Earnings roundup

0 Comments | Deseret News (Salt Lake City), Oct 21, 2005 | by Deseret Morning News

Several companies with Utah connections reported financial results for the most recent quarter on Thursday.

Evans & Sutherland

Salt Lake-based Evans & Sutherland Computer Corp. reported a narrower net loss on a 33 percent increase in sales during the third quarter.

The visual systems company said it had a net loss of $1.4 million, or 13 cents per share, for the quarter ended Sept. 30. That compares with a loss of $4.9 million, or 47 cents per share, for the year-earlier quarter.

Sales totaled $21.1 million, up from $15.9 million a year ago.

James R. Oyler, president and chief executive officer, said E&S expects the fourth quarter "to be as profitable as previously forecasted."

E&S stock rose 71 cents Thursday to close at $5.95 per share on Nasdaq. During the past year, the price has ranged from $4.38 to $7.99.

Convergys

Business services company Convergys Corp. said earnings in the latest quarter rose from a year ago, mainly due to increased business from two large cell-phone providers.

The company said it expects 2005 and 2006 earnings will beat Wall Street estimates.

Convergys has about 8,300 workers at six call centers in Utah.

The Cincinnati-based company, which provides outsourced management of billing, benefits, payrolls and call centers, said it earned $42.4 million, or 30 cents a share, on revenue of $644.8 million in the fiscal third quarter ended Sept. 20.

Analysts were expecting earnings of 26 cents a share, according to Thomson Financial.

In the same quarter the previous year, it earned $30.1 million, or 21 cents a share, on revenue of $639.9 million.

The company expects 2005 earnings of $1 a share, including an $8.9 million charge in the second quarter, and an expected fourth- quarter severance charge of about $8 million. Wall Street had been expecting 2005 earnings of 97 cents a share.

Convergys stock rose $1.83 Thursday to close at $15.76 per share on the New York Stock Exchange, its top mark during the past year. During that time, the price has been as low as $12.42.

Autoliv

Autoliv Inc., the world's largest maker of automobile air bags, said third-quarter profit fell 12 percent on a higher tax rate and reorganization costs.

Net income declined to $59.1 million, or 66 cents per share, from $67.3 million, or 72 cents per share, a year earlier, Sweden-based Autoliv said. Revenue rose 1 percent to $1.39 billion.

Autoliv has about 4,500 workers at six plants in northern Utah involved in research and development and manufacturing and assembly of air bag components and modules.

The company's stock rose 5 cents Thursday to close at $41.15 per share on the NYSE. During the past year, the price has ranged from $39.92 to $52.11.

JetBlue

JetBlue Airways Corp. on Thursday said its third-quarter profit fell by more than half as the airline industry continues facing pressure from persistently high fuel costs.

The company was founded by Utah native David Neeleman and operates flights out of Salt Lake City International Airport.

Quarterly income dropped to $2.7 million, or 2 cents per share, from $8.1 million, or 7 cents per share, the year before. Analysts, however, were expecting JetBlue to post a loss of 1 cent per share, according to a Thomson Financial survey.

Operating revenue totaled $453 million, a 40 percent increase from $323 million and slightly ahead of analysts' consensus target of $451.6 million.

JetBlue forecast a loss for the fourth quarter and full year, based on expectations for negative operating margin between 5 percent and 7 percent for the quarter. The forecast assumes quarterly aircraft fuel costs of $2 per gallon after hedges, and up to $9 million of a non-cash, one-time expense from the acceleration of stock options.

JetBlue stock fell $1.49 Thursday to close at $18.05 per share on Nasdaq. During the past year, the price has ranged from $17.06 to $26.32.

Nucor

Nucor Corp.'s third-quarter earnings slid 30 percent but still topped Wall Street expectations, and the steel producer said earnings and sales for the first three quarters of 2005 remained ahead of the same period last year.

Nucor has both a Vulcraft steel joint plant and a cold-finish plant in Brigham City and a bar mill in Plymouth, Box Elder County.

Weaker steel prices in the third quarter drove earnings down from the same period of 2004, the company said.

For the quarter ended in September, net income declined to $291.9 million, or $1.86 per share, from $415.4 million, or $2.59 per share last year. Revenue slipped 7 percent to $3.03 billion from $3.24 billion in the year-ago period.

Analysts had predicted earnings of $1.68 per share on $2.96 billion in sales, according to a Thomson Financial survey.

The company forecast fourth-quarter earnings of $1.70 to $1.90 per share, compared with analysts' mean estimate of $1.65 per share.

Nucor stock fell $1.20 Thursday to close at $54.30 per share on the NYSE. During the past year, the price has ranged from $37.52 to $65.53.

Contributing: Dow Jones/Associated Press; Bloomberg News