Industrials
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News and Views
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Macro/Technicals
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Sector News, M&A, Capital Raises
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Research Away
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Top Events/Earnings Calendar
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News and Views
Japan unemployment data has the markets down this am in Europe. The chemicals continue to crank out some good numbers. EMN beat top and bottom line last night and guided higher for the year. Conference call at 8:00am. Look for weakness in some of the builders today off Lafarge SA cutting their outlook for cement demand this am for 2010. Stock is trading down 5%. AXL just reports a dime better on better revs. This could help the space today. Look for strength in MGA, ARM, DAN, LEA. Recall that we had some good numbers yesterday out of GT, TEN as well. BWA also is expected this am. UFS just reports and beats on top and bottom line.
Macro/Technicals
XAL : 40.42; +.15S&P 500 Auto : -0.42
S&P 500 Transportation : -0.51
S&P 500 Materials : 0.00
GLD : 114.288; +0.4
XLI : 30.17; -0.3
Sector News, M&A, Capital Raises
Industrials
o EADS Ups Guidance For Orders, Revenue, Profitability
§ EADS CFO: "Surprised" By Speed Of Recovery – DJ
o Lafarge SA cut its outlook for cement demand in the company’s markets in 2010. The company said the industry’s sales may range between a drop of 1 percent to a gain of 3 percent. They had earlier said the markets may go from flat to a gain of 5 percent.
o HeidelbergCement Shares Trade +1.2% After 2Q Data
§ HeidelbergCement AG, the world’s largest maker of aggregates used to produce concrete and asphalt, said sales rose for the first time in six quarters as a rebound in the global economy revived demand.
o PATR Patriot Transportation Holding names Thompson Baker II President and CEO effective October 1
o VSEC VSE Corporation reports
o SSD Simpson Manufacturing reports Q2 EPS
o DLB Dolby Laboratories authorizes an additional $300M for stock repurchases
o CW Curtiss-Wright reports Q2 EPS
o THMD Thermadyne Holdings reports Q2 EPS
o ATRO Astronics reports Q2 EPS
o DDIC DDi Corp reports Q2 EPS
o LCRY LeCroy guides Q4 revenue to $36.7M vs prior $34-35M and Reuters $35.0M
o GNK Genco Shipping & Trading provides update on Genco Lorraine
o BOOM Dynamic Materials reports Q2 EPS
o UACL Universal Truckload Services reports Q2 EPS
o KTEC Key Technology reports Q3 EPS
o HON Honeywell TIGER program extended with the US Army
o PWER Power-One reports Q2 EPS
o ALEX Alexander & Baldwin reports Q2 EPS
o RSG Republic Services reports Q2 EPS
o COHR Coherent reports Q3 EPS
Transports
o Lean Air-Safety Bill Nears Passage – WSJ link
§ House and Senate leaders, deadlocked over an FAA bill including plans for air-traffic control improvements, have compromised on a slimmed-down measure to enhance airliner safety.
o British Airways' (BAY.LN) Shares +3% first quarter results highlight a feeling of "back to business as usual," DJ
o WXS Wright Express to acquire the Australian assets of Retail Decisions for A$353M ($318M) in cash from Palamon Capital Partners
Materials
o EMN Eastman Chemical reports Q2 EPS
o MTX Minerals Technologies reports Q2 EPS
o GFRE Gulf Resources files $120M mixed shelf
o WSJ pos on ArcelorMittal
o http://online.wsj.com/article/SB10001424052748703578104575397141803078582.html?mod=djemheard_t
o Posco Denies Report of Second-Half Price Cut, Government Warning - BBG: Posco, the world’s third-largest steelmaker, denied an Edaily report it’s considering a reduction in second-half steel prices following government criticism that it passed on higher raw-material costs. The Pohang, South Korea-based company isn’t reviewing an adjustment in domestic prices nor did it receive a warning from the government
o Vale SA, the world’s largest iron- ore producer, said second-quarter profit rose more than fourfold because of surging prices for the steelmaking raw material.
o Anglo American's (AAL.LN) 1H results slightly miss expectations – DJ
§ "the tone of progress at Minas Rio is not reassuring - key permits remain outstanding and AAL lack certainty on when construction can begin." Anglo is flagging production delays until mid-2013 at least,
§ Anglo American CEO: Platinum Seen In 200,000 Ounce Deficit This Year
§ Dow Jones)--The global supply of nickel is expected to fall 20,000 tons short of demand in 2010, the chief executive of Anglo American PLC (AA.LN) said Friday.
o Vedanta's (VED.LN) fiscal first quarter production results were largely in line with expectations, though growth at its aluminum operations fell short, says UBS
o Ferrovial (FER.MC) 2Q earnings are better than expected
§ The net loss of EUR84.1M is more than expected but primarily the result of accounting adjustments and exchange rate movements, says Banest
o Chalco Shares Rise on Guinea Iron Ore Stake Purchase – BBG
§ Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, rose the most in more than four months in Shanghai trading after agreeing to buy a stake in Rio Tinto Group’s Simandou iron ore project in Guinea
§ Chalco, as the Beijing-based company is known, rose 6.7 percent
Research Away
POT-Potash upgraded to buy from hold at Citi ($102.80)
Target increased to $124 from $96. The firm believes demand in fall will be above consensus.
PTV-Pactiv Corp downgraded to neutral from buy at Bank of America Merrill Lynch
KBR-KBR downgraded to equal-weight from overweight at Morgan Stanley ($22.15)
Downgraded based on price.
Top Events/Earnings Calendar
RSG-Republic Services reports Q2 EPS $0.42 vs Reuters $0.42 ($32.01)
Company reports revenues of $2.07B vs Reuters $2.05B, and internal growth of 0.9% vs year ago (12.5%), consisting of (3.3%) contribution from volume and 4.2% from pricing. Guides f10 EPS to $1.69-$1.71 vs prior $1.63-$1.67 vs Reuters $1.60.
COMV-Comverge reports Q2 EPS ($0.39) ex-items vs Reuters ($0.39)
- Reports Q2:
- Revenues $17.0M vs Reuters $15.9M
- Gross margin 31.4% compared to 44.0% y/y
- Gross margin was impacted by 3 percentage points for the one-time limited product recall disclosed in June and lower gross margins on turnkey contracts.
- Deferred VPC contract revenues at June 30 were $14.3M, with a deferred gross margin of 76% compared to deferred VPC gross margin of 66% at June 30, 2009.
- Full Year Guidance:
- Reaffirms revenue $125-137 vs Reuters $134.4M
- Expects to grow total megawatts under management by 800 megawatts
- COMV has 910 megawatts under long-term capacity contracts, which represents approximately $614M in total contracted future revenues.
ITT-ITT Corporation reports Q2 EPS $1.22 cont ops vs Reuters $1.07 ($49.92)
Company reports revenues of $2.70B vs Reuters $2.84B.
- Guides Q3 EPS to $0.94-$0.98 vs Reuters $1.10; guides revenues to $2.7B vs Reuters $2.86B
- Guides f10 EPS to $4.08-$4.18, including $0.11 dilutive impact of acquisitions and discont ops, vs Reuters $4.20; guides revenues to $11B vs Reuters $11.38B.
UFS-Domtar reports Q2 EPS $2.67 ex-items ($53.64)
- Reuters estimate is $1.64 and unlikely comparable.
- Company reports revenues of $1.55B vs Reuters $1.51B.
- The company expects Q3 paper shipments to be flat compared to Q2, before gradually declining towards year-end due to seasonal factors.
- Inflation on input costs is expected to be marginal for H2 of the year.
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AXL-American Axle reports Q2 EPS $0.36 ex-items vs Reuters $0.26 ($9.10) |
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