Before the Bell

BEFORE THE BELL

29 Jul 09

RESULTS

MCKESSON CORP +9% before the opening (published yesterday after the close)MCK,Health care distributor

$1.06 ($0.85 exp.) $0.83 n-1.

Revenue –0.2% at $26.657bn ($26.78bn exp.).

Net +22.5% at $288m ($235m n-1), Ebit +17.6%, operating +23.7%.

If trend continue should reach the top of EPS guidance, raised FY09 EPS at $4.15-4.30.

Cash & equivalent at $2.644bn, bought back $275m of stock leaving $555m on its authorization.

NORFOLK SOUTHERN -4.2% before the opening (published yesterday after the close)NSC,Railroads

$0.66 ($0.64 exp.) $1.18 n-1.

Revenue –32.8% at $1.857bn ($1.99bn exp.), -26% on volume and lower fuel related revenue.

Merchandise –31%, coal –34%.

Net –45.5% at $247m ($453m n-1), Ebit –46.6%.

Railway operating ratio at 74.8%.

COCA-COLA ENTERPRISES No pre-openingCCE,Soft drink

$0.67 ($0.51 exp.) $0.56 n-1.

Revenue –0.4% at $5.909bn ($5.973bn exp.), +6% ex negative forex impact.

Net at $313m (-$3.166bn with pre-tax charge $5.276bn for franchise impairment), operating exitems

+10.7%.

Raises FY09 EPS at $1.44-1.49 ($1.33 exp.), outlook cautious but improving.

Sees FY capital expenditures at $900m and Free cash flow ($650m in 09) will primarily used for

debt reduction. Raises annual dividend by 14%.

Net pricing/case +8%, sees NA volume declining in 2009.

CONOCOPHILLIPS -1.3% before the openingCOP,Integrated oil &gas

$0.87 ($0.86 exp.) $3.50 n-1.

Revenue –50.4% at $35.4bn ($32.752bn exp.)

Net –76.1% at $1.298bn ($5.439bn n-1), E&P earnings at $725m vs $3.999bn and downstream

(refining & marketing) loss at -$52m vs $664m benefit.

Production including share in Lukoil at 2.3m barrels/day, E&P production +7%.

$2.6bn in cash flow for the quarter, cash balance at $900m.

Debt at $30.4bn, debt to capital ratio at 34%.

Refining crude use capacity at 88% vs 93%.

GENERAL DYNAMICS +2.3% before the openingGD,Aerospace & defense

$1.61 ($1.56 exp.) $1.51 n-1.

Revenue +10.9% at $8.1bn ($8.139bn exp.).

Net –3.6% at $618m ($641m n-1), operating +2.6%, Ebit from continuing operations –0.2%.

Funded backlog +5.3% at $47.7bn, backlog +22.2% at 67.6bn.

Raised FY09 EPS to $6.05-6.15 ($6.14 exp.).

HES CORPORATION +1.2% before the opening

HES,

Integrated oil & gas

$0.31 ($0.01 exp.) $2.76 n-1.

Revenue –42.3% at $6.751bn ($7.436bn exp.).

Net –88.9% at $100m with charges ($900m n-1), net exploration & production –79% at 215m.

Oil & gas production +3.6% at 407k barrels per day.

Capital expenditures & exploratory down 36.7% to $785m from $1.24bn.

MEDCO HEALTH SOLUTIONS +3.1% before the openingMHS,Health care services

$0.69 ($0.65 exp.) $0.56 n-1.

Revenue +16.9% at $14.93bn ($14.56bn exp.)., specialty pharma +20.3%.

Net +18.8% at $312.1m ($262.7m n-1), ex-items +28%, Ebit +20.8%.

Generic dispensing rate increased 3.6%, total prescription volume +13.5% at 224.9m.

GM = 6.8% vs 7.3%, cash balance at $2.1bn, confident for the rest of the year.

Raised & narrowed FY09 EPS at $2.76-2.81 ex-items ($2.73exp.) from $2.67-2.77.

PRAXAIR -4% before the openingPX,Industrial gases

$0.96 ($0.99 exp.) $1.08 n-1.

Sales –26% at $2.138bn ($2.289bn exp.), -12% ex-currency & items, flat from previous quarter.

Net –14.3% at $299m ($349m n-1).

Strong cash flow at $563m, sees 2009 capital spending at $1.4bn.

Sees FY09 EPS at $3.85-4.05 ($4.02 exp.), revenue at $9bn (9.23bn exp.).

SOUTHERN CO No pre-openingSO,Electric utilities

$0.61 ($0.57 exp.) $0.63 n-1.

Revenue –7.8% at $3.885bn ($4.284bn exp.), industrial electricity sales –17.6%, residential –0.9ù

and commercial –0.6%.

Net +14.8% at $478.6m ($417m n-1), operating –4.1%.

WWW.GLOBAL-EQUITIES.COM / DEL SARTE TEAM / + 33 (0) 1 44 43 33 24

BEFORE THE BELL

29 Jul 09

SPRINT NEXTEL -4.3% before the openingS,Wireless communication

-$0.13 (-$0.01 exp.) $0.06 n-1.

Revenue –10.1% at $8.14bn ($8.133bn exp.), wireless flat sequentially at $6.4bn.

Net loss at -$384m (-$344m loss n-1), adjusted Oibda –16% at $1.769bn.

Oibda margin down to 23.1% from 24.4%, post paid churn at 2.05% vs 1.98%.

Wireless customers –257k including –991k post paid customers to 48.8 million.

Free cash flow at $676m, cash balance at $4.6bn after retiring $1.5 bn 2009 senior note maturities.

TIME WARNER CABLE -0.4% before the openingTWC,Cable & satellite

$0.89 ($0.79 exp.) $1.02 n-1.

Revenue +4.1% at $4.474bn ($4.44bn exp.), subscription +6% at $4.3bn.

Net +14.1% at $316m ($277m n-1), operating +19.5%, adjusted Oibda +5% at $1.7bn.

$1bn cash flow enable the company to reduce debt.

TIME WARNER INC -1.2% before the opening

TWX,

Movies & entertainment

$0.43 ($0.37 exp.) $0.72 n-1.

Revenue –8.8% at $6.809bn ($6.94bn exp.).

Net –34.5% at $519m ($792m n-1 with gain), adjusted Oibda –2% at $1.574bn with publishing and

AOL business down.

Bought back around 65m shares in the Q for around $3.1bn.

Reaffirms FY09 outlook, EPS around $1.98 ($1.99 exp.).

WELLPOINT -5% before the openingWLP,Managed health care

$1.50 ($1.43 exp.) $1.44 n-1.

Revenue –1.4% at $15.265bn ($15.406bn exp.).

Net –7.6% at $693.5m with items (750.5m n-1), ex-items –5% at $727.5m.

Medical enrollment –3% with 34.2 members. Benefit expense ratio at 82.9% vs 83.3%.

Sees FY09 EPS at $5.60-5.66 ($5.72 exp.), revenue at $60.6bn ($61.3bn exp.).

After the close : Aflac Corp ($1.13)

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

NEWS

EWS

CITIGROUP -0.7% before the openingC,Bank

Sumitomo Trust & Banking (8403.T) has agreed to buy Citigroup Japanese asset manager, Nikko

Asset Management, for about $1.1bn (Nikkei newspaper). Should be done by October.

GOOGLE -0.8% before the openingGOOG.O,Internet services

Microsoft (MSFT.O) +1% before the opening and Yahoo (YHOO.O) –6.7% before the opening

have agreed to an 10 years online search and advertising partnership, in an attempt to rival

Google that will be announced soon. Microsoft will not pay an upfront fee to Yahoo, and the focus

of the deal is on sharing revenue.

IPO : Private equity firm KKR is in advanced planning stage for an IPO of stock in discount US retailer

Dollar General (WSJ). KKR would be one of the lead with Goldman Sachs and Citigroup. KKR

valued its portfolio investment in Dollar General at $1.6bn in March.

Oil : Senior IEA analyst said : Oil prices have reached a floor of between $50-$60 a barrel and OPEC is

unlikely to announce major output cuts in September. The IEA is adviser to 28 industrialized

economies.

BROKERS RATINGS

BROKERS RATINGS

NATIOANL OILWELL : Cut to Neutral from Buy by Pritchard.

MCKESSON : Raised to Outperform from Neutral by Baird.

AFLAC: Cut to Hold from Buy by Citigroup.

MORGAN STANLEY: Cut to Neutral from Buy by Goldman Sachs.

BANKS: Goldman Sachs favors Bank Of America and JP Morgan among the big US banks.

MAJOR US ECONOMIC DATA

AJOR US ECONOMIC DATA

Time (France) Indicator Estimate (Reuters) Actual Prior

13.00 Mortgage market application N/A(est) -6.3%(actual) 2.8%(prior)

14.30 Durable goods -0.6% -2.5%(est) 1.3%(actual) (revised down)(prior)

14.30 Durable goods ex-defense 0%(est) -0.7%(actual) +0.9% (revised down)(prior)

14.30 Durable goods ex-transportation 0%(est) +1.1%(actual) +0.8% (revised down)(prior)