Saturday, November 7, 2009

“Magna results, renewed focus drive shares higher - Financial Post” plus 4 more

“Magna results, renewed focus drive shares higher - Financial Post” plus 4 more

Magna results, renewed focus drive shares higher - Financial Post

Posted: 06 Nov 2009 03:29 PM PST

TORONTO -- Shares of Magna International Inc were up more than 12% Friday, a day after it posted a surprise quarterly profit and said it would focus on its core auto-parts business after the collapse of its deal to buy a stake in General Motors Co's Opel unit.

Magna, the world's third-biggest auto parts maker, reported its third-quarter results after market close Thursday and said they benefited from higher than expected sales and stronger margins in North America.

The Canadian company also said it was not in discussions to buy a stake in any other automaker after GM's board reversed its decision to sell a 55% stake in German-based Opel to Magna and its Russian backer, Sberbank, for 500-million euros.

GM, which had been in negotiations with Magna for the better part of the year on Opel and had approved the sale, said improved business conditions and the strategic importance of Opel prompted the reversal.

"Magna can now return its focus to its Tier 1 operations and potential earnings power in an environment of improving light vehicle sales and abundant market share opportunities for strong suppliers such as itself," Fadi Chamoun, an analyst at UBS, said in a note to clients.

UBS raised its rating on Magna stock to "buy" from "neutral" and increased its 12-month price target to US$60 from US$55.

Magna's shares were up $5.78, or 12.3%, at $52.85 on the Toronto Stock Exchange on Friday morning. Its U.S. shares were up US$5.14, or 11.6%, at US$49.34.

"Hitherto, Magna's pursuit of an equity stake in Opel had prevented us from taking a more constructive view on the stock," Mr. Chamoun said. "The sale has since been terminated by GM, and we believe that a significant overhang has been removed from the shares."

BMO Capital Markets raised its price target for Magna to US$70 from US$63, and Citigroup increased its target for the company to US$60 from US$58.

© Thomson Reuters 2009

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U.S. becomes top country brand with Obama: survey - China Post

Posted: 07 Nov 2009 02:56 AM PST

The Country Brand Index, compiled by brand consultancy FutureBrand, found the United States had unseated Australia, which held the top spot for the past three years. Australia came in third this year with Canada rising to second plce.

New Zealand and France rounded up the top five country brands in this year's index that included 102 countries.

"The Obama effect has seen the United States earn the coveted top spot for the first time in the fifth annual index," FutureBrand, which is part of Interpublic Group of Companies, said in a statement.

"The revitalisation of Brand USA, and other factors, have resulted in the effect on Australia's ranking. It highlights the importance of keeping a country brand fresh, relevant and engaging in a highly competitive international marketplace," added Tim Riches, CEO FutureBrand Singapore.

The index is based on a survey of about 3,000 business and leisure travellers from nine countries.

In addition to branding countries, it also identifies global trends in travel and tourism, which the statement said was the world's fastest growing economic sector.

The United States was seen as the ideal place for business, one of the top places for families, shopping and quality products, as well as one of the countries people wanted to visit whether for the first time or again.

The FutureBrand survey echoes a similar poll which showed that the United States was the most admired country globally, largely thanks to Obama's global popularity.

Looking ahead, the index indentified the United Arab Emirates — which includes the Gulf cities Dubai and Abu Dhabi — China, and Vietnam as the top three nations likely to become major tourist destinations in the next five years.

Croatia, South Africa and India also made the list.

With the global economic crisis tightening purse-strings across the world, the survey showed that bargain-driven travel would remain a major trend, with consumers "thinking like financial analysts in chosing destinations and properties that are undervalued and booking trips that allow them to maintain the style they were accustomed to in boom times."

This year's index was conducted in conjunction with public relations firm Weber Shandwick.

"The days of countries marketing themselves with travel posters are over," said Rene A. Mack, president of Weber Shandwick's Travel & Lifestyle Practice.

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BA predicts £1bn slump in revenue but signals business stabilising - Irish Times

Posted: 06 Nov 2009 04:48 PM PST

The Irish Times - Saturday, November 7, 2009

BRITISH AIRWAYS has signalled business is stabilising, eclipsing news of a worse than expected first-half loss and a prediction that revenue will slump by £1 billion (€1.12 billion) this year.

Shares in the company jumped as much as 8 per cent, making it the biggest gainer on the FTSE 100, as the company also said revenue from business travellers was back at pre-credit crunch levels by one industry measure.

"The market was fearing something worse but BA's tone was more optimistic than it has been – it can see light at the end of the tunnel now," said Evolution analyst Nick Cunningham.

BA, whose alliance with American Airlines and Spain's Iberia is being scrutinised by European and US competition watchdogs, yesterday reported a pretax loss for the six months to the end of September of £292 million, while revenues fell 13.7 per cent to £4.1 billion.

The airline, which has reduced operating costs by 8.7 per cent, said it would slash more costs, with another 1,200 staff losing their jobs next year, taking the number of job losses to 4,900.

"Our revenues are likely to be about £1 billion lower this year so we're determined to reduce costs further to ensure we return to acceptable levels of profitability," BA chief executive Willie Walsh said, adding that it was "riding along the bottom" of the downturn.

BA reported better traffic data, with all-important premium, or business class, traffic down 1.4 per cent in October year-on-year, a vast improvement on September's 7.9 per cent decline.

It also said premium yields – the revenue it makes on each business-class passenger for every mile travelled – had returned to pre-credit crunch levels over the past three months.

The airline's loss compares with a first-half pretax profit of £52 million last year. – (Reuters)

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CVS says it is subject of FTC investigation - MSNBC

Posted: 06 Nov 2009 03:19 AM PST

NEW YORK - The Federal Trade Commission is investigating some of CVS Caremark Corp.'s business practices, the company said Thursday.

The drugstore chain and pharmacy benefits manager did not disclose the details of the "nonpublic investigation," but said it has not violated any antitrust laws. CVS suggested the FTC inquiry is connected to complaints made by the Change to Win coalition of labor unions. Change to Win has said CVS Caremark's size and buying power is bad for consumers, and accused CVS of a stocking expired products and violating patients' privacy, among other issues.

Change to Win also opposed CVS' acquisition of Longs Drugs Stores last year. The Woonsocket, R.I., company said the turmoil began in early 2007, when the coalition began trying to unionize CVS employees.

"We think there are serious issues with the company," Change to Win spokesman Ahmer Qadeer told The Associated Press. "We think there's a real question of privacy problems, how they may use patient data, and real questions with this business model."

CVS reported its third-quarter results on Thursday, and also said the Caremark pharmacy benefits management unit has lost billions of dollars in contracts in recent months, which will keep the company from reaching its profit expectations in 2010. In afternoon trading, the stock sank $7.29, or 20.2 percent, to $28.85.


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Modus Link Corp. ships Utah jobs to China - 6 action news on KSBY.com

Posted: 07 Nov 2009 03:25 AM PST
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