1 Q Gap net income falls 23 percent as costs soar

NEW YORK - cost increases faster than Gap Inc. anticipated - especially for its products at low prices - sank profit in the first quarter of the company, and the clothing company significantly reduced its forecast for the year earnings late Thursday.

Escalating costs are composed only of challenges to the company, which aims to boost sales of its namesake brand. In fact, the company also operates the brands Banana Republic and Old Navy, acknowledged that also more than expected refresh the string empty in the latest quarter.

Shares of Gap fell $3.47, or 14.9% to $pass after hours. They had completed exchanged regularly at $23,29, up to 21 cents.

The company said that he spends about 20 percent more than last year on each element, it intends to sell in the second half of the year, especially for the holidays, it more high season. And its price increases will be not able to keep pace.

"I shall be quite honest with you." I feel good having to come here today and re-guide, "Gap CEO and Chairman Glenn Murphy said, referring in a call with investors in new perspectives of the company result." Thursday "But the 20% increase in our average unit costs in half back is real".

Murphy, said the cost pressure was a challenge "short term", not a structural issue and noted that prices of cotton are already retreating. It also recalled that the company goes ahead with initiatives in the long term, especially online and in other countries.

Gap said its net income dropped by 23% to $ 233 million, or 40 cents per share, for the quarter ended April 30. That compares to 302 million, or 45 cents per share, a year earlier.

His income fell by 1% to $ 3.29 billion. Income has fallen more, about 4%, to its chain of Old Navy of low prices, which produces about 40% of the revenues of the company.

Analysts expected worse performance - pay the 39 cents and revenues of $ 3.27 billion, according to FactSet.

Prices of many companies clothing for raw materials such as cotton and labour in China is growing. But the warning of profit of the Gap shows that he was not able to navigate the challenges and its rivals such as J.C. Penney Co. and Abercrombie & Fitch.

Plan of Gap and other sellers of clothing to raise prices this fall to offset the higher costs, but there are limits to how many shoppers will tolerate low prices in an economy still difficult, particularly for strings. In fact, cost pressures are hitting the company facilities and Old Navy stores more difficult because buyers resist to pay even a few dollars more for a shirt, so the company had to absorb more fresh.

Stifel Nicolaus analyst Richard Jaffe said puzzled that Gap is facing cost increases larger than its rivals, who reported increases in the cost of 10 to 15 per cent.

"This could be single their", said Jaffe.

Sabrina Simmons, Chief Financial Officer of the Gap, said investors Thursday that he had ordered to the spring and summer in February goods, only when it is sunny throughout the year forecasts, and he assumed costs would facilitate after he commissioned of goods of the fall.

But that does not. When the chain began to negotiate with suppliers in March and April for holiday orders, it found costs had soared. Murphy said that Gap is still in the hope of reducing costs when it finishes its purchases of vacation.

Gap Inc. has made a series of organizational changes and management recently. In February, Art Peck became the President of the trade mark, its fifth in nine years. The San Francisco-based company has also established a Global Creative Center and consolidated its marketing in New York. And earlier this month, he ousted Patrick Robinson, Director of design for the empty string. Murphy said that the brands Old Navy and Banana Republic also need to work.

The key indicator of revenue at stores open at least a year fell by 3 per cent for Gap Inc. as a whole. Gap North America, the figure decreased by 3%, while he fell 1 percent to Banana Republic and 2 percent to Old Navy North America. International division of the company saw a decrease of 6%. The number is significant because it is not distorted by stores who has recently opened or closed.

Gap continues to remodel the Old Navy stores and added its first stores in China and Italy last year. The company now sells its wares online in more than 90 countries and has recently announced plans to introduce the brand Gap in the Serbia and the Ukraine and a store on the largest e-commerce Chinese, called Alibaba group Mall site.

Total income Gap Online Inc. has increased by 18% to 348 million dollars, compared to $ 295 million in the first quarter of last year.

The company said the March earthquake and tsunami in the Japan, where she operates a cluster of stores, cut into its revenue and said that it will take some time for the company to recover.

Gap now expects to earn $ 1.40 to $ 1.50 per share for the year, at the bottom of his February forecast for $1.88 to 1.93 $ per share. Prior to report earnings Thursday, analysts expected $1.84 per share, according to FactSet.

Income net of Deere 2Q jumps 65 percent sales have grown

Deere & Co. said Wednesday that its profit in the second fiscal quarter rose 65 percent due to strong demand for its agricultural equipment, especially in the United States, the Canada and the Brazil.

The earnings beat Wall Street expectations, and it raised its forecast of revenue from 2011.

But its shares fell $46 cents at 86.50 as Deere predicts higher costs than expected and warned the weakness of the main markets of South America.

"We have noticed this with other industry: there are now high expectations on the market,"stated Jeff Windau, an analyst for Edward Jones."."

Jefferies & Co. Stephen Volkmann analyst said in a research note that he was a little disappointed with profits before tax of Deere, and he said at a tax rate reduced earnings of Deere spurred by 6 cents per share in the quarter.

"On the whole quarter was good but not great," said Volkmann."

Deere is large manufacturer most of agricultural equipment. He also construction, forests and equipment landscaping such as backhoes, excavators, lawn mowers and snowblowers horseback leaves.

Moline, Ill., company said its net income rises to 904.3 million dollars, or $2.12 per share, in the quarter ended April 30. Located 547.5 million dollars last year, or $1.28 per share, oppressed by a 129.5 million charge related to the reform of U.S. health care.

Analysts surveyed by FactSet under $ 2.06 per share gains.

Revenue increased 25 percent from $ 7.1 billion $ 8.9 billion last year. Analysts expected 8.12 billion.

Windau said investors appear to be concerned about costs that Deere reported for raw materials, remuneration and research and development because those that were higher than expected.

Deere said materials costs are approximately 175 million in the second quarter. Costs of research and development increased by 12% and fresh administrative were 19 percent higher than the previous year.

The company raised its forecasts for tax revenue in 2011. Deere predicts now sales will rise 21 to 23%, while Japanese tsunami will increase sales of $ 300 million. Earlier this year, Deere predicted sales would increase from 18% to 20%.

"John Deere is well placed to address the growing need of the world for agricultural products, the shelters and infrastructure," said Samuel Allen, Deere Chairman and Chief Executive Officer.

Deere predicts now income net of the full year will grow to 2.65 billion in 2011. Its previous forecast was $ 2.5 billion of net income.

Society leaders predict that global sales of the agriculture and turf equipment will increase by 20% in 2011 with the continued growth of sales in health in North America and Asia. But sales in South America are expected to decrease of 5 to 10 per cent of the high levels of last year.

To help cope with the increase in demand, Deere said it plans to invest $ 80 million in new agricultural equipment plant in northeastern China to serve the region. It would be a plant for the manufacture of Deere seventh in China, two of which are joint ventures.

And Deere said the Kuhn Group will start to produce brand Presses John Deere large square bullets for the European markets after 2012.

Deere said that its third-quarter sales should be about 20% over last year.

The company said farmers in most major markets in the world see their revenues grow because demand for their crops remains high, while global stocks are relatively low. Deere predicts that the prices of crops this year will be the average well above the levels of last year.

Corn prices have more than doubled since the summer of last and reached a record level of $7.76 a bushel on April 11. The price had increased because the demand for ethanol producers and consumers overseas has increased faster than the supply. Prices fell this month here because USDA new estimates predicted corn supplies will pass this year, but prices are still close to $7 per bushel of corn.

1 Q of insurer Cigna profit rise 52 percent

INDIANAPOLIS - Cigna Corp., said Thursday that its net income in the first quarter jumped 52 percent as the managed care company has experienced growth of compensation of its top companies and raised profit by 2011 forecasts.

The insurer of Philadelphia won 429 million, or $ 1.57 per share, in the three months ended March 31. Which is the 283 million dollars, or $1.02 per share, last year. Revenue climbed 4 percent to 5.41 billion $ of $ 5.21 billion.

Adjusted operations, which excludes some non-recurring items totalled $1.37 per share.

Analyst interviewed by FactSet gains expected $1.09 per share on revenue $ 5.49 billion.

CIGNA, the fourth health insurer based on registration, operates with health care, disability group and segments of life in the United States. Also, he sells the individual insurance in several countries and expatriate business that provides coverage for people living outside their country of origin.

Income after tax of its more large segment, health care, rose to 47% to $ 246 million. The performance was partly supported by a gain of $ 22 million, as whiff of claims last year came in below estimates of the insurer. Medical health membership increased slightly to $ 11.4 million.

Income after tax in its international business rose 7 percent to 77 million, as the premiums and costs were assisted by the acquisition of the company of Vanbreda International last year.

The insurer is now all year adjusted $ 4.65 and $ 5 per share, place among a range of 16: $ 30 to $ 4.70 per share, expected by the company in February.

Analysts expect earnings of $4.73 per share.

Performance of CIGNA follows a trend set by other major insurers in the first quarter. UnitedHealth Group Inc., WellPoint, Aetna Inc. and Humana Inc. have already reported earnings that beat expectations of Wall Street and their forecasts for 2011 has raised.

Chevron profit rises to 36 percent on the high price of oil (AP)

SAN RAMON, Calif.--Chevron Corp. said Friday its first-quarter net income rose 36 percent, the report of the last strong gains of a major oil company.

Chevron earned the higher prices for its oil in the world. The United States, Chevron sold its oil for an average price of $89 per barrel in the last quarter, compared to $71 a year ago. Internationally, Chevron sold oil for an average price of $95 per barrel, compared to $ 70 a year earlier.

These higher prices resulted in an increase of 1.25 billion for the benefit of exploration and production of oil and gas. Refining profits more than doubled, to $ 622 million.

In all, the net income of Chevron is passed 6.21 billion dollars, or $3.09 per action, 4.55 billion dollars, or $2.27 per share a year ago. The results topped Wall Street expectations and marked best Chevron three months since he gets 7.9 billion in the third quarter of 2008.

Analysts say that Chevron has succeeded in reducing costs while taking advantage of high oil prices. The company agreed to sell a refinery to the United Kingdom and other assets in Europe, the Caribbean and Africa which reduces profit margins.

Chevron has won $25 profit for each barrel of oil, it has sold, compared to $20 for ExxonMobil, according to Phil Weiss of the Argus Research.

Says of "low that are their spending, the less sensitive, they are to oil prices," Weiss.

Gasoline prices have topped $ 4 per gallon in nine States and the District of Columbia. As oil company profits of the levels of approach, three years ago, when the last fortified gas prices at the United States industry fights renewed President Barack Obama and Democrats push to end its $ 4 billion a year in taxpayer subsidies.

Thursday, Exxon Mobil reported a net income of almost $ 11 billion, its best quarter making Americans billions of dollars in the period from July to September 2008. This is the registration of a listed company. Also, Shell profit increased by 60% to approximately 9 billion in the first quarter. Total SA the France is about 5.8 billion, up to 50%. Remuneration of the ConocoPhillips increased by 43%.

Chevron revenues is 25% to 60.34 billion in the quarter. The increase in oil prices was partially offset by lower prices for natural gas United States. International natural gas prices have increased slightly.

Chevron sharing roses 59 cents to $109.40 in afternoon trading.

Freeport-McMoran CEO compensation increased 76 percent (AP)

DENVER - jumped for the remuneration of the CEO of Freeport-McMoran Copper & Gold Inc. 76 per cent last year as the improvement of the global economy has been robust demand and higher prices of metals, according to an analysis of the Associated Press.

Richard c. Adkerson gets $ 35.3 million, mainly in stock awards grants and options, valued at $ 21.2 million when they were awarded, according to the calculations of AP based on a company filing made Thursday with the Securities and Exchange Commission.

That is compared with its system of remuneration of 20.1 million for 2009, when mining giant of Phoenix was still struggling against the effects of the recession.

Adkerson, who is also President of Freeport-McMoran, has been rewarded for the improvement of the year last in the financial performance of the company, led by higher gold and copper and stronger demand prices, especially in fast-growing countries such as China.

For the year, net income of Freeport-McMoRan was 4.3 billion dollars, or $9.14 per share, compared with 2.5 billion dollars, or $5.86 per share in 2009. Income increased by 28% to 1,003.00 billion.

Adkerson, 64, received a $ 2.5 million base salary and cash bonus based on performance of 10 million in 2010.

He received 1.77 million in benefits company and other personal benefits, including advice and financial a value of $20,000, the corporate aircraft use a value of $242,279, security and cars, a value of $179,771 and $ 1 million in contributions to a savings tax plan.

In 2009, Adkerson received a base salary of $, options price 2.5 million value 6.78 million dollars, a bonus of $ 10 million, $813,223 in other compensation and no stock grants.

The Associated Press formula calculates the total remuneration of the leader in the last year by adding the salary, bonuses, benefits, interest above the market, the company pays the deferred compensation and the estimated stock and stock options granted during the year.

The formula for the AP ignores changes in the present value of pension benefits. That is slightly different AP total in most cases the total reported by the companies of the sec.

The value that a company assigned to an Executive stock and option awards for 2010 has been the current value of that society expects prices worth the Executive over time. Companies use one of several formulas to calculate this value. However, the number is just an estimate and what leader receives ultimately will depend on the performance of the shares of the company in the years after the awards are granted. Most stock compensation programs require an Executive waiting time to receive shares or exercise options specified.