Business Briefs - Wednesday

CHEMICALS

Agrium beats, gives bullish outlook

The giant fertilizer producer swung to a Q4 profit of $1.24 a share, blowing past views by 36 cents. Revenue jumped 58.6% to $1.43 bil, also above projections. Agrium AGU cited strong global demand and high prices for agricultural products. It characterized its '08 business prospects as outstanding, citing high crop prices that are providing growers with an incentive to grow more crops. Shares surged 5.1% to 66.04.

MEDICAL

Elan's EPS misses, guides in line

The drugmaker posted an 18-cent loss in Q4, worse than the 6 cents it lost last year and missing views by 3 cents. Revenue jumped 31% to $218.3 mil, topping estimates of $202.8 mil. Elan ELN cited the continued strong demand for Tysabri, a drug for multiple sclerosis that also has been OK'd in the U.S. for bowel disorder Crohn's. Elan sees '08 revenue approaching or exceeding $1 bil, in line with forecasts of $1.03 bil. It rose 1.2% to 25.45.

Genzyme misses, revenue jumps

The biotech giant said its Q4 EPS rose 18.2% to 91 cents ex items, a penny below views. Revenue jumped 21% to $1.04 bil. The result was boosted by strong sales of its newest drug, Myozyme, a treatment for rare muscle disorder Pompe disease. But increased expenses hurt the result. Genzyme GENZ guided Q1 EPS below views. It sees an earnings rise of about $7 a share by 2011. Shares fell 1.9% to 75.30.

TELECOM

Millicom's EPS misses, sales beat

The Luxembourg-based mobile phone operator said Q4 EPS surged 120% to $1.08, but missed views by 15 cents. Revenue jumped 41% to $768 mil, above forecasts. Millicom MICC said it added 3.4 mil subscribers worldwide in Q4, with big gains in Africa. It also said its board is recommending a special dividend of $2.40 a share. It dipped 4 cents to 104.90.

ENERGY

Court freezes Venezuela funds

A U.S. judge put a hold on $300 mil in assets belonging to Venezuela's state oil company, backing Exxon Mobil's XOM claim that the country did not fairly compensate the oil giant for oil facilities it seized last year. Venezuela halted oil exports to Exxon a day earlier in retaliation and has threatened to cut off oil shipments to the U.S. Middle East oil producers have pledged to boost shipments if Venezuela cuts off supplies, the State Dept. said. Exxon rose 1.3% to 85.49.

BEVERAGES

Coke beats, expresses confidence

The world's biggest beverage maker said Q4 EPS rose 12% to 58 cents ex items, topping forecasts by 3 cents. Revenue grew 24% to $7.33 bil, also above views. Coca-Cola KO cited growth in key soft-drink brands and in its water, sports drink and orange juice segments, along with gains in Africa, India and Latin America. Coke said it's mindful of the slowing U.S. economy, but it's confident about its overall volume and growth targets. Shares dipped 0.9% to 59.39.

SERVICES

Geo Group tops, lifts guidance

The operator of correctional and mental health facilities said its Q4 EPS was flat with 27 cents ex items, topping views by a penny. Sales grew 6% to $262.6 mil, also topping analysts' forecasts. Geo Group GEO said U.S. corrections revenue rose 4.8%, while int'l services revenue increased 21%. It sees Q1 earnings of 25-27 cents vs. views of 26 cents, and full-year earnings of $1.27- $1.35, the midpoint above $1.29 analysts' had projected. The company backed '08 revenue outlook of $1.01 bil-$1.03 bil, below views of $1.08 bil. Shares jumped 6.5% to 25.57.

Waste Management WMI, the nation's largest garbage hauler, said its Q4 EPS rose 14.9% to 54 cents, beating views by 3 cents. Revenue boosted 2.4% to $3.36 bil. It rose 2.8% to 34.04. METALS

Gerdau Ameristeel profit up 42%

The minimill steel producer said its Q4 EPS rose to 37 cents, up from 22 cents last year and beating views by 4 cents. Sales boosted 70% to $1.7bil, above views. Gerdau Ameristeel GNA credited an increase in shipments and a 17% increase in average selling prices for finished-steel. Gerdau also declared a special dividend of 25 cents. It plans to pay the cash dividend March 13 to shareholders of record on Feb. 28. Shares surged 5.4% to 13.90.

ArcelorMittal misses, sales rises

The world's largest steel maker said its Q4 earnings rose 3% to $2.44 bil, below views of $2.51 bil. Sales jumped 20% to $27.99 bil as China held back exports. Also, fast-growing economies in Asia, Latin America, Eastern Europe and Russia helped the result. ArcelorMittal MT expects Q1 earnings to be in line with the last with boosted shipments, but it warned that Asia, Africa and Eastern Europe will see earnings fall on operating disruptions.

TRANSPORTATION

Genesee & Wyoming beats, soars

The railroad operator surged 9.4% to 29.68 after it said its Q4 EPS increased 48% to 40 cents ex items, beating views by 6 cents. Revenue climbed 14% to $134.5 mil, also surpassing expectations. Genesee & Wyoming GWR said revenues increased in 9 out of 11 commodity group despite a slowing U.S. economy. The company's commodity group includes pulp, paper, coal and ores. Genesee said its '08 outlook for its core railroads was positive, mainly due to new customers.

Delta Air Lines DAL said passengers traveling this week through several Northeastern cities hit by a winter storm can change their flight schedules without penalty. The cities include Boston, New York and Philadelphia. It rose 1% to 17.71. ELECTRICAL

ABB down on CEO's abrupt exit

Shares of the Swiss electrical engineering giant fell after it said CEO Fred Kindle is leaving because of differences over acquisition strategy. Analysts worried that ABB ABB now may begin a series of takeovers. The company almost went bankrupt in '02 partly because of a buying spree in the '80s and '90s. Surplus funds recently have created pressure to make some acquisitions. ABB said CFO Michel Demare will serve as interim CEO. It fell 1.9% to 24.11.

MEDIA

DirecTV curbs customer losses

The satellite TV operator said Q4 EPS rose 3% to 30 cents a share, a penny better than views. Revenue was up 17% to $4.9 bil, also above projections. DirecTV DTV credited its lowest U.S. churn rate in 8 years, meaning the percent of customers dropping their subscriptions is declining. It also credited subscriber growth in the U.S. and Latin America and improved profit margins. Analysts said it's faring better than rivals because of its affluent subscriber base. It rose 4% to 24.83.

FINANCE

MGIC's subprime loss tops $1.4 bil

The nation's largest mortgage insurer said it lost $1.47 bil in Q4, or $18.17 a share, well below the $1.47 a share profit it made last year. That included $1.2 bil set aside to create a reserve relating to future losses. Analysts had been expecting it to lose $6.77 a share, but that excluded charges. Revenue rose 8.7% to $399.1 mil. Net premiums increased 25% to $380.5 mil. MGIC Investment MTG said it still doesn't expect to make money this year if home-loan delinquencies continue to rise. It fell 11% to 12.61.

Morgan Stanley MS, the investment giant, said it will cut 1,000 jobs in its U.S. mortgage unit and shutter its U.K. business. It rose 1.2% to 43.23.