Bank of America reported profit in Q3 2011
Bank of America announced third-quarter profit after the sale of assets and the accounting effects, although the main business of the bank looks unhealthy because of the reduction in revenue and rising costs. For many years, Bank of America headed the list of largest U.S. bank by assets, but now lost its first place JPMorgan Chase. Once dropped at the opening of the New York Stock Exchange, shares of Bank of America rose 1.3%. The accounting profits of the bank and the sale of assets made up 15% decline in revenue from lending in the third quarter.
"The published results do not correspond to reality", said Matt McCormick, portfolio manager of Bahl & Gaynor Investment Counsel. "I think without accounting adjustments profits would be zero. Revenues were particularly weak". In the third quarter, Bank of America announced a net profit of 5.9 billion USD or 56 cents per share, compared with losses of 7.6 billion USD or 77 cents per share a year earlier, when the reported accounting provisions for 10.4 billion USD. The bank records 9.8 billion USD before taxes from the sale of shares in China Construction Bank. Bank of America reported a loss before taxes of 2.2 billion USD, private assets and "strategic investments".
Volvo reported growth of the net profit
The Swedish automaker Volvo today announced an increase in the net profit and orders received in the third quarter but said it is difficult to assess the development of world economy and the impact on demand over the next year. The net profit was 3.83 billion Swedish kronor (583 million USD) compared to 2.81 billion Swedish kronor in the same period of 2010, revenue grew 15% to 73.32 billion Swedish kronor. Operating profit reached 5.77 billion Swedish kronor from 4.91 billion a year ago, and orders for trucks increased by 18% to 59,975 units. The company, which ranks second in world production of trucks after the German concern Daimler AG, said it expects 10% drop in demand in Europe, but an increase in orders from North America due to the replacement of older trucks, and growth in Japan in the ongoing rehabilitation of the country after the devastating earthquake and tsunami waves in March this year. From Volvo remain cautious about global growth in orders, indicating that monitor user activity. The company plans to reduce production to Europe in 2012 to be closer to expected lower orders in the region.
IBM with good financial report for Q2
The net profit for the second quarter of 2011, one of the largest companies in the computer industry IBM justified forecasts of analysts, reaching 3.7 billion dollars, which is 8% higher than the indicator for the same period of previous year. The revenues for the second quarter rose 12 percent to 26.7 billion dollars compared to the same period last year. The earnings per share rose 15 percent to 3.0 dollars. The analysts quoted by the magazine Forbes, the forecasts were for earnings of 3.02 dollars per share and revenue of 25.4 billion dollars. The experts expect earnings per share of IBM for the year to reach 13.21 dollars. This is in line with a 5-year growth of the company, which according to its 2015 earnings per share should reach 20 USD.
"In the second quarter, our long-term investments and initiatives for the development of our company helped to dramatically increase revenue. The pace of growth and revenue service business units of hardware and software were high", said the CEO of IBM Sam Palmisano. The revenues of the company's service business grew by 10% to 15.1 billion dollars, and software business registered growth of 17% to 6.2 billion dollars. Businesses with hardware also increased by 17% to 4.7 billion US dollars. The IBM's positions seem stable enough this year in its home company Palmisano double bonus of 9 million US dollars.
The profit of Credit Suisse dropped with 45% in the first quarter
Credit Suisse Group AG, the second largest Swiss bank, said 45 percent drop in profit for the first quarter, which did not meet analysts' expectations. The dsappointing results are a consequence of reduced income investment bank, and payments associated with its own debt. The net profit of Credit Suisse fell to 1.14 billion francs from 2.06 billion francs in the same quarter a year earlier, announced on Wednesday Zurich-based bank. The profit of the bank was below expectations of analysts 1.32 billion francs. In February, chief executive of Credit Suisse Brady Dugan lower forecast profitability of the bank in response to tighter capital requirements. Credit Suisse, which suffered relatively less losses during the financial crisis than other banks, including its larger Swiss rival UBS AG, is trying to expand its market share in investment banking. Last year, Credit Suisse hired new employees in the credit and its foreign department.
"Despite its success during the financial crisis, investment banking, Credit Suisse is facing problems similar to those of UBS, and more specifically with issues related to currency transactions and operations with raw materials," said Peter Thorne, an analyst-based London Helvea. Since the beginning of the year, shares of Credit Suisse were up 4.3 percent compared to 12% for UBS.
Citigroup reported 3 billion USD profit for the first quarter of 2011
The third-largest U.S. bank Citigroup reported 32 percent drop in profit for the first quarter, which however was higher than market forecasts. The net profit for the financial giant is estimated at $ 3 billion, or 10 cents a share, for the three months to the end of March. A year ago it was the amount of 4.43 billion dollars, or 15 cents a share. The average forecasts of market analysts was for net earnings per share of 9 cents. The revenues of the financial giant fell to 19.7 billion dollars compared with 25.4 billion dollars a year. The Citigroup lost a total of 29.3 billion dollars in 2008 and 2009 during the global financial crisis, but in the last five quarters has been profitable. The analysts said the bank's net profit will reach 9.85 billion dollars for the entire 2011. The Citigroup's recovery from heavy losses came after losses on problem loans began to decline and the bank began to set aside fewer provisions to cover them. Citigroup, which received the largest government grant among U.S. banks in late 2008, has lost 6.6 percent of its market capitalization this year. In 2010, however, shares of the bank rose 15 percent. Citigroup plans to invest in expanding services for consumer banking, mainly in emerging markets, including Chile, Brazil, Colombia, Mexico and Peru.
JPMorgan with strong financial report
The net profit of U.S. financial giant JPMorgan Chase has made a solid growth of 67% annually after the bank reduced its provisioning for potential losses from bad loans. JPMorgan is the first major U.S. banks, which exports its financial statements for the first quarter and improving performance is probably a reflection of a strong period for the entire banking sector. The profit of JPMorgan noted significant growth in recent quarters, mainly due to improved asset quality her This allowed the bank to set aside fewer reserves with which to cover losses from bad loans. The provisions for problem loans fell to 1.17 billion dollars during the first three months of the year compared with 7.01 billion a year ago and 3.04 billion for the previous three months. In the first quarter JPMorgan net profit of 5.56 billion dollars or 1.28 dollars per share, compared with 3.33 billion dollars, or 74 cents a share, a year ago. The revenue fell 8.5 percent compared to first quarter of last year to 25.79 billion dollars. The market expectations were for less profit per share of 1.16 dollars less revenue amounted to 25.27 billion dollars.
The profit of Lenovo increased with 25% in the last quarter of 2010
One of the biggest companies producing computers in the world - China's Lenovo, reported profit growth of 25 per cent in the last quarter of 2010 on an annual basis. With a major contribution to this outcome are the appreciation of Chinese yuan and lower costs for components. The Lenovo's net profit for the period was 99.6 million dollars since the same quarter of previous year's positive result was 79.5 million dollars. Preliminary estimates of analysts was for earnings of 86 million dollars. The company, however, warn that growth could stall because of unclear economic situation in the U.S. and Europe.
"Growth in the global PC market slowed last quarter, due to the challenges facing the global economy and the debt crisis of some major markets," reported from Lenovo. However, the sales in the U.S. and Europe increased by 22 per cent and Lenovo in China increased sales by 18 percent.
HSBC’s profit increased double to 13.2 billion USD
The profits of the Europe's largest bank HSBC Holdings has more than doubled last year as its provisions to cover bad loans decreased substantially. The HSBC's net profit rose to 13.2 billion dollars for 2010 of 5.83 billion dollars for 2009, which was slightly below market expectations. Provisions of the London-based bank to cover bad loans shrink sharply to 14 billion dollars compared with 26.5 billion dollars a year ago. Reserves for problem loans are the smallest since 2006. The HSBC end user credit in the U.S., after the financial crisis need to set aside 58 billion dollars to cover the provision of problem loans. The new CEO of financial giant Stuart Gulliver, who took over management of the bank in January, put the spotlight on revenue from developing economies, especially those from Asia. The shares price of HSBC has barely changed over the last year, which ranks last among banks in the index of European financial companies FTSE 350 Banks. The management of HSBC has reduced the target return on equity of between 12 and 15% compared to existing targets 15-18% because of tight capital requirements for banks.
Gazprom increased the profit with 39% for the 9 months of 2010
The net profit of Russian gas giant Gazprom for the 9 months of 2010 grew 39.5 percent year on year to 668.75 billion rubles (over 22.8 billion dollars). This according to a study published today condensed consolidated financial results of Gazprom in international (European) accounting standards, and the results are not audited. Over the same period the revenue from sales of Gazprom (with deduction of excise duty, VAT and customs duties) increased by 16% compared with the first nine months of 2009 amounted to over 2.507 trillion. rubles (more than 85.26 billion dollars). In the case of inefficient operation of government Gazprom may take a monopoly on gas transmission system in the country, Prime Minister of Russia Vladimir Putin. In his words, "if you (Gazprom) do not start to work effectively, we will be forced to go to modify the existing rules. According to Putin's problem is that there is shortage of transmission capacity, "and we (the state in the face of Gazprom) do not allow anyone to this area.
"You have to react accordingly and invest resources in infrastructure development, underlines Putin, addressing the management of Gazprom.
The profit of Procter & Gamble decreased
The household and healthcare products manufacturer Procter & Gamble announced 28% drop in profit for the last quarter of 2010 after being hit by weak sales in developed markets like the U.S. The same was injured and smaller rival company Colgate-Palmolive, despite policy to run promotions and coupons with which to attract buyers who avoid expensive brands because of the crisis. Both companies marketed new products such as Procter & Gamble offers cheaper versions of some of its most popular products, while Colgate offers a variety of new toothpastes. Procter & Gamble reported higher demand for products with lower prices, which exert pressure on the company's revenue. As a result, the company net profit decreased to 3.33 billion dollars or 1.11 dollars per share, during the second fiscal quarter ended in December. A year ago, profit was the amount of 4.66 billion dollars or 1.49 dollars per share. Much of the difference is due to the extra revenue the company a year ago from the sale of its business with pharmaceutical products. After excluding one-off income and expenses, earnings per share for the last three months of 2010 was 1.13 dollars. The average estimate of analysts was for earnings of 1.10 dollars. The sales of Procter & Gamble rose 2% yoy in issue quarter to 21.3 billion dollars, taking into account the 6% growth in volume of physical sales.
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