Second Quarter Sales | SilverScorpio.Com

UPDATE 1-Synthes still cautious on 2010 after in-line H1

July 30, 2010 By vani Leave a Comment

ZURICH, July 29 – Swiss medical device maker Synthes (SYST.VX) stuck to its guarded outlook for the rest of the year, despite a rise in first-half earnings, as demand for its products slowed in Asia and the United States.

The maker of nails, screws and plates to fix broken bones posted an 11.2 percent rise in first-half net profit to $424.6 million, largely in line with the average estimate in a Reuters poll.[ID:nLDE66L1HF]

“The company does not expect the challenging and dynamic market environment to change in the short-term,” the group said in a statement.

Synthes, which also makes artificial spine discs, expects revenue growth of 5 to 10 percent in local currencies in the second half and the group said it was seeking to reverse the sales drop in its spine unit in North America.

Second-quarter sales rose 6.9 percent in local currencies to $892.2 million in the second quarter.

The company said its gross profit margin slipped to 82.4 percent in the first six months of the year from 83.1 percent in the year-ago period.

Synthes, like peers Stryker (SYK.N), Boston Scientific Corp (BSX.N) and Zimmer (ZMH.N), is facing increased pricing pressures for medical devices as global budgetary measures prompt hospitals to find ways to slash costs.[ID:nN22258939]

The orthopaedic sector has also come under pressure as many patients have decided to defer elective surgical procedures that require out-of-pocket payments. (Reporting by Katie Reid and Oliver Hirt)

Filed Under: International News Tagged With: boston scientific, Boston Scientific Corp, broken bones, bsx, Dynamic Market, gross profit margin, Hirt, market environment, Medical Device Maker, medical devices, Months Of The Year, net profit, Pocket Payments, Poll Id, reuters poll, Second Quarter Sales, Surgical Procedures, Synthes, Vx, Zimmer Zmh

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July 30, 2010 By vani Leave a Comment

* First-half revenue: €220 million, down 14% compared with H1 2009

* Impact of commercial real estate and block sales to Spanish banks in 2009
* Housing revenue in France up 5% vs. H1 2009

* Orders

* Excellent second-quarter sales in France with orders totaling €119 million
* Smaller contribution from block sales compared with H1 2009

* Backlog up 21% since year-end 2009
* Rebuilding the land potential in France: up 120% year on year

PARIS–(Business Wire)–
Regulatory News:

LES NOUVEAUX CONSTRUCTEURS (Paris:LNC), a leading European residential real
estate developer, today released its review of the six months that ended June
30, 2010.

KEY PERFORMANCE INDICATORS (in € millions) H1 2010 H1 2009 Change
Net revenue 220 255 -14%
Orders (including VAT) 294 342 -14%
Backlog, net (at June 30) 552 637 -13%
Land potential, net (at June 30) 958 666 +44%

Olivier Mitterrand, Chairman of the Management Board, said:

“The strong demand for housing in France noted in 2009 carried over into
first-half 2010. Given this situation, LNC continued to build up its land
potential in France, which has more than doubled over the past 12 months. This
in turn has enabled us to rebuild our product portfolio, leading to a number of
major program launches during the second quarter. In fact, there were as many
launches over this period as in all of 2009.”

REVENUE

For the six months ended June 30, 2010, LNC revenue totaled €220 million, a
decline of 14% from the prior-year period.

REVENUE BY OPERATING SEGMENT

In € millions excl. VAT H1 2010 H1 2009 Change
France 145.9 160.0 -9%
Of which housing 129.1 123.1 +5%
Of which commercial real estate 16.8 36.9 -55%
Spain 26.9 44.1 -39%
Germany 46.0 48.4 -5%
Of which Concept Bau-Premier 15.1 25.2 -40%
Of which Zapf* 30.9 23.2 +33%
Other countries 1.2 2.6 -54%
Total 220.0 255.0 -14%

*Zapf, which was 50% proportionally consolidated until April 30, 2009, has been
fully consolidated since May 1, 2009.

In France, first-half 2010 revenue totaled €145.9 million, down 9% from the
prior-year period. The decline was mainly due to the sharp reduction in revenue
from the commercial real estate business with the completion of the Copernic 2
program in late 2009.

Housing revenue on the other hand rose by 5% compared with first-half 2009,
thanks in particular to the first-time consolidation of Dominium. The new
subsidiary contributed €7 million to revenue for the period.

In Spain, revenue for the first six months amounted to €26.9 million, down 39%
from the prior-year period. Premier España delivered 88 homes in first-half
2010, compared with 128 in the first six months of 2009. The decline was due to
a high basis of comparison for second-quarter 2009, when four lots and 53
housing units were sold to a bank for €27.5 million. Excluding the impact of
this transaction, first-half 2010 revenue was up approximately 62%.

In Germany, revenue from Concept Bau-Premier totaled €15.1 million, compared
with €25.2 million in first-half 2009 as the company delivered only 43 homes in
the first six months of 2010, versus 70 in the prior-year period.

Revenue from Zapf amounted to €30.9 million, compared with €23.2 million in
first-half 2009, during which the company was 50% proportionally consolidated
for four months. This means that on a comparable basis, business was practically
the same for the two periods.

BUSINESS PERFORMANCE

Orders were down 14% in value and 17% in volume year on year, mainly due to a
high basis of comparison stemming from the large number of block sales in
France, Spain and Germany in first-half 2009.

However, orders in second-quarter 2010 were up sharply compared with the first
three months of the year, rising approximately 55% in volume and 53% in value.

ORDERS – HOUSING

In € millions incl. VAT H1 2010 H1 2009 Change
France 195 206 -6%
Of which individual homebuyers 170 155 +9%
Of which block sales 25 51 -51%
Spain 29 23 +29%
Germany 58 105 -45%
Of which Concept Bau-Premier 30 68 -56%
Of which Zapf 28 37 -25%
Other countries 12 8 +51%
Total 294 342 -14%

In France, first-half 2010 orders declined 18% in volume but only 6% in value
versus the prior-year period. The difference was due mainly to the large number
of block sales in first-half 2009, which totaled 316 housing units versus just
155 in the first six months of 2010. The Company`s strategy produced results in
the second quarter with the launch of 14 new programs, compared with 13 for all
of 2009.

Excluding block sales, first-half sales to individual homebuyers declined by 4%
year on year to 688 units but rose by 9% in value because of higher average unit
prices.

Buy-to-let sales accounted for 45% of sales to private buyers in first-half
2010, versus 55% for full-year 2009.

In Spain, the subsidiary had 11 programs on the market at June 30, 2010,
compared with 12 one year earlier. Sales to private buyers rose by 134% to 138
units in first-half 2010, from 59 units in the first six months of 2009. This
sharp increase reflects the success of affordable housing programs in Madrid,
which represented 67 units. Other orders concerned 55 completed housing units
and 16 off-plan purchases.

No block sales have been carried out in 2010, compared with 48 in first-half
2009.

Premier España had 127 completed homes that were unsold as of June 30, 2010,
compared with 164 units three months earlier. Selling these homes remains the
subsidiary`s top priority.

In Germany, Concept Bau-Premier booked 70 orders in first-half 2010 versus 215
for the prior-year period. The substantial decline was due mainly to a high
basis of comparison in first-quarter 2009, when 91 units in Munich were sold as
a block to an institutional investor for approximately €24 million.

Zapf`s first-half 2010 sales totaled €28.4 million, compared with €37.7 million
for the year-earlier period. The decrease reflects the gradual discontinuation
of Zapf`s property development business as part of the restructuring plan.

BACKLOG

At June 30, 2010, net backlog amounted to €552 million, down 13% from one year
earlier but up around 21% from December 31, 2009.

Housing backlog totaled €533 million or 11.6 months of business based on housing
revenue over the past 12 months, versus 9 months of business at year-end 2009.

BACKLOG AT JUNE 30

In € millions excl. VAT 2010 2009 Change
France 341 408 -16%
Of which housing 322 334 -4%
Of which commercial real estate 19 74 -74%
Spain 43 40 +7%
Germany 153 178 -14%
Of which Concept Bau-Premier 75 98 -23%
Of which Zapf 78 80 -2%
Other countries 15 11 +36%
Total 552 637 -13%

In France, backlog at end-June 2010 came to €341 million, €67 million lower than
one year earlier but €42 million higher than the €299 million recorded at
December 31, 2009.

Housing backlog was down a slight €12 million year-on-year but up €57 million
from year-end 2009, due mainly to the contribution of Dominium. Consolidated as
from January 1, 2010, the new subsidiary added €29 million to backlog at June
30, 2010. With no new orders received since the completion of the Copernic 2
program, commercial real estate backlog was down €55 million compared with June
30, 2009.

In Spain, backlog amounted to €43 million at June 30, 2010, up 7% from one year
earlier. It included €20 million in orders for two affordable housing programs
in Madrid and €9 million for homes under lease with an option to buy.

In Germany, backlog stood at €153 million at end-June 2010. Backlog for Concept
Bau-Premier was €23 million lower than at June 30, 2009 but €15 million higher
than at year-end 2009. Zapf`s backlog rose by €28 million compared with December
31, 2009, of which one-third for the garage business and two-thirds for the
construction business.

LAND POTENTIAL

At June 30, 2010, LNC`s housing land potential came to €958 million (excluding
VAT). This represents 4,768 housing units, an increase of 68% from one year
earlier when the housing land potential totaled 2,845 units. Based on housing
revenue over the past 12 months, this represents 1.7 years of business.

CONFIRMED LAND POTENTIAL AT JUNE 30 – RESIDENTIAL

In € millions excl. VAT 2010 2009 Change
France 684 311 +120%
Spain 116 145 -20%
Germany 143 193 -26%
Of which Concept Bau-Premier 142 146 -2%
Of which Zapf 1 47 -98%
Other countries 15 17 -16%
Total 958 666 +44%

En France, LNC continued to build up its land potential in second-quarter 2010,
signing 15 new land purchase agreements representing 903 housing units during
the period. In one year, the land potential more than doubled to 3,757 housing
units at June 30, 2010 from 1,613 units at end-June 2009.

In Spain, the land potential stood at 502 housing units at June 30, 2010, versus
539 units one year earlier. The number of unsold, completed units declined to
127 from 167 one year earlier. In second-quarter 2010, LNC purchased two lots in
the Madrid area for affordable housing programs representing a total of 124
units.

At June 30, 2010, only four lots were intentionally being kept off the market,
compared with seven one year earlier.

The elimination of Zapf`s land potential was due to the discontinuation of its
property development business.

OUTLOOK

Since the beginning of 2009, LNC`s strategic priority has been to build up its
land potential. In first-half 2010, these efforts produced results as the land
potential at June 30 was on a par with year-end 2007. During the first six
months of the year, new program launches were actively pursued and, more
generally, the product portfolio was rebuilt. LNC is continuing to purchase lots
while diligently complying with its land acquisition criteria.

FINANCIAL CALENDAR

* First-half 2010 earnings report: Thursday, September 30, 2010, (before the
opening of the NYSE-Euronext Paris stock exchange).

LES NOUVEAUX CONSTRUCTEURS

Les Nouveaux Constructeurs, founded by Olivier Mitterrand, is a leading
developer of new housing, as well as offices, in France and two other European
countries.

Since 1972, Les Nouveaux Constructeurs has delivered nearly 60,000 apartments
and single-family homes in approximately 200 cities in France and abroad. Its
operations in France`s five largest metropolitan areas and high-quality programs
have made Les Nouveaux Constructeurs one of the most well known names in the
industry.

Building on its solid footprint in France, the Company is deploying an
innovative development strategy, with operations in two other European Union
countries.

Les Nouveaux Constructeurs has been listed on the NYSE Euronext Paris,
compartment C, since November 16, 2006 (code LNC; ISIN code: FR0004023208).

All LNC press releases are posted on its website at:

http://www.lesnouveauxconstructeurs.fr/fr/communiques

APPENDIXES

QUARTERLY REVENUE – BY COUNTRY

In € millions excl. VAT 2010 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
France (Housing) 52.7 76.4 46.7 76.4 68.2 116.3
France (Commercial real estate) 6.5 10.3 14.5 22.4 18.7 27.0
Spain 16.0 10.9 7.0 37.1 13.6 6.3
Germany (Concept Bau-Premier) 12.6 2.5 10.3 14.9 11.2 54.0
Germany (Zapf) 10.2 20.7 5.3 17.9 30.4 44.0
Other countries 0.4 0.8 0.8 1.8 0.8 3.4
Total 98.4 121.6 84.6 170.4 142.9 251.1

AVERAGE UNIT PRICE – HOUSING ORDERS

In € thousands incl. VAT H1 2010 H1 2009 Change
France – Including block sales (1) 231 200 +15%
France – Excluding block sales(1) 247 218 +13%
Spain(2) 212 211 +0%
Germany(3) 236 277 -15%
Other countries(4) 108 91 +18%
LNC 220 214 +3%

(1) Including VAT of 5.5% or 19.6% (2) Including VAT of 7% for first-time home
buyers (3) No VAT (4) Including 10% sales tax in Indonesia

NUMBER OF HOUSING ORDERS, NET

Number of units H1 2010 H1 2009 Change
France 843 1,030 -18%
Spain 138 107* +29%
Germany (Concept Bau-Premier) 70 215 -67%
Germany (Zapf) 178 165 +8%
Other countries 107 84 +27%
Total 1,336 1,601 -17%

*Of which 48 units through the sale to a bank subsidiary

QUARTERLY HOUSING ORDERS BY COUNTRY

In € millions incl. VAT 2010 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
France 76 119 113 94 78 69
Spain 15 14 6 17 7 7
Germany (Concept Bau-Premier) 13 17 44 23 15 12
Germany (Zapf) 9 19 14 24 16 7
Other countries 3 8 3 4 4 6
Total 116 178 180 162 120 101

BACKLOG BY QUARTER (PERIOD END)

In € millions excl. VAT 2010 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
France (Housing) 297 322 338 334 326 265
France (Commercial real estate) 28 19 95 74 57 34
Spain 42 43 48 40 36 38
Germany (Concept Bau-Premier) 60 75 89 98 101 60
Germany (Zapf) 57 78 68 80 77 51
Other countries 10 15 10 11 11 8
Total 494 552 648 637 608 455

LAND POTENTIAL AT JUNE 30

Number of units 2010 2009 Change
France 3,757 1,613 +133%
Spain 502 539 -7%
Germany (Concept Bau-Premier) 370 360 +3%
Germany (Zapf) 3 135 -98%
Other countries 136 198 -32%
Total 4,768 2,845 +68%

Excluding commercial real estate

LAND POTENTIAL BY QUARTER (PERIOD END)

In € millions excl. VAT 2010 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
France 617 684 365 311 355 568
Spain 116 116 173 145 138 134
Germany (Concept Bau-Premier) 162 142 158 146 132 141
Germany (Zapf) 2 1 54 47 37 3
Other countries 12 15 21 17 16 12
Total 909 958 770 666 678 858

Excluding commercial real estate

DISCLAIMER

The statements on which the Company objectives are based may contain
forward-looking statements. Such forward-looking statements involve risks and
uncertainties regarding the economic, financial, competitive, and regulatory
environment and the completion of investment programs and asset transfers. In
addition, the occurrence of certain risks [see chapter 4 in the Document de Base
registered with the French Stock Exchange Commission (AMF) under number
I.06-155] could affect the business of the Company and its financial
performance. Moreover, the achievement of the objectives supposes the success of
the marketing strategy of the Company (see chapter 6 of the Document de Base).
Therefore, the Company hereby makes no commitment nor gives any guarantee as to
the fulfillment of objectives. The Company does not undertake to update any
forward-looking statement subject to the respect of the principles of the
permanent information as provided by articles 221-1 et seq. of AMF`s general
regulations.

Investor Relations
Les Nouveaux Constructeurs
Ronan Arzel, + 33 (0)1 45 38 45 29
Vice President
rarzel@lncsa.fr
or
LT Value
Investor Relations
Nancy Levain / Maryline Jarnoux-Sorin, +33 (0)1 44 50 39 30
nancy.levain@ltvalue.com
maryline.jarnoux-sorin@ltvalue.com
or
Media
Cap & Cime
Financial Media
Capucine de Fouquières, + 33 (0)6 09 46 77 33
capucine@capetcime.fr
or
Real Estate Media
Virginie Hunzinger, + 33 (0)1 55 35 08 18
+ 33 (0)6 10 34 52 81
vhunzinger@capetcime.fr

Filed Under: International News Tagged With: Calcium Supplements, Desert Mirage, Drought Strikes, E Trade, european shares, Fiscal Emergency, French Mother, li ka shing, mental health experts, Mexican Army, Nouveaux Constructeurs, real estate developer, regulatory news, reuters, risk of heart attack, Second Quarter Sales, Spanish Banks, Strongest Beer, WikiLeaks, Yellowstone Park

Southern Copper says 2nd-qtr profit rose to $313 mln

July 30, 2010 By vani Leave a Comment

July 28 (Reuters) – Southern Copper (SPC.LM)(SCCO.N) posted a second-quarter consolidated net profit of $313 million late Wednesday, a rise of 79 percent from the same period a year ago as metals prices improved.

The company, which operates mines in Mexico and Peru, said second-quarter sales were $1.17 billion, up 42 percent from the year-ago quarter.

The company’s owner, Grupo Mexico (GMEXICOB.MX), said last week it planned to merge its Arizona-based miner Asarco with Southern Copper to cut costs. It pulled the U.S. miner out of bankruptcy last year. [ID:nN23101823]

Combining Asarco with Southern Copper would increase savings between the two units and give Southern Copper shareholders exposure to Asarco’s growth potential, Grupo Mexico said in a regulatory filing last week. Grupo Mexico owns all of Asarco and 80 percent of Southern Copper.

The plan assigned a $6 billion value to Asarco, which went into bankruptcy under the heavy burden of environmental complaints around its mining operations in the United States.

INVESTMENTS

Grupo Mexico recently won back control of the largest copper mine in Mexico, Cananea, which was paralyzed by a nearly three-year-long strike. The company retook Cananea with the help of federal police earlier this year after a long fight with the union in Mexican courts and is aiming to achieve some copper production by the end of this year.

As reported previously, with a $3.8 billion investment over the next five years, Grupo Mexico hopes to increase Cananea’s annual production by 150 percent to 450,000 tonnes.

The uptick in production will come from expansion at the mine to raise copper capacity by 270,000 tonnes. Cananea also will boost its molybdenum output, the company said. (Reporting by Patricia Velez and Terry Wade; Editing by Valerie Lee)

Filed Under: International News Tagged With: ASARCO, Cananea, Copper Capacity, Copper Mine, copper production, federal police, Grupo Mexico, heavy burden, metals prices, Mexican Courts, mln, net profit, next five years, Qtr Profit, reuters, Scco, Second Quarter Sales, Southern Copper, uptick, Valerie Lee

UPDATE 1-Explosive 3D projector growth drives Barco Q2

July 21, 2010 By vani Leave a Comment

BRUSSELS, July 20 (Reuters) – Belgium’s Barco (BAR.BR) forecast the ‘explosive’ demand for digital cinema projectors, used for showing 3D films, would ensure growth in the second half of the year.

The company, whose displays are used as sports scoreboards, medical imaging systems, flight simulators and at pop concerts, said second-quarter sales rose 16.7 percent year-on-year to 192.2 million euros ($249.4 million), beating 187 million expected in a Reuters poll.

Barco swung to positive operating and net incomes, although the numbers were slightly below expectations.

Its order book at the end of June 2010 stood at 513.3 million euros, more than 50 percent higher year-on-year after almost 300 million euros of new orders in the second quarter.

Order intake for digital cinema projectors was nearly eight times higher than a year earlier.

Chief Executive Eric Van Zele said the orders meant it was probably Barco’s best ever quarter.

“This bodes well for Barco’s performance in the quarters ahead. We are experiencing explosive growth in demand for our digital cinema projectors and are working very hard to deal with the supply chain issues this creates,” he said.

Barco did not repeat its forecast that 2010 sales and EBIT (earnings before interest and tax) would be significantly better than in 2008.

“It’s quite clear we are going to beat that,” a company spokesman said.

The company said that it expected growth momentum to continue in the second half of the year.

Barco made 5.8 million euros in EBIT, compared with a loss of 5.6 million euro in the same period last year, shy of 8.0 million expected in a Reuters poll. ($1=.7706 euro) (Reporting by Ben Deighton)

Filed Under: International News Tagged With: 3d Films, Barco, company spokesman, Deighton, Digital Cinema Projectors, Ebit, eight times, Eric Van, Explosive Demand, Explosive Growth, Flight Simulators, Growth Momentum, incomes, Medical Imaging Systems, Pop Concerts, q2, reuters poll, Scoreboards, Second Quarter Sales, Zele

Instant view: Intel profit and sales beat estimates

July 15, 2010 By vani Leave a Comment

(Reuters) – Intel Corp (INTC.O), the world’s biggest microchip maker, handily beat second-quarter sales and profit estimates and forecast third-quarter sales well ahead of Wall Street’s consensus.

The upbeat numbers from the first major U.S. technology company to report this quarter suggest that global demand for PCs and servers is continuing to recover after last year’s belt-tightening.

Shares of the company rose 6.5 percent in after-hours trading.

Following are initial reactions of analysts and investors:

PHANI SARIPELLA, SENIOR ANALYST, PRIMARY GLOBAL RESEARCH

“The numbers just blew me away, I cannot see any mention of any problems whatsoever.”

“It’s as if Europe just never happened as far as Intel is concerned. No mention of Europe, their numbers are at the high end of demand, their margins, it’s like they’re printing dollar bills there.”

“The one thing about Intel shares is in spite of their numbers driving it up, it tends to sort of work itself up to $24-ish or so and then just fall right back as the economy affects it.”

“I expect the same to happen. I would be surprised if it reached significantly north of $25. Because they still have to overcome a huge share count.”

NICK KALIVAS, VICE PRESIDENT OF FINANCIAL RESEARCH & SENIOR

EQUITY INDEX ANALYST, MF GLOBAL

“It’s pretty much a blow out. I think it’s reminding the market that basically stocks are too cheap; the market was trading Intel at a pretty compressed multiple.”

“The fact that they are raising capital spending is confirming this idea that capacity is tight and there’s some pretty good momentum and I think it’s squeezing more buyers into the market. It’s going to be a data point that causes people to flip from probably extreme pessimism to extreme optimism.”

JOHN MASSEY, PORTFOLIO MANAGER AT SUNAMERICA ASSET

MANAGEMENT

“Demand was stronger than many people anticipated, the Street was concerned corporate spending would be restrained with what’s happened in Europe and that wasn’t the case.”

“The real thing that got the Street going was the gross margin guidance, which they raised. It shows a lot of confidence that the company has for the back half of the year. If the company was at all concerned about demand, you wouldn’t have expected them to raise that number.”

“Tech spending was a little more healthy than expected, on the server side and consumer side. We’ve seen companies start to loosen up refresh cycle budgets and expand, and that’s a sign things are continuing to expand despite concerns in Europe.”

EDWARD SNYDER, ANALYST, CHARTER EQUITY RESEARCH

“In a quarter where people expected relatively strong performance, they beat that pretty handily and set a good forecast. They seem unaffected by the negativity that’s impacting equities.”

“This going to be really good for a lot of other tech companies, particularly enterprise.”

“It might be the case that this earnings period is so strong that it allays some of the fears about the broader economy.”

CRAIG ELLIS, ANALYST, CARIS & CO

“Once again gross margins were incredibly strong, showing the benefit of the operational improvements that the company has made over the last few years, plus a good product mix and a strong manufacturing performance.”

“It’s another indication that some of the very positive server data points that you’ve been hearing year to date, and some of the constructive enterprise spending data points, are seeing good validation from Intel.”

TRIP CHOWDHRY, ANALYST, GLOBAL EQUITIES RESEARCH

“They beat on the top line, they beat on the bottom line, the gross margin is through the roof. It couldn’t be better. I think Intel is very under priced. And the key reason everybody missed on it is — as they’ve been talking about for eight months — cloud infrastructure is just started.”

“When we speak to our contacts who are IT purchasers and IT suppliers, we are not seeing any slowdown. Because Europe and Asia are investing in technology.”

PATRICK WANG, ANALYST, WEDBUSH SECURITIES

“Either the investor community has massively under-calculated what worldwide demand is or Intel is too optimistic here.”

“I think it’s too early to call second-half demand so far because obviously Intel is the first one to report, but obviously earnings are off to a very bullish start.”

HENDI SUSANTO, ANALYST, GABELLI & CO

“There’s still consumer demand in growing markets. There could be potential upsides coming from corporate IT renewals.”

DOUG FREEDMAN, GLEACHER & CO

“Very strong mix in product revenues and very strong revenues. People were very focused on the PC client group while the data center group — driven by new product introduction — was what helped lift revenues.”

“Corporate spending for large server farms was much stronger than people had expected.”

(Reporting by Alex Dobuzinskis, Carolina Madrid, Gabriel Madway, Edward Krudy and Matthew Lynley)

Filed Under: International News Tagged With: dollar bills, Equity Index, Global Demand, Global Research, Initial Reactions, Intc, Intel Corp, Intel Profit, Intel Shares, John Massey, mf global, microchip, pessimism, Portfolio Manager, Printing Dollar, Profit Estimates, reuters, Second Quarter Sales, Senior Analyst, share count

UPDATE 1-Arseus repeats outlook as drugs unit offsets dental

July 15, 2010 By vani Leave a Comment

BRUSSELS, July 14 (Reuters) – Belgian medical equipment and services company Arseus NV (RCUS.BR) reiterated its outlook for 2010 as an increase in pharmacies buying in raw materials offset falls in its dental business.

Its Fagron drug ingredients unit saw second-quarter sales rise 9.2 percent, benefiting from a trend towards bespoke prescribing by doctors which resulted in pharmacies buying in ingredients to prepare treatments for patients.

This helped offset a fall of 0.9 percent in sales at its dentist equipment unit as surgeries in Belgium and France delayed buying in equipment.

Overall, the company said on Wednesday, it made 108 million euros ($136 million) of sales in the second quarter, compared with a forecast for 107 million in a reuters poll.

Arseus repeated its expectation of sales growth of 5-10 percent in 2010. (Reporting by Ben Deighton; Editing by Dan Lalor) ($1 = 0.7939 euro)

Filed Under: International News Tagged With: Arseus, Belgium, Brussels, Deighton, Dental Business, Dentist Equipment, doctors, drugs, euro, expectation, July 14, Lalor, medical equipment, offsets, Pharmacies, raw materials, Rcus, reuters poll, Second Quarter Sales, surgeries

UPDATE 1-ASML raises sales outlook as Q2 beats forecasts

July 15, 2010 By vani Leave a Comment

AMSTERDAM, July 14 (Reuters) – Dutch chip equipment maker ASML (ASML.AS)(ASML.O) on Wednesday raised its full year sales outlook as it sees robust demand for its machines that produce chips for PCs and smartphones.

The world’s largest maker of semiconductor lithography machines, which map out electronic circuits on silicon wafers, said second quarter sales were 1.07 billion euros ($1.35 billion) up from 742 million euros in the previous quarter.

That was above analysts’ average expectations of 1.025 billion euros in a Reuters poll. [ID:nWEA9397]

The value of its new orders, seen as a barometer for the chipmaking industry, rose to 1.12 billion euros, which was also above expectations.

The Veldhoven-based company now expects 2010 sales to rise 10 to 15 percent above its 2007 peak of 3.8 billion euros, up from a previous guidance of at least 3.8 billion euros.

“This level of sales is expected to continue into 2011, barring a major macro-economic downturn, as it is supported by a number of fundamental growth drivers,” ASML Chief Executive Eric Meurice said in a statement.

ASML’s customers include the world’s largest chip maker Intel Corp (INTC.O), which reported better than expected results this week. [ID:nN12197658]

ASML also competes with Japan’s Nikon Corp (7731.T) and Canon Inc (7751.T) ($1=.7939 Euro) (Reporting by Harro ten Wolde; Editing by Samia Nakhoul)

Filed Under: International News Tagged With: asml, barometer, Canon Inc, Chip Equipment, Chip Maker Intel, economic downturn, electronic circuits, eric meurice, Fundamental Growth, Growth Drivers, Intc, Intel Corp, July 14, Lithography Machines, Poll Id, reuters poll, robust demand, Second Quarter Sales, Semiconductor Lithography, Silicon Wafers

ASML Announces 2010 Second Quarter Results

July 15, 2010 By vani Leave a Comment

Sales set for new high amid increasing semiconductor fab spend
VELDHOVEN, Netherlands–(Business Wire)–
ASML Holding NV (ASML) today announces 2010 second quarter results according to
US GAAP as follows:

* Q2 2010 net sales of EUR 1,069 million versus Q1 2010 net sales of EUR 742
million (Q2 2009 net sales of EUR 277 million).
* Q2 2010 net income of EUR 239 million, or 22.4 percent of net sales, versus a
Q1 2010 net income of EUR 107 million or 14.5 percent of net sales (Q2 2009 net
loss of EUR 104 million or 37.6 percent of net sales).
* Q2 2010 net bookings valued at EUR 1,179 million with 59 systems including 48
new and 11 used systems, leading to a systems backlog valued at EUR 2,401
million as of June 27, 2010.

“Our second quarter sales came in at EUR 1.069 billion, confirming the continued
strong demand in the semiconductor industry for our leading edge lithography
systems,” said Eric Meurice, President and Chief Executive Officer of ASML. “Our
NXT:1950i is now enabling volume production of the most advanced and
cost-efficient semiconductor nodes, with close to 20 systems shipped and half a
million silicon wafers already exposed. The excellent overlay and imaging
performance of our NXTs is further enhanced by our unique suite of Holistic
Lithography products which optimize manufacturing tolerances and provide a
faster start to chip production. All ASML`s leading edge NXT scanners sold
include one or more holistic lithography components. Regarding next generation
products, to be used beyond 20 nanometers (nm), we are in the process of final
integration test of our Extreme Ultraviolet (EUV) production systems and
delivery of six of these EUV systems will happen over the course of the next 12
months,” Meurice added.

Operations Update

In Q2 2010, ASML`s net sales of EUR 1,069 million included 35 new and 8 used
systems, totaling net system sales of EUR 923 million, and net service and field
options sales of EUR 146 million. Net system sales for Q1 2010 included the
shipment of 23 new and 11 used machines, totaling EUR 632 million, and net
service and field options sales of EUR 110 million.

The Q2 2010 average selling price for a new system was EUR 25.6 million,
compared with the Q1 2010 average selling price for a new system of EUR 25.8
million. The Q2 2010 average selling price for all ASML systems sold was EUR
21.5 million, compared with the Q1 2010 average selling price of EUR 18.6
million.

Q2 2010 net bookings totaled 59 systems valued at EUR 1,179 million, including
advanced immersion systems for critical layers as well as KrF systems for less
critical layers for capacity additions, with a total average selling price of
EUR 20.0 million.

ASML`s systems backlog as of June 27, 2010 was EUR 2,401 million, totaling 101
systems with an average selling price of EUR 23.8 million, reflecting a mix of
systems for all chip layers. ASML`s backlog as of March 28, 2010 was valued at
EUR 2,170 million, totaling 85 systems with an average selling price of EUR 25.5
million.

In Q2 2010, ASML generated net income of EUR 239 million, or EUR 0.55 per
ordinary share as compared with net income in Q1 2010 of EUR 107 million or EUR
0.25 per ordinary share.

The company`s Q2 2010 gross margin was 43.0 percent compared with the Q1 2010
gross margin of 40.3 percent.

Q2 2010 research and development (R&D) costs were EUR 125 million including
credits, compared with Q1 2010 R&D costs of EUR 120 million including credits.

Selling, general and administrative (SG&A) costs were EUR 42 million in Q2 2010,
compared with SG&A costs of EUR 41 million in Q1 2010.

Net cash from operations was EUR 193 million in Q2 2010. ASML ended Q2 2010 with
EUR 1,189 million in cash and cash equivalents, compared with EUR 1,087 million
at the end of Q1 2010.

Outlook

“We booked EUR 1,179 million worth of systems in the second quarter of 2010 and
we anticipate bookings levels of around EUR 1.3 billion in the third quarter; we
now expect full year 2010 sales to grow 10 to 15 percent above our historical
peak sales of EUR 3.8 billion,” Eric Meurice said. “This level of sales is
expected to continue into 2011, barring a major macro-economic downturn, as it
is supported by a number of fundamental growth drivers, including:

* The more than doubling, between 2009 and 2010, of the average number of
immersion layer exposures due to the growing sub-50nm nodes mix, with a
continued upward trend into 2011.
* The memory makers` upgrades to more advanced nodes with second tier DRAM
manufacturers now transferring to 40nm nodes while leading DRAM vendors are
preparing for 30nm node manufacturing, and NAND Flash manufacturers migrating to
sub-30nm chip production.
* Foundries` and Integrated Device Manufacturers` (IDMs) continued catch-up on
under-investments of the past two to three years; this structural addition in
current 65nm and new 40nm technology capacity, is necessary to service the
richer technology mix and the increased load of IDM-driven demand at foundries,
following IDMs` retirement of obsolete capacity.

In order to support this strong structural demand we will add flexible
manufacturing capacity; we will also increase our research and development (R&D)
investments in order to strengthen our leadership further,” Meurice said.

ASML expects Q3 2010 net sales of around EUR 1.1 billion, and gross margin in Q3
2010 of about 43 percent. R&D expenditures are expected to be at EUR 137 million
including credits and SG&A costs are expected at EUR 50 million due to a higher
sales level including workforce recruitment costs.

About ASML

ASML is the world’s leading provider of lithography systems for the
semiconductor industry, manufacturing complex machines that are critical to the
production of integrated circuits or chips. Headquartered in Veldhoven, the
Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ under the symbol
ASML. ASML has more than 6,600 employees (expressed in full time equivalents),
serving chip manufacturers in more than 60 locations in 15 countries. More
information about our company, our products and technology, and career
opportunities is available on our website: www.asml.com

Investor and Media Conference Call

A conference call for investors and media will be hosted by CEO Eric Meurice and
CFO Peter Wennink at 15:00 PM Central European Time / 09:00 AM Eastern U.S.
time. Dial-in numbers are: in the Netherlands +31 10 29 44 271 and the US +1 718
247 0888 (US participants will have to quote the following confirmation code
when dialing into the conference: 9234869). To listen to the conference call,
access is also available via www.asml.com

A replay of the Investor and Media Call will be available on www.asml.com

IFRS Financial Reporting

ASML’s primary accounting standard for quarterly earnings releases and annual
reports is US GAAP, the accounting standard generally accepted in the United
States. Quarterly US GAAP consolidated statements of operations, consolidated
statements of cash flows and consolidated balance sheets, and a reconciliation
of net income/(loss) and equity from US GAAP to IFRS are available on
www.asml.com

In addition to reporting financial figures in accordance with US GAAP, ASML also
reports financial figures in accordance with IFRS for statutory purposes. The
most significant differences between US GAAP and IFRS that affect ASML concern
the capitalization of certain product development costs, the accounting of
share-based payment plans, the accounting of income taxes and the accounting of
reversal of inventory write-downs. ASML`s quarterly IFRS consolidated income
statement, consolidated statement of cash flows, consolidated statements of
financial position and a reconciliations of net income/(loss) and equity from US
GAAP to IFRS are available on www.asml.com

Today, July 14, 2010, ASML will also publish its Statutory Interim Report for
the six months period ended June 27, 2010. This report is in accordance with the
requirements of the EU Transparency Directive as implemented in the Netherlands,
will include consolidated condensed interim financial statements prepared in
accordance with IAS 34, “Interim Financial Reporting”, an Interim Management
Board Report and a Managing Directors’ Statement and will be available on
www.asml.com.

The consolidated balance sheets of ASML Holding N.V. as of June 27, 2010, the
related consolidated statements of operations and consolidated statements of
cash flows for the quarter ended June 27, 2010 as presented in this press
release are unaudited.

Regulated Information

This press release, the US GAAP consolidated financial statements and the IFRS
consolidated financial statements published on www.asml.com comprise regulated
information within the meaning of the Dutch Financial Markets Supervision Act
(Wet op het financieel toezicht).

Forward Looking Statements

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of
1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, realization of backlog,
IC unit demand, financial results, average selling price, gross margin and
expenses. These forward looking statements are subject to risks and
uncertainties including, but not limited to: economic conditions, product demand
and semiconductor equipment industry capacity, worldwide demand and
manufacturing capacity utilization for semiconductors (the principal product of
our customer base), including the impact of general economic conditions on
consumer confidence and demand for our customers` products, competitive products
and pricing, the impact of manufacturing efficiencies and capacity constraints,
the pace of new product development and customer acceptance of new products, our
ability to enforce patents and protect intellectual property rights, the risk of
intellectual property litigation, availability of raw materials and critical
manufacturing equipment, trade environment, changes in exchange rates and other
risks indicated in the risk factors included in ASML`s Annual Report on Form
20-F and other filings with the US Securities and Exchange Commission.

ASML – Summary U.S. GAAP Consolidated Statements of Operations 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in millions EUR, except per share data)

Net system sales 183.3 923.0 284.4 1,554.6
Net service and field option sales 93.3 145.7 175.8 255.9
Total net sales 276.6 1,068.7 460.2 1,810.5

Cost of sales 242.2 609.3 413.4 1,052.5
Gross profit on sales 34.4 459.4 46.8 758.0

Research and development costs 117.9 125.3 236.2 245.6
Selling, general and administrative costs 3 40.3 41.7 80.7 83.1
Income (loss) from operations (123.8 ) 292.4 (270.1 ) 429.3

Interest expense 3 (0.9 ) (2.7 ) (2.6 ) (5.5 )
Income (loss) from operations before income taxes (124.7 ) 289.7 (272.7 ) 423.8

(Provision for) benefit from income taxes 20.7 (50.5 ) 51.5 (77.3 )
Net income (loss) (104.0 ) 239.2 (221.2 ) 346.5

Basic net income (loss) per ordinary share (0.24 ) 0.55 (0.51 ) 0.80
Diluted net income (loss) per ordinary share 4 (0.24 ) 0.54 (0.51 ) 0.79

Number of ordinary shares used in computing per share amounts (in millions):
Basic 432.5 435.1 432.3 434.6
Diluted 4 432.5 438.9 432.3 438.3

ASML – Ratios and Other Data 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010

Gross profit as a % of net sales 12.5 43.0 10.2 41.9
Income (loss) from operations as a % of net sales 3 (44.7 ) 27.4 (58.7 ) 23.7
Net income (loss) as a % of net sales (37.6 ) 22.4 (48.1 ) 19.1
Shareholders` equity as a % of total assets 3 47.2 42.7 47.2 42.7
Income taxes as a % of income before income taxes (16.6 ) (17.4 ) (18.9 ) (18.3 )
Sales of systems (in units) 10 43 21 77
ASP of systems sales (EUR million) 18.3 21.5 13.5 20.2
Value of systems backlog (EUR million) 1,064 2,401 1,064 2,401
Systems backlog (in units) 43 101 43 101
ASP of systems backlog (EUR million) 24.7 23.8 24.7 23.8
Value of booked systems (EUR million) 394 1,179 601 2,183
Net bookings (in units) 15 59 23 109
ASP of booked systems (EUR million) 26.3 20.0 26.1 20.0
Number of payroll employees in FTEs 6,597 6,691 6,597 6,691
Number of temporary employees in FTEs 868 1,500 868 1,500

ASML – Summary U.S. GAAP Consolidated Balance Sheets 1,2

Dec 31, 2009 Jun 27, 2010
(in millions EUR)

ASSETS
Cash and cash equivalents 1,037.1 1,188.6
Accounts receivable, net 377.4 811.5
Finance receivables, net 21.6 –
Current tax assets 11.3 74.7
Inventories, net 963.4 1,309.3
Deferred tax assets 119.4 100.7
Other assets 218.7 248.7
Total current assets 2,748.9 3,733.5

Deferred tax assets 133.3 126.4
Other assets 77.0 94.4
Goodwill 131.5 153.2
Other intangible assets, net 18.1 16.4
Property, plant and equipment, net 3 655.4 742.8
Total non-current assets 1,015.3 1,133.2

Total assets 3,764.2 4,866.7

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities 1,044.2 1,782.7

Accrued liabilities and other liabilities 44.3 57.3
Deferred and other tax liabilities 188.4 205.0
Provisions 12.7 13.8
Long-term debt 3 699.8 728.6
Total non-current liabilities 945.2 1,004.7

Total liabilities 1,989.4 2,787.4

Shareholders` equity 1,774.8 2,079.3
Total liabilities and shareholders` equity 3,764.2 4,866.7

ASML – Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (104.0 ) 239.2 (221.2 ) 346.5

Depreciation and amortization 3 35.1 36.2 73.8 70.9
Impairment 4.4 0.7 7.0 1.5
Loss on disposals of property, plant and equipment (0.4 ) 1.0 2.2 1.6
Share-based payments 2.6 2.4 6.1 5.2
Allowance for doubtful debts 1.1 – 1.1 0.2
Allowance for obsolete inventory 43.9 21.2 66.0 35.0
Deferred income taxes (31.2 ) 6.1 (58.2 ) 29.8
Change in assets and liabilities 110.7 (113.8 ) 268.0 (256.6 )
Net cash provided by operating activities 62.2 193.0 144.8 234.1

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (39.9 ) (18.0 ) (83.8 ) (25.2 )
Proceeds from sale of property, plant and equipment 5.7 – 6.9 –
Net cash used in investing activities (34.2 ) (18.0 ) (76.9 ) (25.2 )

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (86.5 ) (87.0 ) (86.5 ) (87.0 )
Net proceeds from issuance of shares and stock options 0.4 7.8 0.5 18.2
Excess tax benefits from stock options 0.5 – 0.3 –
Net proceeds from other long-term debt 0.1 – 0.1 –
Redemption and/or repayment of debt 3 (0.4 ) (0.3 ) (0.8 ) (0.7 )
Net cash used in financing activities (85.9 ) (79.5 ) (86.4 ) (69.5 )

Net cash flows (57.9 ) 95.5 (18.5 ) 139.4

Effect of changes in exchange rates on cash (0.4 ) 5.8 2.0 12.1
Net increase (decrease) in cash & cash equivalents (58.3 ) 101.3 (16.5 ) 151.5

ASML – Quarterly Summary U.S. GAAP Consolidated Statements of Operations 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR, except per share data)

Net system sales 183.3 458.7 431.8 631.6 923.0
Net service and field option sales 93.3 96.6 148.8 110.2 145.7
Total net sales 276.6 555.3 580.6 741.8 1,068.7

Cost of sales 242.2 364.0 360.3 443.2 609.3
Gross profit on sales 34.4 191.3 220.3 298.6 459.4

Research and development costs 117.9 115.2 115.4 120.3 125.3
Selling, general and administrative costs 3 40.3 37.5 36.5 41.4 41.7
Income (loss) from operations (123.8) 38.6 68.4 136.9 292.4

Interest expense 3 (0.9) (2.4) (3.5) (2.8) (2.7)
Income (loss) from operations before income taxes (124.7) 36.2 64.9 134.1 289.7

(Provision for) benefit from income taxes 20.7 (16.4) (14.4) (26.8) (50.5)
Net income (loss) (104.0) 19.8 50.5 107.3 239.2

Basic net income (loss) per ordinary share (0.24) 0.05 0.12 0.25 0.55
Diluted net income (loss) per ordinary share 4 (0.24) 0.05 0.12 0.25 0.54

Number of ordinary shares used in computing per share amounts (in millions):
Basic 432.5 432.7 433.2 434.0 435.1
Diluted 4 432.5 435.0 437.0 437.9 438.9

ASML – Quarterly Summary Ratios and other data 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010

Gross profit as a % of net sales 12.5 34.4 38.0 40.3 43.0
Income (loss) from operations as a % of net sales 3 (44.7) 6.9 11.8 18.5 27.4
Net income (loss) as a % of net sales (37.6) 3.6 8.7 14.5 22.4
Shareholders` equity as a % of total assets 3 47.2 47.3 47.1 41.2 42.7
Income taxes as a % of income before income taxes (16.6) (45.4) (22.2) (20.0) (17.4)
Sales of systems (in units) 10 24 25 34 43
ASP of system sales (EUR million) 18.3 19.1 17.3 18.6 21.5
Value of systems backlog (EUR million) 1,064 1,353 1,853 2,170 2,401
Systems backlog (in units) 43 54 69 85 101
ASP of systems backlog (EUR million) 24.7 25.1 26.8 25.5 23.8
Value of booked systems (EUR million) 394 777 956 1,004 1,179
Net bookings (in units) 15 35 40 50 59
ASP of booked systems (EUR million) 26.3 22.2 23.9 20.1 20.0
Number of payroll employees in FTEs 6,597 6,529 6,548 6,591 6,691
Number of temporary employees in FTEs 868 917 1,137 1,331 1,500

ASML – Quarterly Summary U.S. GAAP Consolidated Balance Sheets 1,2

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR)

ASSETS
Cash and cash equivalents 1,092.7 1,018.0 1,037.1 1,087.3 1,188.6
Accounts receivable, net 213.5 382.1 377.4 629.8 811.5
Finance receivables, net 0.1 21.1 21.6 23.3 –
Current tax assets – – 11.3 37.5 74.7
Inventories, net 926.1 882.4 963.4 1,155.5 1,309.3
Deferred tax assets 70.5 69.0 119.4 107.5 100.7
Other assets 220.2 224.2 218.7 247.3 248.7
Total current assets 2,523.1 2,596.8 2,748.9 3,288.2 3,733.5

Finance receivables, net 20.6 – – – –
Deferred tax assets 198.9 193.5 133.3 127.9 126.4
Other assets 53.8 68.1 77.0 99.1 94.4
Goodwill 134.5 128.6 131.5 141.1 153.2
Other intangible assets, net 22.3 19.0 18.1 17.8 16.4
Property, plant and equipment, net 3 629.3 598.7 655.4 720.7 742.8
Total non-current assets 1,059.4 1,007.9 1,015.3 1,106.6 1,133.2

Total assets 3,582.5 3,604.7 3,764.2 4,394.8 4,866.7

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities 940.9 949.3 1,044.2 1,613.0 1,782.7

Accrued liabilities and other liabilities 45.6 44.7 44.3 45.9 57.3
Deferred and other tax liabilities 200.6 193.7 188.4 200.1 205.0
Provisions 14.8 13.5 12.7 13.0 13.8
Long-term debt 3 689.3 697.2 699.8 711.8 728.6
Total non-current liabilities 950.3 949.1 945.2 970.8 1,004.7

Total liabilities 1,891.2 1,898.4 1,989.4 2,583.8 2,787.4

Shareholders` equity 1,691.3 1,706.3 1,774.8 1,811.0 2,079.3
Total liabilities and shareholders` equity 3,582.5 3,604.7 3,764.2 4,394.8 4,866.7

ASML – Quarterly Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (104.0) 19.8 50.5 107.3 239.2

Depreciation and amortization 3 35.1 33.8 34.0 34.7 36.2
Impairment 4.4 8.6 0.3 0.8 0.7
Loss (gain) on disposals of property, plant and equipment (0.4) 0.9 1.0 0.6 1.0
Share-based payments 2.6 2.8 4.5 2.8 2.4
Allowance for doubtful debts 1.1 0.7 0.1 0.2 –
Allowance for obsolete inventory 43.9 13.2 7.4 13.8 21.2
Deferred income taxes (31.2) (4.5) 13.3 23.7 6.1
Change in assets and liabilities 110.7 (140.3) (91.7) (142.8) (113.8)
Net cash provided by (used in) operating activities 62.2 (65.0) 19.4 41.1 193.0

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (39.9) (13.5) (7.7) (7.2) (18.0)
Proceeds from sale of property, plant and equipment 5.7 – – – –
Net cash used in investing activities (34.2) (13.5) (7.7) (7.2) (18.0)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (86.5) – – – (87.0)
Net proceeds from issuance of shares and stock options 0.4 4.2 6.4 10.4 7.8
Excess tax benefits from stock options 0.5 0.7 1.0 – –
Net proceeds from other long-term debt 0.1 – – – –
Redemption and/or repayment of debt 3 (0.4) (0.4) (0.4) (0.4) (0.3)
Net cash provided by (used in) financing activities (85.9) 4.5 7.0 10.0 (79.5)

Net cash flows (57.9) (74.0) 18.7 43.9 95.5

Effect of changes in exchange rates on cash (0.4) (0.7) 0.4 6.3 5.8
Net increase (decrease) in cash & cash equivalents (58.3) (74.7) 19.1 50.2 101.3

ASML – Notes to the Summary U.S. GAAP Consolidated Financial Statements

Basis of Presentation

ASML follows accounting principles generally accepted in the United States of
America (“U.S. GAAP”). Further disclosures, as required under U.S. GAAP in
annual reports, are not included in the summary consolidated financial
statements. Unless stated otherwise, the accompanying consolidated financial
statements are stated in thousands of euros (`EUR`).

Principles of consolidation

The consolidated financial statements include the accounts of ASML Holding N.V.
and all of its majority-owned subsidiaries. Subsidiaries are all entities over
which ASML has the power to govern the financial and operating policies
generally accompanying a shareholding of more than one half of the voting
rights. All intercompany profits, balances and transactions have been eliminated
in the consolidation.

Use of estimates

The preparation of ASML`s consolidated financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities on the balance sheet dates and the reported amounts of revenue
and expense during the reported periods. Actual results could differ from those
estimates.

Recognition of revenues

ASML recognizes revenue when all four revenue recognition criteria are met:
persuasive evidence of an arrangement exists; delivery has occurred or services
have been rendered; seller`s price to buyer is fixed or determinable; and
collectability is reasonably assured. At ASML, this policy generally results in
revenue recognition from the sale of a system upon shipment. The revenue from
the installation of a system is generally recognized upon completion of that
installation at the customer site. Each system undergoes, prior to shipment, a
“Factory Acceptance Test” in ASML’s cleanroom facilities, effectively
replicating the operating conditions that will be present on the customer’s
site, in order to verify whether the system will meet its standard
specifications and any additional technical and performance criteria agreed with
the customer, if any. A system is shipped, and revenue is recognized, only after
all specifications are met and customer sign-off is received or waived. Where
not all specifications are met and the remaining performance obligation is not
essential to the functionality of the system but substantive rather than
inconsequential or perfunctory a portion of the sales price is deferred.
Although each system’s performance is re-tested upon installation at the
customer’s site, ASML has never failed to successfully complete installation of
a system at a customer`s premises.

For arrangements containing multiple elements, the revenue relating to the
undelivered elements is deferred at estimated fair value until delivery of those
elements. Revenue from installation services and service contracts provided to
our customers is initially deferred and is recognized when the installation is
completed and, in case of service contracts, over the life of those contracts.
Revenue from extended and enhanced warranties is recognized in income on a
straight-line basis over the contract period. The costs of providing services
under extended and enhanced warranties are recognized when they occur.

Foreign currency risk management

The Company uses the euro as its invoicing currency in order to limit exposure
to foreign currency movements. Exceptions may occur on a customer by customer
basis. To the extent that invoicing is done in a currency other than the euro,
the Company is exposed to foreign currency risk.

It is the Company`s policy to hedge material transaction exposures, such as
sales transactions and forecasted purchase transactions. The Company hedges
these exposures through the use of currency contracts.

It is the Company`s policy to hedge material remeasurement exposures. The net
exposures from certain monetary assets and liabilities in non-functional
currencies are hedged with forward contracts.

As of June 27, 2010, equity includes EUR 88.2 million loss (net of taxes: EUR
65.7; December 31, 2009 EUR 41.8 million loss) representing the total
anticipated loss to be charged to sales, and EUR 12.6 million gain (net of
taxes: EUR 9.4 million gain; December 31, 2009 EUR 0.5 million gain) to be
released to cost of sales, which will offset the higher EUR equivalent of
foreign currency denominated forecasted sales and purchase transactions.

ASML – Reconciliation U.S. GAAP – IFRS 1,2

Net income Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in thousands EUR)
Net income (loss) under U.S. GAAP (104.0) 239.2 (221.2) 346.5
Share-based payments (see Note 1) 1.4 0.1 0.9 0.2
Development costs (see Note 2) 21.8 10.1 33.3 12.1
Reversal of write-downs (see Note 3) – 3.5 – 0.2
Income taxes (see Note 4) (0.4) (0.3) (2.0) (5.1)
Net income (loss) under IFRS (81.2) 252.6 (189.0) 353.9

Shareholders` equity Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in thousands EUR)
Shareholders` equity under U.S. GAAP 1,691.3 1,706.3 1,774.8 1,811.0 2,079.3
Share-based payments (see Note 1) (4.9) (0.5) 2.4 3.5 0.5
Development costs (see Note 2) 235.9 259.7 251.5 255.8 269.1
Reversal of write-downs (see Note 3) – 28.5 17.1 13.8 17.3
Income taxes (see Note 4) 2.8 1.4 5.0 0.8 1.2
Shareholders` equity under IFRS 1,925.1 1,995.4 2,050.8 2,084.9 2,367.4

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January
1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of
its share-based payments with respect to stock options and stock granted to its
employees after November 7, 2002. Under IFRS, at period end a deferred tax asset
is computed on the basis of the tax deduction for the share-based payments under
the applicable tax law and is recognized to the extent it is probable that
future taxable profit will be available against which these deductible temporary
differences will be utilized. Therefore, changes in the Company`s share price do
affect the deferred tax asset at period-end and result in adjustments to the
deferred tax asset.

As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock Compensation”
which requires companies to recognize the cost of employee services received in
exchange for awards of equity instruments based upon the grant-date fair value
of those instruments. ASC 718`s general principle is that a deferred tax asset
is established as the Company recognizes compensation costs for commercial
purposes for awards that are expected to result in a tax deduction under
existing tax law. Under U.S. GAAP, the deferred tax recorded on share-based
compensation is computed on the basis of the expense recognized in the financial
statements. Therefore, changes in the Company`s share price do not affect the
deferred tax asset recorded in the Company`s financial statements.

Note 2 Development costs

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38,
ASML capitalizes certain development expenditures that are amortized over the
expected useful life of the related product generally ranging between one and
three years. Amortization starts when the developed product is ready for volume
production.

Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In accordance
with ASC 730, ASML charges costs relating to research and development to
operating expense as incurred.

Note 3 Reversal of write-downs

Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance with IAS
2, reversal of a prior period write-down as a result of a subsequent increase in
value of inventory should be recognized in the period in which the value
increase occurs.

Under U.S. GAAP, ASML applies ASC 330 Inventory. In accordance with ASC 330
reversal of a write-down is prohibited as a write-down creates a new cost basis.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005.
In accordance with IAS 12 unrealized net income resulting from intercompany
transactions that are eliminated from the carrying amount of assets in
consolidation give rise to a temporary difference for which deferred taxes must
be recognized in consolidation. The deferred taxes are calculated based on the
tax rate applicable in the purchaser`s tax jurisdiction.

Under U.S. GAAP, the elimination of unrealized net income from intercompany
transactions that are eliminated from the carrying amount of assets in
consolidation give rise to a temporary difference for which prepaid taxes must
be recognized in consolidation. Contrary to IFRS, the prepaid taxes under U.S.
GAAP are calculated based on the tax rate applicable in the seller`s rather than
the purchaser`s tax jurisdiction.

1 This press release is unaudited.

2 Numbers have been rounded.

3 As of January 1, 2010 ASML adopted ASC 810 “Amendments to FIN 46(R)” which
resulted in the consolidation of the Variable Interest Entity which owns ASML’s
headquarters located in The Netherlands. The comparative figures have been
adjusted to reflect this change in accounting policy. As of January 1, 2010 the
total impact on Property, plant and equipment and Long-term debt amounts to EUR
36.7 million.

4 The calculation of diluted net income per ordinary share assumes the exercise
of options issued under ASML stock option plans for periods in which exercise
would have a dilutive effect. The calculation of diluted net income per ordinary
share does not assume exercise of such options when such exercise would be
antidilutive.

Media Relations:
Corporate Communications
Lucas van Grinsven, +31 40 268 3949
Veldhoven, the Netherlands
or
Investor Relations:
Craig DeYoung, +1 480 383 4005
Tempe, Arizona, USA
or
Franki D`Hoore, +31 40 268 6494
Veldhoven, the Netherlands

Filed Under: International News Tagged With: 239 Million, Added Operations, Asml Holding Nv, chief executive officer, Chip Production, eric meurice, Eur 1, Extreme Ultraviolet, Field Options, Generation Products, half a million, Integration Test, lithography systems, nanometers, net sales, Second Quarter Sales, Semiconductor Fab, semiconductor industry, Silicon Wafers, Volume Production

UPDATE 1-TSMC Q2 sales beat f’casts on strong chip demand

July 10, 2010 By vani Leave a Comment

TAIPEI, July 9 (Reuters) – Top contract chipmaker TSMC (2330.TW) wrapped up the second quarter with record sales for a third month in June on stronger demand for PCs and electronic devices, with the company on track to book a record profit this year.

Second-quarter sales beat its own forecast and were also higher than analysts’ expectations as Taiwan Semiconductor Manufacturing Co’s (TSMC) (TSM.N) early adoption of more advanced technology helped boost capacity and gain new orders from overseas clients that are increasingly outsourcing manufacturing to major chip foundries in Asia.

Despite worries over financial troubles in Europe, TSMC Chairman Morris Chang has said the global chip market should remain in good shape in the second half as global chip sales would grow about 30 percent this year. [ID:nTOE65E03Y]

“As a sector leader, TSMC has a wider customer base and sells chips for so many different products, that can spread risk, so fundamentals are pretty good but investors already know that,” said Alan Tseng, a vice-president at Capital Securities.

TSMC shares closed flat in Taiwan ahead of the results on Friday, versus a 0.5 percent gain on the main TAIEX share index .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Graphic on TSMC/UMC combined sales, click

here

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In a Monday report, JP Morgan said TSMC’s near-term outlook remained intact and it rated the company at “overweight”.

TSMC, which counts Texas Instruments (TXN.N) and Nvidia (NVDA.O) among major clients, reported unconsolidated sales of T$35.11 billion ($1.1 million) for last month.

That was up 36 percent from a year earlier and up 3.8 percent from May, it said, without giving other details.

A day earlier, smaller cross-town rival United Microelectronics Corp (UMC) (2303.TW)(UMC.N) said June sales rose 25.5 percent from a year earlier, the highest level in nearly three years. [ID:nTOE66603R]

TSMC and UMC helped boost Taiwan’s exports 34 percent in June but growth slowed from the previous month — a sign that global demand, especially for technology products, may be slipping. [ID:nTOE66705X]

On a consolidated basis, TSMC’s sales totalled T$197.15 billion in January-June, up 73.4 percent from a year earlier.

April-June sales were T$104.96 billion, beating TSMC’s own forecast of between T$100-102 billion and higher than market expectations for T$101.6 billion, according to Thomson Reuters I/B/E/S.

TSMC is set to report second-quarter earnings and give guidance for the third quarter in late July. (US$1=T$32) (Editing by Chris Lewis)

Filed Under: International News Tagged With: capital securities, Chip Demand, Chip Market, Cross Town, Global Chip Sales, Good Shape, JP Morgan, monday report, Nvda, overseas clients, Q2 Sales, Record Profit, Second Quarter Sales, sector leader, share index, Taiex, Taiwan Semiconductor Manufacturing, Taiwan Semiconductor Manufacturing Co, txn, united microelectronics corp

Ameron Reports Solid Profits on Higher Second-Quarter Sales

June 25, 2010 By vani Leave a Comment

PASADENA, Calif.–(Business Wire)–
Ameron International Corporation (NYSE:AMN) today reported net income of $9.5
million, or $1.03 per diluted share, in the quarter ended May 30, 2010, compared
to net income of $9.4 million, or $1.02 per diluted share, in the quarter ended
May 31, 2009. Consolidated sales increased to $136.5 million in the second
quarter of 2010, compared to $132.9 million in the second quarter of 2009 and
$109.0 million in the first quarter of 2010.

James S. Marlen, Ameron`s Chairman, Chief Executive Officer and President,
stated, “We are encouraged by the second-quarter sales increase and the level of
profitability, especially given the difficult market conditions and the weakness
of the first quarter. Overall, improvements by Fiberglass-Composite Pipe and
TAMCO, the Company`s 50%-owned steel mini mill in Southern California, were
offset by declines of the other construction-related businesses, which continued
to be affected by cyclically weak markets. Second-quarter net income was flat in
2010, compared to 2009, due partly to unprofitable wind tower operations and the
lack of income from affiliates.”

Year-to-date net income totaled $10.6 million, or $1.15 per diluted share, in
2010, compared to $13.3 million, or $1.43 per diluted share, in 2009. Sales for
the first six months of 2010 totaled $245.6 million, compared to $278.9 million
in 2009.

The Fiberglass-Composite Pipe Group`s second-quarter sales of $64.7 million and
segment income of $17.8 million were up 16% and 8%, respectively, higher in 2010
than in 2009. Second-quarter sales increased in key oilfield and mining markets
in North and South America. Marine and offshore energy exploration and
production markets remained strong, sustained by new vessel construction at
Asian shipyards. In Brazil, sales growth came from the municipal water markets
and from the new Centron operation which began production of oil field piping in
the latter part of 2009. Most of the Group`s worldwide, consolidated operations
had higher profits. Income related to dividends from an affiliated company in
Saudi Arabia of $2.2 million in 2009 did not repeat in 2010. Looking forward,
the Fiberglass-Composite Pipe Group is on track with the prior year and
continues to see signs of improvement due primarily to higher energy-related
demand.

The Infrastructure Products Group had lower sales and segment income in the
second quarter of 2010 due to the impact of continued soft economic conditions
on residential and commercial construction markets. The Hawaii Division`s sales
and segment income were lower in 2010, compared to 2009; Pole Products` segment
income improved on flat sales. The Group`s combined sales declined $4.5 million,
or 13%; while combined segment income declined $.7 million, or 23%. Pole
Products benefitted from lower costs and higher sales of concrete poles for the
replacement market. Sales of steel poles and concrete poles for new construction
projects remained sluggish. Demand for aggregates and ready-mix on both Oahu and
Maui fell as construction spending in Hawaii continued to soften due to the
recessionary economy. Military and governmental spending in Hawaii provided a
stable base of business; however, residential and commercial construction,
including construction of timeshare units, resorts and high-rise condominium
projects, was down. The State of Hawaii`s fiscal challenges and the lower level
of tourism are expected to delay a recovery in Hawaiian construction. Demand for
Pole Products Division`s decorative concrete poles for residential lighting
applications is stable. However, significant recovery of the Infrastructure
Products Group is not expected in the short term.

The Water Transmission Group was slightly profitable in the second quarter of
2010. The profitability of the water pipe business improved, while the wind
tower business turned unprofitable. The Group`s combined sales declined $1.0
million, or 2%, due to lower pipe sales than in the second quarter of 2009. As
anticipated, water pipe sales improved in the second quarter, compared to the
first quarter when rainy weather impacted pipe production. Wind tower sales were
flat in the second quarter of 2010, compared to the second quarter of 2009. New
tower orders remain elusive due to weak wind energy markets and the inability of
wind farm developers to obtain project financing. Wind tower backlog fell to
$11.5 million at the end of the second quarter, from $28.9 million at November
30, 2009. The wind tower business is not expected to recover in the near term.
The water pipe business was also affected by the low bid activity in the water
and wastewater markets in the western U.S. The lack of bid activity was due to
tight municipal and state budgets, the lack of available project financing and
the timing of construction of major water transmission pipelines. While a number
of wind tower and pipe projects are being followed and planning activities have
increased, it remains uncertain when owners, water agencies and municipalities
will proceed with these projects.

TAMCO`s sales increased in the second quarter of 2010, compared to the same
period in 2009, primarily due to inventory restocking by customers and higher
market pricing. Shipments in 2010 remained well below TAMCO`s production
capacity. TAMCO`s net loss in the second quarter of 2010 totaled $.8 million,
compared to a loss of $3.4 million in 2009. Ameron`s share of TAMCO`s net loss
was $.4 million after taxes in 2010, compared to a loss of $1.6 million in 2009.
While steel markets have generally firmed in the U.S., demand for steel rebar in
TAMCO`s key markets in the western states remains depressed due to sluggishness
in the construction industry.

“We are pleased with second-quarter results. As expected, 2010 continues to be
challenging. The seasonal decline of the first quarter was partially offset in
the second quarter, and some markets are showing signs of improvement. Although
difficult market conditions are expected to continue, we are cautiously
optimistic for the balance of the year. The Company will continue to be led by
the Fiberglass-Composite Pipe Group and constrained by the cyclical,
construction-related businesses. We continue to focus on controlling costs to
maximize profits in spite of weak markets and are actively reviewing all
operations for improvements. Likewise, we are continuing to invest in expanding
and enhancing the Company`s capabilities and markets and are seeking
opportunities for growth. We remain optimistic that as the global economy
recovers and stabilizes, the Company will capitalize on its strong market
positions and achieve superior long-term results,” James S. Marlen concluded.

About Ameron International

Ameron International Corporation is a multinational manufacturer of
highly-engineered products and materials for the chemical, industrial, energy,
transportation and infrastructure markets. Traded on the New York Stock Exchange
(AMN), Ameron is a leading producer of water transmission lines and fabricated
steel products, such as wind towers; fiberglass-composite pipe for transporting
oil, chemicals and corrosive fluids and specialized materials; and products used
in infrastructure projects. The Company`s businesses operate in North America,
South America, Europe and Asia. The Company also has partial ownership in
several unconsolidated affiliates in the U.S. and the Middle East.

All statements in this press release and in all future press releases that do
not directly and exclusively relate to historical facts constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent the intentions, plans,
expectations and beliefs of Ameron International Corporation (the “Company” or
“Ameron”), and are subject to risks, uncertainties and other factors, many of
which are outside the Company`s control. These factors could cause actual
results to differ materially from such forward-looking statements. For a written
description of these factors, see the section titled “Risk Factors” in the
Company`s Annual Report on Form 10-K for the period ended November 30, 2009. The
Company disclaims any intention or obligation to update these forward-looking
statements whether as a result of subsequent events or otherwise except as
required by law.

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
(Dollars in thousands, except per share data) 2010 2009 2010 2009
Sales $ 136,544 $ 132,920 $ 245,562 $ 278,922
Cost of sales (101,213 ) (96,370 ) (180,785 ) (207,451 )
Gross profit 35,331 36,550 64,777 71,471

Selling, general and administrative expenses (24,138 ) (25,877 ) (51,400 ) (52,285 )
Other income, net 969 2,431 1,511 2,902
Income before interest, income taxes and equity in loss of affiliate 12,162 13,104 14,888 22,088
Interest expense, net (305 ) (148 ) (412 ) (319 )
Income before income taxes and equity in loss of affiliate 11,857 12,956 14,476 21,769
Provision for income taxes (1,899 ) (1,975 ) (2,659 ) (4,619 )
Income before equity in loss of affiliate 9,958 10,981 11,817 17,150
Equity in loss of affiliate, net of taxes (409 ) (1,555 ) (1,185 ) (3,898 )
Net income $ 9,549 $ 9,426 $ 10,632 $ 13,252

Net income per share allocated to Common Stock
Basic $ 1.03 $ 1.02 $ 1.15 $ 1.44

Diluted $ 1.03 $ 1.02 $ 1.15 $ 1.43

Weighted-average shares (basic) 9,205,970 9,171,645 9,191,676 9,159,161
Weighted-average shares (diluted) 9,218,234 9,185,143 9,209,129 9,172,470

Cash dividends per share $ .30 $ .30 $ .60 $ .60

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – ASSETS (UNAUDITED)

May 30, November 30,
(Dollars in thousands) 2010 2009
ASSETS

Current assets
Cash and cash equivalents $ 153,351 $ 181,114
Receivables, less allowances of $4,589 in 2010 and $5,351 in 2009 155,171 151,210
Inventories 70,865 62,700
Deferred income taxes 18,814 19,795
Prepaid expenses and other current assets 12,870 11,585

Total current assets 411,071 426,404

Investments
Equity method affiliate 27,841 30,626
Cost method affiliates 3,784 3,784

Property, plant and equipment
Land 45,662 46,029
Buildings 100,856 100,583
Machinery and equipment 348,573 345,604
Construction in progress 36,958 32,306

Total property, plant and equipment at cost 532,049 524,522
Accumulated depreciation (291,440 ) (286,014 )

Total property, plant and equipment, net 240,609 238,508
Deferred income taxes 14,320 14,321
Goodwill and intangible assets, net of accumulated amortization of $1,269 in 2010 and $1,257 in 2009 2,070 2,088
Other assets 46,521 46,818

Total assets $ 746,216 $ 762,549

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – LIABILITIES AND STOCKHOLDERS’ EQUITY (UNAUDITED)

May 30, November 30,
(Dollars in thousands, except per share data) 2010 2009
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities
Current portion of long-term debt $ 7,263 $ 7,366
Trade payables 45,933 44,052
Accrued liabilities 69,614 77,515
Income taxes payable 9,038 10,004

Total current liabilities 131,848 138,937

Long-term debt, less current portion 31,874 30,933
Deferred income taxes 1,709 1,710
Other long-term liabilities 90,764 99,379

Total liabilities 256,195 270,959

Commitments and contingencies

Stockholders’ equity
Common Stock, par value $2.50 per share, authorized 24,000,000 shares, outstanding 9,246,355 shares in 2010 and 9,209,836 shares in 2009 30,045 29,920
Additional paid-in capital 60,395 59,531
Retained earnings 505,299 500,224
Accumulated other comprehensive loss (48,649 ) (42,036 )
Treasury Stock (2,771,637 shares in 2010 and 2,758,356 shares in 2009) (57,069 ) (56,049 )

Total stockholders’ equity 490,021 491,590

Total liabilities and stockholders’ equity $ 746,216 $ 762,549

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended
May 30, May 31,
(Dollars in thousands) 2010 2009
OPERATING ACTIVITIES
Net income $ 10,632 $ 13,252
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Depreciation 12,714 10,657
Amortization 17 19
Loss from affiliate 1,285 4,313
(Gain)/loss from sale of property, plant and equipment (11) 16
Stock compensation expense 1,433 2,362
Changes in operating assets and liabilities:
Receivables, net (5,394) 45,120
Inventories (9,356) 15,873
Prepaid expenses and other current assets (1,339) (246)
Other assets 64 (87)
Trade payables 2,377 (7,675)
Accrued liabilities and income taxes payable (8,226) (3,637)
Other long-term liabilities and deferred income taxes (8,325) (1,221)
Net cash (used in)/provided by operating activities (4,129) 78,746

INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 180 431
Additions to property, plant and equipment (16,756) (26,471)
Investment in affiliate – (10,000)
Loan to affiliate, net 1,500 –
Net cash used in investing activities (15,076) (36,040)

FINANCING ACTIVITIES
Issuance of debt 1,150 427
Dividends on Common Stock (5,557) (5,521)
Issuance of Common Stock 306 (1)
Excess tax benefits related to stock-based compensation – 819
Purchase of treasury stock (1,081) (992)
Net cash used in financing activities (5,182) (5,268)

Effect of exchange rate changes on cash and cash equivalents (3,376) 4,581
Net change in cash and cash equivalents (27,763) 42,019
Cash and cash equivalents at beginning of period 181,114 143,561

Cash and cash equivalents at end of period $ 153,351 $ 185,580

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

SEGMENT INFORMATION (UNAUDITED)

Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
(In thousands) 2010 2009 2010 2009
Sales
Fiberglass-Composite Pipe $ 64,668 $ 55,532 $ 119,174 $ 112,273
Water Transmission 41,288 42,251 67,100 93,794
Infrastructure Products 30,612 35,147 59,318 72,866
Eliminations (24 ) (10 ) (30 ) (11 )
Total Sales $ 136,544 $ 132,920 $ 245,562 $ 278,922

Income Before Interest, Income Taxes and Equity in Loss of Affiliate
Fiberglass-Composite Pipe $ 17,779 $ 16,490 $ 31,830 $ 31,136
Water Transmission 252 2,182 (1,630 ) 2,695
Infrastructure Products 2,370 3,059 3,584 6,843
Corporate and unallocated (8,239 ) (8,627 ) (18,896 ) (18,586 )
Total Income Before Interest, Income Taxes and Equity in Loss of Affiliate $ 12,162 $ 13,104 $ 14,888 $ 22,088

Ameron International Corporation
James S. Marlen, Chairman, Chief Executive Officer and President
Gary Wagner, Senior Vice President, Finance and Administration & Chief Financial
Officer
James R. McLaughlin, Senior Vice President, Corporate Development & Treasurer
Telephone: 626-683-4000

Filed Under: International News Tagged With: Ameron International Corporation, Amn, Centron, chief executive officer, Composite Pipe, Consolidated Sales, diluted share, Energy Exploration, Exploration And Production, Field Piping, Marlen, Mini Mill, municipal water, Production Markets, Second Quarter Sales, Segment Income, shipyards, Vessel Construction, Water Markets, Wind Tower

UPDATE 1-Synthes still cautious on 2010 after in-line H1

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UPDATE 1-ASML raises sales outlook as Q2 beats forecasts

ASML Announces 2010 Second Quarter Results

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