>>> Johnson Controls reports EPS in-line, beats on revs; guides Q2 EPS in-line;

--> JCI Flat Pre-Market - very low volume

Johnson Controls reports EPS in-line, beats on revs; guides Q2 EPS in-line; reaffirms FY14 EPS guidance 

Reports Q1 (Dec) earnings of $0.69 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.69; revenues rose 4.7% year/year to $10.91 bln vs the $10.76 bln consensus.
Automotive Experience revenues in the fiscal first quarter of 2014 were $5.8 billion, up 10% compared to the 2013 quarter, reflecting higher automotive production in all geographic regions. Automotive industry production in the quarter increased 5% in North America, 2% in Europe and 14% in China. Seating and Interiors sales increased at a double digit rate, while Electronics sales were up 7%. Revenues in China, which are primarily related to Seating and generated through non-consolidated joint ventures, increased 33% to $1.9 billion.
Automotive Experience segment income was $232 million, more than double the $101 million reported in the first quarter of 2013. The increase was primarily led by improvements in the company's Seating business, with segment income of $176 million in the current quarter, compared with $85 million last year. The Automotive Experience improvement was a result of the higher global production levels, benefits from cost reduction initiatives and improved operational performance in the company's metals and mechanisms business.
Co issues in-line guidance for Q2, sees EPS of $0.64-0.66 vs. $0.66 Capital IQ Consensus Estimate.

Co reaffirms guidance for FY14, sees EPS of $3.15-3.30 vs. $3.27 Capital IQ Consensus Estimate; FCF of $1.6 billion and segment margin improvements in all three of its businesses for the full 2014 fiscal year.

"The significant improvement in profitability resulted from our focus on execution and cost discipline. We also benefitted from the higher levels of global automotive production," said Alex Molinaroli, Johnson Controls chairman and chief executive officer. "While Building Efficiency revenues were lower than last year, there are early indications of improving global commercial buildings markets, which should positively impact the business later in the year. The results in the quarter are consistent with the expectations we disclosed at our analyst day in December."

>>> Baxter beats by $0.01, beats on revs; guides Q1 EPS below consensus; guides

--> +1.8% Pre-Mkt - very low volume

Baxter beats by $0.01, beats on revs; guides Q1 EPS below consensus; guides FY14 EPS above consensus; guides for Q1 and FY14 revs excluding F/X impacts 

Reports Q4 (Dec) earnings of $1.26 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.25; revenues rose 16.4% year/year to $4.37 bln vs the $4.25 bln consensus.
Co issues guidance for Q1, sees EPS of $1.06-1.09, excluding non-recurring items, vs. $1.14 Capital IQ Consensus Estimate; sees Q1 revs of +13-14% ex F/X calc to ~$3.90-3.93 bln, may not be comparable to $3.98 bln Capital IQ Consensus Estimate.
Co issues guidance for FY14, sees EPS of $5.05-5.25, excluding non-recurring items, vs. $5.01 Capital IQ Consensus Estimate; sees FY14 revs of +9-10% ex F/X to ~$16.63-16.78 bn, may not be comparable to $16.69 bln Capital IQ Consensus Estimate.
Worldwide sales totaled $4.4 billion and increased 16 percent from prior-year levels. Excluding the contribution of Gambro revenues in the quarter, Baxter's sales increased 5 percent to $4.0 billion (or 6 percent excluding the impact of foreign currency). Sales within the United States totaled $1.8 billion and advanced 13 percent, and international sales of $2.6 billion increased 19 percent (or 20 percent excluding the impact of foreign currency).

>>> US Early premarket gappers

Early premarket gappers

Gapping up: CRMB +17.5%, NFLX +16.3%, LOGI +15%, FFIV +11.5%, FUEL +10.2%, DEG +8.8%, HXM +6.9%, ARIA +6.6%, PSTI +5.9%, FRO +5.6%, TS +5.1%, PLCM +4.1%, EBAY +4%, VLO +4%, CIE +3.9%, KERX +3.8%, CCI +3.7%, FBC +3.5%, IRE +2.8%, JCP +2.2%, DB +2%, ACOR +1.9%, FIO +1.9%, SLV +1.7%, TXMD +1.6%, ACAT +1.4%, GDX +1.3%, ALV +1.2%,AU +1.2%, ABX +1.1%, SLW +1.1%, RVBD +0.9%, NAV +0.8%, JAZZ +0.8%

Gapping down: ZHNE -17.1%, PSO -7.2%, BRSS -5.3%, EBS -5.2%, XLRN -4.8%, PETX -4%, AEO -3.6%, TKC -3.3%, HPP -3.2%, DSCO -2.8%, NOK -2.6%, CLNY -2.5%, WDC -2%, EGHT -1.9%, EXEL -1.7%, TER -1.4%, URI -1.3%

>>> (RTS) Boeing hiring in South Carolina as it raises 787 production

Boeing hiring in South Carolina as it raises 787 production

Link to article {http://reut.rs/1fewpca}

    Jan 22 (Reuters) - Boeing Co is hiring contract workers at its factory in South Carolina as it boosts output of the 787 Dreamliner and seeks to avoid manufacturing issues linked to the production increase, according to people familiar with the situation.
    Boeing confirmed on Wednesday that it is hiring at the facility but declined to provide details.
    The company was responding to a Wall Street Journal report that said the aircraft maker is adding about 300 contract mechanics and inspectors at its North Charleston facility.
    The Journal said the contractors were needed in part to avoid production issues with 787 body sections made at the factory that could slow overall output of the high-tech plane.
    Boeing said the hiring was part of its effort to increase production, a move that has cheered investors and helped send the company's stock price sharply higher.
    "The 787 production system is ramping up to historically high rates for a wide-body program and introducing a second family member, the 787-9," Boeing said in a statement.
    "It's not unexpected that this would cause a temporary surge in work."
    Boeing assembles the carbon-fiber composite 787 at lines in North Charleston, South Carolina, and Everett, Washington. The South Carolina facility, which is not unionized, also makes body sections for the lines. Workers in Everett, who are represented, have previously raised quality concerns as the production rate rose.
    Boeing said its 787 program has been operating at a rate of 10 jets per month, double the production rate in 2013.
    The company said it has "a solid plan" to continue improving its production.
    "While we have some challenges to address, we see no risk to the program's ability to meet its commitments," Boeing said.
    Two people familiar with the increased hiring said production increase had prompted some quality-control concerns. One of these people, who is familiar with a recently hired inspector, said Boeing was using multiple staffing agencies to find workers and needs people "badly and quickly."
    Boeing is "trying to produce the planes more quickly so there's more errors," said the person, who asked not to be named out of concern that speaking publicly could affect employment.
    Boeing is working through has a record order book of more than 5,000 planes, including 916 787s.
    Both sources said some workers are moving from defense operations to work on the 787.
    The South Carolina plant is due to reach a production rate of three jets a month by mid-year, Boeing has said.

    (DigiTimes) Foxconn plans to take over IC design house Socle

    Foxconn plans to take over IC design house Socle

    An investment arm of Foxconn Electronics reportedly plans to acquire IC design house Socle Technology, in which Globalfoundries has a portion of shares, according to industry sources.
    It has been rumored that Socle has been looking for new investors as the IC company needs more capital for venturing into the development of 20nm, 16nm and 14nm process nodes.
    Additionally, Socle's cooperation with Globalfoundries has not been as smooth as expected due to frequent personnel reshuffles at the US-based foundry house, the sources indicated.
    The sources also noted that Socle has completed development of IP for 28nm processes, but it has been prohibited from using other foundry houses to enable production of 28nm chips using its IP, affecting its business development.
    Foxconn aims to build up its own design and technology capability for the production of application processors used in mobile devices, commented the sources.

    (BFW) Property Valuation a Reason to Sell U.K. Grocers, JPMorgan Says

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    Property Valuation a Reason to Sell U.K. Grocers, JPMorgan Says 2014-01-23 10:41:23.820 GMT

    By Heather Burke Jan. 23 (Bloomberg) -- Property valuation is a reason to sell U.K. food retailers, not buy, JPMorgan says; reiterates underweight on Tesco, Sainsbury, Morrison. * Elliott has suggested Morrison list its property co., keep 75% stake; may make similar proposals to other cos. * Supermarket property prices may drop “significantly” on: * Sharp drop expected in sector earnings * Retail property development pipeline at all time high * No shortage of planning permits * Further drop in out-of-town grocery store values as online sales growth continues * Property values given by grocers (Tesco GBP20b, Sainsbury GBP11.8b, Morrison GBP9b) are unrealistic * Loblaw’s REIT is different; Loblaw performing well, its competitors generally lease stores while Morrison’s own; Loblaw has lagged Canadian index in past 6 mos.

    For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

    To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net

    To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

    (BN) *LENOVO TO BUY IBM X86 SERVER BUSINESS FOR ABOUT US$2.3B

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    BN 01/23 08:43 *LENOVO TO BUY IBM X86 SERVER BUSINESS FOR ABOUT US$2.3B BN 01/23 08:43 *LENOVO BUY PRICE IS ABOUT US$2.3B BN 01/23 08:43 *LENOVO PLANS TO BUY IBM'S X86 SERVER BUSINESS

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    Lenovo Plans to Acquire IBM's x86 Server Business 2014-01-23 08:43:00.109 GMT

    Lenovo Plans to Acquire IBM's x86 Server Business

    Business Wire

    RESEARCH TRIANGLE PARK, N.C. & ARMONK, N.Y. -- January 23, 2014

    Lenovo (HKSE: 992) (ADR: LNVGY) and IBM (NYSE: IBM) have entered into a definitive agreement in which Lenovo plans to acquire IBM’s x86 server business. This includes System x, BladeCenter and Flex System blade servers and switches, x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking and maintenance operations. The purchase price is approximately US$2.3 billion, approximately two billion of which will be paid in cash and the balance in Lenovo stock.

    IBM will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.

    The agreement builds upon a longstanding collaboration that began in 2005 when Lenovo acquired IBM’s PC business, which included the ThinkPad line of PCs. In the period since the companies have continued to collaborate in many areas.

    IBM will continue to develop and evolve its Windows and Linux software portfolio for the x86 platform. IBM is a leading developer of software products for x86 servers with thousands of products and tens of thousands of software developer and services professionals who build software for x86 systems.

    Lenovo and IBM plan to enter into a strategic relationship which will include a global OEM and reseller agreement for sales of IBM’s industry-leading entry and midrange Storwize disk storage systems, tape storage systems, General Parallel File System software, SmartCloud Entry offering, and elements of IBM’s system software portfolio, including Systems Director and Platform Computing solutions.

    Following the closing of the transaction, Lenovo will assume related customer service and maintenance operations. IBM will continue to provide maintenance delivery on Lenovo’s behalf for an extended period of time, so customers should see little change in their maintenance support.

    Approximately 7,500 IBM employees around the world, including those based at major locations such as Raleigh, Shanghai, Shenzhen and Taipei, are expected to be offered employment by Lenovo.

    This agreement follows recent announcements by IBM that it will invest more than $1 billion in the new IBM Watson Group, and $1.2 billion to expand its global cloud computing footprint to 40 data centers worldwide in 15 countries across five continents.

    “This acquisition demonstrates our willingness to invest in businesses that can help fuel profitable growth and extend our PC Plus strategy,” said Yang Yuanqing, chairman and CEO, Lenovo. “With the right strategy, great execution, continued innovation and a clear commitment to the x86 industry, we are confident that we can grow this business successfully for the long-term, just as we have done with our worldwide PC business.”

    “This divestiture allows IBM to focus on system and software innovations that bring new kinds of value to strategic areas of our business, such as cognitive computing, Big Data and cloud,” said Steve Mills, Senior Vice President and Group Executive, IBM Software and Systems. “IBM has a proven record of innovation and transformation, which has enabled us to create solutions that are highly valued by our clients.”

    The transaction is subject to the satisfaction of regulatory requirements, customary closing conditions and any other needed approvals. Subsequent local closings will occur subject to similar conditions, agreements and the information and consultation process in applicable countries.

    While the transaction is being completed, both companies expect no change in their independent, existing server operations, including customer service and product availability.

    About Lenovo

    Lenovo (HKSE: 992) (ADR: LNVGY) is a US$34 billion personal technology company – the largest PC maker worldwide and an emerging PC Plus leader – serving customers in more than 160 countries. Dedicated to exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.

    About IBM

    For more information about IBM, visit http://www.smartercomputingblog.com/

    Contact:

    IBM Media Relations Jeff Cross, +1 203-216-1531 jrcross@us.ibm.com or Sean Tetpon, +1 678-630-6705 stetpon@us.ibm.com or Lenovo Ray Gorman, +1 919-257-6325 rgorman@lenovo.com or Jeff Shafer, +1 919-793-6846 jsshafer@lenovo.com

    -0- Jan/23/2014 08:43 GMT