[Top News] from [REUTERS]
[Green Business]
WASHINGTON
Fri Jan 29, 2010 8:30am EST
U.S. formally embraces Copenhagen climate deal
WASHINGTON (Reuters) - The United States on Thursday formally notified the United Nations that it has embraced the Copenhagen Accord setting nonbinding goals for reducing greenhouse gas emissions that was negotiated last month.
Todd Stern, the top U.S. climate negotiator for the Obama administration, also gave notice that, as expected, it will aim for a 17 percent reduction in emissions of carbon dioxide and other gases blamed for global warming by 2020, with 2005 as the base year.
A final emissions reduction target will be submitted, the U.S. said, once the U.S. Congress enacts domestic legislation requiring carbon pollution cuts. But such legislation has an uncertain fate in the Senate.
(Reporting by Richard Cowan, Editing by Sandra Maler)
[Green Business]
Ben Hirschler
DAVOS, Switzerland
Fri Jan 29, 2010 10:22am EST
Novartis chairman says wants to expand in Russia
DAVOS, Switzerland (Reuters) - Swiss drugmaker Novartis (NOVN.VX) is eyeing Russia as the next big opportunity in emerging markets, after placing a major bet on China, its chairman said on Friday.
Daniel Vasella told Reuters that Russia's science base and large population made it an exciting prospect for investment in marketing infrastructure, drug production and research and development.
"The potential, I believe, is substantial," he said on the sidelines of annual meeting of the World Economic Forum.
"We will only do these investments once we have a fair understanding of the risks ... it is an aspiration to do it within two or three years."
Right now, however, China is top of the target list for Novartis and every other pharmaceutical company. It has an annual growth rate for pharmaceutical sales of more than 20 percent, fueled by a growing middle class.
Novartis unveiled plans last November to invest $1 billion in the largest pharmaceutical research facility in China and many of its rivals have also stepped up investment in the last two years.
Now Vasella is looking around for the next big emerging markets play.
"I would like to do something similar in Russia because Russia has a lot of talent and great history of science but unfortunately has lost, to some degree in some areas, the edge. I think it can regain it," he said.
Policy changes mean Russia's drug market has been unpredictable in the past. But the government has now made the pharmaceutical sector a priority industry for development, which Vasella said could be an additional incentive for investment, provided local and international firms were treated equally.
INCREASING LURE
Emerging markets are an increasing lure for Western drug companies selling both patented and generic medicines, as sales growth slows in the United States and Europe and many of the industry's top selling products lose patent protection.
Forecaster IMS Health sees the drug market in a group of seven major emerging economies -- Russia, China, Brazil, India, Mexico, South Korea and Turkey -- growing at 12 to 14 percent in 2010 and even faster over the next five years.
That is significantly more than IMS's predictions for the global drugs market, of 4 percent to 6 percent growth in 2010 and 4 percent to 7 percent through 2013.
Vasella -- who announced on Tuesday he was handing over the job of chief executive to Novartis insider Joe Jimenez from February 1, while remaining chairman -- said a move to scale-up Russian operations would likely be a phased in.
"Generally, when we get to a country we start by selling, then we back up with production and then, if everything works, we back up with R&D," he said.
Novartis already has a good business selling its drugs into Russia, but Vasella said increased investment on the ground was needed to reach the full potential.
(Editing by Sam Cage and Jon Boyle)
[Green Business]
Scott Malone
BOSTON
Fri Jan 29, 2010 10:23am EST
Honeywell sets low quarterly forecast, shares fall
BOSTON (Reuters) - Diversified U.S. manufacturer Honeywell International Inc (HON.N) set a first-quarter profit target that fell short of analysts' forecasts and its shares fell 4 percent.
The forecast overshadowed fourth-quarter results that were slightly stronger than Wall Street had looked for and raised concerns among some investors about the full-year prospects for the company, the world's largest maker of cockpit electronics.
"We should all be cautious about the year ahead of us, particularly the first half," Chief Executive Dave Cote told investors on a conference call on Friday. "We are, as usual, planning conservatively in 2010, with modest organic sales growth."
Honeywell, which also makes thermostats and other systems for managing large buildings, expects first-quarter profit of 35 cents to 40 cents per share on revenue of $7.2 billion to $7.6 billion. Analysts, on average, had looked for profit of 47 cents per share on $7.63 billion in revenue, according to Thomson Reuters I/B/E/S.
The Morris Township, New Jersey-based company stood by its full-year profit forecast, saying that the low first-quarter figure reflected seasonal patterns.
The U.S. economy is showing signs of recovering from its worst downturn since the Great Depression. Government data on Friday showed a 5.7 percent rise in fourth-quarter gross domestic product. [ID:nN28246399]
But many on Wall Street remain wary and this week have punished companies whose outlooks disappointed. For instance, shares of Caterpillar Inc (CAT.N) and Textron Inc (TXT.N) sold off earlier in the week after their full-year profit forecasts came in short of investors' expectations.
'BACK-END LOADED'
The company reiterated its 2010 profit forecast of $2.20 to $2.40 per share, including 80 cents of non-cash charges related to pension accounting.
"People are sort of scratching their heads and saying, 'This is all back-end loaded, so we have to step back until we get clarity,'" said Peter Klein, senior portfolio manager at Fifth Third Asset Management in Cleveland. "Management is being conservative, like Caterpillar was when it announced."
Honeywell shares fell 4 percent to $38.23 on the New York Stock Exchange.
Fourth-quarter sales declined across the company's aerospace and automation and control systems divisions, as airlines trimmed maintenance budgets and commercial construction activity stayed slow in the United States and Europe.
Earnings eased 1 percent to $698 million, or 91 cents per share, from a profit of $707 million, or 97 cents per share, a year earlier.
The results came in a penny ahead of analysts average forecast of 90 cents per share.
Revenue fell 7 percent to $8.07 billion.
Honeywell, which also makes automotive turbochargers and specialty chemicals, has forecast a rebound in demand this year, though pension accounting costs will weigh on its bottom line.
Prior to Friday's action, Honeywell shares were up about 15 percent over the past year, lagging the 26 percent rise of the Standard & Poor's capital goods industry index .GSPIC.
Honeywell's competitors include United Technologies Corp (UTX.N) in aerospace and building control systems, Goodrich Corp (GR.N) in aviation and DuPont Co (DD.N) in specialty materials.
(Editing by Derek Caney and Steve Orlofsky)
[Green Business]
WASHINGTON
Fri Jan 29, 2010 8:30am EST
U.S. formally embraces Copenhagen climate deal
WASHINGTON (Reuters) - The United States on Thursday formally notified the United Nations that it has embraced the Copenhagen Accord setting nonbinding goals for reducing greenhouse gas emissions that was negotiated last month.
Todd Stern, the top U.S. climate negotiator for the Obama administration, also gave notice that, as expected, it will aim for a 17 percent reduction in emissions of carbon dioxide and other gases blamed for global warming by 2020, with 2005 as the base year.
A final emissions reduction target will be submitted, the U.S. said, once the U.S. Congress enacts domestic legislation requiring carbon pollution cuts. But such legislation has an uncertain fate in the Senate.
(Reporting by Richard Cowan, Editing by Sandra Maler)
[Green Business]
Ben Hirschler
DAVOS, Switzerland
Fri Jan 29, 2010 10:22am EST
Novartis chairman says wants to expand in Russia
DAVOS, Switzerland (Reuters) - Swiss drugmaker Novartis (NOVN.VX) is eyeing Russia as the next big opportunity in emerging markets, after placing a major bet on China, its chairman said on Friday.
Daniel Vasella told Reuters that Russia's science base and large population made it an exciting prospect for investment in marketing infrastructure, drug production and research and development.
"The potential, I believe, is substantial," he said on the sidelines of annual meeting of the World Economic Forum.
"We will only do these investments once we have a fair understanding of the risks ... it is an aspiration to do it within two or three years."
Right now, however, China is top of the target list for Novartis and every other pharmaceutical company. It has an annual growth rate for pharmaceutical sales of more than 20 percent, fueled by a growing middle class.
Novartis unveiled plans last November to invest $1 billion in the largest pharmaceutical research facility in China and many of its rivals have also stepped up investment in the last two years.
Now Vasella is looking around for the next big emerging markets play.
"I would like to do something similar in Russia because Russia has a lot of talent and great history of science but unfortunately has lost, to some degree in some areas, the edge. I think it can regain it," he said.
Policy changes mean Russia's drug market has been unpredictable in the past. But the government has now made the pharmaceutical sector a priority industry for development, which Vasella said could be an additional incentive for investment, provided local and international firms were treated equally.
INCREASING LURE
Emerging markets are an increasing lure for Western drug companies selling both patented and generic medicines, as sales growth slows in the United States and Europe and many of the industry's top selling products lose patent protection.
Forecaster IMS Health sees the drug market in a group of seven major emerging economies -- Russia, China, Brazil, India, Mexico, South Korea and Turkey -- growing at 12 to 14 percent in 2010 and even faster over the next five years.
That is significantly more than IMS's predictions for the global drugs market, of 4 percent to 6 percent growth in 2010 and 4 percent to 7 percent through 2013.
Vasella -- who announced on Tuesday he was handing over the job of chief executive to Novartis insider Joe Jimenez from February 1, while remaining chairman -- said a move to scale-up Russian operations would likely be a phased in.
"Generally, when we get to a country we start by selling, then we back up with production and then, if everything works, we back up with R&D," he said.
Novartis already has a good business selling its drugs into Russia, but Vasella said increased investment on the ground was needed to reach the full potential.
(Editing by Sam Cage and Jon Boyle)
[Green Business]
Scott Malone
BOSTON
Fri Jan 29, 2010 10:23am EST
Honeywell sets low quarterly forecast, shares fall
BOSTON (Reuters) - Diversified U.S. manufacturer Honeywell International Inc (HON.N) set a first-quarter profit target that fell short of analysts' forecasts and its shares fell 4 percent.
The forecast overshadowed fourth-quarter results that were slightly stronger than Wall Street had looked for and raised concerns among some investors about the full-year prospects for the company, the world's largest maker of cockpit electronics.
"We should all be cautious about the year ahead of us, particularly the first half," Chief Executive Dave Cote told investors on a conference call on Friday. "We are, as usual, planning conservatively in 2010, with modest organic sales growth."
Honeywell, which also makes thermostats and other systems for managing large buildings, expects first-quarter profit of 35 cents to 40 cents per share on revenue of $7.2 billion to $7.6 billion. Analysts, on average, had looked for profit of 47 cents per share on $7.63 billion in revenue, according to Thomson Reuters I/B/E/S.
The Morris Township, New Jersey-based company stood by its full-year profit forecast, saying that the low first-quarter figure reflected seasonal patterns.
The U.S. economy is showing signs of recovering from its worst downturn since the Great Depression. Government data on Friday showed a 5.7 percent rise in fourth-quarter gross domestic product. [ID:nN28246399]
But many on Wall Street remain wary and this week have punished companies whose outlooks disappointed. For instance, shares of Caterpillar Inc (CAT.N) and Textron Inc (TXT.N) sold off earlier in the week after their full-year profit forecasts came in short of investors' expectations.
'BACK-END LOADED'
The company reiterated its 2010 profit forecast of $2.20 to $2.40 per share, including 80 cents of non-cash charges related to pension accounting.
"People are sort of scratching their heads and saying, 'This is all back-end loaded, so we have to step back until we get clarity,'" said Peter Klein, senior portfolio manager at Fifth Third Asset Management in Cleveland. "Management is being conservative, like Caterpillar was when it announced."
Honeywell shares fell 4 percent to $38.23 on the New York Stock Exchange.
Fourth-quarter sales declined across the company's aerospace and automation and control systems divisions, as airlines trimmed maintenance budgets and commercial construction activity stayed slow in the United States and Europe.
Earnings eased 1 percent to $698 million, or 91 cents per share, from a profit of $707 million, or 97 cents per share, a year earlier.
The results came in a penny ahead of analysts average forecast of 90 cents per share.
Revenue fell 7 percent to $8.07 billion.
Honeywell, which also makes automotive turbochargers and specialty chemicals, has forecast a rebound in demand this year, though pension accounting costs will weigh on its bottom line.
Prior to Friday's action, Honeywell shares were up about 15 percent over the past year, lagging the 26 percent rise of the Standard & Poor's capital goods industry index .GSPIC.
Honeywell's competitors include United Technologies Corp (UTX.N) in aerospace and building control systems, Goodrich Corp (GR.N) in aviation and DuPont Co (DD.N) in specialty materials.
(Editing by Derek Caney and Steve Orlofsky)