| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : International Last Updated: Jan 25, 2013 - 11:03 AM


Markets: Samsung Electronics reports surge in quarterly profit; Microsoft posts profit dip
By Finfacts Team
Jan 25, 2013 - 10:59 AM

Email this article
 Printer friendly page

Samsung Electronics of South Korea reported today that its quarterly profit  jumped 76%, as its Galaxy smartphones beat rival Apple's iPhone in each quarter of 2012.

However, the company said today it expects earnings to fall during the current quarter because of seasonally low demand for consumer electronics.

It left its 2013 capital expenditure unchanged at 23tn won ($21.5bn).

The company cited the strong won as a challenge and it said it expects more than 3tn won will be cut from its 2013 operating profit due to the stronger currency.

Net profit for the final quarter of 2012 was 7.04tn won ($6.6bn), a 76% surge from 4.01tn won a year earlier. Sales were up 19% over a year earlier to 56.06tn won and operating income jumped 89% to 8.84tn won.

Microsoft on Thursday  reported that its profit fell 4% in the holiday second fiscal quarter as its entertainment and office divisions posted double-digit dips in revenue.

The Windows division, which accounts for more than a quarter of total company revenue, produced a 24% rise to $5.88bn but that included revenue from the new Windows 8 sales before the product was officially available last November. Microsoft was required to defer that revenue because of accounting rules. Without it, Windows sales would have grown only 11%.

The software giant said its net income for the quarter was $6.38bn, or 76 cents a share, compared to $6.62bn, or 78 cents a share, in the same period a year earlier.  Revenue rose 3% to $21.46bn from $20.89bn a year ago.

"It's early days and an ambitious endeavor like this takes time," said Microsoft CFO Peter Klein in a conference call Thursday, referring to Windows 8.

The results, which sent Microsoft's shares down 2.1% in after-hours trading Thursday to $27.63

"One of the biggest stories in 2013 is the business transition from Windows XP to Windows 7," said Bob O'Donnell at market research firm IDC. "There are a staggering number of machines still running Windows XP. The IT guys have to pull the plug on those and upgrade, and most will do that by buying new machines."

Justin Doyle, Investec Bank Ireland, said today:

  • "Repay day: European banks which availed of last years ECB €1 trillion LTRO facilities now have the option of repaying early. In digesting the various conundrums of amounts to be repaid it seems that the more the Spanish, Italian (nearly 55% of the total facility between them) and French (16%) banks are seen to pay back, the better it will be for peripheral bond spreads which should lead to a stronger Euro. Market consensus is for a repayment of approx. €100bn
  • Sticking with Europe and the all important German IFO survey is due at 9am. If recent German stats are anything to go by, these should surprise on the upside whilst keeping the bid tone on the Euro.
  • UK Q4 2012 GDP numbers are out at 9.30am and it certainly feels like the FX markets are positioning themselves for a pretty shocking number as sterling has dropped almost 5% in value against the Euro since the start of the year and over 1.5% in the last two trading sessions."

Conall Mac Coille of Davy said: "European stock indices rose yesterday, with the Euro Stoxx 50 rising 0.5% but the S&P 500 flat on the day. Markets shrugged off the news of disappointing earnings from Apple Inc, with better-than-expected earnings in other sectors. Macroeconomic data also supported sentiment. US initial jobless claims fell to 330,000 in the week to January 19th, surprising predictions for a rise to 350,000.

The HSBC China manufacturing PMI survey rose to a two-year high in December, adding to the evidence of a recovery in the global sector. Euro-area PMI surveys were also better than expected. The composite reading rose to 48.2, still below the 50 no-change level, but the highest survey reading since early 2012. The surveys for the German economy were particularly strong, with the services PMI rising sharply to 55.3, well above the 50 no-change level. That said, the surveys for France showed renewed declines in January."

Banks: Moody’s indicates the banks need more provisions; Eamonn Hughes and Colm Foley of Goodbody comment  -- "In its 2013 global banking outlook published yesterday Moody’s indicated that many banks, 'in particular in Spain, Italy, Ireland and the UK require material amounts of additional provisions to fully clean up their balance sheets.' It added that 'some banks have in recent years delayed full recognition of embedded loan losses, partly by restructuring loans.'

Our loan loss estimates at the banks envisage PCAR adverse loan losses over the 2011-13 period. However, we also envisage that losses in the 2014-16 period remain elevated, equivalent to c.45% of the preceding 3 year period.

Given the level of private sector debt in the economy, our forecasts on the banks don’t envisage resumption to “normalised” credit losses at the banks (60bps in BOI and 70bps in AIB) until 2017. This means that the credit 'cycle' will actually stretch over an 8 year period from 2010-2017. As such, we believe our forecasts already incorporate some of the concerns expressed in the Moody’s report."

Economic View: Funding backstop discussion top of the agenda in Troika’s latest visit; Dermot O'Leary of Goodbody said: "With Troika officials due back in Ireland next week for the ninth review of the programme, the key items on the agenda are becoming evident. The Irish Times reports this morning on the “menu of options” that is being proposed by the Troika for Ireland to achieve a smooth full return to the bond markets. A funding backstop, or, as it is put in the article today, “comfort funding”, will be one of the options put on the table for Ireland. This option has been mooted over recent weeks and is certainly under discussion in Irish policy circles. Indeed, Finance Minister Noonan appeared to be warm to the idea, saying in Davos yesterday that 'We don’t want to go back into the market and fall out of it again.'

Although a precautionary programme appears to be the most likely option at this stage, it is not the only one. There is still the possibility of going 'cold turkey' and returning to the markets without any further official backstop. In our recent Outlook on Ireland, we warned against this course. Not only would a backstop programme provide an important insurance policy, it would also ensure that external pressure remained on policy officials in Ireland to continue with the reform agenda. This reform agenda includes further reductions in the public sector pay bill, which also looks likely to form part of the discussions with the Troika next week.

Another key element of exiting the programme will be the completion of a deal on Ireland’s bank debt. On this front, the diplomatic efforts continue, with meetings taking place with important policymakers in Davos this week, including IMF Managing Director Christine Lagarde. Irish officials will see it as another diplomatic coup that she will make a visit to Dublin on March 8th. Does that mean we shouldn’t expect any deal on the pro-notes until after that date?"

US Markets

In New York Thursday, the Dow added 46 points or 0.33% to 13,825.

The S&P 500 was flat and the Nasdaq fell 0.74%.

Asia Markets

The MSCI Asia Pacific Index rose 0.4% Friday while Samsung fell 2.5% limiting the gains. 

The Nikkei 225 jumped 2.88% after 3 days of losses; China's Shanghai composite index fell 0.49%; South Korea's Kospi dropped 0.91%; Australia's S&P/ASX 200 advanced 0.52%; in Mumbai, the Bombay Stock Exchange's Sensex 30 dipped 0.90%.

Europe Markets

In Europe, the Dow Jones Stoxx Europe 600 rose 0.13% in morning trading Friday.

In Dublin, the ISEQ  is up 0.16%.

CRH has risen 0.41%; CPL added 1.15%.

European Benchmarks

Irish Share Prices

Key Index Performance Statistics

Euribor Rates

AIB Daily Report

Bank of Ireland Daily Report

Currencies

The euro is trading at $1.3442 and at £0.8526.

For live currency updates, check the right-hand column of the Finfacts home page.

The US dollar fell to $1.6038 per euro on Tuesday, July 15, 2008 - an-all time record.

Commodities

The Baltic Dry Index, a measure of shipping costs for dry commodities, hit an all-time High of 11,771 on the 21st of May, 2008. From that time it reversed and on the 5th of December, 2008 it hit a low of 663 - - close to a 1986 low.

On Thursday, July 15, 2010, the index fell for the 35th straight session, by 9 points, or 0.537%, to 1,700 points, Bloomberg report.

On Wednesday this week, the BDI fell 8 points  or 0.97% to 817 - -  the BDI is up 16.88% in 2013.

Crude oil for March 2013 delivery is currently trading on the Chicago York Mercantile Exchange (CME/Nymex) at $96.38 up 38 cents from Thursday's close. In London, Brent for February delivery is trading on the International Commodities Exchange at $113.37. The North Sea benchmark accounts for two-thirds of the global market.

Bloomberg reports that for the first year since the futures were created, Brent crude is poised to overtake West Texas Intermediate (WTI) oil as the world’s most-traded commodity.

Daily trading in Brent jumped 14% to average 567,000 contracts in the year to November 20 compared with all of 2011, while WTI fell 17% to 575,000, according to data from the ICE Futures Europe exchange in London and New York Mercantile Exchange compiled by Bloomberg. The number of Brent futures changing hands has exceeded those for WTI every month from April through October, the longest streak since at least 1995.

Brent, produced in the North Sea, is gaining favour among traders because of its role as the benchmark for energy prices from Saudi Arabia to Russia. Prices have climbed 34% in the past two years, reflecting everything from war in Libya to the embargo on Iran. WTI, the main grade in the US, has risen 9% as the nation, which prohibits crude exports, has struggled to clear a glut at Cushing, Oklahoma, the delivery point for Nymex futures.

Gold spot price

The spot price of an oz of gold is trading in New York at $1668.80, up $1.40 from Thursday's close in New York.

Gold had hit a record high of $1,921.05 a troy ounce on Sept 06, 2011.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

International
Latest Headlines
Wednesday newspaper review: December 17, 2014
Tuesday newspaper review: December 16, 2014
Monday Newspaper Review - Irish Business News and International Stories - - December 08, 2014
Friday Newspaper Review - Irish Business News and International Stories - - November 28, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - November 27, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - November 25, 2014
Friday Newspaper Review - Irish Business News and International Stories - - November 21, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - November 20, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - November 19, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - November 18, 2014
Monday Newspaper Review - Irish Business News and International Stories - - November 17, 2014
Friday Newspaper Review - Irish Business News and International Stories - - November 14, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - November 13, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - November 12, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - November 11, 2014
Monday Newspaper Review - Irish Business News and International Stories - - November 10, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - November 06, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - November 04, 2014
Monday Newspaper Review - Irish Business News and International Stories - - November 03, 2014
Friday Newspaper Review - Irish Business News and International Stories - - October 31, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - October 30, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - October 29, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - October 28, 2014
Friday Newspaper Review - Irish Business News and International Stories - - October 24, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - October 22, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - October 21, 2014
Monday Newspaper Review - Irish Business News and International Stories - - October 20, 2014
Friday Newspaper Review - Irish Business News and International Stories - - October 17, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - October 16, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - October 15, 2014
Monday Newspaper Review - Irish Business News and International Stories - - October 13, 2014
Friday Newspaper Review - Irish Business News and International Stories - - October 10, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - October 09, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - October 08, 2014
Tuesday Newspaper Review - Irish Business News and International Stories - - October 07, 2014
Monday Newspaper Review - Irish Business News and International Stories - - October 06, 2014
Thursday Newspaper Review - Irish Business News and International Stories - - October 02, 2014
Wednesday Newspaper Review - Irish Business News and International Stories - - October 01, 2014
Monday Newspaper Review - Irish Business News and International Stories - - September 29, 2014
Friday Newspaper Review - Irish Business News and International Stories - - September 26, 2014