Yum! Brands Takes a Hit and Barclay’s Big Legal Bill: Morning Buzzers
Tuesday morning seems to be forgiving Monday’s tremendous losses as the markets push for early gains. With collars turned against the headwinds blowing out of Europe, investors have turned their attention to the battery of earnings reports due out today.
Futures at the bell: DJIA: +0.44%, S&P 500: +0.45%, NASDAQ: +0.44%.
Yum! Brands (NYSE:YUM) took a hit in the pre-market following its fourth-quarter and full-year 2012 results. As expected by many observers, same-store sales in China took a sharp dive following an investigation into suppliers of chicken to its KFC brand, which pulls nearly half of its revenue from the country.
BP (NYSE:BP) released fourth-quarter and full-year 2012 results before the markets opened. Adjusted underlying RPC profit fell 20 percent to $4.0 billion for the quarter, and fell 18.9 percent to $17.6 billion for the year. Upstream production was flat in 2012 compared with 2011, in line with guidance and expectations, while downstream operations delivered record profits of $6.4 billion for the year, a 7.2 increase.
Arch Coal (NYSE:ACI) reported fourth-quarter and full-year 2012 results that underlined the ongoing struggles of many American coal companies. Net loss of $1.39 per share for the fourth quarter accompanied a 21.2 percent decline in revenues to $968.2 million. The upside is that metallurgical sales volume is expected to grow in 2013 versus 2012, and a cash and liquidity position of $1.2 billion will help serve as a cushion for near-term headwinds.
Toyota Motors (NYSE:TM) released its fiscal third-quarter results before the bell, showing a 26.0 percent increase in net revenues to 16.2 trillion yen ($174 billion), and a tremendous increase in operating income from 117.1 billion yen ($1.26 billion) to 818.5 billion yen ($8.81 billion). Total vehicle sales came in at 6.6 million units.
UBS (NYSE:UBS) reported fourth-quarter and full-year results that showed a 2.5 billion CHF ($2.75 billion) net loss attributable to shareholders for the year, mostly reflecting goodwill impairments and restructuring costs related to ongoing litigation stemming from the financial crisis and subsequent rate-fixing scandals.
Barclays (NYSE:BCS), which will report its results on February 12, announced that it will be setting aside an additional 1 billion pounds ($1.6 billion) to cover escalating legal expenses related to its fraudulent behavior in selling complex financial products.
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