Business Briefs - Monday

SERVICES

Focus Media misses EPS outlook

The Chinese company that uses flat-screen TVs to display ads on elevators, buses and at shopping centers said after the market closed that its Q3 earnings rose 54% to 43 cents a share ex items, missing views by a penny. Focus Media's FMCN revenue jumped 150% to $151.4 mil, topping forecasts. Advertising at commercial locations, a leading unit, grew 68%, but ad services for its in-store network fell 2%. For Q4 EPS it sees 48-50 cents, in line with views. It fell in late trading.

TECHNOLOGY

Amazon unveils its Kindle e-book

The online retail giant started selling the electronic book reader with wireless access for $399. The Kindle device lets users download books, newspapers and blogs. Amazon AMZN Kindle is thinner than most paperbacks, weighs 10.3 ounces and can hold a collection of about 200 books. Users can buy new books for $9.99. Shares rose 0.7% to 79.18.

Applied Materials sees the light

The chip gear giant will pay $330mil for Baccini, a privately held Italian firm that provides equipment used in making solar cells. Applied Materials AMAT expects the deal, which should close in early '08, will expand its presence in making equipment for the solar power industry. In August, Applied Materials acquired a Swiss supplier of wafer systems for solar equipment, for $483mil. It fell 1.4% to 18.30.

Advanced Micro Devices, AMD the No. 2 maker of microprocessors, unveiled a new platform dubbed the Spider. It combines a special processor for managing graphics with a new microprocessor and a set of chips which link the different components within a system. Shares slid 4.5% to 12.07. RETAIL

Wal-Mart to tout online-only deals

The world's biggest retailer will post online-only Thanksgiving deals on its Web site. For example, it will offer a Zune 30 gigabyte MP3 video player for $98.87, which it says is about 25% off. It also will offer a Garmin Nuvi 650 Portable global positioning system for $298.87, at more than 30% off. Additionally, Wal-Mart WMT also will post secret deals of "Black Friday" discount on its Web site on Thanksgiving Day available for purchase in stores Friday. It fell 1.9% to 45.47.

Lowe's misses, lowers outlook

The nation's No. 2 home improvement retailer said Q3 EPS fell 21% to 38 cents ex items, missing views by 3 cents. Revenue rose 3% to $11.6 bil, below forecasts of $12.4 bil. The U.S. housing slump has hurt results at Lowe's, its rival Home Depot and other home improvement retailers. Lowe's cut its Q4 EPS guidance to 25-29 cents vs. views of 36 cents. It fell 7.6% to 23.12.

Tween Brands TWB, a specialty retailer for girls, fell after it cut its Q4 EPS outlook to 98 cents-$1.08 vs. views of $1.09. Tween Brands TWB said its Q3 EPS fell 20.7% to 46 cents, matching views. Revenue rose 13% to $260.9 mil. Same-store sales rose 4%. It lowered its outlook citing a challenging retail environment. Shares tumbled 12.5% to 27.02. FOOD

Campbell's falls on missed EPS

The soup maker said Q3 earnings rose 6% to 70 cents a share, missing views by a penny. Campbell's CPB sales lifted 7% to $2.3 bil, ahead of estimates. The company said warmer autumn temperatures coupled with higher costs hurt its results. It said it sees soup sales growing 3%-4% in the next year. It rose 1% to 34.94.

MEDICAL

Celgene buys pharma for $2.9 bil

The biotech agreed to acquire Pharmion PHRMfor $72 a share to bolster Celgene's CELGpush into the oncology field. Pharmion shareholders will receive about one-third cash and the rest in Celgene stock, at a ratio to be determined just before the deal's completion. Celgene said the purchase would weigh on '08 earnings before adding to them in '09 and beyond. Celgene dipped 1.4% to 64. Pharmion rose 32% to 65.12.

Layoffs help Cyberonics cut loss

The medical device maker narrowed its Q2 loss to 15 cents a share, up from a 49-cent loss last year and 7 cents better than expected. Revenue dropped 15% to $28.9 mil, falling shy of views. Cyberonics CYBXcited reduced operating expenses from layoffs. The company laid off 15% of its work force in May and said in August it would cut another 12%. It's dealing with falling sales of its VNS Therapy System, an implantable depression-fighting device, in the wake of Medicare and Medicaid officials' decision not to cover the device. It rose 2% to 12.70.

Boston Scientific ups settlement

The medical device maker will pay up to $45 mil more than than previously announced to settle claims involving faulty defibrillators. Boston Scientific BSXwill pay $240 mil to settle thousands of claims, but still far less than the $732 mil it set aside in March to cover the cases. The claims involve Guidant defibrillators subject to recalls and warnings in '05-'06, before Boston bought Guidant. It edged up 1% to 12.21.

Genentech DNAsaid its cancer drug Avastin showed positive results in treating brain cancer. Avastin is already approved to treat lung, breast and colon cancer. Shares rose 0.2% to 75.14. MINING

Steel makers oppose BHP merger

An alliance of Japanese steel companies opposes the proposed merger of mining giants BHP Billiton and Rio Tinto. The Japan Iron and Steel Federation is worried about the merger's effect on prices for iron, copper and aluminum. Rio Tinto has rejected BHP Billiton's $150 bil buyout bid. BHP, which vowed to press its bid, fell 5.2% to 70.84. Rio Tinto slid 6% to 416.05.

Rio Tinto, meanwhile, said its chief executive for diamonds and minerals would leave the company to take a similar position with rival BHP Billiton BHP. AEROSPACE/DEFENSE

TransDigm beats, lifts guidance

The aerospace supplier's Q4 profit rose 63% to 57 cents a share ex items, topping views by 3 cents. Revenue jumped 45% to $168 mil, also beating forecasts. TransDigm cited TDG stronger-than-expected demand for replacement parts and other sales, as well as acquisitions. TransDigm sees '08 EPS of $2.43-$2.53, the midpoint above views of $2.45, on sales of $680 mil-$700 mil. Shares rose 4.8% to 48.50.