Weekly Bulletin, January 9, 2012

VW Passenger-Car Sales Rose 13% in 2011

By Robert Daniel, MarketWatch, Jan 6, 2012

Volkswagen AG, the Wolfsburg, Germany, auto maker, reported that for 2011 it delivered 5.1 million passenger cars to customers worldwide, up 13% from 2010.

The Passat, Jetta and Beetle as well as the Up, "have made an excellent start in difficult market conditions -- conditions that will remain challenging in 2012 -- and significantly strengthened Volkswagen's competitive position," said Christian Klingler, group board member for sales, in a Friday statement. A third of the deliveries, more than 1.72 million cars, went to China and Hong Kong, the company said. That's up 14% from a year earlier. U.S. deliveries jumped 26% to more than 324,000.
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Samsung Quarterly Profit Rises as Galaxy Phones Lure Consumers From Apple

By Jun Yan, Bloomberg, Jan 6, 2012

Samsung Electronics Co., Asia’s largest consumer-electronics company, reported a record quarterly profit on surging sales of Galaxy phones and a one- time gain from selling its hard-disk drive business.
Operating profit increased 73 per cent to 5.2 trillion won ($4.5 billion) in the three months that ended in December, the Suwon, South Korea-based company said in a statement today. That beat the 4.6 trillion-won average of 29 analyst estimates compiled by Bloomberg. Sales rose 12 per cent to 47 trillion won.

Mobile-phone sales surpassed a record 300 million units last year as Galaxy smartphones helped win consumers amid competition with Apple Inc.’s iPhone. Samsung, which sold its hard-disk drive business to Seagate Technology Plc, is introducing more mobile devices to offset slumping profits at the chip and flat-screen panel businesses.
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Samsung Fails to Win Sales Ban in Patent Fight on Apple IPhone 4S in Italy

By Jun Yan, Bloomberg, Jan 6, 2012

Samsung Electronics Co., the maker of the Galaxy mobile devices, failed to win a sales ban on Apple Inc. (AAPL)’s latest iPhone in Italy, as a global patent dispute between the two companies continues.
A Milan court yesterday rejected the Suwon, South Korea- based company’s bid to block the iPhone 4S in Italy, said Nam Ki Yung, a Seoul-based spokesman for Samsung, confirming an earlier report by Ansa news agency.

Samsung, which today reported a 73 per cent jump in fourth- quarter operating profit after selling a record number of handsets last year, also failed to win a sales ban on the iPhone 4S in France last month. Samsung and Apple have been suing each other in multiple countries over patents related to mobile technologies and designs since the iPhone maker accused the South Korean rival of copying its products last year.

“We will review the ruling and consider all available measures to further protect our intellectual property rights and stop this free riding on our technology,” Samsung said in a statement, referring to yesterday’s court decision.
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LG, Samsung Join Google TV Alliance Ahead of Product Rollout

By Brian Womack, Bloomberg, Jan 6, 2012

LG Electronics Inc., Samsung Electronics Co. and MediaTek Inc. are joining Google Inc.’s Internet-TV coalition and plan to begin unveiling new products during next week’s Consumer Electronics Show in Las Vegas.

LG plans to showcase products at the conference, with Samsung unveiling TVs later this year, Google said today in a blog posting. Google TV, introduced in 2010, also has the support of Marvell Technology Group Ltd. and Sony Corp. Vizio Inc., another existing partner, will hold private demonstrations of new products at the electronics show as well.

“Google TV is about bringing new entertainment and innovation from the Web to TV,” Mountain View, California-based Google said on its blog. “Our team along with our partners are pleased to bring more Google TV powered products to more people, across more devices in more countries in 2012.”
Google is shoring up support for the effort following slow initial sales for Google TV products. A lack of authorized content from media companies has made it harder to attract consumers to the idea. And one early partner, the set-top-box maker Logitech International SA, backed away from the coalition after disappointing orders.
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Verizon Fixed-Line Sale Would Free Vodafone

By Jonathan Browning and Cornelius Rah, Bloomberg, Jan 6, 2012

A disposal of Verizon Communications Inc. ’s fixed-line operations would clear the way for the company to merge its wireless and enterprise units with partner Vodafone Group Plc , analysts at Goldman Sachs Group Inc. said.

An agreement on a frequency purchase and marketing cooperation that Verizon’s mobile-phone unit reached in December with U.S. cable operators led by Comcast Corp. (CMCSA) would make separating its divisions easier, the analysts, including Tim Boddy in London, wrote in a research report.
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J&J Said to Agree to Pay $1 Billion in Risperdal Marketing Probe

By Margaret Cronin Fisk, Jef Feeley and David Voreacos, Bloomberg, Jan 6, 2012

Johnson & Johnson will pay more than $1 billion to the U.S. and most states to resolve a civil investigation into marketing of the antipsychotic Risperdal, according to people familiar with the matter.
J&J, the world’s largest health products company, reached an agreement last week with the U.S. attorney in Philadelphia, according to the people, who weren’t authorized to speak about the matter. Negotiations over a possible criminal plea are still under way, they said.

The U.S. government has been investigating Risperdal sales practices since 2004, including allegations the company marketed the drug for unapproved uses, J&J has said in Securities and Exchange Commission filings. The company said it has been in negotiations with the U.S. to settle the investigation.
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Sinopec Says Ministry of Finance Raises Oil Windfall Tax Threshold to $55

By Guo Aibing and Eleni Himaras, Bloomberg, Jan 6, 2012

China raised the threshold on a windfall tax paid by crude oil producers including PetroChina Co. and China Petroleum & Chemical Corp. in a move that analysts say may spur exploration of the nation’s energy resources.
The threshold was raised to $55 a barrel from $40 effective Nov. 1, PetroChina and China Petroleum, known as Sinopec, said in statements filed to the Hong Kong stock exchange yesterday. The tax was introduced in March 2006. Shares rose.
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Lilly’s 2012 Earnings Forecast Misses Analysts’ Estimates Dropping Shares

By Elizabeth Lopatto and Robert Langreth, Bloomberg, Jan 5, 2012

Eli Lilly & Co., maker of the antipsychotic Zyprexa, provided 2012 forecasts that missed analyst estimates and said sales of the patent-losing drug are falling faster than expected.
Full-year profit will be $3.10 to $3.20 a share, less than the average estimate of $3.67 by 19 analysts surveyed by Bloomberg. Annual revenue may be between $21.8 billion and $22.8 billion, the Indianapolis-based company said today in a statement. Analysts had expected $22.8 billion.
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Teva Climbs to Five-Month High as EZchip Drops: Israel Overnight

By Tal Barak Harif and Gwen Ackerman, Bloomberg, Jan 5, 2012

Teva Pharmaceutical Industries Ltd. led gains among the biggest Israeli companies traded in New York yesterday on reports a partner of the world’s largest generic drug maker boosted its market share for cholesterol-lowering drugs.

Shares of Petach Tikva, Israel-based Teva rose 1 per cent to $43.55 in New York yesterday, after jumping (TEVA) 6.8 per cent on Jan. 3 following the announcement that Bristol-Myers Squibb Co.’s Jeremy Levin will replace Shlomo Yanai as chief executive officer. The advance pushed the Bloomberg Israel-US 25 Index (ISRA25BN) of the largest Israeli companies traded in New York 0.1 per cent higher. Teva gained 1 per cent in Tel Aviv today to 167.5 shekels, or the equivalent of $43.54, at the 4:30 p.m. close. The country’s benchmark index, the TA-25, gained 0.2 per cent.

Ranbaxy Laboratories Ltd., based near New Delhi, boosted sales of the generic version of Lipitor to 26 per cent from 20 per cent this week, according to DS Securities & Investments. Teva, whose shares sank 23 per cent last year (TEVA), will receive a portion of the profit for the first six months, under the terms of an agreement between the two companies. Lipitor had $10.7 billion in revenue in 2010.
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Pfizer Restructures Indian Animal-Health Unit to Prepare for Consolidation

By Drew Armstrong, Jan 5, Bloomberg, 2012

Pfizer Inc., the world’s largest drug maker, said it will incorporate its Indian subsidiary’s animal health unit into its larger animal division, signalling the company has progressed in its push to divest the business.
The action is a step toward worldwide consolidation of New York-based Pfizer’s animal health operations under one roof, the company said. The change was announced in a statement today by the Bombay Stock Exchange.

Pfizer is shedding its animal health and nutrition businesses this year as part of Chief Executive Officer Ian Read’s plan to focus on developing new drugs.
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