Re: Asia Warnings
IBM piece below is an analyst's comment. I posted because it sounds so familiar. FYI, sometimes a host of warnings come out in the evening so they are not included in this report. I did a "fair" job of searching today.
The last one is interesting because it mentions strong US$ against European currencies. So did one from yesterday. I was in London and France recently. I felt like the US$ was extremely WEAK against the pound. And of equal parity with the French franc. It will be interesting to see if any more, "strong US$ against European currencies" statements pop up in the future.
MikeM(From Florida)
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Geon Expects Lower Quarterly Earnings
CLEVELAND, June 15 /PRNewswire/ -- The Geon Company today announced that second-quarter earnings will be lower than the previously estimated $0.40 to $0.45 per share. Geon anticipates earnings will be between $0.20 and $0.25 per share. First-quarter earnings were $0.25 per share. Industry capacity additions earlier this year, as well as a decline in Far East Asian demand, have reduced industry capacity utilization despite improved North American customer demand.
In addition, the Company also noted second-quarter earnings were affected by higher-than-anticipated costs for the scheduled LaPorte, Texas, vinyl chloride monomer plant maintenance shutdown and Australian and Canadian currency declines. Geon expects these factors will lower second-quarter earnings by about $0.15 per share.
The other units of Geon, including vinyl compounds and specialty dispersion resins, continue to perform well. The recent acquisitions of Plast-O-Meric, Inc. and the Wilflex Ink Division of Flexible Products Company, however, will have only a slight, positive impact on second-quarter earnings.
The Geon Company is a leading North American-based polymer service and technology company with operations in compounds and other value-added products and services, as well as in PVC resins. Headquartered in Avon Lake, Ohio, The Geon Company and its subsidiaries employ more than 2,400 people and have 24 manufacturing plants in the United States, Canada, England and Australia, and joint ventures in the United States, Europe, Australia and Southeast Asia. Geon recorded revenues of $1.25 billion for the year ended December 31, 1997.
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Albany International Announces Second Quarter Earnings Expectations
ALBANY, N.Y., June 15 /PRNewswire/ -- Albany International Corp. announced today that it expected second quarter 1998 earnings per share of approximately 35 cents in comparison with 44 cents in the second quarter of 1997 and six months' earnings per share of 72 cents versus 80 cents, a decline of 10 percent from the first half of 1997. Second quarter results have been adversely affected by lower than expected industry sales of paper machine clothing, the impact of the strong dollar, particularly against European currencies, and the continued economic turmoil in Asia.
Albany International is the world's largest producer of paper machine clothing and high performance industrial doors with manufacturing plants in 14 countries and sales worldwide.
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Innova Provides Business Outlook
SEATTLE, June 15 /PRNewswire/ -- Innova Corporation today announced that increased price competition will result in reduced sales and earnings for the second quarter. The Company previously announced that April sales were lower than expected. Recently, one of the Company's principal OEM customers failed to win certain supply contracts for major telecommunications projects, due largely to increased price competition. The Company believes that this increased price competition in Europe and Latin America indicates that the continuing turmoil in the Asia/Pacific market has caused a softening in the overall market for telecommunications equipment.
"While we do not have direct exposure to the Asia/Pacific market, we have recently seen a dramatic increase in pricing pressure from major telecommunications companies with significant operations in Asia," commented Frank Grenon, President and Chief Executive Officer of Innova Corporation. "Revenue shortfalls are very difficult to make up in this highly competitive market environment and we currently envision this softness extending into the third and possibly subsequent quarters. We also expect to continue to see significant pricing pressure.
Innova designs, manufactures and supports millimeter wave radios for use as short-to-medium distance wireless communication links in developed and developing telecommunications markets. Innova's products enable telecommunications service providers to establish reliable and cost-effective voice, data and video communications links within their networks. Innova's products operate in frequencies ranging from 13-38 GHz and may be used in various applications, including cellular and PCS/PCN networks, broadband communications, local loop services and long distance networks.
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Valmont Industries Announces Earnings Expectations
OMAHA, Neb., June 16 /PRNewswire/ -- Valmont Industries, Inc, announced today that it expects 1998 second quarter earnings per diluted share to be in the range of $0.24-0.26. The Company previously said that it expected second quarter earnings to be flat with 1997 when second quarter earnings were $0.35 per diluted share.
Mogens C. Bay, Chairman and Chief Executive Officer, indicated that the change in second quarter expectations was primarily attributable to market conditions in the Industrial Products segment, which were weaker than expected. The wireless communication industry has continued to be soft and has resulted in reduced shipments of communication poles and components.
Internationally, pole sales in Europe are better than last year while the contraction in many Asian economies has slowed export sales of communication towers to that region.
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IBM shares slide on Asia and dollar woes
NEW YORK, June 16 - Shares of International Business Machines Corp. fell on Tuesday on concerns that a strong U.S. dollar and economic turmoil throughout Asia would hurt the giant technology company's earnings, analysts said.
"We pick on IBM because it is the enterprise hardware bellwether - most vendors will face pressure as Asia worsens," Milunovich said in a research note. A surge in the U.S. dollar against the Japanese yen has put tremendous recent pressure on Asian and domestic stock markets, raising some red flags about U.S. corporate profits.
Other analysts shared some of Milunovich's concerns about IBM's second quarter and 1998 earnings. "Clearly, IBM has got significant exposure to Asia and there is no question that what has been happening there will have some impact," said Stephen Smith, an analyst at PaineWebber who rates IBM shares as unattractive. IBM draws more than half of its revenues from outside the United States.
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Arrow Electronics Anticipates Lower Second Quarter Earnings
MELVILLE, N.Y.--(BUSINESS WIRE)--June 16, 1998--Arrow Electronics, Inc. (NYSE:ARW) announced that second quarter earnings are likely to be below analysts' expectations. Results for the first two months of the quarter reflect pervasive weakness in the broad electronics markets, coupled with the widening impact of the economic conditions in Asia. The competitive environment is characterized by continuing pressure on average selling prices and narrowing gross profit margins, as suppliers' output of components remains high, lead times shortened, and most products freely available around the world.
Based upon daily order and shipment activity rates, the company does not believe that its results in June will improvesufficiently to offset the quarter's results to date. Second quarter earnings are expected to be about 20 percent lower than those in the first quarter ($.43 per share on a diluted basis).
Arrow Electronics is the world's largest distributor of electronic components and computer products, with 1997 sales of $7.8 billion. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 160,000 original equipment manufacturers and commercial customers through more than 200 sales facilities and 26 distribution centers in 32 countries.
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Albany International Announces Second Quarter Earnings Expectations
ALBANY, N.Y., June 15 -- Albany International Corp. announced today that it expected second quarter 1998 earnings per share of approximately 35 cents in comparison with 44 cents in the second quarter of 1997 and six months' earnings per share of 72 cents versus 80 cents, a decline of 10 percent from the first half of 1997.
Second quarter results have been adversely affected by lower than expected industry sales of paper machine clothing, the impact of the strong dollar, particularly against European currencies, and the continued economic turmoil in Asia.
Albany International is the world's largest producer of paper machine clothing and high performance industrial doors with manufacturing plants in 14 countries and sales worldwide.
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