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E*Trade shares tumble 11 percent after soft results

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The online brokerage and financial services company's shares tumbled 11.6 percent, or $1.09, to $8.25 in morning trading

E*Trade reported a net loss of $6.3 million, or 2 cents a share in the fourth quarter, compared with a loss of $24 million, or 11 cents, a year earlier.

Analysts on average expected the company to earn 20 cents a share, according to Thomson Global Markets I/B/E/S.

The company said it has been transitioning since the second half of 2011 to a new banking regulator, and to bring its programs in line, it took a $15 million writedown to adjust for loans that were currently in foreclosure, and it added $67 million to its reserves.

In total, E*Trade said it set aside $123 million for loan losses in the quarter, compared with $194 million a year earlier.

David Chiaverini, an analyst at BMO Capital Markets, said he had been expecting the company to record $48 million in loan loss provisions.

E*Trade took billions of dollars in losses on risky loans in the mortgage portfolio of its banking unit following the collapse of the U.S. housing market. It has made progress with its debt and credit issues, chalking up its first full-year profit since 2006, but the loan book continues to drag on earnings.

Separately, the company paid about $11 million in the quarter to settle a class-action lawsuit as a result of losses in its mortgage and home equity loans portfolio in 2007.

Minus the one-time charges, E*Trade would have likely earned just under 17 cents a share, Richard Repetto, an analyst at Sandler O'Neill Research, said in a note to clients.

Daily client trades at the brokerage were down 7 percent from a year ago as investors pulled back from choppy markets. E*Trade also said its net interest margins would fall below its earlier forecasts in 2012 due to the ongoing soft interest rate environment.

While Repetto said he believes E*Trade management "is doing all the right things," he downgraded the stock to "hold" from "buy" due to the difficult trading environment and net interest margin compression.

Goldman Sachs cut E*Trade to "neutral" from "buy," while Macquarie cut its price target for the firm to $8 from $10, and BMO Capital Market cut its price target to $8 from $9.

(Reporting By John McCrank in New York; Editing by Derek Caney and Maureen Bavdek)

Few banks to follow UniCredit share sale example

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Some 31 European banks have been told to fill a 115 billion euro collective hole in their balance sheets by the end of June as part of moves to tackle the continent's sovereign debt crisis.

But most are finding ways to boost their capital buffers without issuing new shares.

"The fact UniCredit gets done is obviously a positive ... but I'm not sure it necessarily swings the needle in terms of other banks thinking of coming to market," said one equity capital markets (ECM) banker. "It is still a last resort."

UniCredit's offering, keenly watched as a litmus test of investor appetite to support European banks, got off to a rocky start, with its shares dropping as much as 47 percent in the four days after the 2-for-1 issue was announced.

Retail demand was stronger than expected, a source close to the deal said, with good interest coming from U.S. investors.

The sale also received a boost from a plan by Abu Dhabi's investment vehicle Aabar INPTVA.UL to raise its stake in the bank to 6.5 percent.

The bank's stock is now at around 3.82 euros, well above the 1.943 euro offer price and sources close to the deal expect take-up, due to be announced by Monday, to be above 95 percent.

Although the cash call will put its core Tier 1 capital adequacy ratio above the 9 percent of risk-adjusted assets required by the European Banking Authority, UniCredit remains vulnerable to the country's sovereign debt woes, analysts say.

A source close to Italy's largest bank by assets said it had readied a 25 billion euro Italian covered bond program which it planned to use to boost collateral available for refinancing operations, while on Wednesday it announced plans to buy back up to 3 billion euros of hybrid debt, adding to efforts aimed at strengthening its capital base.

UNDERWHELMING

"UniCredit failing would have meant the door was shut (for other banks). But the door is still open, the question is who, how much and how," said a second ECM banker.

Germany's Commerzbank (CBKG.DE), which had been among those seen as most likely to issue new shares, has instead set out a range of other steps to boost its core capital.

Bankers highlight Deutsche Bank (DBKGn.DE) along with France's BNP Paribas (BNPP.PA) and Societe Generale (SOGN.PA) as those which may be both willing and able to get a share sale done.

Analysts at Mediobanca, one of the top advisers on UniCredit's rights issue, said the French banks should consider a rights issue as a less costly alternative to deleveraging.

"(The) UniCredit rights issue shows that the lack of private investors' appetite is no longer a good reason for French banks to ignore such an option," they said in a note.

But investor appetite remains limited.

"How do I rate the recapitalization efforts of European banking sector so far? A bit underwhelming I would suggest," said Stephen Adams, head of UK equities at Kames Capital, confirming his team's relative underweight to financials.

"I expect a lot of rights issues over the short to medium term ... Would I expect investors to support them? I think here and now probably not," he added.

EARLY BIRDS

Investors are weary of pumping yet more money into European banks and face heavy dilution. UniCredit's offering will dilute 2012 earnings per share by around 65 percent, according to analyst estimates.

While Adams predicts more rights issues by banks, he says investors will be very selective about the banks they back unless there is a significant rotation in asset allocation, out of cash and into equities.

"We have the classic situation whereby the early birds would be supported and then you would have that drag because of the sheer weight of requirement that has to come out," he said.

Smaller lenders are more likely to struggle to come to market, bankers said, as new investors are steering clear of the periphery and banks will be less keen to underwrite an offering.

But they do not rule out pursuing alternative structures.

"We have seen before major shareholders underwriting larger than their weight in the company," said the second ECM banker.

Shareholders in Austria's Raiffeisen RZB.UL have backed the option to issue new shares as part of its capital strengthening plans, while Spain's Banco Sabadell aims to raise up to 1 billion euros from a rights issue following its acquisition of rescued regional savings bank CAM.

UniCredit's smaller Italian peers Banca Monte dei Paschi (BMPS.MI), Banco Popolare (BAPO.MI) and UBI Banca (UBI.MI) are still striving to avoid cash calls.

"People will still look at their stock price and say 'I need to be very sure that I need to do it and want to do it and need to make sure that my shareholders, especially the large ones, are in the right place before I go ahead'," said the banker.

($1 = 0.7708 euros)

(Additional reporting by Sinead Cruise in London and Silvia Aloisi in Milan; Editing by David Cowell)

Carnival sued by crew member over cruise ship disaster

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Lawyers for Gary Lobaton, who was a crew member on board the Costa Concordia, said in a court filing that he was not aware of the "dangerous conditions" of the cruise ship until it was too late to abandon the ship.

The lawsuit sought to determine whether Carnival deviated from international safety standards when operating the cruise ship.

"Costa Concordia's Captain, Francesco Schettino, delayed the order to abandon ship and deploy the lifeboats," Lobaton's lawyers said in the filing.

Lobaton, who sued Carnival individually and on behalf of all others similarly affected by the cruise disaster, had sought damages from the company, according to the court filing.

Lobaton had also requested the court to assign class-action status to the lawsuit.

The 114,500-tonne ship capsized off the Tuscan coast, which left 11 people dead and 22 missing.

According to a January 24 BBC report, the number of dead has risen to 16.

Carnival could not immediately be reached for comment by Global Markets outside regular U.S. business hours.

The case is Gary Lobaton vs Carnival Corp, Case No. 1:12-cv-00598, U.S. District Court, Northern District of Illinois, Eastern Division.

(Reporting by Sakthi Prasad; Editing by Muralikumar Anantharaman)

RIM shares bounce back after shuffle-related drop

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The jump followed a 8 percent swoon on Monday and a 3.5 percent drop on Tuesday. Over the weekend, RIM replaced co-chief executives Mike Lazaridis and Jim Balsillie with Thorsten Heins, a four-year veteran of the struggling company.

RIM's rise also came a day after Apple posted blockbuster quarterly results highlighting the strong global market for smartphones.

A report in a technology blog that said RIM's next-generation BlackBerry 10 smartphones were on track for a September launch may have also given a lift to the stock, said Todd Coupland from CIBC Capital Markets.

"The market might have been reacting to some blog reports that the first BB 10 products may be coming sooner than expected," he said.

Even so, Coupland was skeptical about the posting in the Boy Genius Report, which did not specify a source.

In December, RIM delayed the phones using the same software in its PlayBook tablet until the latter part of 2012.

The blog earlier this month said RIM was in talks to sell itself to Samsung, triggering a 10 percent spike in the shares.

Samsung later denied any interest in acquiring RIM, and a source close to the BlackBerry maker said the two companies had never been in buyout talks.

RIM's Nasdaq-listed shares closed at $16.30 and its Toronto stock was at C$16.40. The stock has fallen 75 percent in the past year.

(Reporting by Alastair Sharp)

Time Warner Cable to buy back more stock, shares up

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The No. 2 U.S. cable provider also posted a higher quarterly profit as it added more customers than expected for its broadband services and stemmed the decline in its video business.

The company raised its quarterly dividend by 17 percent to 56 cents a share, which means its shares now carry a 3.2 percent dividend yield based on Wednesday's closing price.

While Collins Stewart analyst Thomas Eagan said he was expecting a dividend increase, he was surprised the company increased its share buyback so soon. He said he did not expect such a move until the third quarter of 2012 and that it signals a strong outlook for future cash generation.

"It is notable and speaks to their confidence to their cash flow growth," he said.

The high end of the company's forecast range for 2012 earnings per share was slightly above Wall Street estimates. It now expects earnings per share in the range of $5.25 to $5.50, compared with the average estimate of $5.48, according to Thomson Global Markets I/B/E/S.

Time Warner Cable, which competes with Comcast Corp (CMCSA.O) and Cablevision Systems Corp (CVC.N), said fourth-quarter profit rose to $564 million, or $1.75 a share, from $392 million or $1.09 a share a year earlier.

Its revenue rose 4 percent to $5 billion, topping analysts' average estimate of $4.97 billion, according to Thomson Global Markets I/B/E/S.

It added 117,000 broadband Internet residential customers, beating analysts' estimates for 87,000.

The company lost 129,000 video residential subscribers, compared with analysts' expectations for a loss of 130,000, according to StreetAccount data. Bernstein Research analyst Craig Moffett wrote in a research note that "video subscribers continue to trend better."

Time Warner Cable and its peers have been losing video customers to phone and satellite providers and Internet companies such as Netflix Inc (NFLX.O) and Hulu. On Wednesday, Netflix surprised Wall Street by adding 610,000 net new subscribers in the United States in the latest quarter.

AT&T Inc (T.N), which has a TV service called U-Verse, said in its quarterly earnings report on Thursday that it added 208,000 TV subscribers in its fourth quarter.

Time Warner Cable shares were up 7.8 percent at $74.50 at midmorning on the New York Stock Exchange, off an earlier high at $74.88.

(Reporting by Liana B. Baker in New York; Additional reporting by Saqib Iqbal Ahmed in Bangalore; editing by John Wallace and Matthew Lewis)

3M profit tops Wall Street estimates

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The maker of Post-It notes, Scotch tape and components for consumer electronics reported net earnings of $954 million, or $1.35 per share, compared with $928 million, or $1.28 per share, a year earlier.

Analysts on average were expecting a profit of $1.31 a share, according to Thomson Global Markets I/B/E/S.

Sales rose 6 percent to $7.1 billion, matching Wall Street estimates. 3M's industrial and transportation segment sales jumped 14 percent, reflecting healthy auto, aerospace and energy markets, among others, as well as acquisitions. Sales at 3M segments that make office supplies and health and safety also rose.

Revenue fell, however, in the display and graphics segment, hurt by what 3M called "deteriorating" demand for consumer electronics. Its electro and communications also posted lower sales.

St. Paul, Minnesota-based 3M affirmed its forecast of 2012 earnings between $6.25 and $6.50 per share, saying it would focus on its bottom line in the near-term in a slower growth environment .

3M has said acquisitions would boost this year's results. This month, it moved to expand its office supply business with the $550 million cash purchase of Avery Dennison Corp's (AVY.N) office and consumer products unit, which includes Avery labels and HI-LITERS markers.

(Reporting By Nick Zieminski in New York; Editing by Lisa Von Ahn and Derek Caney)

Caterpillar profit jumps 58 percent

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The strength seen by Caterpillar, a bellwether for global spending and credit conditions, could be seen as a much-needed boost to those concerned about consumer confidence and sovereign debt. The company's forecasts have long been seen as one of the more telling indicators of future growth or malaise.

Caterpillar's results cap a record 2011 in terms of revenue and profits, and it posted its biggest yearly growth rate for sales and income since 1947. The company has been a leading name in a U.S. industrial sector that enjoyed a widespread rebound in 2011.

Acquisitions, increased demand for mining equipment, high commodity prices and sales growth in construction machinery and parts supported Caterpillar during the year. Price increases and higher inventories also fueled the performance.

Investors reacted positively to the report, with shares up 3.2 percent at $112.57, about $4 shy of a 52-week high set in May.

Peoria, Illinois-based Caterpillar said it would continue to

break records in 2012, with profit expected to rise 25 percent to $9.25 a share and revenue projected to increase between 13 percent and 20 percent. The outlook outpaced analyst expectations and is based on a forecast for higher sales for all geographic regions and business segments except marine engines.

"We're expecting 2012 to be another year of good growth," Caterpillar Chief Executive Doug Oberhelman said in a press release. "We have to be prepared for recovery in the developed world beyond 2012 and continued growth in emerging markets."

RECESSION "UNLIKELY"

The company said the U.S. economy will continue to experience slow growth. Meanwhile, China is moderating, and Latin America growth could slow down.

It estimated that the eurozone debt crisis could lead to negative growth in the region during the first two quarters of 2012 but "it is unlikely to trigger a worldwide recession," and sees improvement there by the second half of the year.

The company said tax expenses are the biggest challenge in 2012 due to its geographic sales mix and regulations.

Caterpillar said construction markets in the United States and Europe remain "depressed," contrasting the strong growth taking place in emerging regions. Still, the company sees buyers in developed markets snapping up new machinery in order to replace outdated equipment.

During a conference call, the company said it expects to "finally" see some growth in U.S. construction spending, but it will remain relatively low.

The company is gaining market share in many key regions -- including China -- putting further pressure on the company's production capacity. In some cases, customers are on waiting lists that span several years because of these constraints. Buyers of new large trucks are being quoted delivery times into 2014, for instance.

Meeting demand will also lead to increased costs as the company scrambles to add capacity in key regions, particularly to meet demand for mining equipment.

Caterpillar will invest about $4 billion on capital expenditures in 2012, compared with $2.6 billion in 2011.

Caterpillar said it added 14,000 employees in 2011 in order to meet growing demand, 6,500 of which were added in the United States. The company said it exported nearly $20 billion worth of goods in 2011, representing a third of its total revenue for the year.

Caterpillar spokesman Jim Dugan said the company anticipates adding more employees in 2012 as it opens or expands facilities.

PROFITS, SALES UP

The company posted net income for the fourth quarter of $1.55 billion, or $2.32 per share, compared with $968 million, or $1.47 per share, a year ago. That result was 59 cents above the analysts' average estimate of $1.73 a share, according to Thomson Global Markets I/B/E/S.

Sales rose 35 percent to $17.24 billion, above Wall Street estimates of $16.05 billion.

Caterpillar reported growth in all three of its product sectors -- construction equipment, such as bulldozers; resource equipment needed for activities like mining; and power systems, including engines. The resource equipment segment was the fastest-growing unit in terms of sales, but profit growth in the construction business was more robust.

It also is seeing steady demand for after-market parts needed for equipment already in use.

Increased expenses related to production volume, capacity expansion and incentive compensation added about $450 million worth of costs in the fourth quarter alone. The company also spent money on its Caterpillar Japan restructuring and integrating new business.

(Editing by Maureen Bavdek and Mark Porter)

Mead Johnson profit beats Street; shares rise

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In December, Wal-Mart Stores Inc (WMT.N) and other retailers pulled certain packages of Enfamil off store shelves following the death of an infant who drank the formula.

A government investigation found no trace of contamination in sealed Enfamil packages and no reason for a recall. That took Mead Johnson out of the line of fire, but not before damaging its brand.

"While it is still early days ... that issue is going to have a meaningful downward impact on our business in the United States," Mead Johnson Chief Executive Steve Golsby said on Thursday. "While there was no noticeable impact on our fourth-quarter sales, given the late December timing, we expect to see lower market share potentially into the third quarter of this year."

The company said it was spending heavily on an advertising campaign meant to restore trust in its brand.

It forecast 2012 earnings below Wall Street estimates, but many investors were prepared for a weak outlook, said RBC Capital Markets analyst Edward Aaron.

"The range provided is consistent with our assessment of buy-side expectations heading into earnings," Aaron said in a research note.

Mead Johnson said it expects a profit of $3.00 to $3.10 per share this year. Analysts' average estimate is $3.18, according to Thomson Global Markets I/B/E/S. The forecast assumes higher commodity and packaging costs and net sales growth of 7 percent to 9 percent.

For the fourth quarter, net sales rose 13.4 percent to $911.3 million, above the $895.8 million analysts had expected. Sales in Asia and Latin America jumped 17 percent, while sales in North America and Europe rose 3 percent.

Net income for the quarter was $85.6 million, or 42 cents per share, down from $99.6 million, or 48 cents, a year earlier.

Excluding certain items, earnings came to 52 cents per share. Analysts on average were expecting 51 cents, according to Thomson Global Markets I/B/E/S.

Mead Johnson shares were up $1.19, or 1.6 percent, at $73.79 in midday trading on the New York Stock Exchange.

(Reporting By Martinne Geller and Phil Wahba; editing by Mark Porter and John Wallace)

Wal-Mart plans to sell new drink machine

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The introduction of the Esio Beverage System by Walmart, with its relatively inexpensive drinks, could pressure the price that Green Mountain, the dominant player in the U.S. single-serve coffee market, can charge for its K-Cups, which are the portions of coffee used in its brewers, according to a report on Thursday by research firm Detwiler Fenton.

Shares of Green Mountain fell as much as 6.3 percent following the report, before closing down 3.4 percent at $49.34 on the Nasdaq. Shares of Sodastream International, which also sells a home beverage machine, closed down 4.3 percent at $36.75.

Wal-Mart, the world's biggest retailer, plans to start selling the Esio system later this year, a company spokeswoman confirmed. She declined any further comment.

The Esio system can make single servings of hot and cold drinks including coffee, tea, energy drinks and vitamin waters, according to Detwiler Fenton.

That machine's presence at Walmart would provide more competition for Keurig as well as for Kraft Foods Inc's (KFT.N) Tassimo and Nestle's (NESN.VX) Nescafe Dolce Gusto, the report said.

Prices per serving are expected to be much lower than the average cost of Keurig's K-Cups, which range from 60 cents to 90 cents each, the report said.

"We believe that this introduction will likely be a game changer in the single-serve category," Detwiler said in the report, adding that Walmart had been frustrated with Green Mountain's pricing, which was considered too high for the Walmart consumer.

"We see this introduction as fulfilling Walmart's goal of offering a competitive value option," the report said.

For its part, Green Mountain seemed to welcome the challenge.

"Walmart consumers clearly value the quality, convenience and choice inherent in the Keurig system and anyone that hopes to compete will have to match that," said a Green Mountain spokeswoman.

Officials at Esio did not return calls seeking comment.

News of the report was first mentioned by a CNBC business news correspondent.

(Reporting By Martinne Geller in New York; Editing by Matthew Lewis, Bernard Orr and Steve Orlofsky)

Elpida shares tumble on $1.2 billion April-December loss report

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(Reporting by Dominic Lau; Editing by Chris Gallagher)