BEFORE THE BELL 17 JUL 09

RESULTS

IBM (IBM, Computer hardware) +% before the opening
$2.32 ($2.02exp.) $1.98n-1. Revenue -13% at $23.25bn ($23.59bn exp.), US -9%, Europe -20%, Asia -7%, BRIC down Net +12% at $3.1bn ($2.77bn n-1)GM ups 2.3 bps at 45.5%Raised FY09 EPS from $9.20 to $9.70 ($9.12 exp.)Pricing held in Q2, economic environment still toughSees hardware business stabilizing and returning to profit growth in Q4 (decline halve in Q3)Sees double digit software revenue growth for the year
GOOGLE (GOOG.O, Internet services) +% before the opening
$5.36 ($5.08 exp.) $4.63 n-1. Revenue +2.9% at $5.52bn ($5.492bn exp.), forex hurt for $497mNet +18.4% at $1.48bn ($1.25bn n-1), operating +18.3% (non gaap +17.3%)Operating income = 34% of revenue (29% n-1)TAC (Traffic Acquisition Costs) 27% of advertising revenue. Advertising remain challenging$8.6bn in cash & equivalent, $19.3bn if you add short term marketable
BANK OF AMERICA (BAC, Bank) +% before the opening
$0.33 ($0.29 exp.) $0.72 n-1. Revenue +60.5% at $32.774 ($33.26bn exp) with Merrill Lynch & Countrywide integration Net -5.5% at $3.224 ($3.4bn n-1) but net to common shareholders -24.8% at $2.419bn after deduction preferred dividend $805mAdds $4.7bn in credit loss reserve, net charge off $8.7bn vs $3.6bn (ratio 3.64% vs 1.67%)Tiers 1 = 11.93%, non performing asset at $31 bn ($25.6bn end of march), extends more than $211bn in credit in Q2Expects over 40% of goal of $7bn in cost saving in 2009 from integrationDifficult challenges lie ahead, weak economy and deteriorating credit
BB&T CORP (BBT, Regional bank) +% before the opening
$0.20 ($0.17 exp.) $0.69 n-1. NII +7.1% at $1.167bn, NII margin at 3.56%underlying revenue +13%Net -51.7% at $208m ($431m n-1), to common shareholders -71.7% at $121mTiers 1 = 10.6%, BV = $22.76 ($23.40 n-1), ROE = 3.43% (13.27% n-1)Recorded $701m provision for credit losses in Q2, exceeding net charge off by $250mNon performing asset as % of total assets increased to 2.19%Average loans, leases held for investment +3.2% at $96.2bn and deposit +8.9% at $94.4bnAnnounces agreement to repurchase TARP warrants ($67m), paid around $3.134bn to the Treasury to repurchase preferred stock
CITIGROUP (C, Bank) +% before the opening
-$0.28 (-$0.32 exp.) -$0.49 n-1. Revenue +70.3% at $29.97bn ($21.136bn exp.)Net at $4.28bn (-$2.5bn n-1) but including a $6.7bn after tax gain from Smith Barney saleTiers 1 = 12.7% vs 8.7% (11.9% in Q1 09)Net interest margin at 3.24%, up 7bps. Add $3.9bn to loan loss reservesSpecial asset pool net loss at $1.2bn vs $4.3bnTotal deposit +6% sequentially at $805bnTotal asset -12% at $1.85 trillionHeadcount 96k below peak level, -30k in Q2Most significant challenge remains consumer credit
GENERAL ELECTRIC (GE, Industrial conglomerate) -% before the opening
$0.26 ($0.24 exp.) $0.54 n-1. Revenue -16.6% at $39.082bn ($42.091bn exp.), -12% ex forex, industrial -7% and financial services -29%Net -51.4% at $2.683bn ($5.256bn n-1), net from continuing operations -47% at $2.877bnGE Capital Tiers 1 = 7.4% vs 5.7% end 2008Cash & equivalent at $52bnTotal backlog about steady at $169bn, contractual services backlog at all time high at $122bn, industrial cash flow at $7.1bn for H1 ahead of plan

During the session :N/A

After the close :N/A

Results are for companies with a capitalization above $10bn and EPS is given with NON GAAP whereas Net Income is given with GAAP.

NEWS

GENERAL MOTORS (GM, Car maker) +% before the opening
Belgium based investor RHJ International (RHJI.BR) is offering $388m for a majority stake in General Motors' Opel business in a late ditch bid to beat out early frontrunner Magna (Mga.TO). Germany says prefers Magna plan but bid process still open.
GILEAD SCIENCE (GILD.O, Biotechnology) -1.4% before the opening
Has entered into a license and collaboration agreement with Tibotec Pharmaceuticals to develop and commercialize a new once-daily, fixed-dose antiretroviral regimen containing Gilead's Truvada and Tibotec's TMC 278 to treat patients infected with HIV. Financial terms weren't disclosed. The formulation of multiple medicines into one tablet would help to simplify HIV therapy. Gilead will take the lead role in the manufacturing, registration, distribution and commercialization of the combination medication.
DELL (DELL.O, Hardware systems) No pre-opening
Said it will sell its North American remanufacturing operation in Lebanon, Tenn., to logistical-services provider Genco Supply Chain Solutions. Financial terms weren't disclosed. The sale, aimed at reducing Dell's costs and enhancing efficiency, includes a 298,000-square-foot facility that refurbishes returned desktop and notebook computers, as well as other systems. Dell said it has committed to Genco's new operation for three years. The sale won't be final until all closing conditions are met, it added.


BROKER RATINGS

CYPRES SEMICOND : Price target raised to $14 from $12 by Capstone, Strong buy.
GOOGLE : Price target raised to $495 from $460 by Barclays, rated Overweight.
IBM : Price target raised to $135 from $125 by Dt Bank, rated Buy.
MARRIOTT: Price target cut to $17 from $16 by Société Générale, rated Sell.

MAJOR US DATA

Time (France) Indicator Estimate (Reuters) Actual Prior
14.30 Building permits 520m 563m 518m
14.30 Housing starts 530m 582m 562m (revised)


RESEARCH BY GLOBAL EQUITIES, PARIS