Drugs group Lundbeck's shares hit by profit warning

 Shares in Danish drugs firm Lundbeck fell to their lowest level in over 12 years on Wednesday after it cut its profits forecast for the next two years as European sales slow and spending on new products rise to combat generic competition.
The company has already warned that earnings would stall until 2015 due to cheap generic competition for its existing drugs, meaning new products will be vital for future earnings.
But Chief Executive Ulf Wiinberg said on Wednesday that the negative impact on revenue from healthcare reforms in Europe had also been bigger than expected in the last two years and that slowing European sales and generic competition were hurting.
As a result the company said operating profits would fall further than previously forecast in 2014 as it increases investments in its late-stage drugs development pipeline and product launches.
Lundbeck is working to find new drugs to replace lost revenue from products coming off patent protection such as its antidepressant Cipralex, which is sold as Lexapro in the United States and Japan, and Alzheimer's drug Ebixa.
Wiinberg said 2014 would be the company's peak investment year for the new products pipeline, offering it a solid foundation for growth starting in 2015.
"You only get one chance to launch a product and we have to do it well," Wiinberg said at a briefing for investors.
He was commenting after the company warned in a statement that it now expects revenue in 2014 of about 14 billion Danish crowns ($2.5 billion) and an operating profit of between just 0.5 billion and 1 billion crowns.
Analysts have on average been forecasting a profit of over 2.5 billion crowns for 2014 on turnover of over 14.7 billion crowns, according to Thomson Reuters I/B/E/S Estimates.
Two years ago Lundbeck predicted its annual revenues over the period 2012-2014 would exceed 14 billion crowns a year while earnings before interest and tax (EBIT) would exceed 2 billion crowns a year.
Next years' revenue is now forecast to be in the range of 14.1 billion and 14.7 billion crowns to produce an operating profit of 1.6 billion to 2.1 billion crowns, with no change to the company's forecast for 2012.
Analysts' forecasts for this year are for operating profit to drop 41 percent to 1.99 billion crowns on revenue down 8 percent at 14.7 billion crowns, while for 2013 they predict a profit of 2.26 billion crowns on revenue of 14.5 billion crowns.
Lundbeck's shares were trading down 17 percent at 79.90 crowns at 12.44 p.m. British time, dropping below 80 crowns for the first time since April 2000.
"In the short term, earnings are under pressure," Sydbank analyst Soren Hansen said.
Lundbeck said that it expects a dividend payout ratio of about 35 percent of net profits in the 2012-14 period. Last year it paid 3.49 crowns on basic earnings per share of 11.64 crowns, a payout ratio of 30 percent.
Analysts have been predicting a 27-30 percent cut this year to 2.53-2.28 crowns, according to Thomson Reuters StarMine data.
But a number of analysts doubt that revenue from new products will be enough to secure revenue growth in 2015, compensating for lost revenue from Cipralex, Lexapro and Ebixa which together accounted for about 70 percent of group revenue in 2011.
Lundbeck is working on new products such as antidepressant Brintellix in Europe and the United States for launch at the end of next year or start of 2014, as well as alcohol dependency treatment Selincro in Europe in mid 2013.
"It is difficult to see revenue from the smaller products compensating for the large products," said Hansen.

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New Mauritius Hotels posts 25 pct drop in full-year profit

Luxury hotels group New Mauritius Hotels (NMH) reported a 25 percent fall in full-year pretax profit, citing higher finance costs and fewer tourists, and forecast a 15 percent drop in first-quarter earnings.
Ranked among the Indian Ocean island's most-traded stocks, NMH said on Wednesday that pretax profit for the year to September 30 fell to 603 million Indian rupees, with earnings per share down 20 percent at 3.60 rupees.
The hotels group said that it won't pay a dividend this year, given the difficult conditions in the local tourism industry. Last year it paid a dividend of 2.50 rupees per share.
Shares in the group, which owns eight hotels in Mauritius and one in the Seychelles, closed unchanged at 52 rupees before its results were released.
Tourism, a traditional cornerstone of the Mauritius economy, has been forecast to account for 7.9 percent of domestic product in 2012, down from 8.4 percent last year. The downturn in tourism has been caused largely by economic turmoil in the euro zone - the sector's key source market.

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FedEx: cost plan can counter sluggish growth

FedEx is more pessimistic about the U.S. economy than it was three months ago, but more assured of its own ability to grow earnings.
The world's second-largest package delivery company lowered its economic forecast for the U.S., saying that there remains a lot of uncertainty for the company and the country.
Its forecast for the current quarter, which incorporates the critical holiday season, falls short of Wall Street expectations.
But FedEx maintained its forecast for the full fiscal year ending in May, counting on a massive cost reduction plan and a slightly more optimistic view of growth overseas. Shares rose 2.6 percent in afternoon trading.
FedEx Corp. posted earnings of $438 million, or $1.39 per share for the quarter that ending in November, compared with $497 million, or $1.57 per share, a year ago. That was below the $1.41 per share that Wall Street was expecting, according to a poll of analysts by FactSet.
Revenue rose to $11.1 billion from $10.6 billion previously, as the company scaled back its operation to better match demand and some of its raised rates. Analysts forecast revenue of $10.84 billion.
Growth in the company's freight and ground operations boosted results, but FedEx reported "persistent weakness" in its core express network. Operating income in that segment fell 33 percent. FedEx and its larger rival UPS Inc. have both seen consumers and businesses opt for slower shipping options to cut costs.
FedEx said on Wednesday that it expects earnings will be between $1.25 and $1.45 per share in the third quarter. Analysts that follow the company were predicting per-share earnings of $1.45.
The company, based in Memphis, Tenn., also said it expects to earn between $6.20 and $6.60 per share for the year ending in May, excluding any charges from the company's buyout plan. Wall Street is looking for $6.34.
Earlier this month FedEx said it will offer some employees up to two years pay to leave, starting next year. The voluntary program is part of an effort to cut annual costs by $1.7 billion within three years. The plan also includes cutting aircraft and underused assets.

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FedEx says it can grow by cutting costs

 FedEx may be pessimistic about the U.S. economy, but it's confident about growing its earnings.
The world's second-largest package delivery company, a bellwether for economic health because of the vast number and kinds of shipments it handles, lowered its economic forecast for the U.S., saying there remains a lot of uncertainty for the country.
FedEx maintained its earnings forecast for the full fiscal year ending in May, counting on a massive cost reduction plan and a slightly more optimistic view of growth overseas. Shares rose 84 cents to close at $93.20 Wednesday, even though its forecast for the current quarter, which includes the critical holiday season, falls short of Wall Street expectations.
FedEx Corp. posted earnings of $438 million, or $1.39 per share for the quarter that ended in November, compared with $497 million, or $1.57 per share, a year ago. Superstorm Sandy shaved 11 cents per share off of earnings in this year's quarter, as shipping volumes fell and costs rose.
Revenue rose to $11.1 billion from $10.6 billion a year ago, as the company scaled back its operation to better match demand and some of its raised rates.
Wall Street expected $1.41 per share in the recent quarter on revenue of $10.84 billion, according to FactSet.
Growth in the company's freight and ground operations boosted results, but FedEx reported "persistent weakness" in its core express network. Operating income in that segment fell 33 percent. FedEx and its larger rival UPS Inc. have seen consumers and businesses opt for slower shipping options to cut costs. As a result, FedEx is offering buyouts and shedding aircraft and other assets to reduce its costs and adjust to the new normal.
Earlier this month FedEx said it will offer some employees up to two years pay to leave, starting next year. The voluntary program is part of an effort to cut annual costs by $1.7 billion within three years.
FedEx said on Wednesday that it expects earnings of $1.25 to $1.45 per share in the third quarter. Analysts predicted per-share earnings of $1.45.
The company, based in Memphis, Tenn., also estimated $6.20 and $6.60 per share for the year ending in May, excluding charges from the company's buyout plan. Wall Street is looking for $6.34 per share.

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Burundi tea earnings rise 27 pct in November on high prices

 Burundi's tea export revenues rose 27 percent in November from the same month last year thanks to a stronger regional market, a tea board official said on Thursday.
The state-run tea board (OTB) said it collected $1.80 million from the sale of 589,907 kg, up from $1.42 million earned in November 2011 from the export of 563,140 kg.
"Supplies of the commodity in the region were low following a fall in overall production, especially with Kenya," Joseph Marc Ndahigeze, OTB's export official, told Reuters.
"This has boosted prices and earnings for Burundi's tea."
Kenya is the top tea producer in the East African region and landlocked Burundi exports 80 percent of its tea through a weekly auction held in Kenya's Indian Ocean port city of Mombasa.
Ndahigeze said the export average price per kg jumped to $3.06 from $2.54 the previous year.
OTB said total export earnings between January and November reached $24.7 million, exceeding the $22.2 million collected in 2011.
Tea is Burundi's second largest hard currency earner after coffee and employs some 300,000 small holder farmers in a nation of 8 million people.

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Ryan says Tebow would have done wildcat if asked

Tim Tebow would have done whatever Rex Ryan asked — if the New York Jets coach had asked him.
Ryan acknowledged Monday that Tebow wasn't happy when the coach chose Greg McElroy to start for the benched Mark Sanchez, but insisted Tebow was willing to play in any role Sunday against San Diego — including the wildcat.
"He was disappointed, there's no question," Ryan said Monday. "He was disappointed that he was not named the starter, but with that being said, I'm not going to get into private conversations that I have with players, but it was my decision to use Jeremy Kerley in the wildcat, without question.
"But I'll say this: I believe if Tim's number was called, he would've went in and played. I don't think there's any doubt about that."
A person familiar with the situation told The Associated Press that Tebow asked out of his wildcat offense duties last week after hearing that McElroy, the third-stringer, would get his first NFL start over Tebow, listed as the No. 2 quarterback.
Another person, also familiar with the situation, said that wildcat plays involving Kerley instead of Tebow were added before practice last Wednesday.
Both people spoke on condition of anonymity because the Jets do not disclose personnel discussions.
ESPN New York first reported that Tebow opted out of running wildcat plays. ESPN also reported that Tebow said his relationship with Ryan was "strained" for a few days, but they smoothed things over. Ryan had all three quarterbacks active for Sunday's 27-17 loss, but Tebow never got onto the field in any capacity.
Ryan did not deny that Tebow asked out of running wildcat plays, but also refused to go into any details of what happened.
"I've been transparent and all that stuff without question, but I'm not going to give you a private conversation that I would have with a player," Ryan reiterated. "That's between him and I. If he wants to share whatever the conversation is, Tim or anybody else, then that's up to him."
Ryan was also asked if it could be considered "insubordination" if a player refuses to play in a role designed for him.
"You guys are assuming something's a fact or whatever, and that's fine," Ryan said. "If I would have asked Tim to play in anything, Tim would have gone into the game and done that."
After the game, Tebow would say only that "it just happened" that he didn't play in the wildcat package. He has done his best to hide his frustration throughout what he could consider a lost year on the playing field.
"Well, it's been disappointing," Tebow said of the season. "Obviously, it didn't go as we thought, as I had hoped, but sometimes in life you have that. Sometimes you have setbacks and you just have to look at them as another opportunity for you to step back up and keep working and figure out what to do."
New York will either trade or release Tebow after the season, a disappointing and frustrating one-year stint with the Jets that just seems to get worse. Tebow was asked after the game if he could remember the last time he had played so little.
"Three or 4 years old, probably," Tebow said. "Since I started."
Tebow has not played a single snap in four of the last five games, although some of that inactivity was due to him breaking two ribs at Seattle on Nov. 11. He has been cleared to play, and got a full offensive series at quarterback last Monday night at Tennessee, but Ryan confirmed that Tebow "still has two cracked ribs."
The Jets (6-9) were eliminated last week with their loss to the Titans, and Ryan announced after the game against San Diego that McElroy — despite being sacked 11 times — would start in the season finale at Buffalo. Whether Tebow actually plays in that game or has taken his last snap with the Jets remains to be seen.
Tebow was acquired from Denver in a stunning trade last March and expected to be a major contributor to the offense. He has been only a role player — whenever he actually plays.
"I thought we'd do some better things out of that wildcat," Ryan said. "It hasn't happened. I'm not blaming it on Tim Tebow. I'm sure there's multiple reasons, but for whatever reason, it has not had the results that I envisioned for it."
Some reports have Jacksonville interested in bringing Tebow in to compete for its quarterback job next season. The Jaguars were the only team other than the Jets that tried to trade for Tebow last year, plus it would be a homecoming for Tebow if he played in Jacksonville.
"I'm not pulling the tampering thing," Ryan said. "Tim's under contract with us and that's all I know."
Jaguars coach Mike Mularkey told Jacksonville reporters that he wasn't aware of reports that his team looked into pursuing Tebow before the trade deadline earlier this season.
"I am not going to talk about that," he added. "I don't talk about other players on other teams right now."
NOTES: Ryan was still disgusted by how many times McElroy was sacked by the Chargers on Sunday. "The 11 sacks and all that, that's as poor as I can ever remember as far as the pass protection was concerned," he said. It was the most a Jets QB was sacked since David Norrie in 1987 against Dallas — a game played by replacements. ... The Jets waived WR Mardy Gilyard, who had two catches for 15 yards in three games for New York.

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Column: Seattle isn't just sleepless, it's loud!

That dull roar still rumbling between your ears a day later is not your imagination.
It's the echo from the 49ers-Seahawks game Sunday night, when an already notoriously loud hometown crowd outdid itself. How?
Start with CenturyLink Field, a U-shaped stadium with cantilevered roofs extending over most of the 67,000 seats in the grandstands, a configuration designed to bounce back sound. Then throw in some fans presumably hopped up on espresso and, thanks to a later starting time, some more who stopped at Safeco Field on the way over to quaff 24-oz. beers offered through a promotion at a mere $4.50 each.
Next, mix in their dislike for a nasty NFC West rival and especially coach Jim Harbaugh, who smacked the Washington Huskies every chance he got when he was at Stanford and has been tormenting Seahawks coach Pete Carroll ever since.
Finally, throw in that early, unexpected lead and — voila! — a near-perfect sound storm.
Just know it could have been worse.
"Obviously, they were jacked up last night," said Fred Gaudelli, the innovative producer of "Sunday Night Football" on NBC. "But in my mind, it's one of the underrated sports towns in America. Actually, the special challenge there is always to convey how loud it actually is.
"We knew that going in, plus we knew the 49ers were the team their fans hate the most. So at Wednesday's regular 'brainstorming session,' we turn to our head audio engineer and said, 'How do we make viewers understand you can't hear the person next to you most of the time, even if he's yelling?' We wanted to be ready."
Gaudelli knows what can happen to a team that ventures into Seattle without preparing for the wall of noise.
In 2005, the visiting New York Giants collected 11 false-start penalties in a single game, the start of a five-year span when opponents piled up league-leading totals, averaging twice as many there as the Seahawks. The Carolina Panthers once practiced for a game there by dragging loudspeakers down to the practice field and simulating the sound of a jet engine. If that sounds over the top, it is, by about 18 decibels. Jets are routinely measured at around 130, Century Link's best is only 112.
Gaudelli and his crew hatched a plan to demonstrate that by having sideline reporter Michele Tafoya speak into a microphone as the sound reverberated, then take a step back and try again. When they ran through it before the game, he had a stadium staffer simulate the crowd noise over the PA system. At the point Tafoya's words were drowned out the system was cranked to 50 percent of volume.
"So I asked the guy, is it really going to be that loud? He looked at me," Gaudelli chuckled into the phone, "and said, 'Double it.'"
The guy was right. That much was apparent at the start of the broadcast, when Tafoya interviewed Carroll — remember, the game hadn't even begun — and didn't dare stand anywhere but uncomfortably close.
Uncomfortable might be the right word to describe the 49ers as well, at least in the early going, when they had to burn timeouts as relatively inexperienced quarterback Colin Kaepernick was having trouble getting the play calls from his sideline. Right about then, he probably wished the 49ers had devoted more time to mastering their silent snap counts.
"The crowd's explosive, it really is," Seattle quarterback Russell Wilson said. "They love us so much, and it brings so much energy to our football team. They keep us in the game, obviously, and they keep us alert."
Experts have been arguing over the worth of home-field advantage for decades. Most concluded that in those places where it's statistically significant, it's usually because of a number of factors and not just one, such as noise. Since CenturyLink opened up in 2002, Seattle is 58-29 at home, a 67 percent winning clip that ranks the Seahawks sixth in the NFL over that span. That's a far cry from New England's league-best 72-15 record (83 percent).
But the Seahawks haven't had Tom Brady at quarterback, and their road record is dismal enough (33-55) that the boost the fans at CenturyLink have provided might be best measured by their last four playoff appearances. If that's not exact enough, try this: After a 2001 earthquake shook a viaduct that runs along the water and near the stadium, the University of Washington set up a lab to track future "seismic events." One of them actually occurred during Marshawn Lynch's thundering, winning, 67-yard touchdown run in a memorable upset of the then-defending Super Bowl champion New Orleans Saints on Jan. 9, 2011.
Yet while we know how Seattle fans make so much noise, why remains the subject of much speculation. Gaudelli, like a lot of people, blames coffee. But I'm going with a theory advanced Sunday night by announcer Al Michaels, who suggested the locals roar non-stop because showcase games gives them a rare chance to remind the rest of the country they're there.
"For media people on the East Coast," he said half in jest, "Seattle might as well be Bulgaria.

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