (a charge that was within the Company’s previously communicated expectations of less than $500 million). The remainder of the charge included assumption changes related to morbidity and other policyholder behaviour, partially offset by assumption changes related to mortality, expenses and investment related items.
The Company’s investment portfolio continued to perform well relative to overall market conditions, with $111 million of impairments in the quarter. The third quarter results included charges of $30 million for credit losses, $6 million for credit downgrades, $32 million in other than temporary impairments (“OTTI”) on equity positions in the Corporate and Other Segment, as well as $43 million on private equity investments.
MLI reported a MCCSR ratio of 229 per cent as at September 30, 2009, up from 193 per cent last year. Significant progress has also been made in the reorganization of the Company’s U.S. subsidiaries, with a planned merger of the main U.S. operating companies, under MLI, on track to be completed effective as of year end. The merger will result in a more efficient capital structure and provide improved operating efficiencies. Post reorganization, MLI expects to benefit from more stable capital ratios and a more diversified risk profile. While MLI’s MCCSR ratio is expected to decline as a result of the re-organization, the Company’s cushion for equity market declines over minimum regulatory requirements is expected to remain approximately unchanged because of the reduced equity sensitivity.
Bilibala's adjusted earning:
Bilibala's adjusted earning included all the market volatile items, because the nature of insurance business is market driven, there is no point to exclude them.
* Bilibala will exclude impairment because that is controled by management business decision.
GAAP EPS ($0.12)
add back:
Impact of annual basis changes $0.55
Impairment $0.08
Others $0.02
Bilibala's adjusted EPS $0.53
Bilibala's estimated EPS $0.64
Earning still look solid, as yield curve start heading up and US dollar get stablized, I think 4q09 results should look significantly better than 3q09.
11.11.2009
Shoppers Drug Mart 3q09 press release
November 11, 2009 – Toronto, Ontario – Shoppers Drug Mart Corporation (TSX: SC) today announced its financial results for the third quarter ended October 10, 2009.
Third Quarter Results (16 Weeks)
Third quarter sales increased 7.9% to $3.013 billion, with the Company continuing to experience strong sales growth in all regions of the country. The Company’s capital investment program, which has resulted in an 11.6% increase in drug store selling space compared to a year ago, continues to have a positive impact on sales growth. Effective marketing campaigns, combined with differentiated and impactful promotions utilizing the Shoppers Optimum loyalty card program, also contributed to top-line growth. On a same-store basis and excluding tobacco products, sales increased 4.8% during the quarter.
Prescription sales increased 9.7% in the third quarter to $1.481 billion, accounting for 49.1% of the Company’s sales mix compared to 48.3% in the same period last year. On a same-store basis, prescription sales increased 5.8%, driven by strong growth in the number of prescriptions filled, while increased generic utilization continued to have a deflationary impact on sales growth in the category. In the third quarter of 2009, generic molecules represented 52.8% of prescriptions dispensed compared to 51.5% of prescriptions dispensed in the third quarter of 2008.
Front store sales increased 6.2% in the third quarter to $1.532 billion, with the Company continuing to experience sales gains in all categories except tobacco. On a same-store basis and excluding tobacco products, front store sales increased 3.9%.
Third quarter net earnings increased 6.6% to $171 million or 79 cents per share (diluted) from $160 million or 74 cents per share (diluted) a year ago. This increase was driven by strong sales growth, improved purchasing synergies and a continued emphasis on cost reduction, productivity and efficiency, the benefits of which were partially offset by increased amortization and higher expenses at store-level associated with the continued expansion of the store network, along with stepped-up investments in pricing and promotional activities.
Commenting on the results, Jürgen Schreiber, President and CEO stated, “We are pleased with our third quarter results and our performance thus far in 2009, as we continue to deliver growth in these challenging economic times. The strength of our pharmacy programs and services, combined with effective front store merchandising and marketing initiatives, have us well-positioned heading into the holiday season and the final weeks of 2009.”
Year-to-date Results (40 weeks)
Sales for the first three quarters of 2009 increased 8.2% to $7.497 billion, with prescription sales up 10.3% and front store sales up 6.3%. On a same-store basis and excluding tobacco products, sales increased 4.8%, with prescription sales up 5.8% and front store sales up 4.0%. During the first three quarters of 2009, prescription sales accounted for 49.0% of the Company’s sales mix compared to 48.1% in the same period last year.
Net earnings for the first three quarters of 2009 increased 6.8% to $414 million or $1.90 per share (diluted) from $388 million or $1.78 per share (diluted) a year ago.
Store Network Development
During the third quarter, 37 drug stores were opened or acquired, 15 of which were relocations, and one smaller drug store was closed. The Company also added two Murale luxury beauty stores to its network during the quarter. At quarter-end, there were 1,282 stores in the system, comprised of 1,212 drug stores (1,170 Shoppers Drug Mart/Pharmaprix stores and 42 Shoppers Simply Pharmacy/Pharmaprix Simplement Santé stores), 66 Shoppers Home Health Care stores and four Murale stores. Drug store selling space was approximately 11.6 million square feet at the end of the third quarter, an increase of 11.6% compared to a year ago.
Dividend
The Company also announced today that its Board of Directors has declared a dividend of 21.5 cents per common share, payable January 15, 2010 to shareholders of record as of the close of business on December 31, 2009.
Third Quarter Results (16 Weeks)
Third quarter sales increased 7.9% to $3.013 billion, with the Company continuing to experience strong sales growth in all regions of the country. The Company’s capital investment program, which has resulted in an 11.6% increase in drug store selling space compared to a year ago, continues to have a positive impact on sales growth. Effective marketing campaigns, combined with differentiated and impactful promotions utilizing the Shoppers Optimum loyalty card program, also contributed to top-line growth. On a same-store basis and excluding tobacco products, sales increased 4.8% during the quarter.
Prescription sales increased 9.7% in the third quarter to $1.481 billion, accounting for 49.1% of the Company’s sales mix compared to 48.3% in the same period last year. On a same-store basis, prescription sales increased 5.8%, driven by strong growth in the number of prescriptions filled, while increased generic utilization continued to have a deflationary impact on sales growth in the category. In the third quarter of 2009, generic molecules represented 52.8% of prescriptions dispensed compared to 51.5% of prescriptions dispensed in the third quarter of 2008.
Front store sales increased 6.2% in the third quarter to $1.532 billion, with the Company continuing to experience sales gains in all categories except tobacco. On a same-store basis and excluding tobacco products, front store sales increased 3.9%.
Third quarter net earnings increased 6.6% to $171 million or 79 cents per share (diluted) from $160 million or 74 cents per share (diluted) a year ago. This increase was driven by strong sales growth, improved purchasing synergies and a continued emphasis on cost reduction, productivity and efficiency, the benefits of which were partially offset by increased amortization and higher expenses at store-level associated with the continued expansion of the store network, along with stepped-up investments in pricing and promotional activities.
Commenting on the results, Jürgen Schreiber, President and CEO stated, “We are pleased with our third quarter results and our performance thus far in 2009, as we continue to deliver growth in these challenging economic times. The strength of our pharmacy programs and services, combined with effective front store merchandising and marketing initiatives, have us well-positioned heading into the holiday season and the final weeks of 2009.”
Year-to-date Results (40 weeks)
Sales for the first three quarters of 2009 increased 8.2% to $7.497 billion, with prescription sales up 10.3% and front store sales up 6.3%. On a same-store basis and excluding tobacco products, sales increased 4.8%, with prescription sales up 5.8% and front store sales up 4.0%. During the first three quarters of 2009, prescription sales accounted for 49.0% of the Company’s sales mix compared to 48.1% in the same period last year.
Net earnings for the first three quarters of 2009 increased 6.8% to $414 million or $1.90 per share (diluted) from $388 million or $1.78 per share (diluted) a year ago.
Store Network Development
During the third quarter, 37 drug stores were opened or acquired, 15 of which were relocations, and one smaller drug store was closed. The Company also added two Murale luxury beauty stores to its network during the quarter. At quarter-end, there were 1,282 stores in the system, comprised of 1,212 drug stores (1,170 Shoppers Drug Mart/Pharmaprix stores and 42 Shoppers Simply Pharmacy/Pharmaprix Simplement Santé stores), 66 Shoppers Home Health Care stores and four Murale stores. Drug store selling space was approximately 11.6 million square feet at the end of the third quarter, an increase of 11.6% compared to a year ago.
Dividend
The Company also announced today that its Board of Directors has declared a dividend of 21.5 cents per common share, payable January 15, 2010 to shareholders of record as of the close of business on December 31, 2009.
11.06.2009
Imperial Oil 3q09 press release
“Net income for the third quarter was $547 million, down 61 percent from the third quarter of 2008, but up 162 percent from the second quarter of 2009. Earnings in the third quarter were down from the same quarter in 2008 primarily due to lower Upstream crude oil and natural gas commodity prices as a result of the global economic downturn. Downstream earnings in the third quarter of 2009 were impacted by reduced demand for products, resulting in lower overall downstream margins.
Net income for the first nine months of 2009 was $1,045 million or $1.22 a share, versus $3,218 million or $3.60 a share for the first nine months of 2008.
Continued lower commodity prices and tight downstream margins resulted in challenging business conditions for the quarter compared to the same period last year. Imperial continues to weather this economic downturn well, with earnings supporting our investments in company growth projects through the down cycle. Our proven approach of focusing on those elements of the business within our control, combined with prudent financial management and disciplined capital investment, will continue to reward our shareholders in these uncertain times. (Oil price down from last year peak at a level above US$140/bbl to only US$70-80/bbl in 3q09.)
Imperial Oil continued its long-term focus and disciplined approach to capital investment. In the third quarter, capital and exploration expenditures increased to $575 million, up 60 percent from the same period last year. For the first nine months of 2009, capital and exploration expenditures were $1,604 million, an increase of 72 percent over the first nine months of 2008. The company continues to develop its outstanding portfolio of company growth projects, delivering new energy supplies which are vital to economic growth. (Bilibala thinks the Oil price will stay at US$80/bbl on average. Once the unemployment rate reach the peak early next year and the economy start to pick up in a more stable manner, oil price should reach US$100/bbl.)
During the first nine months of 2009, the company distributed $747 million cash to shareholders through dividends of $257 million and share repurchases of $490 million."
Third quarter items of interest
Net income was $547 million, versus $1,389 million for the third quarter of 2008, and $209 million for the second quarter of 2009.
Net income per common share was $0.64, versus $1.57 for the third quarter of 2008.
Cash flow from operating activities was $698 million, compared with $1,635 million in the same period last year.
Capital and exploration expenditures were $575 million, versus $360 million for the third quarter of 2008.
Gross oil-equivalent barrels of production averaged 304,000 barrels a day, compared with 310,000 barrels a day in the same period last year.
Project updates
Kearl oil sands project update
Following board approval of the first phase of Kearl in May, the project has been proceeding with
detailed design, procurement and construction activities with a current workforce of about 3,000
employees and contractors. Kearl will be developed in three phases and could ultimately produce
more than 300,000 barrels of bitumen a day before royalties. The first phase of the project is
expected to start up in late 2012. Imperial holds a 71-percent interest in the project and is the
operator in this joint venture with ExxonMobil Canada.
Cold Lake surpasses one billion barrels of production
The company's Cold Lake heavy oil operation in northeastern Alberta has surpassed one billion
barrels of cumulative production. Only three other fields in Canada have achieved this milestone, and it is the only in-situ operation to have done so. During four decades of operation at Cold Lake, technological advancements have tripled recovery rates while reducing fresh water use and surface land disturbance.
Cold Lake expansion
In September, Imperial filed amendment applications for the previously approved Cold Lake Nabiye project (2004). The proposed changes to the project will result in improved energy efficiency, reduced greenhouse gas and sulphur dioxide emissions, and reduced surface footprint. The Nabiye expansion is continuing to be advanced, and if sanctioned, will add about 30,000 barrels a day of production from a new plant. The expansion will access 250 million barrels of previously undeveloped resource at the Cold Lake heavy oil operation.
(Our world need more and more energy, and Bilibala don't think anyone nor any source can replace oil & gas in the coming 10 years. Imperial Oil has a rich oil sand portfolio to meet continue growth need and the global demand)
Third quarter 2009 vs. third quarter 2008
Upstream net income in the third quarter was $439 million versus $999 million in the same period of 2008.
Earnings decreased primarily due to lower crude oil and natural gas commodity prices of about $950 million as a result of the global economic downturn. Lower realizations were partially offset by lower royalty costs due to lower commodity prices of about $200 million, the impact of a lower Canadian dollar of about $115 million and lower energy costs of about $95 million.
The average price of Brent crude oil in U.S. dollars, a common benchmark for world oil markets, was $68.29 a barrel in the third quarter, down about 41 percent from the corresponding period last year. The company's realizations on sales of Canadian conventional crude oil mirrored the same trend as world prices, decreasing about 43 percent in the third quarter, compared to the same period last year.
The company’s average realizations for Cold Lake heavy oil also declined about 40 percent in the third quarter of 2009, compared to the corresponding period last year. The decline was less than that of lighter crude oil, due to the narrowing price spread between light crude oil and Cold Lake heavy oil.
The company's average realizations for natural gas averaged $2.90 a thousand cubic feet in the third quarter, down from $9.20 in the same quarter last year.
Gross production of Cold Lake heavy oil averaged 145 thousand barrels a day during the third quarter, versus 143 thousand barrels in the same quarter last year. The cyclic nature of production at Cold Lake and lower maintenance activities contributed primarily to the increase in production in the third quarter of 2009.
The company's share of Syncrude's gross production in the third quarter was 78 thousand barrels a day, versus 79 thousand barrels in the third quarter of 2008. Gross production of conventional crude oil averaged 25 thousand barrels a day in the third quarter, essentially the same as the corresponding period of 2008. Gross production of natural gas during the third quarter of 2009 decreased to 291 million cubic feet a day from 309 million cubic feet in the same period last year. The lower production volume was primarily a result of natural reservoir decline.
Net income from Downstream was $62 million in the third quarter of 2009, compared with $270 million in the same period a year ago. When compared to the same period in 2008, earnings in the third quarter of 2009 were negatively impacted by reduced demand for products, resulting in lower overall downstream margins of about $160 million. North American refining margins in the third quarter of 2008 were significantly higher as a result of Hurricane Gustav in the Gulf of Mexico. Also impacting third quarter 2009 earnings were lower sales volumes due to the slowdown in the economy.
Chemical net income was $19 million in the third quarter, compared with $38 million in the same quarter last year. Earnings were lower in the quarter primarily due to lower margins for polyethylene products.
Net income effects from Corporate and other were $27 million in the third quarter, compared with $82 million in the same period of 2008. The decrease in earnings effects in the third quarter reflected changes in share-based compensation charges.
Cash flow from operations was used to fund growth projects such as Kearl. The company will continue to evaluate its share-purchase program in the context of its overall capital activities.
In the third quarter of 2009, the company built $68 million of cash while funding its higher capital program requirements from operating cash flow.
First nine months 2009 vs. first nine months 2008
Net income for the first nine months of 2009 was $1,045 million or $1.22 a share on a diluted basis, versus $3,218 million or $3.60 a share for the first nine months of 2008.
First nine months highlights
Net income was $1,045 million, down from $3,218 million in the first nine months of 2008.
Net income per common share decreased to $1.22 compared to $3.60 in the same period of 2008.
Cash flow from operations was $664 million, versus $3,351 million in the same period of 2008.
Capital and exploration expenditures were $1,604 million, up 72 percent.
Gross oil-equivalent barrels of production averaged 292 thousands of barrels per day, compared to 309 thousands of barrels per day in the first nine months of 2008.
Imperial distributed a total of $747 million cash to shareholders in 2009 through dividends and share repurchases, compared with $2,048 million in 2008.
Per-share dividends declared in the first three quarters of 2009 totaled $0.30, up from $0.28 in the same period of 2008.
Net income for the first nine months of 2009 was $1,045 million or $1.22 a share, versus $3,218 million or $3.60 a share for the first nine months of 2008.
Continued lower commodity prices and tight downstream margins resulted in challenging business conditions for the quarter compared to the same period last year. Imperial continues to weather this economic downturn well, with earnings supporting our investments in company growth projects through the down cycle. Our proven approach of focusing on those elements of the business within our control, combined with prudent financial management and disciplined capital investment, will continue to reward our shareholders in these uncertain times. (Oil price down from last year peak at a level above US$140/bbl to only US$70-80/bbl in 3q09.)
Imperial Oil continued its long-term focus and disciplined approach to capital investment. In the third quarter, capital and exploration expenditures increased to $575 million, up 60 percent from the same period last year. For the first nine months of 2009, capital and exploration expenditures were $1,604 million, an increase of 72 percent over the first nine months of 2008. The company continues to develop its outstanding portfolio of company growth projects, delivering new energy supplies which are vital to economic growth. (Bilibala thinks the Oil price will stay at US$80/bbl on average. Once the unemployment rate reach the peak early next year and the economy start to pick up in a more stable manner, oil price should reach US$100/bbl.)
During the first nine months of 2009, the company distributed $747 million cash to shareholders through dividends of $257 million and share repurchases of $490 million."
Third quarter items of interest
Net income was $547 million, versus $1,389 million for the third quarter of 2008, and $209 million for the second quarter of 2009.
Net income per common share was $0.64, versus $1.57 for the third quarter of 2008.
Cash flow from operating activities was $698 million, compared with $1,635 million in the same period last year.
Capital and exploration expenditures were $575 million, versus $360 million for the third quarter of 2008.
Gross oil-equivalent barrels of production averaged 304,000 barrels a day, compared with 310,000 barrels a day in the same period last year.
Project updates
Kearl oil sands project update
Following board approval of the first phase of Kearl in May, the project has been proceeding with
detailed design, procurement and construction activities with a current workforce of about 3,000
employees and contractors. Kearl will be developed in three phases and could ultimately produce
more than 300,000 barrels of bitumen a day before royalties. The first phase of the project is
expected to start up in late 2012. Imperial holds a 71-percent interest in the project and is the
operator in this joint venture with ExxonMobil Canada.
Cold Lake surpasses one billion barrels of production
The company's Cold Lake heavy oil operation in northeastern Alberta has surpassed one billion
barrels of cumulative production. Only three other fields in Canada have achieved this milestone, and it is the only in-situ operation to have done so. During four decades of operation at Cold Lake, technological advancements have tripled recovery rates while reducing fresh water use and surface land disturbance.
Cold Lake expansion
In September, Imperial filed amendment applications for the previously approved Cold Lake Nabiye project (2004). The proposed changes to the project will result in improved energy efficiency, reduced greenhouse gas and sulphur dioxide emissions, and reduced surface footprint. The Nabiye expansion is continuing to be advanced, and if sanctioned, will add about 30,000 barrels a day of production from a new plant. The expansion will access 250 million barrels of previously undeveloped resource at the Cold Lake heavy oil operation.
(Our world need more and more energy, and Bilibala don't think anyone nor any source can replace oil & gas in the coming 10 years. Imperial Oil has a rich oil sand portfolio to meet continue growth need and the global demand)
Third quarter 2009 vs. third quarter 2008
Upstream net income in the third quarter was $439 million versus $999 million in the same period of 2008.
Earnings decreased primarily due to lower crude oil and natural gas commodity prices of about $950 million as a result of the global economic downturn. Lower realizations were partially offset by lower royalty costs due to lower commodity prices of about $200 million, the impact of a lower Canadian dollar of about $115 million and lower energy costs of about $95 million.
The average price of Brent crude oil in U.S. dollars, a common benchmark for world oil markets, was $68.29 a barrel in the third quarter, down about 41 percent from the corresponding period last year. The company's realizations on sales of Canadian conventional crude oil mirrored the same trend as world prices, decreasing about 43 percent in the third quarter, compared to the same period last year.
The company’s average realizations for Cold Lake heavy oil also declined about 40 percent in the third quarter of 2009, compared to the corresponding period last year. The decline was less than that of lighter crude oil, due to the narrowing price spread between light crude oil and Cold Lake heavy oil.
The company's average realizations for natural gas averaged $2.90 a thousand cubic feet in the third quarter, down from $9.20 in the same quarter last year.
Gross production of Cold Lake heavy oil averaged 145 thousand barrels a day during the third quarter, versus 143 thousand barrels in the same quarter last year. The cyclic nature of production at Cold Lake and lower maintenance activities contributed primarily to the increase in production in the third quarter of 2009.
The company's share of Syncrude's gross production in the third quarter was 78 thousand barrels a day, versus 79 thousand barrels in the third quarter of 2008. Gross production of conventional crude oil averaged 25 thousand barrels a day in the third quarter, essentially the same as the corresponding period of 2008. Gross production of natural gas during the third quarter of 2009 decreased to 291 million cubic feet a day from 309 million cubic feet in the same period last year. The lower production volume was primarily a result of natural reservoir decline.
Net income from Downstream was $62 million in the third quarter of 2009, compared with $270 million in the same period a year ago. When compared to the same period in 2008, earnings in the third quarter of 2009 were negatively impacted by reduced demand for products, resulting in lower overall downstream margins of about $160 million. North American refining margins in the third quarter of 2008 were significantly higher as a result of Hurricane Gustav in the Gulf of Mexico. Also impacting third quarter 2009 earnings were lower sales volumes due to the slowdown in the economy.
Chemical net income was $19 million in the third quarter, compared with $38 million in the same quarter last year. Earnings were lower in the quarter primarily due to lower margins for polyethylene products.
Net income effects from Corporate and other were $27 million in the third quarter, compared with $82 million in the same period of 2008. The decrease in earnings effects in the third quarter reflected changes in share-based compensation charges.
Cash flow from operations was used to fund growth projects such as Kearl. The company will continue to evaluate its share-purchase program in the context of its overall capital activities.
In the third quarter of 2009, the company built $68 million of cash while funding its higher capital program requirements from operating cash flow.
First nine months 2009 vs. first nine months 2008
Net income for the first nine months of 2009 was $1,045 million or $1.22 a share on a diluted basis, versus $3,218 million or $3.60 a share for the first nine months of 2008.
First nine months highlights
Net income was $1,045 million, down from $3,218 million in the first nine months of 2008.
Net income per common share decreased to $1.22 compared to $3.60 in the same period of 2008.
Cash flow from operations was $664 million, versus $3,351 million in the same period of 2008.
Capital and exploration expenditures were $1,604 million, up 72 percent.
Gross oil-equivalent barrels of production averaged 292 thousands of barrels per day, compared to 309 thousands of barrels per day in the first nine months of 2008.
Imperial distributed a total of $747 million cash to shareholders in 2009 through dividends and share repurchases, compared with $2,048 million in 2008.
Per-share dividends declared in the first three quarters of 2009 totaled $0.30, up from $0.28 in the same period of 2008.
TransCanada 3q09 press release
CALGARY, Alberta – November 4, 2009 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada or the Company) today announced net income for third quarter 2009 of $345 million or $0.50 per common share. TransCanada’s Board of Directors also declared a quarterly dividend of $0.38 per common share. (inline with Bilibala's expectation)
“TransCanada continues to post solid earnings and strong cash flows on the strength of our diverse energyinfrastructure business. Third quarter earnings were ahead of last year for our pipelines and natural gas storage assets, while the economic downturn continues to impact power revenues,” said Hal Kvisle, TransCanada’s president and chief executive officer. (Pipeline & Power Generation is a defensive sector during recession, because the business is based on seasonal demand rather than following economic cycle.)
“We made significant progress during the quarter executing the major projects within our $22 billion capital program. TransCanada is well positioned to fund this unprecedented growth. The carrying costs and dilution associated with financing this multi-year program continues to have a near-term impact on our earnings and cash flow per share. However, we are confident that our capital program will generate significant growth in cash flows and earnings over the next four years as our large scale, highly attractive projects commence operations.” (Continue expansion through acquisition and in house construction helps TransCanada's revenue to keep growing in future years. Canada currently having shortage in power supply and population increase will keep pipeline and power demand high.)
Third Quarter 2009 Highlights
(All financial figures are unaudited and in Canadian dollars unless noted otherwise)
Net income of $345 million or $0.50 per common share
Comparable earnings of $335 million or $0.49 per common share
Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) of $994 million
Funds generated from operations of $772 million
Dividend of $0.38 per common share declared by the Board of Directors
Awarded a 20-year contract to build, own and operate a $1.2 billion, 900 megawatt (MW) power generating station in Oakville, Ontario
Issued $550 million of cumulative redeemable first preferred shares
Continued to advance $22 billion capital program
TransCanada reported net income for third quarter 2009 of $345 million ($0.50 per common share) compared to $390 million ($0.67 per common share) for third quarter 2008.
Comparable earnings were $335 million ($0.49 per common share) in third quarter 2009 compared to $366 million ($0.63 per common share) for the same period in 2008. This decrease was primarily due to lower power prices and volumes sold in Western Power and reduced generation volumes from New England and Bruce Power. (inline with expect)
Partially offsetting these decreases were higher earnings from Canadian pipelines, natural gas storage, Ravenswood acquired in August 2008 and the start up of Portlands Energy and the Carleton wind farm. (Bilibala expected a colder winter, TransCanada should be benefit from this)
Comparable earnings per common share in third quarter 2009 was further reduced compared to the same period last year due to an 18 per cent increase in the average number of shares outstanding following the Company’s issuances of 58.4 million and 35.1 million common shares in second quarter 2009 and fourth quarter 2008, respectively. Proceeds from the offerings were used to fund the acquisition of additional interests in Keystone and for other capital projects, general corporate purposes and to repay short-term debt. TransCanada’s $22 billion capital program is expected to boost cash flow and earnings in the coming years as projects come on-line. (The new shares issues are justified based on the projects listed below given continue monitor their status and performance in future are needed.)
Comparable earnings in third quarter 2009 and 2008 excluded $10 million of after tax net unrealized gains and $2 million of after tax net unrealized losses, respectively, resulting from changes in the fair value of proprietary natural gas inventory in storage and natural gas forward purchase and sale contracts.
Comparable earnings in 2008 also excluded $26 million of favourable income tax adjustments.
Comparable EBITDA in third quarter 2009 was $994 million compared to $1,066 million in third quarter 2008.
Funds generated from operations in third quarter 2009 were $772 million compared to $711 million in third quarter 2008.
Notable recent developments in Pipelines, Energy and Corporate include:
Pipelines:
On August 14, 2009, TransCanada purchased ConocoPhillips’ remaining interest in Keystone for US$553 million plus the assumption of US$197 million of short-term debt. TransCanada now owns 100 per cent of this project.
TransCanada also assumed responsibility for ConocoPhillips’ share of the capital investment required to complete the project, resulting in an incremental commitment of US$1.7 billion through the end of 2012.
The first phase of the pipeline is now approximately 90 per cent complete and TransCanada expects to begin filling the line in the fourth quarter of this year with deliveries of oil to the U.S. Midwest commencing in first quarter 2010.
Keystone is currently seeking the necessary regulatory approvals in Canada and the U.S. to build and operate an expansion and extension of the pipeline system that will provide additional capacity of 500,000 barrels per day (bbl/d) from Western Canada to the Gulf Coast in 2012.
In September 2009, the National Energy Board (NEB) held a hearing to review the application for the Canadian portion of the Keystone Gulf Coast expansion with a decision expected in early 2010. Permits for the U.S. portion of the expansion are expected by mid-2010. Construction of the Keystone expansion is expected to begin in 2010 once TransCanada receives all the necessary regulatory approvals.
When completed, the approximately US$12 billion Keystone pipeline will be one of the largest oil
delivery systems in North America with the capacity to deliver 1.1 million bbl/d from Western Canada to the largest refining markets in the United States.
Keystone has secured long-term commitments for 910,000 bbl/d for an average term of 18 years, which represents 83 per cent of the commercial design of the system.
The pipeline is expected to begin generating EBITDA in first quarter 2010 when oil begins flowing to Wood River and Patoka, Illinois. EBITDA is expected to increase through 2011 and 2012 as future phases of Keystone become operational.
Based on current long-term commitments of 910,000 bbl/d, Keystone is expected to generate EBITDA of approximately US$1.2 billion in 2013, its first full year of commercial operation serving both the U.S. Midwest and Gulf Coast markets.
If volumes were to increase to 1.1 million bbl/d, Keystone would generate approximately US$1.5 billion of annual EBITDA. In the future, the pipeline could be economically expanded from 1.1 million bbl/d to 1.5 million bbl/d based on market demand.
On September 28, 2009, TransCanada began work on the 160 kilometre (km) Red Earth section of the North Central Corridor (NCC) pipeline that is expected to be complete by April 2010. The 140 km North Star section has been completed and two 13 MW compressor units at the Meikle River compressor station were operational on May 15, 2009 and August 21, 2009 respectively.
The NCC project is a 300 km natural gas pipeline in the northern section of the Alberta System. It will provide capacity needed to deal with increasing gas supply in northwest Alberta and northeast B.C., declining gas supply in northeast Alberta, growing markets within the province, and help deliver more gas to interconnecting pipelines at the Alberta-Saskatchewan border.
The NCC pipeline is expected to reduce fuel consumption on the entire Alberta System by
approximately 50 per cent which is expected to result in shipper savings of between $50 million-$75 million per year.
The Alaska Pipeline Project continues to move forward, with the joint TransCanada and ExxonMobil project team actively advancing the engineering, technical, commercial, environmental and stakeholder engagement work leading to the project's initial open season targeted for completion by July 2010.
Energy:
On September 30, 2009 the Ontario Power Authority (OPA) awarded TransCanada a 20-year clean energy supply contract to build, own and operate the 900 MW Oakville Generating Station in Oakville, Ontario. A contract has now been finalized with the OPA.
TransCanada expects to invest approximately $1.2 billion in the natural gas-fired, combined-cycle plant, scheduled to start producing power by the end of 2013.
Commissioning of the first phase of the Kibby Wind Power project began in September 2009. Twentytwo of the 44 turbines have been constructed and were in service effective October 30, 2009. Roads and foundations for the remaining 22 turbines will be completed this year and the turbines are expected to be installed and operational by the end of third quarter 2010. Kibby will have the capacity to produce 132 MW.
Construction of the approximately $670 million, 683 MW Halton Hills Generating Station is continuing on schedule and the facility is anticipated to be in service in the summer of 2010. All of the power produced by the facility will be sold to the OPA under a 20-year power purchase agreement.
TransCanada began construction of the US$500 million Coolidge Generating Station in August 2009. The 575 MW power facility is expected to be on-line in second quarter 2011. All of the power produced by the facility will be sold to the Phoenix, Arizona based utility Salt River Project under a 20-year power purchase agreement.
The simple-cycle, natural gas-fired peaking facility will provide a quick response to peak power demand. The facility will also provide reserve capacity and have the ability to generate power on short notice to support power reliability in the region.
Initial brush clearing work for the 212 MW Gros-Morne wind farm in Québec has been completed. Clearing for the 58 MW Montagne-Sèche wind farm will be completed by the end of November 2009. The Montagne-Sèche project and phase one of the Gros-Morne wind farm are expected to be operational by 2011. Gros-Morne phase two is expected to be operational by 2012.
These are the fourth and fifth Québec-based wind farms under development by Cartier Wind, which is 62 per cent owned by TransCanada. These two wind farms are expected to have a capital cost of approximately $340 million. Once these two phases are complete, Cartier Wind will be capable of producing 590 MW of electricity. All of the power produced by Cartier Wind is sold to Hydro- Québec Distribution under a 20-year power purchase agreement.
Progress continues on the refurbishment and restart of Bruce A Units 1 and 2 with work now advanced to the re-assembly of the reactors. As of September 30, 2009, Bruce A had incurred approximately $3.1 billion in costs for the refurbishment and restart of Units 1 and 2. TransCanada believes that the work on Units 1 and 2 is now approximately 75 per cent complete, with the bulk of the highly technical, high risk work now finished. Although a significant amount of work remains to be done, most of this work is conventional power plant construction activity.
The project has experienced delays and TransCanada now expects that Unit 2 will be restarted mid-2011, with Unit 1 expected to follow approximately four months thereafter. The impact of this delay is mitigated by the previously announced extension of the operating lives of Unit 3 to 2011 and Unit 4 to 2016, with further life extensions expected as additional reactor optimization activities proceed.
TransCanada continues to work closely with Bruce Power to address productivity and overall project management and notes that there have been recent, significant successes in this area.
Corporate:
TransCanada and its subsidiaries held cash and cash equivalents of $2.4 billion at September 30, 2009.
On September 30, 2009, TransCanada completed a public offering of 22 million cumulative redeemable first preferred shares. Net proceeds from the $550 million preferred share offering are expected to be used by TransCanada to partially fund capital projects, for general corporate purposes and to re-pay short-term debt of TransCanada and its affiliates.
TransCanada is well positioned to fund its existing capital program through its growing internallygenerated cash flow, its dividend reinvestment and share purchase plan, and its continued access to capital markets. TransCanada will also continue to examine opportunities for portfolio management, including an ongoing role for TC PipeLines, LP in the financing of TransCanada’s capital program.
10.31.2009
Baidu 3q09 results
Baidu (Nasdaq:BIDU) recorded net income of RMB 492.9 million ($72.2 million) in the third quarter of 2009, up 41.7% year-on-year. Total revenues reached RMB 1.28 billion ($187.3 million) in the quarter up 39.1% from the corresponding period in 2008, with online marketing revenues contributing RMB 1.278 billion ($187.2 million).
=> Earning & growth in line with Bilibala's expectation. However, its 12 month price earning growth ratio looks a bit high. If based on 2010 forward price earning growth ratio, then it looks ok.
Baidu saw its active online marketing customers in the quarter increase 11.3% annually and 6.4% sequentially to 216,000, with average revenue per online marketing customer at RMB 5,900 ($864), up 25.5% year-on-year and 9.3% quarter-on-quarter. The company reported traffic acquisition cost (TAC) of RMB 196.2 million ($28.7 million), or 15.3% of total revenues, as compared to 11.8% in the corresponding period in 2008 and 16.0% in the second quarter of 2009. Baidu attributed the annual increase to fast growth in its Baidu Union business.
The company warned it expects revenues ranging from RMB1.19 billion ($174 million) to RMB 1.23 billion ($180 million) for the fourth quarter of 2009, up 32-36% year-on-year, as it anticipates a negative impact from discontinuing its "classic" bid ranking system.
=> "slower" growth trigger investors to sell Baidu's shares. Share price fall significantly by 13.2% from US$432.97 on Monday to US$375.72 on Friday (after market). Bilibala think after the fall, Baidu once again looks attractive.
=> Earning & growth in line with Bilibala's expectation. However, its 12 month price earning growth ratio looks a bit high. If based on 2010 forward price earning growth ratio, then it looks ok.
Baidu saw its active online marketing customers in the quarter increase 11.3% annually and 6.4% sequentially to 216,000, with average revenue per online marketing customer at RMB 5,900 ($864), up 25.5% year-on-year and 9.3% quarter-on-quarter. The company reported traffic acquisition cost (TAC) of RMB 196.2 million ($28.7 million), or 15.3% of total revenues, as compared to 11.8% in the corresponding period in 2008 and 16.0% in the second quarter of 2009. Baidu attributed the annual increase to fast growth in its Baidu Union business.
The company warned it expects revenues ranging from RMB1.19 billion ($174 million) to RMB 1.23 billion ($180 million) for the fourth quarter of 2009, up 32-36% year-on-year, as it anticipates a negative impact from discontinuing its "classic" bid ranking system.
=> "slower" growth trigger investors to sell Baidu's shares. Share price fall significantly by 13.2% from US$432.97 on Monday to US$375.72 on Friday (after market). Bilibala think after the fall, Baidu once again looks attractive.
10.30.2009
Brookfield Properties 3q09 press release
NEW YORK--(BUSINESS WIRE)--Oct. 29, 2009-- Brookfield Properties Corporation (BPO: NYSE, TSX) today announced that net income for the three months ended September 30, 2009 was $38 million or $0.08 per diluted share, compared with $174 million or $0.44 per diluted share during the same period in 2008. Included in net income in 2008 was a net gain of $127 million, or $0.32 per share, on the sale of TD Canada Trust Tower in Toronto.
Funds from operations (“FFO”) was $151 million or $0.34 per diluted share for the three months ended September 30, 2009, compared with $152 million or $0.38 per diluted share during the same period in 2008. Commercial property net operating income for the third quarter of 2009 was $330 million, compared with $320 million during the third quarter of 2008.
During the third quarter, Brookfield Properties leased 693,000 square feet of space in its anaged portfolio at an average net rent of $25 per square foot, which represents a 25% improvement versus the average expiring net rent of $20 on this space in the quarter. Additionally, the company has improved its five-year lease rollover exposure by 330 basis points since the start of the year. Year-todate leasing totals 3.2 million square feet. Brookfield’s managed portfolio occupancy rate finished the quarter at 95.0%, unchanged from the previous quarter.
=> FFO in line with Analysts' expectation. Real estate market in North America starts to pick up, with fairly heathy cash position after new share & bond issued and high occupancy rate of 95%, Bilibala think Brookfield will benefit from the economy recover.
HIGHLIGHTS OF THE THIRD QUARTER
Leased 693,000 square feet of space and completed 63,000 square feet of development leasing. Renewals represent 74% of the total with new leases representing the remainder. Third quarter leasing highlights include:
Toronto – 211,000 square feet
A 144,000-square-foot lease extension with the Department of Justice at Exchange Tower
Washington, DC – 154,000 square feet
A five-year, 98,000-square-foot lease renewal with the General Services Administration at Two Ballston Plaza
A new 11-year, 63,000-square-foot lease with LaFarge North America at Two Reston Crescent
A new five-year, 45,000-square-foot lease with the General Services Administration at 1550
Wilson Blvd
Edmonton – 102,000 square feet
A five-year, 57,000-square-foot lease renewal with CGI at Canadian Western Bank Place
A ten-year renewal and expansion for 39,000 square feet with Witten Management at
Canadian Western Bank Place
New York – 63,000 square feet
A new 15-year lease for 31,000 square feet with Advent Software at the Grace building
A new 14-year lease for 26,000 square feet with Zolfo Cooper at the Grace building
Launched $5 billion real estate turnaround consortium with Brookfield Asset Management. Dedicated to investing in underperforming real estate, the consortium will invest in equity and debt in under-valued real estate companies or real estate portfolios where value can be created in a variety of ways, including financial and operational restructuring, strategic direction or sponsorship, portfolio repositioning, redevelopment or other active asset management. Brookfield Properties has the right, but not the obligation, to participate in investments in the office sector.
Raised $1.3 billion in common share equity offering and preferred share issuance. Gross proceeds from the equity offering totaled $1.0 billion and proceeds from the preferred share issuance totaled $288 million. A portion of the proceeds were used to pay down the committed revolving lines of credit at the company level and within the residential operations. Liquidity currently stands at $1.7 billion including cash, deposits and available credit.
Refinanced or extended $205 million of debt, including $105 million on the West 31st Street development site in New York and the $100 million corporate term loan. The company has completed 95% of $1 billion of financings due in 2009.
Opened Bay Adelaide Centre, the first development built to achieve a Leadership in Energy and Environmental Design (LEED) Gold Standard and the first major development in Toronto’s financial district in 17 years. Standing 51 stories tall, the 1.2-million-square-foot office tower adheres to strict building efficiency guidelines, including optimization of energy, light and water, and the use of local and recycled building materials. The tower is 73 percent leased.
Commenced the recladding of First Canadian Place, Toronto. Along with ownership partners, the company will thoroughly renovate Canada’s tallest office tower including a total recladding of the building’s exterior with laminated glass spandrel panels replacing the existing white marble. The project is seeking LEED Gold certification and is expected to be complete by the end of 2011.
Earned LEED Platinum certification at 1225 Connecticut Ave., Washington, D.C., the industry’s highest rating for environmental sustainability. It is the first redeveloped office building in the Eastern United States to achieve LEED Platinum certification. The building is 100% leased.
Announced early adoption of IFRS. One year ahead of the mandatory conversion date for Canadian public companies, Brookfield Properties intends to adopt International Financial Reporting Standards commencing with its interim financial statements for the three months ended March 31, 2010; those financial statements will also include comparative results for the periods commencing January 1, 2009.
OUTLOOK
“During the third quarter we have noticed a sense of optimism that the economy may be at the early stages of a recovery which has positively impacted leasing activity,” stated Ric Clark, CEO of Brookfield Properties Corporation. “As real estate markets work toward recovery, we have taken additional steps to enhance Brookfield Properties’ liquidity position in order to strengthen our balance sheet and to be poised to capitalize on opportunities that may arise.”
Funds from operations (“FFO”) was $151 million or $0.34 per diluted share for the three months ended September 30, 2009, compared with $152 million or $0.38 per diluted share during the same period in 2008. Commercial property net operating income for the third quarter of 2009 was $330 million, compared with $320 million during the third quarter of 2008.
During the third quarter, Brookfield Properties leased 693,000 square feet of space in its anaged portfolio at an average net rent of $25 per square foot, which represents a 25% improvement versus the average expiring net rent of $20 on this space in the quarter. Additionally, the company has improved its five-year lease rollover exposure by 330 basis points since the start of the year. Year-todate leasing totals 3.2 million square feet. Brookfield’s managed portfolio occupancy rate finished the quarter at 95.0%, unchanged from the previous quarter.
=> FFO in line with Analysts' expectation. Real estate market in North America starts to pick up, with fairly heathy cash position after new share & bond issued and high occupancy rate of 95%, Bilibala think Brookfield will benefit from the economy recover.
HIGHLIGHTS OF THE THIRD QUARTER
Leased 693,000 square feet of space and completed 63,000 square feet of development leasing. Renewals represent 74% of the total with new leases representing the remainder. Third quarter leasing highlights include:
Toronto – 211,000 square feet
A 144,000-square-foot lease extension with the Department of Justice at Exchange Tower
Washington, DC – 154,000 square feet
A five-year, 98,000-square-foot lease renewal with the General Services Administration at Two Ballston Plaza
A new 11-year, 63,000-square-foot lease with LaFarge North America at Two Reston Crescent
A new five-year, 45,000-square-foot lease with the General Services Administration at 1550
Wilson Blvd
Edmonton – 102,000 square feet
A five-year, 57,000-square-foot lease renewal with CGI at Canadian Western Bank Place
A ten-year renewal and expansion for 39,000 square feet with Witten Management at
Canadian Western Bank Place
New York – 63,000 square feet
A new 15-year lease for 31,000 square feet with Advent Software at the Grace building
A new 14-year lease for 26,000 square feet with Zolfo Cooper at the Grace building
Launched $5 billion real estate turnaround consortium with Brookfield Asset Management. Dedicated to investing in underperforming real estate, the consortium will invest in equity and debt in under-valued real estate companies or real estate portfolios where value can be created in a variety of ways, including financial and operational restructuring, strategic direction or sponsorship, portfolio repositioning, redevelopment or other active asset management. Brookfield Properties has the right, but not the obligation, to participate in investments in the office sector.
Raised $1.3 billion in common share equity offering and preferred share issuance. Gross proceeds from the equity offering totaled $1.0 billion and proceeds from the preferred share issuance totaled $288 million. A portion of the proceeds were used to pay down the committed revolving lines of credit at the company level and within the residential operations. Liquidity currently stands at $1.7 billion including cash, deposits and available credit.
Refinanced or extended $205 million of debt, including $105 million on the West 31st Street development site in New York and the $100 million corporate term loan. The company has completed 95% of $1 billion of financings due in 2009.
Opened Bay Adelaide Centre, the first development built to achieve a Leadership in Energy and Environmental Design (LEED) Gold Standard and the first major development in Toronto’s financial district in 17 years. Standing 51 stories tall, the 1.2-million-square-foot office tower adheres to strict building efficiency guidelines, including optimization of energy, light and water, and the use of local and recycled building materials. The tower is 73 percent leased.
Commenced the recladding of First Canadian Place, Toronto. Along with ownership partners, the company will thoroughly renovate Canada’s tallest office tower including a total recladding of the building’s exterior with laminated glass spandrel panels replacing the existing white marble. The project is seeking LEED Gold certification and is expected to be complete by the end of 2011.
Earned LEED Platinum certification at 1225 Connecticut Ave., Washington, D.C., the industry’s highest rating for environmental sustainability. It is the first redeveloped office building in the Eastern United States to achieve LEED Platinum certification. The building is 100% leased.
Announced early adoption of IFRS. One year ahead of the mandatory conversion date for Canadian public companies, Brookfield Properties intends to adopt International Financial Reporting Standards commencing with its interim financial statements for the three months ended March 31, 2010; those financial statements will also include comparative results for the periods commencing January 1, 2009.
OUTLOOK
“During the third quarter we have noticed a sense of optimism that the economy may be at the early stages of a recovery which has positively impacted leasing activity,” stated Ric Clark, CEO of Brookfield Properties Corporation. “As real estate markets work toward recovery, we have taken additional steps to enhance Brookfield Properties’ liquidity position in order to strengthen our balance sheet and to be poised to capitalize on opportunities that may arise.”
Procter & Gamble 1q10 press release
CINCINNATI, Oct. 29, 2009 - The Procter & Gamble Company (NYSE:PG) reported net
sales of $19.8 billion for the July - September quarter which exceeded the Company’s guidance.
Organic sales growth was up two percent versus a guidance range of flat to minus three percent on better than expected results across most business segments. Diluted net earnings per share
increased three percent to $1.06, above the Company’s guidance range of $0.95 to $1.00. The
Company raised its outlook for the October - December quarter and fiscal 2010 organic sales
growth citing modestly higher expectation for market growth. The Company also increased the low end of its fiscal year guidance range by $0.03 per share to reflect the higher top-line growth
projection.
=> Procter & Gamble's EPS beat Wall Street analysts' estimation by 7 cents.
“Our September quarter results give us encouragement we are making the right choices to
grow market share profitably,” said President and Chief Executive Officer Bob McDonald. “We
are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and
improving execution while leveraging scale to create cost efficiencies that help fund these
investments and accelerate growth.”
Executive Summary
• Net sales for the quarter were $19.8 billion, a decrease of six percent that was primarily due
to unfavorable foreign exchange impacts as the U.S. dollar remained above prior year levels.
The company had previously guided to a net sales decrease of seven to ten percent.
• Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange,
increased two percent.
• Diluted net earnings per share increased three percent to $1.06 for the July - September
quarter.
• Operating margin increased 160 basis points for the quarter behind a 290 basis point
improvement in gross margin, partially offset by higher selling, general and administrative
(SG&A) expenses.
• Operating cash flow was $4.6 billion for the first fiscal quarter. Free cash flow, which is
operating cash flow less capital spending, was $4.0 billion, an all-time record and over 120
percent of net earnings excluding the gain on the sale of Actonel in Japan.
=> Procter & Gamble sucessfully boost up organic sales by 2% thanks to the price cut strategy. It is also good to see the operating margin improved. As US$ fall back, we should see better results in the coming quarters.
sales of $19.8 billion for the July - September quarter which exceeded the Company’s guidance.
Organic sales growth was up two percent versus a guidance range of flat to minus three percent on better than expected results across most business segments. Diluted net earnings per share
increased three percent to $1.06, above the Company’s guidance range of $0.95 to $1.00. The
Company raised its outlook for the October - December quarter and fiscal 2010 organic sales
growth citing modestly higher expectation for market growth. The Company also increased the low end of its fiscal year guidance range by $0.03 per share to reflect the higher top-line growth
projection.
=> Procter & Gamble's EPS beat Wall Street analysts' estimation by 7 cents.
“Our September quarter results give us encouragement we are making the right choices to
grow market share profitably,” said President and Chief Executive Officer Bob McDonald. “We
are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and
improving execution while leveraging scale to create cost efficiencies that help fund these
investments and accelerate growth.”
Executive Summary
• Net sales for the quarter were $19.8 billion, a decrease of six percent that was primarily due
to unfavorable foreign exchange impacts as the U.S. dollar remained above prior year levels.
The company had previously guided to a net sales decrease of seven to ten percent.
• Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange,
increased two percent.
• Diluted net earnings per share increased three percent to $1.06 for the July - September
quarter.
• Operating margin increased 160 basis points for the quarter behind a 290 basis point
improvement in gross margin, partially offset by higher selling, general and administrative
(SG&A) expenses.
• Operating cash flow was $4.6 billion for the first fiscal quarter. Free cash flow, which is
operating cash flow less capital spending, was $4.0 billion, an all-time record and over 120
percent of net earnings excluding the gain on the sale of Actonel in Japan.
=> Procter & Gamble sucessfully boost up organic sales by 2% thanks to the price cut strategy. It is also good to see the operating margin improved. As US$ fall back, we should see better results in the coming quarters.
10.27.2009
Rogers Communication 3q09 press release
1. Third Quarter Adjusted Operating Profit up 15% as Revenue Grows to
Over $3 Billion;
Over $3 Billion;
- better than analysts' expectations & in line with Rogers' own outlook
2. Wireless Network and Cable Operations Revenue Both up by 7% Helping
Drive Adjusted Operating Profit Growth of 22% and 8%, Respectively;
- Total wireless retail subscribers 8.4M up 8.0% from 7.7M
- Wireless ARPU $63.70 down 1.3% from $64.52
- Total tv cable subscribers 3.9M up 0.3% from 3.8M
- Total internet cable subscritbers 1.60M up 3.1% from 1.55M
- Subscribers growth thanks to bundle sales & promotion effort & looks like Rogers did fairly good during recession
3. Wireless Delivers Strong Subscriber Growth and Reduced Postpaid
Churn While Wireless Data Revenue Growth Accelerates to 46%;
- I-phone & blackberry helps Rogers data revenue boost up. Since there is a 1 to 2 years promotion discount for the new wireless data users, one should expect the revenue will grow stronger in the coming years
4. Cable Drives Continued Margin Expansion and Healthy Growth in Cash
Flow on Slower Subscriber Growth;
- Cost cutting project & outsource did helps, but can Rogers continue to do so
5. Advertising and The Shopping Channel Sales Declines at Media Begin to
Moderate While Sportsnet Delivers Double-Digit Revenue and Adjusted
Operating Profit Growth;
- Rogers expect the revenue to go down 4 to 10% in future. At least, 3q results is better than its own outlook
6. $592 Million of Cash Returned to Shareholders during Quarter with
Share Buybacks and Dividends
- Kind of irrelevant to estimation
Bilibala thinks Rogers stock price is at a discount and a more reasonable price will be in $35.0-$37.0 range.
China Life 3q09 results
9M 2009 results highlights & Bilibala's comments (in RMB):
(Please note all items below are based on China Accounting Standard instead of Hong Kong Accounting Standard, therefore, its 1q09 & 3q09 results are not comparable with its interm nor annual results.)
(Please note all items below are based on China Accounting Standard instead of Hong Kong Accounting Standard, therefore, its 1q09 & 3q09 results are not comparable with its interm nor annual results.)
1. Annualized premium $237.3B down 4.5% from $248.6B & Premium earned $287.2B up 0.8% from $284.9B
- In 2009, China Life switch its gear from single premium/short term traditional product/universal life product towards traditional product with longer terms, premium lower because new products require time on training and promotion before the sales to rise
- New products has a higher value of new business according to 2q09 press release
- 2008 premium rise 57% compare to 2007, lots of analysts at that time think the premium will not be able to substain, but looks like the life insurance market in China is huge enough
2. Investment income $49.3B up 8.8% from $45.3B and fair value & FX gains/losses $1.2B up from ($9B)
- Investment income up mainly due to asset value go up by 14.0% enough to offset the interest rate drop
- Gains consistent with the China equity market rebound
4. Surrenders $7.6B down 10.0% from $8.4B & Claims paid $12.4B down 15.1% from $14.7B
- If the mortality rate trend continue as life expectancy in China continue to improve, China Life's profit trend will improve because poor life expectancy & high mortality rate has already been priced in the previous and existing policies.
- Surrenders drop may or may not be a good sight, lesser lapse may hurt pricing, at the same time, if it is due maturity of those short term traditional product, then that's good. But we can't tell based on the press release
5. Impairment losses $0.0B down 98% from $3.1B
- Great
6. Net profit $6.0B up 155.4% from $2.4B & EPS $0.70 up 52.2% from $0.46
- In line with Bilibala's expectation
7. Total comprehensive gains $19.8B up from ($26.0B) & Shareholders' equity $149.8B up 10.2% from $135.9B
- In line with Bilibala's expectation
- Stock price above HK$38.0 or US$73.0, Bilibala thinks the price has already reflected all the rebounds, and back to normal
- Future price growth will rely on business growth, one should expect China Life's price will still rise +/- 15% per year (depends on how China equity market & interest rate), but it won't be as dramatic as the past 9 months
10.25.2009
China Mobile 3q09 press release
The unaudited financial data of the Group for the first three quarters of 2009 reflected:
. Operating revenue reached RMB326.977 billion, up by 8.9% over the same period of last year
. EBITDA of RMB167.739 billion, up by 5.5% over the same period of last year
. Profit attributable to shareholders of RMB83.935 billion, up by 1.8% over the same period of
last year
=> 8.9% up in revenue, in line with expectation. China Mobile needs to rely on value added service and 3G as the future revenue growth.
In the first three quarters of 2009, although China’s macro-economy is stabilizing and continues to grow, the impact of the global financial crisis on economy still persists and future development of the economy remains uncertain, which, together with the increasing penetration rate of mobile
telecommunications and the changes in competition environment of the telecommunications industry, have posed challenges to the development of the Group’s business. However, through effective management and the efforts of all its employees, the Group leveraged on its competitive advantages, overcame various challenges and continued to maintain favorable growth in its financial results. The Group’s operating revenue reached RMB326.977 billion, representing an increase of 8.9% compared to the same period of last year. EBITDA reached RMB167.739 billion, representing an increase of 5.5% compared to the same period of last year. Profit attributable to shareholders reached RMB83.935 billion, representing an increase of 1.8% compared to the same period of last year. Margin of profit attributable to shareholders maintained at a relatively high level of 25.7%.
=> promotion cost & discount on 3G phone did reduce China Mobile's EBITDA margin & net margin, but i think it is still at a reasonable level, still above 50%.
The increasing penetration rate of mobile telecommunications, the changes in competition environment of the telecommunications industry and the uncertainties relating to macro-economy in the future will change the industry structure of China’s telecommunications industry. Despite the challenges and adversities it faced, the Group continued to sustain healthy business development in the first three quarters of 2009. The Group’s customer growth showed signs of slowing down as a result of the negative impact of the slow down in macro-economic development on the demand for telecommunications services, the increasing penetration rate of mobile telecommunications which lessens potential growth in the number of new customers, as well as the restructuring of the industry which intensified competition. Nevertheless, the Group continues its market leadership with the average monthly net additional customers for the first three quarters reaching 5.68 million. The Group’s customer base was 508.37 million as at 30 September 2009. However, as the new customers are mainly low-usage customers and new tariffs sales and marketing scheme is gradually rolling out, ARPU and average revenue per minute of usage recorded a decrease, whilst the voice usage volume was stimulated. Total voice usage volume for the first three quarters of 2009 increased by 19.5% compared to the same period of last year. Value-added business also continued its favorable growth and mature
businesses sustained growth despite already having reached a sizeable scale. SMS usage volume
increased by 12.9% compared to the same period of last year. Meanwhile, the development of other data businesses also maintained favorable growth. The favorable growth in customer base and voice usage volume and the development of value-added business resulted in an increase of 8.9% in operating revenue in the first three quarters. The Group will continue to increase its investments in sales channels, customer service, network optimization, support system and R&D in order to enhance the Group’s core competitiveness under the new competitive landscape. Furthermore, the Group will strive to maintain a stable growth in its profitability through adhering to its refined cost management and by leveraging economies of scale.
=> RM$75 ARPU, a bit lower than Bilibala's expectation
To meet new challenges and opportunities, the Group will build on its strong foundation and
comprehensive strengths and leverage its existing competitive advantages so as to adapt rapidly to changes in the business environment and the competitive landscape, and to sustain its favorable business development and financial growth in order to continuously create value for its shareholders.
The Board wishes to remind investors that the above key performance indicators are based on the Group’s unaudited management accounts. Investors are cautioned not to unduly rely on such data.
. Operating revenue reached RMB326.977 billion, up by 8.9% over the same period of last year
. EBITDA of RMB167.739 billion, up by 5.5% over the same period of last year
. Profit attributable to shareholders of RMB83.935 billion, up by 1.8% over the same period of
last year
=> 8.9% up in revenue, in line with expectation. China Mobile needs to rely on value added service and 3G as the future revenue growth.
In the first three quarters of 2009, although China’s macro-economy is stabilizing and continues to grow, the impact of the global financial crisis on economy still persists and future development of the economy remains uncertain, which, together with the increasing penetration rate of mobile
telecommunications and the changes in competition environment of the telecommunications industry, have posed challenges to the development of the Group’s business. However, through effective management and the efforts of all its employees, the Group leveraged on its competitive advantages, overcame various challenges and continued to maintain favorable growth in its financial results. The Group’s operating revenue reached RMB326.977 billion, representing an increase of 8.9% compared to the same period of last year. EBITDA reached RMB167.739 billion, representing an increase of 5.5% compared to the same period of last year. Profit attributable to shareholders reached RMB83.935 billion, representing an increase of 1.8% compared to the same period of last year. Margin of profit attributable to shareholders maintained at a relatively high level of 25.7%.
=> promotion cost & discount on 3G phone did reduce China Mobile's EBITDA margin & net margin, but i think it is still at a reasonable level, still above 50%.
The increasing penetration rate of mobile telecommunications, the changes in competition environment of the telecommunications industry and the uncertainties relating to macro-economy in the future will change the industry structure of China’s telecommunications industry. Despite the challenges and adversities it faced, the Group continued to sustain healthy business development in the first three quarters of 2009. The Group’s customer growth showed signs of slowing down as a result of the negative impact of the slow down in macro-economic development on the demand for telecommunications services, the increasing penetration rate of mobile telecommunications which lessens potential growth in the number of new customers, as well as the restructuring of the industry which intensified competition. Nevertheless, the Group continues its market leadership with the average monthly net additional customers for the first three quarters reaching 5.68 million. The Group’s customer base was 508.37 million as at 30 September 2009. However, as the new customers are mainly low-usage customers and new tariffs sales and marketing scheme is gradually rolling out, ARPU and average revenue per minute of usage recorded a decrease, whilst the voice usage volume was stimulated. Total voice usage volume for the first three quarters of 2009 increased by 19.5% compared to the same period of last year. Value-added business also continued its favorable growth and mature
businesses sustained growth despite already having reached a sizeable scale. SMS usage volume
increased by 12.9% compared to the same period of last year. Meanwhile, the development of other data businesses also maintained favorable growth. The favorable growth in customer base and voice usage volume and the development of value-added business resulted in an increase of 8.9% in operating revenue in the first three quarters. The Group will continue to increase its investments in sales channels, customer service, network optimization, support system and R&D in order to enhance the Group’s core competitiveness under the new competitive landscape. Furthermore, the Group will strive to maintain a stable growth in its profitability through adhering to its refined cost management and by leveraging economies of scale.
=> RM$75 ARPU, a bit lower than Bilibala's expectation
To meet new challenges and opportunities, the Group will build on its strong foundation and
comprehensive strengths and leverage its existing competitive advantages so as to adapt rapidly to changes in the business environment and the competitive landscape, and to sustain its favorable business development and financial growth in order to continuously create value for its shareholders.
The Board wishes to remind investors that the above key performance indicators are based on the Group’s unaudited management accounts. Investors are cautioned not to unduly rely on such data.
China Construction Bank 3q09 press release
As at 30 September 2009, total assets of the Group reached RMB9,353,972 million, an
increase of RMB1,798,520 million or 23.80% over the end of last year. Total liabilities reached
RMB8,816,947 million, an increase of RMB1,729,057 million or 24.39% over the end of last
year.
=> loan growth slow down in 3q but rise significantly compare to last year at the same time consistent with deposit growth.
Net loans and advances to customers reached RMB4,563,208 million, an increase of
RMB879,633 million or 23.88% over the end of last year. Loans granted to infrastructure
sectors increased by 27.47% to RMB1,514,915 million over the end of last year. Deposits from
customers reached RMB7,791,445 million, an increase of RMB1,415,530 million or 22.20%
over the end of last year.
Total equity was RMB537,025 million, an increase of RMB69,463 million or 14.86% over the
end of last year. Capital adequacy ratio decreased by 0.05 percentage points to 12.11%; core
capital adequacy ratio decreased by 0.60 percentage points to 9.57% compared to the end of last
year.
=> Book value rise to RM$2.30 (or HK#2.60), price to book value rise to 2.7. A bit high in short term, but I think 3.0 times is still reasonable. Finally close to my fair value price I mentioned about in March.
Compared to the end of last year, the non-performing loans decreased by RMB10,200 million
to RMB73,682 million in accordance with the five-category classification standard; the nonperforming loan ratio was 1.57%, down by 0.64 percentage points; the ratio of allowances to
non-performing loans was 161.08%, up by 29.50 percentage points.
=> non-performance loans down, good!!! Allowance is a future projection, but I think bad debt ratio in China is at a reasonable level.
The carrying amount of the US sub-prime mortgage loan backed securities held by the Group
was US$109 million, after allowances for impairment losses of US$726 million. The carrying
amount of the Alt-A bonds held by the Group was US$182 million, and the allowances for
impairment losses on such securities were US$264 million.
=> immaterial
For the nine months ended 30 September 2009, net profit of the Group was RMB86,162
million, of which the net profi t attributable to equity shareholders of the Bank was RMB86,119
million, up 2.25% and 2.24% respectively over the same period last year. Annualised return on
average assets was 1.36%, and annualised return on average equity was 22.78%.
The net interest income was RMB155,580 million, down by 7.49% over the same period last
year. Net interest spread was 2.30% and the net interest margin was 2.41%, down by 0.87
percentage points and 0.89 percentage points respectively over the same period last year.
Net fee and commission income reached RMB35,763 million, an increase of 20.94% over the
same period last year. Cost-to-income ratio was 35.55%, which remained at a low level.
The income tax was RMB25,442 million, up by 4.09% over the same period last year, and the
effective income tax rate was 22.80%.
=> net margin down from 2.41% to 2.30%, in line with my expectation, looks good.
increase of RMB1,798,520 million or 23.80% over the end of last year. Total liabilities reached
RMB8,816,947 million, an increase of RMB1,729,057 million or 24.39% over the end of last
year.
=> loan growth slow down in 3q but rise significantly compare to last year at the same time consistent with deposit growth.
Net loans and advances to customers reached RMB4,563,208 million, an increase of
RMB879,633 million or 23.88% over the end of last year. Loans granted to infrastructure
sectors increased by 27.47% to RMB1,514,915 million over the end of last year. Deposits from
customers reached RMB7,791,445 million, an increase of RMB1,415,530 million or 22.20%
over the end of last year.
Total equity was RMB537,025 million, an increase of RMB69,463 million or 14.86% over the
end of last year. Capital adequacy ratio decreased by 0.05 percentage points to 12.11%; core
capital adequacy ratio decreased by 0.60 percentage points to 9.57% compared to the end of last
year.
=> Book value rise to RM$2.30 (or HK#2.60), price to book value rise to 2.7. A bit high in short term, but I think 3.0 times is still reasonable. Finally close to my fair value price I mentioned about in March.
Compared to the end of last year, the non-performing loans decreased by RMB10,200 million
to RMB73,682 million in accordance with the five-category classification standard; the nonperforming loan ratio was 1.57%, down by 0.64 percentage points; the ratio of allowances to
non-performing loans was 161.08%, up by 29.50 percentage points.
=> non-performance loans down, good!!! Allowance is a future projection, but I think bad debt ratio in China is at a reasonable level.
The carrying amount of the US sub-prime mortgage loan backed securities held by the Group
was US$109 million, after allowances for impairment losses of US$726 million. The carrying
amount of the Alt-A bonds held by the Group was US$182 million, and the allowances for
impairment losses on such securities were US$264 million.
=> immaterial
For the nine months ended 30 September 2009, net profit of the Group was RMB86,162
million, of which the net profi t attributable to equity shareholders of the Bank was RMB86,119
million, up 2.25% and 2.24% respectively over the same period last year. Annualised return on
average assets was 1.36%, and annualised return on average equity was 22.78%.
The net interest income was RMB155,580 million, down by 7.49% over the same period last
year. Net interest spread was 2.30% and the net interest margin was 2.41%, down by 0.87
percentage points and 0.89 percentage points respectively over the same period last year.
Net fee and commission income reached RMB35,763 million, an increase of 20.94% over the
same period last year. Cost-to-income ratio was 35.55%, which remained at a low level.
The income tax was RMB25,442 million, up by 4.09% over the same period last year, and the
effective income tax rate was 22.80%.
=> net margin down from 2.41% to 2.30%, in line with my expectation, looks good.
10.23.2009
McDonald's 3q09 press release
McDonald's Third Quarter Earnings Rise on Strong Global Results
OAK BROOK, Ill., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- McDonald's Corporation today announced strong results for the third quarter ended September 30, 2009, fueled by positive comparable sales in every area of the world. In constant currencies, the Company posted higher revenues, operating income and earnings per share compared with the prior year.
"Alignment behind McDonald's long-term business strategy, the Plan to Win, is clear as our growth continues to be a systemwide effort with each area of the world contributing," said McDonald's Chief Executive Officer, Jim Skinner. "McDonald's global results demonstrate the resilience of our strategies and our ability to execute successfully."
=> yea, the growth is amazing, for all this years
McDonald's reported the following third quarter highlights:
-- Global comparable sales increased 3.8% with the U.S. up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%
-- Consolidated operating income increased 6% (11% in constant currencies) over the prior year
-- Earnings per share of $1.15, a 10% increase (14% in constant currencies) over the prior year
-- The quarterly cash dividend increased 10% to $0.55 per share - the equivalent of $2.20 per share annually - effective fourth quarter 2009
-- Approximately $1.3 billion returned to shareholders through share repurchases and dividends
=> great!! Cash dividend up is another plus
Jim Skinner continued, "The consistent strength of McDonald's business is the result of our commitment to the customer. We are keeping the McDonald's brand in demand and growing market share around the world by serving great tasting food at an outstanding value in a way that's convenient to today's consumers."
For the quarter, the U.S. generated solid comparable sales and drove an operating income increase of 6%. The ongoing appeal of McDonald's core menu along with favorable consumer response to the new premium Angus Third Pounders and McCafe espresso-based coffees fueled the U.S. results.
McDonald's Europe delivered strong third quarter comparable sales driving a 10% increase in operating income in constant currencies. Locally relevant premium products and promotions combined with compelling value drove the segment's quarterly performance.
In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21% in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA.
Jim Skinner concluded, "We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our System and our shareholders. For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."
In addition, the following items impacted the comparison of growth in diluted earnings per share for the nine months ended September 30, 2009 compared with 2008. In the aggregate, these items negatively impacted the comparison by 1 percentage point (2 percentage points in constant currencies):
For the nine months ended September 30, 2009:
- $0.05 per share after tax gain related to the sale of the Company's minority interest in Redbox Automated Retail, LLC
For the nine months ended September 30, 2008:
- $0.09 per share after tax gain on the sale of the Company's minority interest in Pret A Manger
OAK BROOK, Ill., Oct 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- McDonald's Corporation today announced strong results for the third quarter ended September 30, 2009, fueled by positive comparable sales in every area of the world. In constant currencies, the Company posted higher revenues, operating income and earnings per share compared with the prior year.
"Alignment behind McDonald's long-term business strategy, the Plan to Win, is clear as our growth continues to be a systemwide effort with each area of the world contributing," said McDonald's Chief Executive Officer, Jim Skinner. "McDonald's global results demonstrate the resilience of our strategies and our ability to execute successfully."
=> yea, the growth is amazing, for all this years
McDonald's reported the following third quarter highlights:
-- Global comparable sales increased 3.8% with the U.S. up 2.5%, Europe up 5.8% and Asia/Pacific, Middle East and Africa up 2.2%
-- Consolidated operating income increased 6% (11% in constant currencies) over the prior year
-- Earnings per share of $1.15, a 10% increase (14% in constant currencies) over the prior year
-- The quarterly cash dividend increased 10% to $0.55 per share - the equivalent of $2.20 per share annually - effective fourth quarter 2009
-- Approximately $1.3 billion returned to shareholders through share repurchases and dividends
=> great!! Cash dividend up is another plus
Jim Skinner continued, "The consistent strength of McDonald's business is the result of our commitment to the customer. We are keeping the McDonald's brand in demand and growing market share around the world by serving great tasting food at an outstanding value in a way that's convenient to today's consumers."
For the quarter, the U.S. generated solid comparable sales and drove an operating income increase of 6%. The ongoing appeal of McDonald's core menu along with favorable consumer response to the new premium Angus Third Pounders and McCafe espresso-based coffees fueled the U.S. results.
McDonald's Europe delivered strong third quarter comparable sales driving a 10% increase in operating income in constant currencies. Locally relevant premium products and promotions combined with compelling value drove the segment's quarterly performance.
In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21% in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA.
Jim Skinner concluded, "We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our System and our shareholders. For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."
In addition, the following items impacted the comparison of growth in diluted earnings per share for the nine months ended September 30, 2009 compared with 2008. In the aggregate, these items negatively impacted the comparison by 1 percentage point (2 percentage points in constant currencies):
For the nine months ended September 30, 2009:
- $0.05 per share after tax gain related to the sale of the Company's minority interest in Redbox Automated Retail, LLC
For the nine months ended September 30, 2008:
- $0.09 per share after tax gain on the sale of the Company's minority interest in Pret A Manger
CN Railway 3q09 press release
CN reports Q3-2009 net income of C$461 million, or C$0.97 per diluted share, compared with year-earlier net income of C$552 million, or C$1.16 per diluted share
MONTREAL, Oct. 20, 2009 — CN (TSX: CNR)(NYSE: CNI) today reported its financial
and operating results for the third quarter ended Sept. 30, 2009.
Third-quarter 2009 highlights
• Net income declined to C$461 million, or C$0.97 per diluted share, from yearearlier net income of C$552 million, or C$1.16 per diluted share, largely as a result of lower freight volumes stemming from depressed North American and global economies.
• Revenues declined 18 per cent to C$1,845 million, carloads declined 15 per cent to 1,032 thousand, and revenue ton-miles declined 11 per cent.
• Operating expenses declined 18 per cent to C$1,156 million, reflecting lower yearover-year fuel prices and cost-containment measures in response to lower traffic.
• Operating income declined 18 per cent to C$689 million, while the operating ratio was essentially flat at 62.7 per cent.
• Nine-month 2009 free cash flow increased to C$657 million from C$483 million generated during the comparable period of 2008. (1)
=> 18% down, down more than my expectation
Net income for the third quarter of 2009 and third quarter of 2008 included deferred income tax recoveries of C$15 million, or C$0.03 per diluted share, and C$41 million, or C$0.09 per diluted share, respectively. The recoveries in both years resulted from the resolution of various income tax matters and adjustments related to tax filings of prior years. Excluding these items, adjusted third-quarter 2009 net income was C$446 million, or C$0.94 per diluted share, compared with year-earlier adjusted net income of C$511 million, or C$1.07 per diluted share, a reduction of 12 per cent in diluted earnings per share. (1)
The year-over-year increase in the U.S. dollar relative to the Canadian dollar affected the
conversion of CN’s U.S.-dollar-denominated revenues and expenses, increasing thirdquarter
2009 net income by approximately C$15 million, or C$0.03 per diluted share.
=> FX contribute about 3% of the fall
E. Hunter Harrison, president and chief executive officer, said: “The third quarter of 2009 was another challenging one for CN, with significant weakness across markets affecting our freight volumes. Revenue ton-miles for the quarter declined 11 per cent, but that was a sequential improvement over the 14 per cent RTM reduction in the second quarter of this year.
“The CN team continued to focus on cost containment and productivity improvements during Q3-2009. And the team delivered. We kept the operating ratio essentially flat at 62.7 per cent and made solid operational gains -- system train speeds improved again, rising 11 per cent year-over-year, while the average dwell time for freight cars in our classification yards across the railroad declined by nine per cent from a year earlier. Equally important, our accident rate improved by eight per cent over the same period of 2008.
“It appears that several of our markets may have hit bottom. Our productivity gains during 2009 position us well for the eventual recovery in traffic.”
=> i agree we've hit the bottom and starting with a slow recover now, but at the same time, winter is coming. Usually, Railway's profits as well as stock price get hurt during the snowing days.
Third-quarter 2009 revenues, traffic volumes and expenses
The reduction in third-quarter 2009 revenues largely resulted from significantly lower freight volumes in almost all markets as a result of prevailing economic conditions in the North American and global economies; and the impact of a lower fuel surcharge due to year-over-year decreases in applicable fuel prices, as well as lower freight volumes. Partly offsetting these factors were the positive translation impact of the weaker Canadian dollar on U.S.-dollar-denominated revenues and freight rate increases. All commodity groups saw revenue declines – metals and minerals (32 per cent), automotive (25 per cent), forest products (24 per cent), intermodal (20 per cent), petroleum and chemicals (11 per cent), coal (9 per cent), and grain and fertilizers (9 per cent).
=> Demand fall in all segments. It helps us to understand how worse the economy is in the past 6 months. On the other hand, railway industry is 3-6 months ahead of the the overall economy because they are the one who help to transport inventory stocks, not sales.
Rail freight revenue per revenue ton-mile, a measurement of yield defined as revenue earned on the movement of a ton of freight over one mile, decreased by nine per cent in the third quarter, largely due to the impact of a lower fuel surcharge and an increase in the average length of haul. These factors were partly offset by the positive translation impact of the weaker Canadian dollar and freight rate increases.
The 18 per cent decline in operating expenses was primarily due to lower fuel costs, reduced expenses for purchased services and material, and lower casualty and other expenses. These factors were partially offset by the negative translation impact of the weaker Canadian dollar on U.S.-dollar-denominated expenses.
(1) Please see discussion and reconciliation of non-GAAP adjusted performance measures in the attached supplementary schedule, Non-GAAP Measures.
MONTREAL, Oct. 20, 2009 — CN (TSX: CNR)(NYSE: CNI) today reported its financial
and operating results for the third quarter ended Sept. 30, 2009.
Third-quarter 2009 highlights
• Net income declined to C$461 million, or C$0.97 per diluted share, from yearearlier net income of C$552 million, or C$1.16 per diluted share, largely as a result of lower freight volumes stemming from depressed North American and global economies.
• Revenues declined 18 per cent to C$1,845 million, carloads declined 15 per cent to 1,032 thousand, and revenue ton-miles declined 11 per cent.
• Operating expenses declined 18 per cent to C$1,156 million, reflecting lower yearover-year fuel prices and cost-containment measures in response to lower traffic.
• Operating income declined 18 per cent to C$689 million, while the operating ratio was essentially flat at 62.7 per cent.
• Nine-month 2009 free cash flow increased to C$657 million from C$483 million generated during the comparable period of 2008. (1)
=> 18% down, down more than my expectation
Net income for the third quarter of 2009 and third quarter of 2008 included deferred income tax recoveries of C$15 million, or C$0.03 per diluted share, and C$41 million, or C$0.09 per diluted share, respectively. The recoveries in both years resulted from the resolution of various income tax matters and adjustments related to tax filings of prior years. Excluding these items, adjusted third-quarter 2009 net income was C$446 million, or C$0.94 per diluted share, compared with year-earlier adjusted net income of C$511 million, or C$1.07 per diluted share, a reduction of 12 per cent in diluted earnings per share. (1)
The year-over-year increase in the U.S. dollar relative to the Canadian dollar affected the
conversion of CN’s U.S.-dollar-denominated revenues and expenses, increasing thirdquarter
2009 net income by approximately C$15 million, or C$0.03 per diluted share.
=> FX contribute about 3% of the fall
E. Hunter Harrison, president and chief executive officer, said: “The third quarter of 2009 was another challenging one for CN, with significant weakness across markets affecting our freight volumes. Revenue ton-miles for the quarter declined 11 per cent, but that was a sequential improvement over the 14 per cent RTM reduction in the second quarter of this year.
“The CN team continued to focus on cost containment and productivity improvements during Q3-2009. And the team delivered. We kept the operating ratio essentially flat at 62.7 per cent and made solid operational gains -- system train speeds improved again, rising 11 per cent year-over-year, while the average dwell time for freight cars in our classification yards across the railroad declined by nine per cent from a year earlier. Equally important, our accident rate improved by eight per cent over the same period of 2008.
“It appears that several of our markets may have hit bottom. Our productivity gains during 2009 position us well for the eventual recovery in traffic.”
=> i agree we've hit the bottom and starting with a slow recover now, but at the same time, winter is coming. Usually, Railway's profits as well as stock price get hurt during the snowing days.
Third-quarter 2009 revenues, traffic volumes and expenses
The reduction in third-quarter 2009 revenues largely resulted from significantly lower freight volumes in almost all markets as a result of prevailing economic conditions in the North American and global economies; and the impact of a lower fuel surcharge due to year-over-year decreases in applicable fuel prices, as well as lower freight volumes. Partly offsetting these factors were the positive translation impact of the weaker Canadian dollar on U.S.-dollar-denominated revenues and freight rate increases. All commodity groups saw revenue declines – metals and minerals (32 per cent), automotive (25 per cent), forest products (24 per cent), intermodal (20 per cent), petroleum and chemicals (11 per cent), coal (9 per cent), and grain and fertilizers (9 per cent).
=> Demand fall in all segments. It helps us to understand how worse the economy is in the past 6 months. On the other hand, railway industry is 3-6 months ahead of the the overall economy because they are the one who help to transport inventory stocks, not sales.
Rail freight revenue per revenue ton-mile, a measurement of yield defined as revenue earned on the movement of a ton of freight over one mile, decreased by nine per cent in the third quarter, largely due to the impact of a lower fuel surcharge and an increase in the average length of haul. These factors were partly offset by the positive translation impact of the weaker Canadian dollar and freight rate increases.
The 18 per cent decline in operating expenses was primarily due to lower fuel costs, reduced expenses for purchased services and material, and lower casualty and other expenses. These factors were partially offset by the negative translation impact of the weaker Canadian dollar on U.S.-dollar-denominated expenses.
(1) Please see discussion and reconciliation of non-GAAP adjusted performance measures in the attached supplementary schedule, Non-GAAP Measures.
Wells Fargo 3q09 press release
WELLS FARGO REPORTS RECORD Q3 AND YEAR-TO-DATE NET INCOME
• 3rd consecutive quarter of record earnings
- Record Wells Fargo net income of $3.2 billion, up 98 percent from last year; $9.5 billion year to
date, up 75 percent from last year
- Diluted earnings per common share of $0.56, up 14 percent from last year; $1.69 per share year to date
- Results driven by record $10.8 billion pre-tax, pre-provision profit (PTPP); PTPP has been more than two times quarterly net charge-offs each quarter this year, despite cyclically elevated net charge-offs. (See footnote 4 on page 20 for information on PTPP)
=> awesome results and consistent with 2q09
• Continued strong revenue
- Revenue of $22.5 billion, flat with record revenue in second quarter 2009
- $169 billion of credit extended to customers in the quarter
- Average checking and savings deposits up 11 percent (annualized) from prior quarter
- Net interest margin of 4.36 percent, up 6 basis points from prior quarter
- Cross-sell for legacy Wells Fargo a record 5.90 for retail bank households
- Broad-based revenue contribution from diverse businesses, including double-digit linked-quarter growth in asset management, auto lending, consumer finance, debit cards, retirement services, SBA lending and wealth management, along with continued strong performance from regional banking and mortgage banking
=> net interest margin improved to 4.36, best among peers and a trend that Wachovia start adpoting the high margin economic moat from legacy Wells Fargo.
• Significant increases in capital, reduction in risk
- Wells Fargo stockholders’ equity increased to $122 billion (10 percent of total assets), up
$23 billion from year end
- Generated $20 billion during the past six months toward the $13.7 billion Supervisory Capital
Assessment Program (SCAP) buffer requirement; PTPP tracking above Company’s internal SCAP estimates and 35 percent above supervisory adverse scenario estimate
- Credit reserves built by $1.0 billion ($3.0 billion year to date), reaching $24.5 billion, or
3.07 percent of total loans and 118 percent of nonaccrual loans
- Substantial increases in capital ratios driven by record retained earnings and other sources of
internal capital generation
=> I personally high the capital ratio in general is too high for the entire bank industry, but if that's what the regulatory and the analysts love to see, I think Wells Fargo has more than enough to meet their wants.
• Current projections show credit losses peaking in 2010, with consumer losses potentially peaking in first half of the year and gradually declining, absent further economic deterioration
- Growth in nonperforming loans and net charge-offs slowing as of third quarter, for consumer and commercial portfolios
- Credit performance of recent vintage legacy Wells Fargo consumer portfolios improving, largely the result of proactive credit management over past two years
- 90 days past due and still accruing levels flat with second quarter; consumer 90 days past due and still accruing declined from prior quarter
- Significantly smaller credit card portfolio than large bank peers
- Pick-a-Pay portfolio currently estimated to have lower life-of-loan losses than originally
estimated, driven in part by extensive and successful loan modification efforts
- Collateral values improving in auto market and housing prices stabilizing in many regions
- Legacy Wells Fargo commercial and commercial real estate portfolio well underwritten and
diversified; Wachovia commercial and commercial real estate portfolio marked down at merger
close at end of last year
- Legacy Wells Fargo loss rate of 3.37 percent, below large bank peers; overall loss rate of
2.50 percent reflected benefit of purchase accounting on Wachovia loan portfolio; combined
losses less than half of Company’s quarterly PTPP
=> provision rise according to my expectation, I think Wells Fargo's estimation is fair and conservative. In certain degree, this is a very econuraging bad news.
• Wachovia integration on track and on schedule
- Estimated cumulative merger expenses reduced to approximately $5.5 billion from $7.9 billion;
on track to achieve $5.0 billion annual run-rate cost savings by completion of integration in 2011
- Cross-sell revenues already being realized
- Credit overall performing in line with original expectations
- First state community bank conversion (Colorado) scheduled for November; conversion of
remaining overlapping markets expected in 2010
=> good!!
• Increased loan modifications
- Provided 62,989 trial and completed modifications through the Home Affordable Modification
Program (HAMP) and 292,005 through Company’s proprietary programs, bringing total this year through September 30, 2009, to 354,994
- Refinanced 987,000 customers’ mortgages using the Home Affordable Refinance Program
(HARP) and other standard refinance programs
- Over 20 percent of PCI Pick-a-Pay portfolio modified through September 30, 2009, with positive early performance
=> mortgage application down 11% last month, but the trend is still going up and I am sure the house market has hit the bottom even though house price rise slowly in the coming year, may upset lots of analysts and economists.
• 3rd consecutive quarter of record earnings
- Record Wells Fargo net income of $3.2 billion, up 98 percent from last year; $9.5 billion year to
date, up 75 percent from last year
- Diluted earnings per common share of $0.56, up 14 percent from last year; $1.69 per share year to date
- Results driven by record $10.8 billion pre-tax, pre-provision profit (PTPP); PTPP has been more than two times quarterly net charge-offs each quarter this year, despite cyclically elevated net charge-offs. (See footnote 4 on page 20 for information on PTPP)
=> awesome results and consistent with 2q09
• Continued strong revenue
- Revenue of $22.5 billion, flat with record revenue in second quarter 2009
- $169 billion of credit extended to customers in the quarter
- Average checking and savings deposits up 11 percent (annualized) from prior quarter
- Net interest margin of 4.36 percent, up 6 basis points from prior quarter
- Cross-sell for legacy Wells Fargo a record 5.90 for retail bank households
- Broad-based revenue contribution from diverse businesses, including double-digit linked-quarter growth in asset management, auto lending, consumer finance, debit cards, retirement services, SBA lending and wealth management, along with continued strong performance from regional banking and mortgage banking
=> net interest margin improved to 4.36, best among peers and a trend that Wachovia start adpoting the high margin economic moat from legacy Wells Fargo.
• Significant increases in capital, reduction in risk
- Wells Fargo stockholders’ equity increased to $122 billion (10 percent of total assets), up
$23 billion from year end
- Generated $20 billion during the past six months toward the $13.7 billion Supervisory Capital
Assessment Program (SCAP) buffer requirement; PTPP tracking above Company’s internal SCAP estimates and 35 percent above supervisory adverse scenario estimate
- Credit reserves built by $1.0 billion ($3.0 billion year to date), reaching $24.5 billion, or
3.07 percent of total loans and 118 percent of nonaccrual loans
- Substantial increases in capital ratios driven by record retained earnings and other sources of
internal capital generation
=> I personally high the capital ratio in general is too high for the entire bank industry, but if that's what the regulatory and the analysts love to see, I think Wells Fargo has more than enough to meet their wants.
• Current projections show credit losses peaking in 2010, with consumer losses potentially peaking in first half of the year and gradually declining, absent further economic deterioration
- Growth in nonperforming loans and net charge-offs slowing as of third quarter, for consumer and commercial portfolios
- Credit performance of recent vintage legacy Wells Fargo consumer portfolios improving, largely the result of proactive credit management over past two years
- 90 days past due and still accruing levels flat with second quarter; consumer 90 days past due and still accruing declined from prior quarter
- Significantly smaller credit card portfolio than large bank peers
- Pick-a-Pay portfolio currently estimated to have lower life-of-loan losses than originally
estimated, driven in part by extensive and successful loan modification efforts
- Collateral values improving in auto market and housing prices stabilizing in many regions
- Legacy Wells Fargo commercial and commercial real estate portfolio well underwritten and
diversified; Wachovia commercial and commercial real estate portfolio marked down at merger
close at end of last year
- Legacy Wells Fargo loss rate of 3.37 percent, below large bank peers; overall loss rate of
2.50 percent reflected benefit of purchase accounting on Wachovia loan portfolio; combined
losses less than half of Company’s quarterly PTPP
=> provision rise according to my expectation, I think Wells Fargo's estimation is fair and conservative. In certain degree, this is a very econuraging bad news.
• Wachovia integration on track and on schedule
- Estimated cumulative merger expenses reduced to approximately $5.5 billion from $7.9 billion;
on track to achieve $5.0 billion annual run-rate cost savings by completion of integration in 2011
- Cross-sell revenues already being realized
- Credit overall performing in line with original expectations
- First state community bank conversion (Colorado) scheduled for November; conversion of
remaining overlapping markets expected in 2010
=> good!!
• Increased loan modifications
- Provided 62,989 trial and completed modifications through the Home Affordable Modification
Program (HAMP) and 292,005 through Company’s proprietary programs, bringing total this year through September 30, 2009, to 354,994
- Refinanced 987,000 customers’ mortgages using the Home Affordable Refinance Program
(HARP) and other standard refinance programs
- Over 20 percent of PCI Pick-a-Pay portfolio modified through September 30, 2009, with positive early performance
=> mortgage application down 11% last month, but the trend is still going up and I am sure the house market has hit the bottom even though house price rise slowly in the coming year, may upset lots of analysts and economists.
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