Halliburton Co, the world’s second-largest oilfield services company, posted higher-than-expected quarterly profit as it made headway outside its home US market, which has been turned upside down by a natural gas glut.

The company also said yesterday it will boost its share repurchase programme by $4.3bn after buying $1bn worth of its shares in the second quarter and leaving only $700mn authorised from an existing programme set up in 2006.

Chief executive Dave Lesar said the refreshed $5bn buyback reflected growing confidence in the business outlook, and predicted further profit margin improvement in the North American market.

The company reported a decline in second-quarter profit to $679mn, or 73¢ per share, from $737mn, or 79¢ per share, a year ago. Analysts expected 72¢ per share, according to Thomson Reuters I/B/E/S. Revenue rose 1% to $7.3bn.

Lesar said he expected profit margin improvement to continue in North America after a 1.2 percentage-point rise to 17.5% over the second quarter.

The US gas-directed rig count fell to an 18-year low of 353 in June, even as the count outside North America climbed to its highest in 30 years, according to Baker Hughes data.

Halliburton highlighted improved activity and sales in Malaysia, China, Russia, the North Sea and Angola.

 

Mobistar

 

Belgian telecoms operator Mobistar cut its revenue and profit forecasts for this year and scrapped its dividend after a price war caused earnings to tumble in the second quarter.

The company, which focuses on mobile telephony and has no fixed-line network, said it had suffered from a 20% fall in Belgian prices for mobile voice and data traffic over the past year.

It said this was due to a new law allowing customers to switch operators after six months and what it described as the duopolistic situation of fixed-line operators, such as former state monopoly Belgacom and regional cable firm Telenet.

Mobistar said the fixed-line operators were able to charge high prices for these services and subsidise their mobile businesses.

Mobistar said turnover would decline by as much as 12% in 2013 and core profit (EBITDA) would be a minimum of 300mn euros ($394mn). This would be a 39% drop from last year’s figure of 494mn euros.

In April, when releasing first-quarter results, it had forecast a decrease in turnover of between 4 and 6% and core profit at 380-420mn euros.

Second-quarter turnover dropped 9.7% to €363.9mn and core profit fell 39.8% to €82.2mn.

That was less than the turnover of 381mn euros and core profit of 99.2mn euros expected in a Reuters poll of seven banks and brokers.

The company said that, given the state of the market, a planned auction of fourth-generation (4G) mobile licences in the fourth quarter and network investments, meant its directors would propose suspending a dividend payment this year. It paid €1.80 per share for last year.

Mobistar said it would seek to keep core profit in 2014 at about the same level as in 2013, assuming no market or regulatory change and with 50mn euros from its cost-cutting programmeme.

It sounded a slightly more bullish tone for 2015, when it said a maturing 4G market should lead to greater mobile data traffic and cable infrastructure could then be more regulated.

 

Kimberly-Clark

 

Kimberly-Clark Corp, best known for its Kleenex tissues, posted a higher-than-expected quarterly profit yesterday, as cost savings helped offset the negative impact of foreign exchange rates.

Still, Kimberly-Clark stood by its full-year outlook, which calls for 2013 earnings per share of $5.60 to $5.75, excluding items. The forecast includes expectations for higher cost savings but a bigger-than-anticipated hit from the stronger US dollar, which eats into sales from international markets.

In the second quarter, the company earned $526mn, or $1.36 per share, up from $498mn, or $1.26 per share, a year earlier.

Excluding restructuring costs related to changes in its European business, earnings were $1.41 per share. On that basis, analysts on average were expecting $1.39 per share, according to Thomson Reuters I/B/E/S.

Sales were roughly flat at $5.27bn, missing analysts’ estimate of $5.34bn.

UBS

 

UBS said its second-quarter profit beat forecasts, even after an 865mn Swiss franc ($920mn) charge to settle a US lawsuit and other matters, and that its flagship private bank was continuing to win new customers.

The private bank, which attracted the most customer money in six years in the first quarter, is the centrepiece of UBS’s drive to recover from the financial crisis, after selling large parts of its fixed income business and cutting 10,000 jobs.

The Swiss bank said yesterday its second-quarter net profit rose to 690mn francs from 425mn in the same period last year, compared with some analysts’ forecasts which were closer to 560mn.

It did not provide a break-down of the profit, with detailed results due on July 30. However, UBS said its private bank attracted 10.1bn francs of new money and its US-based brokerage attracted 2.7bn, although its asset management arm suffered 2bn francs in outflows.

UBS’s strong private banking performance contrasted with that of Swiss rival Julius Baer, which missed new money targets yesterday but beat profit views.

UBS said the 865mn franc charge included the cost of settling a US Federal Housing Finance Agency (FHFA) lawsuit over soured mortgage investments. It did not disclose details of the settlement.

UBS halted dividend payouts following its 2008 bailout by the Swiss government, and has paid only modest symbolic shareholder payouts in the last two years.

 

McDonald’s

 

US fast-food giant McDonald’s notched a 3.7 increase in second-quarter profits yesterday, but offered a cautious outlook on the rest of 2013 given the uncertain economic environment.

McDonald’s reported $1.40bn in profits on $7.08bn in revenues, up from last year’s income of $1.35bn on revenues of $6.92bn. Analysts had forecast revenues of $7.09bn.

The results translated into earnings of $1.38 per share, 2¢ shy of the $1.40 analyst estimate.

McDonald’s chief executive Don Thompson said “the informal eating-out market remains challenging and economic uncertainty is pressuring consumer spending.”

The company projected “relatively flat” global comparable store sales for July and sees results being “challenged” the rest of 2013.

Operating income in the US was “relatively flat” in the second quarter even as comparable sales rose 1%. Europe’s comparable sales were down 0.1%, but operating income rose 5%.

In the Asia/Pacific, Middle East and Africa region, comparable store sales fell 0.3%, while operating income declined 1%.

Hasbro

 

Hasbro, home to brands such as G I Joe, Nerf and Mr Potato Head, posted a lower-than-expected quarterly profit yesterday on weak demand for its toys for boys, becoming the third toymaker to fall short of Wall Street expectations in the second quarter.

In the quarter, usually a weak period for toymakers, revenue in Hasbro’s boys’ toy business fell 35% to $253.7mn, overshadowing sales growth in the girls, games, and preschool units.

Unlike the second quarter of 2012, Hasbro had fewer movie franchises supporting its brands, such as Marvel and Beyblade, this year.

Last week, larger rival Mattel posted a much weaker-than-expected profit on sluggish Barbie doll sales, and smaller toymaker Jakks Pacific slashed its full-year forecast, saying several retailers in the US and Europe had cut orders for its key products.

Hasbro said second-quarter net profit fell to $36.5mn, or 28¢ a share, from $43.4mn, or 33¢ a share, a year earlier.

Excluding a pension charge, it earned 29¢ a share, missing analysts’ average estimate of 34 cents, according to Thomson Reuters I/B/E/S.

Hasbro, which counts retailers Wal-Mart Stores, Target Corp and Toys R Us among its customers, said sales fell 6% to $766.3mn. Analysts had expected $794.7mn.

The No 2 US toymaker also said it has expanded its partnership with Walt Disney Co, giving it the rights to make toys and games for Marvel characters such as Spider-Man, the Avengers and Iron Man through 2020. Hasbro’s rights for the Star Wars franchise, which Disney bought recently, also runs through 2020.

 

Philips Healthcare

 

Philips said orders at its healthcare division — now its most profitable after a strategic overhaul — rose more than expected in the second quarter thanks to new ultrasound and scanning products and strong demand from China.

Orders rose 7% compared with a year ago, reversing a 5% drop in the first quarter, and along with the rest of the company’s results were better than expected after two years of job cuts, divestments and a change of business strategy.

Philips has been selling off much of its consumer electronics business over the past 18 months — divesting its television, audio and video operations as it struggled to compete with lower-cost Asian manufacturers, to focus on more profitable home appliances, lighting and healthcare.

It now derives more than 40% of its sales and 70% of its EBITA (earnings before interest, tax and amortisation) from healthcare. It is ranked the leading medical equipment supplier in the US and a top-three producer of hospital equipment worldwide.

Chief executive Frans van Houten stuck to the company’s full-year targets — sales growth between 4 and 6%, a margin on EBITA of 10 to 12% and a return on invested capital of 12 to 14% — and said he would update the market in September on the company’s new financial goals.

The jump in orders was driven particularly by the launch of new ultrasound, CT (computerised tomography) and MR (magnetic resonance) machines used to see inside of the human body. Overall the healthcare division reported second-quarter EBITA of 420mn euros ($552mn), up 36%.

Philips reported second-quarter net profit of €317mn, up from €102mn in the same period a year ago. Analysts in a poll commissioned by Reuters had forecast a net profit of €262mn on sales of €5.596bn.

Quarterly sales rose 3% on a comparable basis to €5.65bn, with strong growth in emerging markets including China, Russia and Latin America.

Its consumer business doubled EBITA to €82mn, driven by strong demand for appliances ranging from noodle-makers and soup mixers to electric toothbrushes and shavers.

At the lighting division, EBITA almost doubled to €153mn. Last year, Philips launched “hue”, a home lighting system controlled via a smartphone app, as it tries to reinvent its range of consumer lighting products. The company will also provide lighting for the 2014 FIFA World Cup in Brazil.