Business Briefs - Tuesday

ENERGY

EnCana beats, but expenses rise

The Canadian oil and gas company said Q1 EPS rose 26% to $1.39 ex items, topping views by 8 cents. Revenue rose 20% to $5.34 bil. EnCana's ECA net income plunged 81% due to losses on hedging and rising costs. Average realized prices for oil and natural gas liquids surged 63% from a year ago. Overall gas production rose 10%. Shares fell 1.5% to 84.94.

Asian exports boost Peabody

The coal producer said Q1 EPS fell 21% to 26 cents ex items, topping views by 8 cents. Revenue jumped 15% to $1.28 bil, above estimates. Peabody Energy BTU benefited from high foreign demand, especially from Asia. It sees Q2 EPS of 35-60 cents vs. views of 52 cents. Peabody boosted its '08 forecast to $2.20-$3.00 from Jan.'s target of $1.00-$1.85. Wall St. expects $1.99. Peabody dipped 0.4% to 68.56.

Smith Int'l SII, an oil services provider, said Q1 EPS rose 9% to 87 cents, matching views. Revenue rose 12% to $2.37 bil, also in line with estimates. Shares slid 1.7% to 76.69. Baker Hughes profit tops views

The oil-field services provider said its Q1 EPS rose 3% to $1.21 ex items, beating views by a penny. Revenue rose 8% to $2.67 bil, just shy of estimates. Baker Hughes BHI said results in North America were better than projected. It predicted higher energy prices would fuel increased drilling activity. Shares fell 0.9% to 81.12.

Pricing pressure hits BJ Services

The oil-field services company said Q2 EPS fell 33% to 43 cents, missing views by 12 cents. Revenue grew 8% to $1.28 bil, below views. BJ Services BJS was hurt by lower prices in North America amid intensifying competition. Prices for pressure pumping, a technique to increase well output, have fallen because of overcapacity. BJ Services sees Q3 EPS of 39-43 cents, well below views of 50 cents. Shares tumbled 14.7% to 27.98.

METALS

Higher prices power AK Steel

The steel maker said Q1 EPS jumped 61% to 90 cents ex items, surpassing analyst views by 8 cents. Sales climbed 4% to $1.79 bil, above forecasts, on higher selling prices. AK Steel AKS forecast higher average selling prices and an increase in Q2 shipments by 8% from Q1 to 1.7 mil tons, but it said planned maintenance costs will be $40 mil higher than expected. It fell 4% to 65.10.

FOOD

Corn Products rises on outlook

The processor of corn and other materials for food said Q1 EPS rose 28.8% to 85 cents, topping views by 14 cents. Revenue jumped 22% to $930.9 mil, above views. Corn Products Int'l CPO said strong sales in South America helped. It boosted its '08 EPS outlook to $2.85-$3.10 ex items vs. views of $2.87. Corn Products sees '08 sales of $4 bil, above views. It surged 9.9% to 45.96.

TELECOM

Subscriber gains boost Millicom

The wireless carrier that focuses on emerging markets said Q1 net profit rose 78% to $158 mil, beating views. Revenue jumped 42% to $800.7 mil, missing views. Millicom International Cellular MICC added 2.8 mil net subscribers, with the biggest growth in subscribers in Honduras, Ghana and Tanzania. Analysts called it an impressive gain. Shares soared 12.2% to 107.51.

AT&T meets on wireless growth

The phone giant met Q1 profit forecasts for a 14% increase to 74 cents a share ex items. Revenue rose 6% to $30.7 bil. AT&T T cited strong wireless growth. Ma Bell sees little evidence that U.S. economic woes are affecting business, apart from some softness in its local phone lines. AT&T lost 1.2 mil phone lines to end with 60.4 mil, but it added 491,000 wireless customers for a total of 14.6 mil. AT&T rose 0.6% to 37.81. More on A4

INDUSTRIAL

Pricing, product mix lift Pentair

The diversified manufacturer said Q1 EPS rose 26% to 53 cents ex items, a nickel better than views. Revenue grew 6% to $840.4 mil, topping forecasts. Pentair PNR cited acquisitions and improvements in volume, pricing, product mix and productivity. Pentair expects Q2 EPS of 64-67 cents, below views of 71 cents. But it raised the low end of its '08 EPS guidance by a nickel to $2.30-$2.40, the midpoint above forecasts of $2.33. It rose 1.2% to 37.

Astec falls on slowing U.S. gains

The maker of specialized building equipment said Q1 EPS jumped 13% to 78 cents, a penny above views. Revenue climbed 22% to $263 mil, besting forecasts. Astec Industries ASTE cited an 88% jump in int'l sales, but domestic sales grew just 2.5%. Its order backlog dipped 1.2% to $263 mil. Shares tumbled 12.2% to 36.60.

DIVERSIFIED

Harsco beats, but mill unit weighs

The industrial services firm's Q1 EPS rose 24.1% to 67 cents, beating views by 4 cents. Revenue grew 18% to $987.8 mil, above views. Harsco HSC said strong sales at its mineral and rail service group more than offset the impact of higher fuel costs in its mill service segment. It raised its '08 EPS outlook to $3.45-$3.55 vs. views of $3.48, due to strong int'l revenue. Analysts expressed concerns about weakness in Harsco's mill service group, sending shares down 2.9% to 60.49.

CHEMICALS

DuPont beats, backs '08 outlook

The chemical giant said its Q1 EPS rose 22% to $1.31, beating views by 3 cents. Sales grew 9% to $8.6 bil, falling slightly below forecasts. DuPont DD said strong sales of farming chemicals and seeds and brisk business overseas offset a slowdown in the U.S. economy. DuPont DD backed its '08 EPS of $3.40-$3.55 vs. views of $3.48, but cautioned that raw material and energy costs are likely to grow 9%, about double the pace of last year. It fell 4% to 50.16.

ELECTRICAL

II-VI EPS beats, but guides below

The optical and electronic instrument maker said Q3 EPS climbed 33% to 44 cents ex items, topping views by 4 cents. Revenue jumped 25% to $81.0 mil, just below forecasts of $81.7 mil. II-VI IIVI sees Q4 EPS of 40-44 cents on sales of $85 mil-$88 mil vs. views of 43 cents and $87.6 mil. It expects '09 EPS growth of 12% on sales growth of 11%. Analysts expect EPS growth of 17% and revenue growth of 12%. Shares tumbled 10.8% to 35.41.

DEFENSE

Lockheed outlook below views

The defense contractor said Q1 EPS rose 9% to $1.75, beating views by 12 cents. Revenue rose 7.7% to $9.98 bil, also topping projections. Lockheed Martin LMT said higher sales of space equipment, missiles and other combat tools offset a dip in fighter jet sales. It raised its '08 EPS outlook to $7.15-$7.35, but that was still below analysts' projections of $7.37. Lockheed declined 2.6% to 103.79.

MEDIA

News Corp. may buy Newsday

Rupert Murdoch's media giant may buy Newsday from Tribune for $580 mil, according to published reports. Tribune CEO Sam Zell has said he might sell Newsday or other assets to help pay off debt from his acquisition of the company last year. Any deal for Newsday would face close regulatory scrutiny since News Corp. NWS already owns the New York Post, Wall Street Journal and two N.Y.-area TV stations. News Corp. fell 2.3% to 18.50.

The Wall Street Journal's managing editor resigned. Marcus Brauchli said the paper's new owner, News Corp. NWS, "should have a managing editor of their choosing." FINANCE

Loan growth boosts Hudson City

The N.J.-based bank said Q1 EPS jumped 38% to 18 cents, meeting views. Hudson City Bancorp HCBK said the mortgage crisis forced out many of its competitors, enabling it to boost its market share. It avoided much of the mortgage meltdown since it didn't offer subprime loans. Also, the New York metropolitan area, where Hudson City runs its 119 branches, has not suffered from the housing downturn as much as other regions. It climbed 4.5% to 18.27.

Waddell & Reed Financial WDR, an investment manager, said its Q1 EPS fell 5.7% to 33 cents, missing views by 6 cents, as rising costs curbed profits. Revenue rose 23.5% to $234.1 mil. It fell 3.8% to 31.80. UMB Financial UMBF, a financial services company, said its Q1 EPS rose 41.5% to 58 cents ex items, beating views by 11 cents. Net interest margin rose to 3.5% from 3.32%. UMB surged 6.6% to 44.29. SunTrust Banks STI said its Q1 earnings fell 44% to 81 cents a share, missing views by 21 cents. Non-interest income, which includes fees and charges, rose 20% to $1.06 bil. Shares edged up 0.6% to 52.60. CONSUMER

Kimberly-Clark profit, sales up

The maker of Kleenex tissues and Huggies diapers said its Q1 EPS rose 5% to $1.08 ex items, beating views by a penny. Revenue rose 10% to $4.81 bil, above views. Kimberly-Clark KMB said sales volume and prices rose but nearly half the sales gain came from the weaker dollar. It expects to earn $1.08-$1.11 a share, below views of $1.12. Shares rose 0.5% to 64.37.

TRANSPORTATION

Delta: More fare hikes needed

The carrier, which seeks to buy Northwest Air NWAlines, said domestic airlines need to raise fares by 15%-20% just to break-even at current fuel prices. Delta Air Lines DAL said the increase would likely hurt demand, prompting carriers to trim their flight schedules. Since Dec. 20, airlines have raised fares 9 times, according to BestFares.com. Delta tumbled 17% to 6.80.

Norfolk Southern NSC, a railroad operator, said after hours that its Q1 EPS rose 10% to 78 cents ex items, meeting estimates. Revenue climbed 11% to $2.5 bil, above views. Shares edged lower. Canadian Pacific Railway CP said Q1 EPS grew 12% to 75 cents ex items, beating views by 2 cents. Revenue rose 3% to $1.12 bil, missing views. It cut its '08 EPS outlook to below views. It fell 5% to 67.59.