Shares of Potash Corp. of Saskatchewan Inc. fell Monday, days after the Canadian fertilizer company slashed its third-quarter and full-year 2009 profit forecast.
The company said Friday it lowered the forecast because of lagging sales volume, and that demand continued to be slow and fertilizer distributors had limited their restocking orders.
Potash lowered its 2009 profit estimate to a range of $3.25 to $3.75 per share, lower than a $4.16 per share consensus estimate of analysts on Wall Street. In July, the company predicted $4 to $5 per share for the year.
The company also lowered its third-quarter estimate to the low end of a range of 80 cents to $1.20 per share. Analysts surveyed by Thomson Reuters expect 93 cents per share.
On Monday, Citi Investment Research analyst P.J. Juvekar wrote in a client note that his firm was lowering its 2009 estimates for Potash by 55 cents, to $3.70 per share, on weak volumes. Its 2010-11 estimates remain largely unchanged, however.
He noted that Potash had significantly cut its 2009 earnings guidance for the third time this year on weaker-than-expected potash volumes.
Last week, Citi downgraded fertilizer stocks because of a late harvest that may reduce the fall application of fertilizer and lower farm profitability, among other factors.
"Buyers are waiting, producer inventories are at historic highs, and retailers are living hand-to-mouth," Juvekar wrote.
Potash shares sank $5.86, or 6 percent, to $91.28 in morning trading.
lunes, 21 de septiembre de 2009
Budget mess likely to resurface in Pa.'s '10 races
Campaign considerations are never far from the minds of Pennsylvania's state lawmakers, and these days they have a new worry — the budget standoff that has sunk their poll numbers.
Next year, when all 203 House seats and half the 50-member Senate will be up for election, voters will issue their verdict on the process that has shown in vivid relief just how hard it can be for a divided government to find common ground.
The backlash could encourage more challengers and prompt a slew of retirements, as occurred following widespread public disgust over passage of the 2005 pay raise law. Some voters will be eager to punish legislators who voted for higher taxes, or even for simply floating them. Some will consider program cuts draconian, while others will think they did not go far enough.
Gov. Ed Rendell and senior lawmakers did finally announce a breakthrough deal late Friday, but their constituents will be not be asking them to repeat the drawn-out process next year.
"They understand that the founding fathers could go to Philadelphia in the middle of summer and write a document that endured for over two centuries, and that the state Legislature should be able to go to their air-conditioned offices and get a budget done — and the same with the governor," veteran Republican political consultant John Brabender said.
Next year's elections have loomed over the negotiations, because the atmosphere for raising new taxes will be even more hostile, but the downward economic pressure that devastated revenues and produced the current deficit are unlikely to suddenly disappear.
"If we have this situation next year, it would be harmful to the Democrats, the Democratic governor and the Democratic majority in the House, and that's why it's important to get it right now for Pennsylvanians, and get it right for the party," said Rep. Mike Gerber, D-Montgomery, who heads up his caucus' campaign efforts.
Many Republicans are licking their chops over the tax issue, and the House Republicans were so adamantly opposed to the deal's new taxes and the overall size of the budget that their leadership withdrew from the endgame negotiations.
House Minority Leader Sam Smith, R-Jefferson, said he felt he could not, in good faith, be a party to discussions of tax increases that his members strictly oppose.
"If you're in the room and you're debating what taxes to raise and what taxes not to raise, and then you turn around and say, 'I'm not voting for that,' that's kind of negotiating in bad faith, and I'm not going to do that," he said.
House Democrats maintain that voters will harshly judge the Republicans' disengagement during the late-in-the-game budget talks.
"When you don't come to the table and you don't represent your concerns, they're underrepresented," said Majority Leader Todd Eachus, D-Luzerne. "For me, on a personal level, it's the wrong decision."
Senate President Joe Scarnati, R-Jefferson, said campaign researchers will be looking back much farther than just this year when it comes to tax votes.
"We can pick out somebody who's adamantly opposed to taxes this year that voted for a bunch of taxes years ago," he said.
Democrats will be trying to sell voters on their efforts to preserve funding for human services, education, environmental initiatives, economic development and other programs, Gerber said.
"There are Pennsylvanians whose jobs and lives are on the line, and our actions will have a very serious impact on those Pennsylvanians," he said.
Republicans can take encouragement by the likelihood that Pennsylvania's electorate will probably look a lot different in November 2010 than the one that handed President Barack Obama the state by a 10.4 percentage-point margin last year.
"It'll be a) whiter, and b) older, and probably more conservative and that will probably benefit Republicans," said Franklin & Marshall College political scientist Terry Madonna.
He said that although it may be a good season to run against incumbents, he warned that the level of anti-Harrisburg sentiment is not like it was in 2006, and that incumbents have built-in protections.
They also have 13 months to try to change the subject.
Next year, when all 203 House seats and half the 50-member Senate will be up for election, voters will issue their verdict on the process that has shown in vivid relief just how hard it can be for a divided government to find common ground.
The backlash could encourage more challengers and prompt a slew of retirements, as occurred following widespread public disgust over passage of the 2005 pay raise law. Some voters will be eager to punish legislators who voted for higher taxes, or even for simply floating them. Some will consider program cuts draconian, while others will think they did not go far enough.
Gov. Ed Rendell and senior lawmakers did finally announce a breakthrough deal late Friday, but their constituents will be not be asking them to repeat the drawn-out process next year.
"They understand that the founding fathers could go to Philadelphia in the middle of summer and write a document that endured for over two centuries, and that the state Legislature should be able to go to their air-conditioned offices and get a budget done — and the same with the governor," veteran Republican political consultant John Brabender said.
Next year's elections have loomed over the negotiations, because the atmosphere for raising new taxes will be even more hostile, but the downward economic pressure that devastated revenues and produced the current deficit are unlikely to suddenly disappear.
"If we have this situation next year, it would be harmful to the Democrats, the Democratic governor and the Democratic majority in the House, and that's why it's important to get it right now for Pennsylvanians, and get it right for the party," said Rep. Mike Gerber, D-Montgomery, who heads up his caucus' campaign efforts.
Many Republicans are licking their chops over the tax issue, and the House Republicans were so adamantly opposed to the deal's new taxes and the overall size of the budget that their leadership withdrew from the endgame negotiations.
House Minority Leader Sam Smith, R-Jefferson, said he felt he could not, in good faith, be a party to discussions of tax increases that his members strictly oppose.
"If you're in the room and you're debating what taxes to raise and what taxes not to raise, and then you turn around and say, 'I'm not voting for that,' that's kind of negotiating in bad faith, and I'm not going to do that," he said.
House Democrats maintain that voters will harshly judge the Republicans' disengagement during the late-in-the-game budget talks.
"When you don't come to the table and you don't represent your concerns, they're underrepresented," said Majority Leader Todd Eachus, D-Luzerne. "For me, on a personal level, it's the wrong decision."
Senate President Joe Scarnati, R-Jefferson, said campaign researchers will be looking back much farther than just this year when it comes to tax votes.
"We can pick out somebody who's adamantly opposed to taxes this year that voted for a bunch of taxes years ago," he said.
Democrats will be trying to sell voters on their efforts to preserve funding for human services, education, environmental initiatives, economic development and other programs, Gerber said.
"There are Pennsylvanians whose jobs and lives are on the line, and our actions will have a very serious impact on those Pennsylvanians," he said.
Republicans can take encouragement by the likelihood that Pennsylvania's electorate will probably look a lot different in November 2010 than the one that handed President Barack Obama the state by a 10.4 percentage-point margin last year.
"It'll be a) whiter, and b) older, and probably more conservative and that will probably benefit Republicans," said Franklin & Marshall College political scientist Terry Madonna.
He said that although it may be a good season to run against incumbents, he warned that the level of anti-Harrisburg sentiment is not like it was in 2006, and that incumbents have built-in protections.
They also have 13 months to try to change the subject.
Helix shares fall as analyst downgrades stock
Shares of Helix Energy Solutions Group Inc. fell on Monday as an analyst lowered his rating on the oil services provider's stock, citing significant share price appreciation and a lack of near-term growth drivers.
Helix shares fell 48 cents, or 3.1 percent, to $14.95 in morning trading. Shares are still well above their 2009 low of $2.70 per share in February.
The stock has had a great run, said Raymond James analyst J. Marshall Adkins, who said that was why he downgraded his rating to "Outperform" from "Strong Buy."
Helix recently sold its remaining stake in Cal Dive International Inc., a contractor for services to offshore energy companies, in three separate transactions, raising over $500 million of cash, a move Adkins believes is its last significant near-term balance sheet-related catalyst.
"Although we expect that its production facilities and exploration and production assets will eventually be monetized as well, this is not a seller's market and Helix is no longer under any pressure to have to sell immediately," Adkins said.
Looking ahead, Adkins sees long term value in the company's assets. He believes the company could one day be worth as much as $25 to $30 per share. Adkins raised his 12-month target price to $17.50 from $15.50.
Helix shares fell 48 cents, or 3.1 percent, to $14.95 in morning trading. Shares are still well above their 2009 low of $2.70 per share in February.
The stock has had a great run, said Raymond James analyst J. Marshall Adkins, who said that was why he downgraded his rating to "Outperform" from "Strong Buy."
Helix recently sold its remaining stake in Cal Dive International Inc., a contractor for services to offshore energy companies, in three separate transactions, raising over $500 million of cash, a move Adkins believes is its last significant near-term balance sheet-related catalyst.
"Although we expect that its production facilities and exploration and production assets will eventually be monetized as well, this is not a seller's market and Helix is no longer under any pressure to have to sell immediately," Adkins said.
Looking ahead, Adkins sees long term value in the company's assets. He believes the company could one day be worth as much as $25 to $30 per share. Adkins raised his 12-month target price to $17.50 from $15.50.
Lennar posts wider loss in 3Q, but market improves
Homebuilder Lennar Corp. reported a wider loss in its fiscal third quarter as it continued to write down the value of land and unsold homes, but executives say the company will be profitable next year assuming the economy remains stable.
Orders for new homes were down 8 percent from a year earlier, but they increased each month during the quarter ending Aug. 31. Another positive sign: the Miami-based company had more sales in the works at the end of last month than any time since August 2008.
"We're gaining confidence that we're getting much closer to the end of this housing-led downturn," Stuart Miller, Lennar's president and CEO, said in a conference call, noting that consumers are feeling much more confident about purchasing a home.
While the housing market and economy are still tentative, Miller said the market "feels materially better than the absolute hopelessness that had existed for so long."
Still, homebuilders like Lennar face big unknowns. A tax credit of up to $8,000 for first-time homebuyers expires Nov. 30, and lawmakers have yet to decide whether to extend it. While the Federal Reserve has been able to keep mortgage rates near historic lows, it's unclear how long that will last.
Lennar, which caters to first-time homeowners, sold 2,691 homes, down 29 percent from year-ago levels. The average sales price was $239,000, down 11 percent, but stronger demand allowed Lennar to reduce the incentives it offered homebuyers to $42,200 per home, down from $45,900 a year ago, and markedly better than the $52,600 in offered during the second fiscal quarter.
The company reported Monday that it lost $171.6 million, or 97 cents per share, in the three months ended in August. That includes 76 cents per share in write-downs and tax adjustments, and compares with a loss of $89 million, or 56 cents per share, a year earlier.
Revenue fell 35 percent to $720.7 million from $1.11 billion.
Analysts were expecting a loss of 46 cents a share on revenue of $774.4 million, and appeared disappointed with the company's results. Lennar's stock was off 58 cents at $15.96 in late-morning trading.
The Miami-based builder raised $99 million through a stock offering in the period and ended the quarter with a cash cushion of $1.34 billion and no outstanding borrowings under its credit facility.
Lennar sells homes in 17 states and was ranked the fourth-largest homebuilder last year by Builder magazine.
Orders for new homes were down 8 percent from a year earlier, but they increased each month during the quarter ending Aug. 31. Another positive sign: the Miami-based company had more sales in the works at the end of last month than any time since August 2008.
"We're gaining confidence that we're getting much closer to the end of this housing-led downturn," Stuart Miller, Lennar's president and CEO, said in a conference call, noting that consumers are feeling much more confident about purchasing a home.
While the housing market and economy are still tentative, Miller said the market "feels materially better than the absolute hopelessness that had existed for so long."
Still, homebuilders like Lennar face big unknowns. A tax credit of up to $8,000 for first-time homebuyers expires Nov. 30, and lawmakers have yet to decide whether to extend it. While the Federal Reserve has been able to keep mortgage rates near historic lows, it's unclear how long that will last.
Lennar, which caters to first-time homeowners, sold 2,691 homes, down 29 percent from year-ago levels. The average sales price was $239,000, down 11 percent, but stronger demand allowed Lennar to reduce the incentives it offered homebuyers to $42,200 per home, down from $45,900 a year ago, and markedly better than the $52,600 in offered during the second fiscal quarter.
The company reported Monday that it lost $171.6 million, or 97 cents per share, in the three months ended in August. That includes 76 cents per share in write-downs and tax adjustments, and compares with a loss of $89 million, or 56 cents per share, a year earlier.
Revenue fell 35 percent to $720.7 million from $1.11 billion.
Analysts were expecting a loss of 46 cents a share on revenue of $774.4 million, and appeared disappointed with the company's results. Lennar's stock was off 58 cents at $15.96 in late-morning trading.
The Miami-based builder raised $99 million through a stock offering in the period and ended the quarter with a cash cushion of $1.34 billion and no outstanding borrowings under its credit facility.
Lennar sells homes in 17 states and was ranked the fourth-largest homebuilder last year by Builder magazine.
Moody's: Commercial real estate prices falling
Prices for commercial real estate suffered steep declines in July and the volume of transactions remained low, according to a report issued Monday by Moody's Investors Service.
The Moody's/REAL Commercial Property Price Indices (CPPI) was down 5.1 percent from June after slipping just 1 percent the previous month.
The index is now 30.8 percent below its year-ago level and 38.7 percent below its peak in October 2007.
Transaction volume remains anemic as well. For the first seven months of the year, the market averaged about 375 sales per month, Moody's said. That compares to about 1,100 a month over the same time last year.
Prices for apartments in the East fared better than in other regions, falling just 6 percent in the past year. Nationally, apartment prices tumbled 24.4 percent in the past year. Apartments in the South posted the steepest drop, at 44.2 percent.
Florida apartments have also seen dramatic declines, with prices now 49.8 percent below their peak levels.
The Moody's/REAL Commercial Property Price Indices (CPPI) was down 5.1 percent from June after slipping just 1 percent the previous month.
The index is now 30.8 percent below its year-ago level and 38.7 percent below its peak in October 2007.
Transaction volume remains anemic as well. For the first seven months of the year, the market averaged about 375 sales per month, Moody's said. That compares to about 1,100 a month over the same time last year.
Prices for apartments in the East fared better than in other regions, falling just 6 percent in the past year. Nationally, apartment prices tumbled 24.4 percent in the past year. Apartments in the South posted the steepest drop, at 44.2 percent.
Florida apartments have also seen dramatic declines, with prices now 49.8 percent below their peak levels.
Raytheon gets $42M Navy deal for pod systems
MCKINNEY, Texas (AP) - Raytheon Co. received a $42 million contract from the Navy to provide 14 infrared pod systems and spares to the Swiss Air Force, the company said Monday.
The advanced targeting forward looking pod system, ATFLIR, will be delivered in 2010 to the Swiss government for use on their F/A-18 Hornet aircraft.
The additional pods will give the Swiss Air Force advanced sensor and laser-tracking capability, according to Raytheon.
Shares of the Waltham, Mass.-based company fell 66 cents to $47.67 in morning trading.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The advanced targeting forward looking pod system, ATFLIR, will be delivered in 2010 to the Swiss government for use on their F/A-18 Hornet aircraft.
The additional pods will give the Swiss Air Force advanced sensor and laser-tracking capability, according to Raytheon.
Shares of the Waltham, Mass.-based company fell 66 cents to $47.67 in morning trading.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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