European Factors-Shares seen broadly lower; focus on charts

LONDON, July 29 (Reuters) – European shares are likely to
open flat to lower on Thursday, mirroring losses in Asia and on Wall Street,
with investors seen cautious following weak U.S. data and the market’s failure
to break key resistance levels.

According to financial bookmakers, Britain’s FTSE 100 .FTSE was expected
to open 6 to 11 points lower, Germany’s DAX .GDAXI was seen opening almost
flat and France’s CAC 40 .FCHI was expected to fall 9 to 14 points.

U.S. stocks fell on Wednesday after weak durable goods figures and a
downbeat assessment of the economy from the Fed’s Beige Book kept the benchmark
S&P 500 trapped below its 200-day moving average.

“U.S. economic data remains something of a concern for equity traders across
the globe with both the Fed’s beige book and the durable goods order numbers
released yesterday adding to the ongoing theme of disappointment here,” said Ben
Potter, research analyst at IG Markets.

“With August around the corner and Europe slowing down for the summer, it’s
all too easy to start thinking that an air of indifference may be about to grip
the markets.”

The FTSEurofirst 300 .FTEU3 index of top European shares closed 0.3
percent lower at 1,050.88 points on Wednesday, after rising by as much as 0.7
percent in early trade. In Asia, Tokyo’s Nikkei fell 0.4 percent on Thursday.

———————-MARKET SNAPSHOT AT 0510 GMT———————-

LAST PCT CHG NET CHG

S&P 500 .SPX 1,106.13 -0.69 % -7.71

NIKKEI .N225 9,711.31 -0.43 % -41.96

MSCI ASIA EX-JP .MIASJ0000PUS 486.79 -0.05 % -0.24

EUR/USD EUR= 1.3011 0.19 % 0.0025

USD/JPY JPY= 87.18 -0.18 % -0.1600

10-YR US TSY YLD US10YT=RR 2.989 — -0.01

10-YR BUND YLD EU10YT=RR 2.728 — -0.02

SPOT GOLD XAU= $1,165.60 0.26 % $3.05

US CRUDE CLc1 $77.08 0.12 % 0.09

———————————————————————–

* GLOBAL MARKETS-Asia shares retreat from highs, dollar dips [ID:nTOE66S007]

* Wall St ends lower after weak durable goods orders data [ID:nN28215774]

* Nikkei falls 0.5 pct after rally; Panasonic drops [ID:nTOE66S02I]

* FOREX-Euro dips vs yen on Japan exporter selling [ID:nTOE66S034]

* TREASURIES-Firm in Asia after strong auction [ID:nTOE66S02F]

* Oil steady near $77 after sharp U.S. inventory gain [ID:nSGE66S06Z]

* PRECIOUS-Gold regains strength on dollar; ETF drops [ID:nSGE66S00S]

* METALS-Copper inches lower as economic uncertainties weigh [ID:nTOE66S02T]

(Reporting by Atul Prakash; Editing by Jon Loades-Carter)

Trintech to Present Webinar on Trends in Finance Transformation and Automation, Featuring…

Trintech to Present Webinar on Trends in Finance Transformation and Automation,
Featuring Leading Independent Research Firm

DALLAS, SEATTLE, DUBLIN, Ireland and LONDON, June 14, 2010 (GLOBE NEWSWIRE) –
Trintech Group Plc (Nasdaq:TTPA), a leading global provider of integrated
financial governance, risk management and compliance software solutions,
announced today that it will be presenting a webinar on trends and best
practices in financial close, compliance, and reporting, featuring independent
research firm Forrester Research, Inc. The webinar will be held Wednesday, June
23, 2010 at 12:00 pm CDT.

“The Office of Finance is evolving rapidly,” said Theresa Clark, Trintech’s Vice
President of Finance Transformation and a webinar co-presenter. “Access to
timely and accurate financial data is becoming even more critical to success in
today’s economy. Finance automation technologies can help businesses do more
with less, often acting as a catalyst for key financial close, reporting, and
compliance processes across the enterprise, so companies can anticipate and
adapt to trends such as XBRL, shared services, and regulatory reporting process
automation.”

Webinar registrants will learn to identify best practices for automating the
financial lifecycle, and hear Forrester research analyst Paul Hamerman discuss
perspectives on the various types of financial applications available.

— What:

— Webinar — “Perspectives on Trends and Best Practices in Financial
Close, Compliance and Reporting”

— When:

— Wednesday, June 23, 12:00 pm CDT (online webinar)

— Presenters:

— David Taylor — Vice President, Strategy (Trintech)
— Theresa Clark — Vice President, Finance Transformation (Trintech)
— Paul Hamerman — Vice President, Principal Analyst (Forrester Research,
Inc.)

— To Register:

— Register Online Here

(https://trintech.webex.com/mw0306lb/mywebex/default.do?nomenu=true&siteurl=trin
ech&service=6&main_url=https%3A%2F%2Ftrintech.webex.com%2Fec0605lb%2Feventcenter
2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26confViewID%3D692327340%26siteurl
3Dtrintech%26%26%26)

About Trintech Group

Trintech Group Plc (Nasdaq:TTPA) is a leading global provider of integrated
financial governance, risk management, and compliance (GRC) software solutions
for commercial, financial, and healthcare markets. Trintech’s recognized
expertise in reconciliation process management, financial data aggregation,
financial close and reporting, risk management, and compliance enables customers
to gain greater visibility and control of their critical financial processes
leading to better overall business performance.

For more information on how Trintech can help you increase confidence in
business performance and reduce financial risk, please contact us online at
www.trintech.com or at our principal business office in Addison, Texas, or
through an international office in Ireland, the United Kingdom, or the
Netherlands.

Trintech * 15851 Dallas Parkway, Suite 900 * Addison, TX 75001 * Tel 1 972
701 9802
Trintech UK Ltd. * Warnford Court, 29 Throgmorton St. * London EC2N2AT, UK
* Tel +44 (0) 20 7628 5235
Trintech Technologies * Block C, Central Park * Leopardstown, Dublin 18,
Ireland * Tel +353 1 293 9840
Trintech * Cypresbaan 9 * 2908 LT Capelle a/d Ijssel, The Netherlands *
Tel +31 (0) 10 8507 474

CONTACT: Trintech Group Plc
Dave Tomlinson — Director, Marketing
+1 972 739-1611
dave.tomlinson@trintech.com

Toshiba Earns 2010 North American Competitive Strategy Leadership of the Year Award from Frost & Sullivan

Award Recognizes Toshiba`s High-Quality Products, Commitment to R&D, Strategic
Product Launches, Outstanding Customer Service and Ability to Adapt in a
Changing Environment
TUSTIN, Calif.–(Business Wire)–
Frost & Sullivan, the global research and growth consulting firm, has conferred
the 2010 North American Competitive Strategy Leadership of the Year Award in
Medical Imaging on Toshiba America Medical Systems, Inc.Frost & Sullivan
selected Toshiba based on multiple criteria including the company`s significant
gains in market share during the award`s Best Practices research period.

“Toshiba`s position in the market has continued to strengthen as a result of the
company`s high-quality products, wise long-term R&D investments, strategic
product launches, outstanding customer service, and the company`s ability to
anticipate market changes and adapt accordingly,” says Roberto Aranibar,
Research Analyst, Frost & Sullivan, who reviewed Toshiba for award
consideration. “Toshiba`s technical expertise in the major imaging modalities,
its ability to leverage partnerships and its close attention to customer needs
have enabled the company to achieve considerable success in the market. Based on
the aforementioned factors, Frost & Sullivan suitably presented the 2010
Competitive Strategy Leadership of the Year Award to Toshiba America Medical
Systems.”

According to Frost & Sullivan`s Best Practices research, Toshiba has made
several strategic approaches to strongly position itself in the marketplace,
making it worthy of this prestigious award, including:

* Attention to Customer Needs

Based on third-party customer surveys, Toshiba consistently ranks among the
highest user-rated vendors in the industry due to the company`s consistent
customer service, high-quality products and product development approach that is
driven by customer feedback. Toshiba works with industry visionaries during
product development.

* Successful Partnerships

Toshiba aligns itself in the right partnerships to offer the highest quality
imaging solutions to customers. In the healthcare IT area, Toshiba offers strong
IT solutions for radiology and cardiology due to collaboration with McKesson
Provider Technologies. In CT, Toshiba`s partnership with Vital Images offers
products with enhanced visualization capabilities. Toshiba`s acquisition of the
Advanced Visualization Imaging System (AVIS) division of Barco in 2008 brought
3D volume rendering and advanced visualization capabilities in-house for
Toshiba. AVIS is now an integral part of Toshiba`s research team.

* Adapting Technology for Market Changes

Toshiba has focused on developing imaging systems to provide maximum utility
despite changes in the market.Toshiba`s focus on patient comfort and safety, and
attention to rapidly rising rates of obesity in the United States prompted
Toshiba to invest in R&D geared towards developing open-bore MR systems such as
the Vantage Titan MR. This open-bore MR system addresses the difficulties
associated with imaging larger patients while also providing advantages in other
areas such as pediatric and women`s health imaging. Additionally, Toshiba`s
focus on patient safety prompted the company to invest in non-contrast imaging
research over 10 years ago, resulting in bringing the first and only
non-contrast imaging techniques to market.

* Revenue Growth and Market Share Gains

Over the past several years, Toshiba`s approach has yielded strong growth and
market share gains in major imaging modality markets, including revenue growths
outpacing each of the markets in which Toshiba participates.

“Toshiba is committed to investing in R&D to meet the changing needs of our
customers and new challenges of the marketplace,” explains Doug Ryan, vice
president, Marketing and Strategic Development, Toshiba. “The Frost & Sullivan
2010 North American Competitive Strategy Leadership Award speaks to our ability
to successfully focus on long- and short-term goals without deviating from our
customer-centric principles.”

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate
growth and achieve best-in-class positions in growth, innovation and leadership.
The company`s Growth Partnership Service provides the CEO and the CEO`s Growth
Team with disciplined research and best-practice models to drive the generation,
evaluation and implementation of powerful growth strategies. Frost & Sullivan
leverages almost 50 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from 40 offices on
six continents. To join our Growth Partnership, please visit

http://www.frost.com.

About Toshiba

With headquarters in Tustin, Calif., Toshiba America Medical Systems markets,
sells, distributes and services diagnostic imaging systems, and coordinates
clinical diagnostic imaging Frost & Sullivan Competitive Strategy Leadership of
the Year research for all modalities in the United States. Toshiba Medical
Systems Corp., an independent group company of Toshiba Corp., is a global
leading provider of diagnostic medical imaging systems and comprehensive medical
solutions, such as CT, Cath & EP Labs, X-ray, Ultrasound, MRI and information
systems. Toshiba Corp. is a worldwide leader in technology, electronic and
electrical products, digital consumer products, electronic devices and
components, power systems, industrial and social infrastructure systems and home
appliances.

Toshiba was founded in 1875 and today operates a global network of more than 740
companies with 199,000 employees worldwide and annual sales surpassing $73
billion. For more information, visit Toshiba`s website at
www.medical.toshiba.com.

Toshiba America Medical Systems, Inc.
Charlene Jacobs, 714-669-7811
cjacobs@tams.com
or
Adrianna Hosford, 310-584-8343
adrianna.hosford@ketchum.com

Copyright Business Wire 2010

UPDATE 1-Minmetals studying Australian nickel mine restart

SYDNEY, April 14 (Reuters) – China’s Minmetals said it is conducting a review that could lead to a restart of its Avebury nickel mine in Australia, becoming the second miner in the country to consider reactivating production shut due the global financial crisis.

“While this review is not an indication that operations at Avebury will be recommenced imminently it does demonstrate MMG’s commitment to the project and the region,” MMG, Minmetals’ Australian subsidiary said on Wednesday.

Several Australian nickel mines were shuttered in 2008 when the nickel prices dropped below the cost of production, making operations uneconomical.

Prices have since recovered, with the London Metal Exchange three-months contract MNI3 last indicated at $25,900 a tonne, almost three times the recession low of $8,850 in October 2008.

In the first quarter, nickel prices rose 34.9 percent as steel mills appeared to replenish stocks, making nickel one of the top LME performers. Nickel is used in stainless steel manufacturing.

“In tandem with this review, MMG will continue to monitor nickel prices as part of its longer term decision around recommencing the operations at Avebury,” it said.

The former owner of the Avebury mine, Oz Minerals (OZL.AX), along with Mincor Resources (MCR.AX), BHP Billiton (BHP.AX), Xstrata (XTA.L) and Norilsk GMKN.M all idled mines in Australia as the bottom fell out of commodities markets.

Mincor this week told Reuters it could be the first to resume operations if a study due for completion next month supports reactivating its Miitel mine. [ID:nSGE63C09V]

For a factbox on major nickel projects and their planned start dates click on: [ID:nLDE62419O]

“All nickel have to do is hang its star on steel production, which is increasing rapidly, creating more need for nickel,” Eagle Mining Research analyst Keith Goode said. “Nickel’s prospects have improved greatly since the crisis passed.”

The Avebury mine, on the Australian island of Tasmania, was slated to yield 8,500 tonnes of nickel a year — in a world market of around 1.3 million tonnes — all going to Chinese refiner Jinchuan Group under an exclusive supply pact before being shut.

The pact with Jinchuan still stands and will be reactivated when the mine reopens.

MMG said it will spend around A$3 million ($2.7 million) on the review. ($1=1.076 Australian dollar) (Editing by Balazs Koranyi)

Reviews praise Apple iPad battery life, ease of use

(Reuters) – Apple Inc’s iPad scored well on battery life and ease of use in its first reviews, but it will not obliterate the laptop computer market yet, according to The New York Times and Wall Street Journal.

Technology | Media

Reviewers at both papers said the tablet computer, which goes on sale Saturday, works nicely for Web surfing or using media such as video and books, but it may appeal less to people who need laptops for more heavy-duty chores.

The iPad won largely upbeat reviews from other blogs, newspapers and magazines, including USA Today, the Houston Chronicle, PC Magazine and Newsweek, while so-called tear-down firms are preparing to take apart the gadget on Saturday for an even more detailed look inside.

Apple shares, which have been on a run ahead of the iPad launch in hopes it will be a hit, closed up 97 cents at $235.97 on Nasdaq Thursday afternoon.

Even if the device launch goes well on Saturday, there is a good chance its shares will trade down the week after because they had gained ground ahead of the launch, analysts said.

“These stocks like Apple tend to trade up into events and trade down after,” said Hudson Square Research analyst Daniel Ernst.

This would likely be temporary as the shares have more room to rise because Apple’s valuation does not reflect that its earnings growth is about 10 times economic growth, he added.

The Journal’s Walt Mossberg — one of the most closely followed tech columnists — said he prefers the iPad as an e-reader to the popular Kindle e-reader from Amazon.com Inc. Amazon shares closed down $3.96, or almost 3 percent, at $131.81 on the Nasdaq on Thursday.

David Pogue from The New York Times said the device’s 1.5 pound weight is too heavy for reading compared with Kindle’s 10 ounces. “You can’t read well in direct sunlight” and “you can’t read books from the Apple bookstore on any other machine, not even a Mac or iPhone,” he wrote.

Both reviewers were impressed with the gadget’s battery life because it lasted longer than Apple’s claim of 10 hours.

Pogue said he was able to use the device for 12 hours before it needed a charge, while Mossberg said iPad withstood 11 hours and 28 minutes of continuous use.

The device could only replace laptops for a certain kind of computer buyer, the reviewers said.

“If you’re mainly a Web surfer, note-taker, social-networker and emailer, and a consumer of photos, videos, books, periodicals and music… this could be for you,” Mossberg said.

“If you need to create or edit giant spreadsheets or long documents, or you have elaborate systems for organizing email, or need to perform video chats, the iPad isn’t going to cut it as your go-to device,” he wrote.

Pogue, who wrote a review for techies and one for “everybody else,” highlighted shortcomings versus laptops.

“The bottom line is that you can get a laptop for much less money with a full keyboard, DVD drive, USB jacks, camera-card slot, camera, the works,” he wrote.

Mossberg said the device was “wicked fast,” but had “annoying limitations.”

“For instance, the email program lacks the ability to create local folders or rules for auto-sorting messages, and it doesn’t allow group addressing. The browser lacks tabs. And the Wi-Fi-only version lacks GPS,” he said.

Both noted iPad’s support for the popular Flash video technology and questioned consumers’ willingness to carry another device along with their laptop and phone.

“If people see the iPad mainly as an extra device to carry around, it will likely have limited appeal,” Mossberg said.

But they admired iPad’s speed and ease of use.

“The iPad is so fast and light, the multi-touch screen so bright and responsive, the software so easy to navigate, that it really does qualify as a new category of gadget,” Pogue said, adding it would appeal to less tech-savvy users.

“Some have suggested it might make a good goof-proof computer for technophobes, the aged and the young; they’re absolutely right,” he said.

Another influential reviewer, Edward Baig at USA Today, summed up his thoughts on the iPad by proclaiming it “a winner” in his latest column.

“Apple has pretty much nailed it with this first iPad, though there’s certainly room for improvement. Nearly three years after making a splash with the iPhone, Apple has delivered another impressive product that largely lives up to the hype,” Baig wrote.

(Reporting by Sinead Carew and Paul Thomasch; editing by Ian Geoghegan, Andre Grenon and Robert MacMillan)

Reviews praise Apple iPad battery life, ease of use

(Reuters) – Apple Inc’s iPad scored well on battery life and ease of use in its first reviews, but it will not obliterate the laptop computer market yet, according to The New York Times and Wall Street Journal.

Technology | Media

Reviewers at both papers said the tablet computer, which goes on sale Saturday, works nicely for Web surfing or using media such as video and books, but it may appeal less to people who need laptops for more heavy-duty chores.

The iPad won largely upbeat reviews from other blogs, newspapers and magazines, including USA Today, the Houston Chronicle, PC Magazine and Newsweek, while so-called tear-down firms are preparing to take apart the gadget on Saturday for an even more detailed look inside.

Apple shares, which have been on a run ahead of the iPad launch in hopes it will be a hit, closed up 97 cents at $235.97 on Nasdaq Thursday afternoon.

Even if the device launch goes well on Saturday, there is a good chance its shares will trade down the week after because they had gained ground ahead of the launch, analysts said.

“These stocks like Apple tend to trade up into events and trade down after,” said Hudson Square Research analyst Daniel Ernst.

This would likely be temporary as the shares have more room to rise because Apple’s valuation does not reflect that its earnings growth is about 10 times economic growth, he added.

The Journal’s Walt Mossberg — one of the most closely followed tech columnists — said he prefers the iPad as an e-reader to the popular Kindle e-reader from Amazon.com Inc. Amazon shares closed down $3.96, or almost 3 percent, at $131.81 on the Nasdaq on Thursday.

David Pogue from The New York Times said the device’s 1.5 pound weight is too heavy for reading compared with Kindle’s 10 ounces. “You can’t read well in direct sunlight” and “you can’t read books from the Apple bookstore on any other machine, not even a Mac or iPhone,” he wrote.

Both reviewers were impressed with the gadget’s battery life because it lasted longer than Apple’s claim of 10 hours.

Pogue said he was able to use the device for 12 hours before it needed a charge, while Mossberg said iPad withstood 11 hours and 28 minutes of continuous use.

The device could only replace laptops for a certain kind of computer buyer, the reviewers said.

“If you’re mainly a Web surfer, note-taker, social-networker and emailer, and a consumer of photos, videos, books, periodicals and music… this could be for you,” Mossberg said.

“If you need to create or edit giant spreadsheets or long documents, or you have elaborate systems for organizing email, or need to perform video chats, the iPad isn’t going to cut it as your go-to device,” he wrote.

Pogue, who wrote a review for techies and one for “everybody else,” highlighted shortcomings versus laptops.

“The bottom line is that you can get a laptop for much less money with a full keyboard, DVD drive, USB jacks, camera-card slot, camera, the works,” he wrote.

Mossberg said the device was “wicked fast,” but had “annoying limitations.”

“For instance, the email program lacks the ability to create local folders or rules for auto-sorting messages, and it doesn’t allow group addressing. The browser lacks tabs. And the Wi-Fi-only version lacks GPS,” he said.

Both noted iPad’s support for the popular Flash video technology and questioned consumers’ willingness to carry another device along with their laptop and phone.

“If people see the iPad mainly as an extra device to carry around, it will likely have limited appeal,” Mossberg said.

But they admired iPad’s speed and ease of use.

“The iPad is so fast and light, the multi-touch screen so bright and responsive, the software so easy to navigate, that it really does qualify as a new category of gadget,” Pogue said, adding it would appeal to less tech-savvy users.

“Some have suggested it might make a good goof-proof computer for technophobes, the aged and the young; they’re absolutely right,” he said.

Another influential reviewer, Edward Baig at USA Today, summed up his thoughts on the iPad by proclaiming it “a winner” in his latest column.

“Apple has pretty much nailed it with this first iPad, though there’s certainly room for improvement. Nearly three years after making a splash with the iPhone, Apple has delivered another impressive product that largely lives up to the hype,” Baig wrote.

(Reporting by Sinead Carew and Paul Thomasch; editing by Ian Geoghegan, Andre Grenon and Robert MacMillan)

‘Free sex shows’ turn NY hotel tourist attraction

New York, Aug 25 (ANI): The plush Standard hotel in New York has become a tourist attraction as randy guests are performing sex acts in front of the floor-to-ceiling hotel windows.

Guests at the hotel have been spotted romping, drying off and even pleasuring themselves in full view of onlookers.

People strolling in the newly opened High Line urban park near the hotel are witnessing a free peep show and now more people are flocking to the area to catch a glimpse.

Andre Landeros Michel, 34, a Chelsea designer, who regularly ventures over to view randy Standard guests having sex in front of the massive floor-to-ceiling windows in full view of the park, said that it’s a

“It’s a little peep show-but instead of being on 42nd Street, it’s down here at the High Line,” the New York Post quoted Landeros Michel as saying.

A Parks Department worker said that plenty of people come to the park specifically to watch the erotic exhibitionism.

Harlem resident Aaron Lipman, 34, a media research analyst who works near the park, said: “I think it’s healthy and fun — it’s flirtatious. It’s like ‘Wild Kingdom.’ (ANI)

Oil prices rise, but unlikely to spike again

BEIJING, May 23 (Xinhua) — Crude oil prices are likely to continue rising, but there will be no major spike in the market in the coming months as world oil consumption still remains weak, analysts said.

Global crude prices, which plummeted from 147.27 U.S. dollars per barrel to below 40 dollars last year, have witnessed a moderate yet steady rebound over the past months, reaching 61.5 dollars on Thursday at the New York oil market, marking a three-month high.

The reason for the recent rally is that the U.S. government reported a surprise decline in crude and gasoline inventories as the driving season approaches, Wall Street Strategies’ senior research analyst, Conley Turner, said.

“The rally in oil is also supported by the fact that there is a sense of growing optimism among market participants that the economy is not getting worse and is in fact, turning a corner,” Turner said.

However, analysts also warned that the current oil price levels were not in line with the underlying weak global economic conditions. They said that runaway crude oil prices were therefore unlikely to be seen in the coming months.

“If you have a look at the fundamentals in the market at the moment, the inventories in the U.S. are still at 19-year highs and there’s no real indication that demand has re-entered the market yet,” Ben Westmore, an energy analyst at the National Australia Bank, said.

The International Energy Agency (IEA) said on Friday that global oil demand would hit a 28-year low this year because optimism about an economic recovery was not reviving the appetite for energy.

The rebound in oil prices is largely connected with the performances of the financial markets, instead of the balance of supply and demand, the Paris-based organization said, adding that the world’s oil demand has shown no signs of recovery with the absence of fundamentals to back the oil market.

Xie Guozhong, an independent economist in China, also believes that the recent price rebound cannot be explained by analyzing the balance of supply and demand, as financial markets play a major role in pushing up prices.

The large scale stimulus packages launched by some developed economies boosted capital flow into the international oil market raising prices, Xie, a former Morgan Stanley chief economist for the Asia-Pacific region, said.

Judging by the current global economic situation, analysts said oil prices may occasionally rise above 63 U.S. dollars per barrel, but it was unlikely to see any major price hikes this year. They said for the most part oil prices would fluctuate between 50 and 60 dollars.

According to a short-term outlook released last week by the Energy Information Administration of the U.S. Energy Department, prices are expected to average about 55 dollars per barrel for the rest of 2009, and 58 dollars per barrel in 2010.

WRAPUP 2-Paint makers PPG, Sherwin-Williams beat estimates

PPG, Sherwin-Williams beat estimates

* PPG says activity stabilized in March

* PPG sees demand growth in Q2

* Sherwin-Williams reaffirms 2009 earnings view

* PPG shares up 4.1 pct, Sherwin-Williams up 11.5 pct (Adds second analyst quote)

By Hezron Selvi

NEW YORK, April 16 (Reuters) – Paint makers PPG Industries Inc (PPG.N) and Sherwin-Williams Co (SHW.N) posted better-than expected earnings on Thursday as lower costs helped the companies navigate a global recession that still led to declines in profit.

PPG also said it expects some seasonal demand growth in the second quarter and Sherwin-Williams reaffirmed its full-year earnings forecast. Shares of both companies were higher in afternoon trading.

The U.S. housing downturn and economic recession has cut residential and commercial demand for paint, leading chemical companies to cut jobs and shut down plants to save cash.

In February, Akzo Nobel (AKZO.AS) — the world’s No. 1 paint maker — reported an 18 percent drop in operating profit and warned of a very challenging year.

PPG, the world’s second-largest paint and coatings maker, said it earned 19 cents a share in the quarter, excluding charges related to restructuring and an asbestos settlement. That was better than the 13 cents a share that analysts had forecast on average, according to Reuters Estimates. [ID:nN16444212]

The company, which recently announced 2,500 job cuts, said March ended better than initially anticipated, as activity steadied in several of its U.S. end-use markets.

“Looking ahead, we anticipate some seasonal demand growth in the second quarter, but expect activity levels to remain low in comparison with recent years,” PPG Chief Executive Charles Bunch said.

However, Longbow Research analyst Dmitry Silversteyn does not believe PPG is out of the woods yet.

“The stabilization in the March quarter, while definitely better than hearing things have degenerated further, is not much different from our expectations. We still expect PPG to have a pretty tough year,” Silversteyn said.

Sherwin-Williams’ net income fell more than 50 percent to $37.3 million, or 32 cents a share in the first quarter. Analysts on average had expected earnings of 21 cents a share, according to Reuters Estimates. [ID:nBNG279133]

The maker of the Sherwin-Williams, Dutch Boy and Pratt and Lambert paint brands cut its sales forecast for the full year 2009, but reaffirmed its earnings forecast for the year.

The company now expects full-year consolidated sales to fall by 9 to 12 percent. It had earlier expected sales to drop in the low-to-middle single digit percentage range.

But Morgan Stanley analyst Gregory Melich said in a research note that “despite the worst home improvement downturn in decades, (Sherwin-Williams) remains a highly cash generative asset.”

Longbow’s Silversteyn painted a not-so-rosy picture for both PPG and Sherwin-Williams.

“Am I ready to say the housing market, and therefore … the paint market, has stabilized? I’m not ready to say that yet. The declines may get less pronounced, but I really don’t see stabilization or growth in these markets taking place until sometime 2010,” said Silversteyn, who has a “sell” rating on both companies.

PPG shares were up 4.1 percent to $46.26 in afternoon trading, while Sherwin-Williams shares were up 11.5 percent to $57.01. (Additional reporting by Anupreeta Das in New York and Dhanya Skariachan in Bangalore; Editing by Tim Dobbyn)

CORRECTED – IBM cuts Sun offer,may unveil deal next week – source

IBM cut its offer for Sun Microsystems Inc to $9.55 a share after a thorough vetting and may soon unveil details of its largest- ever takeover, a source with knowledge of the matter said on Thursday.

But the source, who was not authorized to speak publicly about the deal, said that price was not final, although IBM had decided Sun Micro was worth less than thought after a weeks- long due diligence process.

A merger would create a server industry powerhouse with a commanding 65 percent of the $17 billion Unix server market, a dominance analysts say might trigger antitrust scrutiny and concerns from clients.

A deal at $9.55 would mark a 92 percent premium — or almost double — Sun’s closing share price on March 17, the day before news of IBM’s offer emerged.

Sun agreed to a lower price in return for stronger commitments from IBM that it will complete the deal, even if it faces intense regulatory scrutiny, the Wall Street Journal cited people familiar with the matter as saying.

Sun would hand IBM a clear lead at the high end of the $45 billion overall server market fought over with Hewlett-Packard Co. It would broaden IBM’s software portfolio, add storage products that vie with EMC Corp and Network Appliance Inc and provide an edge over Cisco Systems Inc, which some see as its biggest rival in the long term.

“Sun has many valuable assets that have not been adequately monetized,” said Cross Research analyst Shannon Cross.

But she added the challenge would be to integrate the two cultures and product lines.

The Wall Street Journal reported early in the day on Thursday that IBM was in the final stages of negotiations with Sun, but had reduced its offer to between $9 and $10 from a previous $10-to-$11 range. Last month, the newspaper reported the deal was worth about $8 billion, including $1.4 billion in cash on Sun’s balance sheet, if IBM were to pay $10 to $11 per share.

Officials with IBM and Sun, which now carries a market capitalization of about $6 billion, declined to comment.

Some analysts say IBM could have a hard time improving performance at Sun, which has been lackluster for years. IBM, which runs services, hardware and software businesses, has kept profits growing in the midst of the worst U.S. economic recession in decades.

The shares of Sun — whose name was once synonymous with the Internet, but never recovered from a dive in sales after the dot.com bubble burst — have lost 97 percent of their value since peaking at $260 in 2000.

SETTING SUN

On Thursday, they jumped 2.6 percent in after-hours trading after rallying the same amount in the regular session. IBM shares held steady in extended trading after gaining more than 3 percent.

Sun rose to prominence in the 1990s, but after the dot.com bubble burst earlier this decade, it failed to generate substantial profit from software products, including Java and Solaris.

To counteract a potential slide in margins after a deal is completed, IBM is likely to embark on a major reorganization that could produce more job losses at a company known for talented engineers and a heavy focus on research and development.

IBM has already cut thousands of jobs.

Canaccord Adams analyst Peter Misek said the strategy was to make Sun’s business profitable for IBM by reducing costs, while helping IBM enter new markets and giving it new technology.

“Makes a ton of sense if they can pull enough costs out,” Misek said.

IBM led the business of selling high-end UNIX servers last year, claiming about 37 percent of sales. It was followed by Sun with 28 percent and HP with 27 percent, according to market researcher IDC.

A merger of the two would have less impact on the low end, x86 server market, where profit margins are tight and there is less differentiation between products from competitors.

Sales in that sector totaled some $28 billion last year. HP led that segment, claiming 37 percent of the market, followed by Dell Inc with 22 percent, IBM with 16 percent and Sun with 2.5 percent.