This week's news on Nokia profits slump.
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Oil rig firm Lamprell shares slump after profit warning
16 Maywww.guardian.co.uk
More than £500m was wiped off the value of Lamprell this morning when the group put out a statement saying it had run into equipment problems on some of the rigs
London-listed oil rig builder, Lamprell, has issued a profit warning just a fortnight after two of its senior executives sold a substantial number of shares in the business.
More than £500m was wiped off the value of Lamprell on Wednesday morning when the group put out a statement saying it had run into equipment problems on some of the rigs.
The company, which operates fabrication yards in the Middle East, blamed a failure by suppliers plus cost-overruns on two innovative wind turbine installation vessels for driving the business into the red.
"It is anticipated that the delay in revenue generation together with the additional costs will result in the group incurring a small loss in the first half of the year with a recovery expected in the second half," it explained.
The announcement wiped 64% off the share price to 106p and made Lamprell the worst performing share in the FTSE 250 index.
The loss for the period ending 30 June compares with a profit of $18.6m (£11.68m) during the same period last year and contrasts with its own upbeat assessment of its fortunes just six weeks ago.
But the announcement was particularly embarrassing because two directors of the company, Kevin Isles and Scott Doak, offloaded a substantial number of shares at the start of the month. The incident is likely to attract the interest of the Financial Services Authority and Lamprell was forced to defend the sales when it took calls from City analysts.
A company spokesman told the Guardian that neither of the two men were on the board of the company nor were privy to price sensitive information at that point. "The share sales were completed entirely properly and in accordance with all stock exchange rules," he said.
Lamprell argued it was largely a victim of the high oil price which has led to a drilling boom all around the world and a rush by rig operators to build new vessels.
This in turn has led to shortages of equipment forcing Lamprell to keep some of its 11,000 workers idle while it waits for new product supplies to turn up.
But there are also "further costs" connected with the construction of the Windcarrier Brave Tern and the Seajacks Zaratan, to rigs that help install wind turbines.
Lamprell said these are highly complex pieces of equipment for a new industry that is growing up in the North Sea and elsewhere as governments pursue low-carbon energy schemes.
German engineering group, Siemens, recently slashed its full-year profit outlook late last month after incurring another major charge related to delayed offshore wind power projects.
Vestas, the world's largest wind-turbine manufacturer, has been hit by a series of profit warnings and shipment delays leading to a major exit of members of the board earlier this year.
Keith Morris, an oil analyst with Investec Securities, pointed out that Lamprell had also warned of cost overruns on some of its contracts last October. "The trouble is that a reputation is hard to gain in the City and easy to lose."
David Round, analyst with Oriel Securities, agreed: "Despite the recent contract awards adding to an already strong order book, today's announcement creates a lot of uncertainty."
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J.C. Penney, Abercrombie, Staples slump; Target up
16 MayMarketWatch.com - MarketPulse
NEW YORK (MarketWatch) -- Mid-priced department store operator J.C. Penney Co. shares tumbled 13% on Wednesday after the company reported disappointing first-quarter profit and sales and said it will discontinue its quarterly dividend. Teen retailer Abercrombie & Fitch Co. and office-supplies chain Staples Inc. declined 11% and 4.3% each as their sales missed expectations on weakness in Europe. Discounter Target Corp. was a bright spot, up 1.6%, after its profit topped analysts' estimates and the company raised its outlook for the year.
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Abercrombie slumps; Europe leads to sales miss
16 MayMarketWatch.com - MarketPulse
NEW YORK (MarketWatch) -- Teen retailer Abercrombie & Fitch Co. shares slumped 13% after its first-quarter profit and sales missed analysts' estimates. Profit declined to $3 million, or 3 cents a share, from $25.1 million, or 28 cents a share. Sales rose 10% to $921.2 million. Comparable store sales declined 5%. That missed the 0.5% decline analysts surveyed by Thomson Reuters were expecting. The company forecast same-store sales to decline by a mid-single-digit rate for the year. Still, the teen retailer kept its profit forecast of $3.50 to $3.75 a share as it expects a higher gross margin rate. Chief Executive Mike Jeffries said that European sales remain challenging in a very difficult macroeconomic environment.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Lamprell shares slump by two thirds after profit warning
16 MayTelegraph - Finance
Shares in Lamprell, which refurbishes and manufactures specialist oil rigs, collapsed by 65pc after the company warned it would make a first-half loss.
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JC Penney shoppers don't buy retail revamp; sales slump
16 MayThe Seattle Times - Business & Technology
"Sales and profitability have been tougher than anticipated during the first 13 weeks," JCPenney CEO Ron Johnson said after sales slumped 20 percent during its first quarter after launching a turnaround effort. -
Vidgame publishers see profit gains despite slump
16 MayVariety
Top News: Digital revenue boosts Ubisoft, THQ, EA and Activision -
Latin American Markets: Brazil stocks lower as Vale, CSN shares slump
11 MayMarketWatch.com - Financial Services Industry News
Brazilian stocks fall Friday, capping a losing week with a pullback in shares of miner Vale and in shares of CSN following a drop in the steel producer’s quarterly profit. -
MTS shares slump after analysts' downgrades
11 MayThe Globe and Mail - Business News
Bay Street analysts advise investors to sell the telecom company despite profit gains -
Darling shares slump as Q1 results miss views
11 MayMarketWatch.com - MarketPulse
SAN FRANCISCO (MarketWatch) -- Darling International shares slumped 6% to $15.07 early Friday. Shares were the among top decliners on the S&P 600 Small Cap Index. After the market closed Thursday, Darling reported a first-quarter profit of 24 cents a share. Analysts had forecast 30 cents a share. Revenue of $387 million also fell short of Wall Street's view. Darling recycles beef, pork and poultry waste streams into useable ingredients such as meat and bone meal. The company said profit was lower due to a substantial drop in finished product prices for fats and proteins. The company had built significant inventories in fats and proteins but exports stalled. Darling shares are still up 15% since Jan. 1.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Sony shares slump to multi-decade low
11 MayMarketWatch.com - MarketPulse
HONG KONG (MarketWatch) -- Sony Corp.'s shares tumbled 7.1% to their lowest level in more than three decades Friday, after the Japanese conglomerate reported its fourth straight annual loss. Although the net loss of 456.7 billion yen ($5.7 billion) for the fiscal year ended in March was less than expected and the firm forecast a swing to profit in the current year, concerns remained about the company, including its loss-making television business.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
