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Updates, advisories and surprises
By MarketWatch
Last Update: 3:01 AM ET Nov 16, 2009
Kingspan sees markets remaining tough in 2010
(2:49 AM ET) LONDON (MarketWatch) -- Irish building materials group Kingspansaid Monday that overall trading has been more steady in recent months and that it expects operating profit for 2009 will be around 60 million euros ($89.8 million) after amortization. Kingspan said that, with the exception of Western Europe, construction markets remained under significant pressure and in particular that the non-residential sectors in North America and Central and Eastern Europe both noticeably contracted in recent months. It added these markets are not expected to bottom out for some time. The cost reduction program that started in late 2007 as yielded annual savings of 60 million euros, with some further reductions to come. The group said the environment will remain challenging in 2010, with high-rise expected to weaken, while the residential side is showing some signs of recovery. For 2008, the group reported an adjusted operating profit of 157 million euros.
Cellcom 3rd-quarter net up 19%, revenue up 1.5%
(2:47 AM ET) TEL AVIV (MarketWatch) -- Cellcom Israel Ltd.,the Netanya, Israel, provider of cellular service, reported that third-quarter net income rose 19% on 1.5% higher revenue. Earnings reached 289 million shekels ($76.8 million), or 2.91 shekels a share, from 242 million in the year-earlier quarter. Total revenue rose to 1.68 billion shekels from 1.65 billion. Monthly average revenue per user fell 2.5% to 150.4 shekels from 154.3 shekels. Monthly average minutes of use edged up 0.5% to 338.1 from 336.3. In a Monday statement, Cellcom said that it added a net 31,000 subscribers in the quarter, bringing its total subscriber roll to 3.26 million at Sept. 30. Churn, the defection of customers to other providers, was 4.9% in the quarter compared with 4.4% a year earlier. Cellcom called the results "strong" given "airtime-price erosion, the competitive and regulatory environment, as well as the challenging macroeconomic environment." The company declared a third-quarter dividend of 2.9 shekels a share, payable Dec. 14 to holders of record Dec. 2. In early notes, Leader Capital Markets said Cellcom's results were "slightly above our estimates in all parameters," while Excellence Nessuah reiterated Cellcom outperform, saying most of the results exceeded its expectations.
Persimmon cuts debt, will complete 9,000 homes
(2:26 AM ET) LONDON (MarketWatch) -- U.K. house builder Persimmonsaid Monday that trading activity levels since it last gave an update in late August have continued ahead of last year and it expects to legally complete around 9,000 homes for the calendar year. Persimmon said it has taken around 500 million pounds of sales for 2010, which is 50% ahead of last year and added that the average selling price has risen 6% since the start of July to 173,000 pounds. Persimmon said it also expects debt at the end of the year to be significantly less than the 400 million pounds it had previously forecast. "Whilst we remain concerned about the potential impact on our markets of any significant increase in unemployment over the coming months, debt is reducing well ahead of our previous guidance, sales volumes have stabilised and pricing conditions are currently more positive," the group said.
EADS 9-months net off 73% on flat revenue
(1:58 AM ET) TEL AVIV (MarketWatch) -- European Aeronautic Defense & Space Co.,the Amsterdam parent of the jet producer Airbus, reported that nine-months net income fell 73% on flat revenue. Net was 291 million euros ($435.8 million), or 0.36 euro a share, compared with 1.08 billion euros, or 1.34 euros, in the year-earlier period. Earnings before interest and taxes were hurt by foreign-currency translations and fell to 1.09 billion euros from 2.02 billion euros. Ebit excluding special items was 1.7 billion euros versus 2.6 billion euros. Revenue totaled 29.7 billion euros against 29.4 billion euros. Commercial-aircraft deliveries at Airbus were 358 units against 349, "offset by lower revenue recognition in the A400M program and price deterioration on commercial-aircraft deliveries," the company said in a statement on Monday. Order intake fell to 24.6 billion euros from 88.7 billion. As of Sept. 30, the order book was 378 billion euros against 400.2 billion euros at year-end 2008. EADS affirmed its estimate that it would receive new gross orders of as many as 300 aircraft in 2009. It expects to deliver 490 aircraft this year. Revenue for 2009 "should be roughly in line with the 2008 level," the company said. EADS said it can't estimate pretax earnings for the full year 2009 because of "uncertainties on the magnitude of the potential A400M and A380 charges in the fourth quarter."
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