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25/04/08

Honda profit tumbles, sees yen hitting hard in 2008

TOKYO (Reuters) - Honda Motor Co posted a much bigger than expected 85.6 percent tumble in quarterly net profit on Friday, and forecast a weak year ahead hit by a stronger yen, rising commodities prices and a soft U.S. car market. In the past year, Honda, Japan's second-biggest automaker and the world's top motorcycle maker, has been hit by a gain of around 10 percent in the yen versus the dollar, which erodes the value of its exports and repatriated earnings.

BoC sees slower growth, delayed recovery

OTTAWA (Reuters) - A longer-than-expected U.S. slowdown is bringing economic growth to a near standstill but Bank of Canada Governor Mark Carney suggested on Thursday he now may be in less of a hurry to cut interest rates because consumer spending is proving resilient. Declining exports to a weakening U.S. market will drive down Canadian economic growth to 0.3 percent in the second quarter of this year from a previous estimate of 2 percent, the Bank of Canada said in a report on Thursday.

Volvo shares rise as Q1, Europe outlook pleases

STOCKHOLM (Reuters) - World number two truck maker Volvo AB posted first-quarter pretax earnings above market expectations on Friday and was more upbeat on its key European market, sending its shares sharply higher. Volvo reported pretax profit of 6.14 billion Swedish crowns ($1 billion) versus a year-earlier 5.41 billion and a mean forecast of 5.71 billion in a Reuters poll of 17 analysts.

ABCP vote to proceed Friday, judge rules

TORONTO (Reuters) - An Ontario judge said on Thursday he would not alter or delay a restructuring plan for the C$32 billion domestic market for nonbank asset-backed commercial paper, paving the way for a noteholder vote on the plan on Friday. Ontario Superior Court Justice Colin Campbell said the vote should go ahead, but some key legal issues could still be argued afterward.

Toronto stocks hit by falling commodity prices

TORONTO (Reuters) - The Toronto Stock Exchange's main index pared early losses but still ended more than 100 points lower on Thursday, dragged down by resource shares, which dropped with tumbling commodity prices. Oil and gas producer Canadian Natural Resources fell C$3.96, or 4.5 percent, to C$83.25, as crude oil prices dropped amid gains in the U.S. dollar. Oil settled down $2.24 at $116.06 a barrel, putting it further away from its recent record peak of near $120.

Japan inflation hits 10-yr high; bonds hit hard

TOKYO (Reuters) - Japanese annual inflation hit a decade-high of 1.2 percent in March, helping trigger one of the biggest ever sell-offs in yen bonds as investors realized Japan has no immunity from price pressures facing the rest of the world, and that could eventually lead to a rate hike despite a weak economy. Trading in bond futures on the Tokyo Stock Exchange was halted for a time to allow the market to settle, the first test of a circuit breaker mechanism introduced to the market this year.

Microsoft results disappoint

SEATTLE (Reuters) - Microsoft Corp disappointed investors looking for stellar earnings on Thursday with soft Windows software sales and a below-target profit forecast, which overshadowed a strong outlook for next year. Microsoft, whose shares fell 5 percent in after-hours trade, also pressed its attack on takeover target Yahoo Inc, saying time was of the essence and that the faded Web star needed to forgo "unrealistic expectations" that it is worth more than Microsoft's $44 billion offer.

Oil prices fuel Suncor profit, output goal trimmed

CALGARY, Alberta (Reuters) - Suncor Energy Inc's first-quarter profit climbed 23 percent due to record crude prices, but Canada's biggest oil producer and refiner by market value trimmed its production target for the year as oil sands output lagged expectations. Suncor, which has launched a C$20.6 billion ($20.3 billion) expansion of its oil sands operation, said severely cold weather and a government order to cap production at one site to control sulfur emissions limited volumes in the quarter.

Toshiba Q4 falls 95 percent on weak chips

TOKYO (Reuters) - Japanese electronics maker Toshiba Corp <6502.T> posted on Friday a better-than-expected 95 percent drop in quarterly profit as flash memory chip prices tumbled. The world's No. 2 maker of NAND flash memory chips behind South Korea's Samsung Electronics Co Ltd <005930.KS> said it fell to a net profit of 1.25 billion yen ($12 million) in January-March against a 26.17 billion yen profit a year ago.

Rising grain costs push Maple Leaf to loss

WINNIPEG, Manitoba (Reuters) - Maple Leaf Foods Inc , one of Canada's largest food processors, reported a small first-quarter loss on Thursday because of soaring costs for grain used in its bakeries and hog barns. Maple Leaf, known for its bacon, wieners and Dempster's breads, lost C$10,000 ($9,900), or nil a share, compared with a profit of C$10.5 million, or 8 Canadian cents a share, in the year earlier.

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