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Earnings Analysis: 
Randgold Resources Profit Falls 36.6%
Author: 123jump.com Staff
123jump.com
Last Update: 1:55 PM EST February 05 2007



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KLA-Tencor second-quarter profit grew 18% as revenue increased. Hewitt Associates first-quarter net income fell 5%, weighed down by charges. Ipsco fourth-quarter profit fell 18% despite stronger sales, as higher costs resulted in a weaker profit margin. Randgold Resources posted lower net profit on lower production and higher costs at its Morila mine, due to lower grades being mined.

 
KLA-Tencor Corp. (KLAC: chart), makes semiconductor production equipment, said that its second-quarter earnings increased to $90 million, or 44 cents per share, compared with a year-ago profit of $76.6 million, or 38 cents per share. The latest results include pre-tax charges totaling $117 million from asset writedowns, acquisitions, net stock-based compensation and restatement activities. Revenue climbed to $649.3 million versus $487.7 million in the same period a year earlier.

Hewitt Associates Inc. (HEW: chart), human-resource services provider, said that its first-quarter earnings declined to $30.1 million, or 27 cents per share, compared with a year-ago profit of $31.5 million, or 29 cents per share. The latest results included a pre-tax severance charge of $16 million and $6 million in higher compensation expense, according to the Lincolnshire, Ill., provider of human resources outsourcing and consulting services. Net revenue climbed 4% to $726.6 million versus $701 million a year earlier.

Ipsco (IPS: chart), steel maker, said that its fourth-quarter net income dropped to $139.0 million, or $2.92 per diluted share, compared to $170.2 million or $3.52 per diluted share in the year-ago period. Excluding the NS acquisition, foreign exchange losses, the impact of share price appreciation on stock based compensation valuations and the change in the effective tax rate, earnings per share were $3.17 compared to revised guidance of $3.00 to $3.10 per diluted share. Revenue climbed 15% to $982.3 million after shipments rose 7% and avearge prices increased.

Randgold Resources Ltd. (RRC: chart), engages in the exploration, development, and acquisition of oil and gas properties, said that its fourth-quarter net profit fell 36.6% to $10.8 million as total revenue rose 14.2% to $69.1 million. The company said results for the quarter were impacted by lower production and higher costs at its Morila mine, due to lower grades being mined. The company also reported a loss of $4.9 million for the quarter from a matured hedging contract under which it delivered gold at a price lower than the spot sales price. The company also began a dividend program, with an initial dividend of 10 cents a share. The company noted that its mines are in remote areas and have to generate their own power from diesel generators.

NewMarket Corp. (NEU: chart), developer of petroleum additives, said that its fourth-quarter net earnings declined to $4.5 million, or 26 cents per share, compared with $11.1 million, or 64 cents per share, in the year-ago period. Excluding special items, the company posted a per-share profit of 60 cents versus 46 cents. Revenue climbed to $306.2 million from $293.7 million in the same period a year earlier.

B/E Aerospace Inc. (BEAV: chart), aircraft cabin products maker, said that its fourth-quarter net income fell to $21.7 million, or 28 cents per share, from $62.1 million, or 96 cents per share, in the year-earlier period. Quarterly revenue jumped 44% to $321.6 million compared to $222.9 million in the same period a year earlier.

Regal-Beloit Corp. (RBC: chart), electric motors, generators and auto transmissions maker, said that its fourth-quarter earnings increased to $23 million, or 68 cents per share, compared with a year-ago profit of $20.3 million, or 63 cents per share. Quarterly revenue slipped 2.5% to $366.6 million from $376.2 million in the same period a year earlier.

Royal Caribbean Cruises Ltd. (RCL: chart), cruise line, said that its fourth-quarter net income increased to $46.6 million, or 22 cents per share, compared with a loss of $3.6 million, or 2 cents per share in the year-ago period. Revenue climbed to $1.15 billion versus $1 billion in the same period a year earlier.

Potlatch Corp. (PCH: chart), real-estate investment trust that owns forestland, said that its fourth-quarter earnings increased to $44.1 million, or $1.13 per share, compared with a year-ago profit of $9.9 million, or 34 cents per share. The latest results included a gain of $24 million, or 62 cents per share, related to the company''s share of the negotiated settlement of the softwood lumber trade dispute between the U.S. and Canada, as well as an income tax adjustment of $3.9 million, or 10 cents per share, stemming from an asset transfer. Revenue jumped to $390 million against $389.3 million a year earlier.
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