DISCLAIMER

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

Friday, April 30, 2010

Exxon Mobile Q1 profits up by 38%

Exxon Mobil has said its first quarter profits rose 38% from the same period a year earlier to $6.3 billion.

The profits excluded a $200m charge to pay for changes in US healthcare legislation. Amid high oil prices of around $85 a barrel, Exxon had been expected by analysts to report slightly stronger.

In 2009 Exxon recorded the largest profit of any publicly-listed company in the world, a whopping $40.6 billion, boosted by record high oil prices.

The Texas-based company said oil production increased around 4.5% in the first quarter compared with the same period a year ago.

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Republic Services, Inc. Reports Record First Quarter Results

Republic Services, Inc. today reported net income of $65.0 million, or $0.17 per diluted share, including a loss on the extinguishable of debt and other charges as further described in this release, for the three months ended March 31, 2010, versus $113.0 million, or $0.30 per diluted share, for the comparable period last year.

Republic's adjusted net income for the three months ended March 31, 2010 increased $16.9 million, or $0.03 per diluted share, to $157.6 million, or $0.41 per diluted share, from $140.7 million, or $0.38 per diluted share, for the three months ended March 31, 2009. Adjusted net income excludes a loss on the extinguishment of debt, costs to achieve synergies, restructuring charges and loss on disposition of assets and impairments, net for the three months ended March 31, 2010 and exclude costs to achieve synergies, restructuring charges and loss on disposition of assets and impairments, net for the three months ended March 31, 2009. A detail of these costs and charges is contained in the Reconciliation of Certain Non-GAAP Measures section of this document.

Earnings before interest, taxes, depreciation, depletion, amortization and accretion (EBITDA) for the three months ended March 31, 2010 was $604.5 million compared to $598.1 million for the comparable period in 2009. Excluding certain costs and charges recorded during 2010 and 2009 as previously described, adjusted EBITDA for the three months ended March 31, 2010 would have been $619.7 million or 31.7% as a percentage of revenue, compared to $647.1 million, or 31.4% as a percentage of revenue, for the comparable 2009 period.

Revenue for the three months ended March 31, 2010 was $1,957.7 million compared to $2,060.5 million for the same period in 2009. Core price for the three months ended March 31, 2010 increased 2.2%, commodity pricing increased 1.8% and fuel charges increased 0.3%. Core volume decreased by 7.0% during the period.

"During the quarter, Republic achieved the highest EBITDA margins in its history," said James E. O'Connor, Chairman and Chief Executive Officer of Republic Services. "Our performance is a direct result of the organization's continued focus on pricing, productivity improvements, customer service and synergy savings. Thus far, we have achieved approximately $180 million in annual run-rate synergy savings. I am especially pleased with the results of our recent $1.5 billion bond offering. Approximately $30 million of our annual run-rate synergies have been generated by refinancing debt at more favorable rates and we now expect total synergies to be in the range of $185 to $190 million."

Don Slager, President and Chief Operating Officer stated, "Our continued focus on safety resulted in a significant reduction in our risk cost during the quarter. Also, we have begun to see signs of increased economic activity, including indications of greater industrial activity, throughout the United States. Implementation of programs designed to lower costs, drive efficiency and increase productivity will allow us to generate higher returns as economic conditions improve."

Company Declares Quarterly Dividend

Republic also announced that its Board of Directors declared a regular quarterly dividend of $0.19 per share for shareholders of record on July 1, 2010. The dividend will be paid on July 15, 2010.

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Union Pacific promises to move train traffic faster

If you're one of those Glen Ellyn residents having trouble sleeping because of freight trains rumbling along the Union Pacific tracks, there may be some relief in sight.

Union Pacific officials appeared before the Village Board on April 26 to outline plans for improvements they say will speed train traffic along.

"We're doing something significant to eliminate this process," Union Pacific Public Affairs Director Tom Zapler said of the habit of trains stopping and idling at all hours of the night.

Speaking in front of the board and about 30 residents who live close to the tracks, Zapler and General Superintendent David Giandinoto laid out plans to make improvements to their operations that will give residents some relief.

Union Pacific runs from 50 to 60 freight trains per day through Glen Ellyn. The noise problem comes primarily from trains idling during the times they are stopped by congestion from Metra commuter trains, Union Pacific officials said.

While the problem is worst during morning and evening commutes, residents have complained that weekends are a problem as well.

Using locomotives on both ends of the train, a measure that increases fuel efficiency but also produces more noise, compounds the problem.

Union Pacific is partnering with Metra in series of initiatives that are designed to reduce downtime to enhance public safety, reduce delays by 50 percent and grade crossing downtime by 11 percent.

Two high-speed crossovers, one in Wheaton and the other in Lombard, will be installed at the railroad's expense, which will get a grant from the Illinois State Commerce Commission to defray costs.

With no other crossovers between Elmhurst and West Chicago, trains have no ability to switch from one track to another to avoid bottlenecks.

Village President Mark Pfefferman asked why the problem persisted on weekends when there was little in the way of Metra commuting.

"We tend to run more trains," Giandinoto said.

Trustee Carl Henninger pointed out that westbound trains were a problem, particularly in the area near Park Boulevard.

Zapler seemed surprised by that assertion.

Residents peppered the Union Pacific representatives with questions.

"We have seen a significant increase in train traffic," Gina Meyers said, noting that the noise problem was aggravated by the rear engines. She also asked if Union Pacific had plans to install a fourth track in Glen Ellyn.

"We have no plan whatsoever," Zapler said.

Anne Akamatsu noted that the railroad's own policies called for shutting down locomotives after 15 minutes of idling and asked, "How do you enforce them (the policy)?"

Riverview Bancorp Q4, fiscal 2010 losses grow

Riverview Bancorp Inc. reported a fourth-quarter net loss of $4.7 million, or a loss of 44 cents per diluted share, which compares with a loss of $720,000, or a loss of 7 cents a share a year earlier.

In the latest quarter, the Vancouver, Wash.-based banking company (NASDAQ: RVSB) recorded a $5.9 million provision for loan losses.

For fiscal 2010, Riverview reported a loss of $5.4 million, or a loss of 51 cents per share, compared with a loss of $2.7 million, or a loss of 25 cents a share a year earlier. For fiscal 2010, the company recorded a $15.9 million provision for loan losses, compared with $16.2 million recorded in 2009.

No major analysts cover the company.

“While our increased provision for loan losses put a damper on profitability, we are encouraged with the progress we have made as we move through this economic phase. Nonperforming assets declined during the quarter and remain manageable while our capital and liquidity levels remain strong,” said Pat Sheaffer, chairman and CEO, in a statement.

Bank of America Refinance Mortgage Rates – Home Loans Lower on April 30th for First Time Home Buyers

Bank of America refinance mortgage rates remain at low levels as we are seeing home loans around 4.85% for the 30 year fixed mortgage. As April comes to a close and the first time home buyer tax credit is set to expire many first time buyers are flooding the market hoping to get a very low mortgage rate with a great home price.

Bank of America and almost all mortgage lenders continue to enjoy the low interest rate environment. Just this week the Federal Reserve Bank announced that they are going to take the necessary steps to keep interest rates low for an extender period of time. This means that banks and lenders will be able to add new customers.

Customers are benefiting from this low interest rate environment as they are able to borrow money at much lower rates. This means that mortgage and car payments are likely much less. With this being the case, well qualified borrowers can save a significant amount of money that they can use to buy some of the finer things in life that they desire.

Comcast sees good quarterly results

Comcast Corp. its quarterly profits go up. The good thing is that it was able to beat the analyst expectations.

Comcast is the largest cable company. It has been able to do this, since the company added newer customers through its high-speed Internet services.

The company saw its earnings rise by 31 cents as against the expectations of 30 cents.

The Philadelphia-based company was able to add 1.02 million new customers.

Comcos has also rebranded itself and takenover the name if "Xfinity". With this, it wants to highlight that it gives very high speed Internet service.

Then there are services lime "OnDemand Online" which helps the customer watch videos on the Web.

The news reports also suggest that Comcast is trying hard to win over the customers of Verizon. Its main focus is Philadelphia and Washington.

Comcast saw its net income increase by 12 per cent to touch $866 million or 31 cents for every share. Last year, the figure was $772 million or 27 cents.

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Norfolk Southern earnings rise, revenue up

Norfolk Southern Corp. announced Tuesday that its first-quarter profit rose 45 percent from the same quarter a year ago, as the effects of the global recession eased.

Net income was $257 million, or 68 cents a share, for the quarter that ended March 31, up from $177 million, or 47 cents a share, in the first quarter of 2009. The earnings beat Wall Street projections by 2 cents a share. The average earnings-per-share estimate of analysts surveyed by Bloomberg News was 66 cents.

Norfolk Southern's operating revenues for the first quarter rose 15 percent to $2.2 billion, from $1.9 billion in the same quarter last year.

It was the first time in 15 months that the Norfolk-based railroad, the nation's fourth-largest, was able to announce a year-over-year increase in net income. That last occurred on Jan. 27, 2009, when it reported fourth-quarter 2008 profit jumped 13 percent.

For all four quarters of 2009, profit decreases ranged from 32 percent to 45 percent.

"Looking ahead, we are increasingly convinced that the domestic economic recovery is well under way, although the rate of growth is still somewhat unclear," Norfolk Southern CEO Wick Moorman told Wall Street analysts in a teleconference late Tuesday. "...We saw a big upsurge in business in March, and while some of that was clearly catch-up from a snowbound February, we are very encouraged that our April volumes have continued to be strong."

Quarterly revenues were up across all of the railroad's business segments:

--General merchandise rose to $1.2 billion, a 23 percent increase from $975 million in the same quarter a year ago.

--Coal climbed to $629 million from $602 million last year, a 4.5 percent increase.

--Intermodal, involving the shipment of truck trailers and shipping containers, was up 12 percent, rising to $410 million from $366 million in the same quarter last year.

Norfolk Southern released its earnings after the close of trading on the New York Stock Exchange. In trading Tuesday, its stock fell $1.44 a share, closing at $59.65.

On Thursday, Union Pacific, the nation's largest railroad, reported that its net income for the first quarter rose 43 percent, to $516 million from $362 million in the same quarter a year ago. Revenue grew 16 percent, to $3.96 billion.

On April 13, CSX Corp., the third-largest, reported that first-quarter net earnings jumped 24 percent compared with the same quarter a year ago, to $306 million from $246 million. Revenue grew 11 percent, to $2.49 billion.

Burlington Northern Santa Fe, the second-largest, was acquired by Warren Buffett's Berkshire Hathaway Inc. earlier this year and no longer releases its own earnings.

Berkshire Hathaway's first-quarter earnings are expected to be announced early next month.

Norfolk Southern operates roughly 21,000 route miles in 22 states and the District of Columbia and serves every major container port in the eastern United States, including Hampton Roads. Earlier Tuesday, the railroad announced the regular quarterly dividend of 34 cents per share on its common stock, payable on June 10, to stockholders of record on May 7.

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NRG Energy, Inc. to Present First Quarter 2010 Earnings on May 10

NRG Energy, Inc. to present the Company's first quarter 2010 financial results to the financial community in a conference call to be held Monday, May 10, at 9:00am eastern.

Investors, the news media and others may access the live webcast of the conference call and presentation materials by logging on to NRG's website at http://www.nrgenergy.com and clicking on "Investors." The webcast will be archived on the site for those unable to listen in real time.

About NRG

NRG Energy, Inc., a Fortune 500 and S&P 500 Index company, owns and operates one of the country's largest and most diverse power generation portfolios. Headquartered in Princeton, NJ, the Company's power plants provide more than 24,000 megawatts of generation capacity--enough to supply more than 20 million homes. NRG's retail business, Reliant Energy, serves more than 1.6 million residential, business, commercial and industrial customers in Texas. A past recipient of the energy industry's highest honors--Platts Industry Leadership and Energy Company of the Year awards, NRG is a member of the U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations calling for mandatory legislation to reduce greenhouse gas emissions. More information is available at www.nrgenergy.com.

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GlaxoSmithKline launches mini Nicorette lozenges

GlaxoSmithKline said Tuesday it is selling a fast-dissolving lozenge version of its Nicorette anti-smoking lozenges.

The British drugmaker said the new mini lozenge dissolves up to three times faster than similar products. It is designed to help relieve nicotine cravings and withdrawal symptoms, and comes in a small pocket-size vial. The company is launching the lozenges with a campaign that includes a Facebook contest.

GlaxoSmithKline reported about $529 million in nicotine replacement therapy revenue in 2009, including sales of Nicorette gum, Nicoderm CQ patches and Commit lozenges.

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GlaxoSmithKline Q1 results 'strong'

The pharmaceutical company, which rivals AstraZeneca, says it was encouraged by underlying revenue growth which was driven by emerging markets and consumer health growth.

The stock has marginally underperformed the rest of the FTSE 100 on concerns over US Healthcare reform, however rose swiftly by about 1.2 pct on the news.

It remains down since however since then.

The profits at the group beat market expectation at £7.36 bn whilst margins were affected as the Group prepares its business to absorb any future US Healthcare reform.

Overall, profits were £2.23 billion and 30.7p earnings per share - slightly under some expectations of £2.41 billion and 31.3p earnings per share which investment bank Nomura gave.

The earnings however did beat consensus.

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Becton, Dickinson posts $300 million in Q2 profits

Net income grew 14 percent to nearly $300 million at Becton, Dickinson & Co. (NYSE:BDX) during the company's fiscal second quarter that ended March 31.

The $1.24-a-share profit topped consensus analyst opinion by a penny, although revenues fell just short of the $1.85 billion Wall Street estimate for the quarter. BD officials said they now anticipate revenues for the fiscal year ending in September to rise 6 percent to around $7.59 billion — or about $70 million below the company's previous forecast due to currency fluctuations.

The BD executives also estimated that changes in Medicare Part D reimbursements enacted under federal legislation could trim reported earnings over the second half of fiscal 2010 by roughly $9.5 million, or about 4 cents per share.

Overall, the Franklin Lakes, N.J.-based medical device manufacturer said it generated $297.7 million in net income on $1.88 billion in revenues during the January-to-March fiscal period. That compares with a $261.2 million profit during the year-ago quarter on sales of $1.73 billion.

The company enjoyed strong performance within its BD Medical segment by diabetes care and pharmaceutical system products. It also saw gains with diagnostic kits used to detect cancer and sexually transmitted diseases, as well as growth in selected markets with labware used in cell analysis and discovery.

On the downside, a relatively mild flu season this past winter — including limited outbreaks of the Swine Flu virus — undercut sales of test kits, the company said.

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ConocoPhillips reports 1st quarter profit

Conoco-Phillips announced Thursday that “significantly improved” oil and natural gas prices helped more than double net profit from one year ago, despite stumbling production.

The Houston refiner reported a first quarter net income of $2.1 billion, or $1.40 per share, from $800 million, or 54 cents per share, in the same quarter of 2009, according to ConocoPhillips documents. Earnings available to the common shareholders were $2.2 billion, or $1.47 per share, following the company’s decision to end participation in the Shah Gas Field and Yanbu refinery projects in the Middle East.

Revenue reached $44.8 billion in the quarter, up from $30.7 billion in 2009’s first quarter, company documents state.

“Improving market conditions in the first quarter contributed to increased earnings,” ConocoPhillips Chairman and CEO Jim Mulva said in a conference call with investors and the media.

Production of oil and gas in the first quarter fell about 5 percent from one year ago, when the company produced about 1.93 million barrels of oil per day, according to company documents.

The decrease was due to normal field declines in the United Kingdom and North America, the effects of production-sharing agreements and unplanned down time in North America related to weather, company documents state. But increased production from China and Canadian oil sands helped offset the decrease.

ConocoPhillips annou-nced in October it hopes to sell $10 billion in assets to focus on oil and natural gas exploration efforts.

The company agreed this month to sell its stake in Syncrude, a Canadian oil sands project, for $4.65 billion. It also hopes to sell half of its 20 percent stake in Russian oil giant Lukoil, which produced earnings of $387 million in the first quarter for ConocoPhillips.

“The increase in dividends and the sale of the Syncrude interest are examples of steps we have taken to increase distributions and improve our balance sheet,” Mulva said. “As previously annou-nced, we decided to opt out of the Yanbu refinery project and have elected not to participate in the Shah gas field development in Abu Dhabi. Over the next couple of years we expect to see improved shareholder returns through disciplined capital investment, a strengthened financial position and growth in shareholder distributions.”

The company reported gains in all but two segments.

ConocoPhillips exploration and production arm recorded first-quarter earnings of $1.83 billion, an increase from the $700 million it posted in last year’s first quarter, according to company documents.

“The higher crude oil and natural gas liquids prices resulted in improv-ed earnings across our E&P portfolio,” Mulva said.

ConocoPhillips refining and marketing segment lost $4 million in the first quarter, compared with a profit of $205 million in the year-ago quarter, company documents state. Weakened market conditions hurt the refining and marketing segment, but light-heavy crude differentials widened and earnings benefited from lower costs and improved clean product yields.

The company’s chemicals arm, Chevron Phillips Chemical, earned $110 million in the first quarter, compared to $24 million in the same period one year ago, company documents state.

ConocoPhillips’ emerging business arm earned $6 million in the first quarter, according to company documents.

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Sunday, April 18, 2010

Home Depot settles California wage case for $25.5 million

Home Depot has agreed to pay $25.5 million to settle a lawsuit by California employees who complained they were not allowed to take lunch and rest breaks in violation of state law.

The Atlanta-based retail giant is the latest company to face a legal challenge based on California’s labor laws. Retailers Chico's, Abercrombie & Fitch, Costco and Guitar Center also have been sued by California employees. Sandy Springs-based UPS settled with its drivers who complained they didn't get breaks for $87 million. Wal-Mart is appealing a $172 million jury verdict in a similar case.

Stephen Holmes, a Home Depot spokesman, said the company settled because it was “the most expeditious and advantageous business decision – not because we believe there was any wrongdoing on our part.”

A Los Angeles Superior judge approved the Home Depot settlement in January. It came to light in the company's annual report to the Securities and Exchange Commission this month.

Plaintiffs' attorneys said they could not comment on details, but court documents show only California employees of Home Depot and Home Depot Expo from 2000 to 2009 are included in the settlement class. Home Depot has more than 200 stores in California, making it the retailer's largest U.S. market.

The class could number in the tens of thousands, and it appears most members would get no more than a few hundred dollars each, depending on hours worked.

Eight individual plaintiffs will get $25,000 and five will get $15,000 for their effort in bringing the cases.

The plaintiffs’ attorneys will receive $7.65 million in fees plus $751,712 in expenses, which is part of the $25.5 million settlement.

California requires that after five hours of work, an employee must be offered a 30-minute meal period, though it can be voluntarily waived, said Michael J. Walsh, of the Irvine, Calif., firm Walsh & Walsh. The lawyer, who was not involved in the Home Depot case but has followed it, called the California law one of the nation's strictest.

A full-time associate at Home Depot usually works an 8-hour day, according to Holmes, and would be offered an hour for lunch plus two fifteen minute breaks. The lunch hour would be unpaid, he said, though not the breaks. He said Home Depot reiterated its lunch and break policies to its California stores.

The settlement combined eight cases filed in California against Home Depot, the nation’s third largest retailer.

“One of the common themes I kept seeing, at least early in the decade,” said Walsh, “was a lot of companies that were headquartered outside of California tried to have national [labor] standards. But they came up against problems arising from California’s more worker-friendly laws.”

California law changed in the early 2000s, Walsh said, and some companies failed to make sure employees took their required lunch and rest breaks. If breaks aren’t taken, said Walsh, employees could be owed overtime pay per California law. He said some retailers were caught having employees clock out for lunch, but then asking them to work through their break if the store got busy.

In the UPS case, 23,600 California truck drivers claimed they were denied lunch breaks. The drivers were to receive anywhere from a few hundred dollars to $20,000 each from the 2007 settlement, according to news reports. UPS at the time said the dispute arose from a “rigid” new state law and that the company would comply with it.

Walsh said Home Depot, which has successfully defended other employee lawsuits in California, probably faced a toughter challenge this time.

“With that kind of track record, they are not likely to throw good money on a case where don’t see some exposure,” said Walsh. “This isn’t nuisance money.”

Eaton Vance Declares Quarterly Dividend

The Board of Directors of Eaton Vance Corp. today declared a quarterly dividend of $0.16 per share on its common stock. The dividend is payable May 10, 2010 to shareholders of record on April 30, 2010.

Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $173.1 billion in assets as of March 31, 2010, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors.

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FDA Chides Glaxo for Cancer-Drug Ad

The Food and Drug Administration on Friday said an advertisement for a GlaxoSmithKline PLC cancer drug and a Web site for a bladder treatment the company co-promotes were "false or misleading."

The agency also took issue with a consumer email from Novartis AG about its pain gel Voltaren.

Specifically, an advertisement that ran in a cancer medical journal involving Glaxo's drug Arzerra omitted "important information about the drug's safety and effectiveness," the FDA said in a letter to the company that was posted on the agency's Web site. Arzerra was approved in October to treat chronic lymphocytic leukemia after other therapies fail.

The agency said the ad, which ran in December, failed to reveal any risks associated with the product, including a serious brain infection, pneumonia, fevers and other blood disorders. The agency said a Web-site address provided in the ad that directed people to all the prescribing information for Arzerra doesn't mitigate the "misleading omission of material information from the ad."

Mary Anne Rhyne, a Glaxo spokeswoman, said the Arzerra ad referenced by the FDA won't be used again.

"We are working to resolve any remaining questions and ensure our materials reflect the direction provided by the FDA," she said.

In another letter released Friday, the FDA said a Web site for the drug Vesicare, which is co-promoted in the U.S. by GlaxoSmithKline, of Brentford, England, and Japan's Astellas Pharma Inc., presented unsubstantiated superiority claims and overstated the effectiveness of the product. Vesicare is approved to treat a condition known as overactive bladder.

The agency said information on the Web site suggested Vesicare was better than another drug, tolterodine, at improving incontinence, by citing a study comparing the products. The FDA said the information used to make a superiority claim involved a secondary study endpoint, rather than a main study goal, and doesn't provide enough evidence to suggest Vesicare is better than the other drug.

Both Astellas and GlaxoSmithKline said the Vesicare Web site has been changed to remove the content the FDA was concerned about.

The FDA said a so-called "adherence email" sent by Novartis involving Voltaren, a gel applied to the knees or hands for osteoarthritis pain, "minimizes risks associated with the use of Voltaren Gel, overstates the efficacy of Voltaren Gel and broadens the indication for Voltaren Gel."

The agency said the email "prominently presents efficacy claims" or effectiveness information "in large bolded font size and in colorful text and graphics surrounded by a significant amount of white space" while the "risk information is relegated to the bottom of the email...in single-spaced paragraph format that makes the information very difficult to read."

In a statement, a Novartis spokeswoman said the Swiss company was reviewing the letter it received from the FDA. "We plan to work with the FDA to address concerns," she said.

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Oil production forecast falls by a billion barrels

A curious thing happened on the way to Alaska's latest long-term oil production forecast.

WABCO Develops and Supplies Innovative Electronics and Air Suspension Technology for Luxury Automaker's Newest Model

WABCO Holdings Inc. (NYSE: WBC) , a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that the company has developed and will supply innovative electronic control technology and a high performance air supply module for original equipment manufacturer Rolls-Royce Motor Cars. WABCO's content will be equipped on the air suspension of the Rolls-Royce Ghost, the newest model in the Rolls-Royce range of luxury sedans.

Enabled by WABCO's and BMW's innovative engineering, the new Rolls-Royce Ghost air suspension is so sensitive that it can detect the movement of a single rear passenger from one side of the seat to the other, and it compensates accordingly. The air suspension system also includes a lift and kneel function, raising or lowering the Rolls-Royce Ghost by 25 millimeters. It assists passengers to enter or exit the vehicle and allows unmatched riding dynamics over uneven road surface.

WABCO's electronic control unit superbly regulates the new Rolls-Royce Ghost's high-tech air suspension, which is pressurized by WABCO's newest generation of high power compressors. The Rolls-Royce Ghost has a state-of-the-art chassis using four-corner air suspension enabled by WABCO's proprietary control algorithms that intelligently distribute air to four air springs. Significantly boosting performance of the new Rolls-Royce Ghost's air suspension, WABCO also enables its virtual silence due to enhanced air management and substantially improved acoustics of WABCO compressors.

"WABCO plays an important role in the success of the new Ghost model," said Mike Thompson, WABCO Vice President, Car Systems. "We are proud of our 23-year track record of innovative electronics and modules for air suspension in passenger cars and light commercial vehicles, and we have a passion for complete, cost-effective modules that satisfy the increasingly strong global demand from car makers and end-users alike for air suspension that significantly enhances ride quality."

In 1986, WABCO introduced its first electronically controlled air suspension (ECAS) system for passenger cars and light commercial vehicles. Today WABCO offers a range of electronic control units and air supply modules for air suspension systems that can be adapted to luxury, midsize and compact passenger cars, sports utility vehicles, and compact vans. Original equipment manufacturers increasingly seek additional functionalities such as speed sensitive adaptation of vehicle body height, which improves vehicle safety while reducing fuel consumption.

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Tuesday, April 13, 2010

Glenmark settles malaria drug patent dispute with GlaxoSmithKline news

Glenmark Generics Inc., USA, the US subsidiary of Glenmark Pharmaceuticals Limited (GPL), today announced that it has settled patent issues with GlaxoSmithKline (GSK) concerning atovaquone and proguanil hydrochloride tablets, the generic version of GSK's Malarone tablets use in the treatment of malaria.

Under the terms of the agreements, which are still subject to review by the US Federal Trade Commission and the Department of Justice, Glenmark will be able to market and distribute its atovaquone / proguanil 250mg and 100mg tablets under a royalty-bearing license from the London-based GSK in the 3rd quarter of calendar year 2011, or earlier under certain circumstances.

Glenmark said in a statement that it believes that it is entitled to 180 days of exclusivity with respect to its atovaquone / proguanil tablets as the first generic to file an Abbreviated New Drug Application (ANDA) for the drug.

ANDA is an application filed for a generic drug approval in the US for an existing licensed approved drug. GSK, the UK's biggest pharmaceutical company, currently markets its product as Malarone in the US, a drug prescribed for the prevention and treatment of malaria.

The IMS Health has reported that the total US sales of Malarone for the 12 month period ending December 2009 were approximately $56 million.

Glenmark Generics Limited (GGL) is a subsidiary of Glenmark Pharmaceuticals Limited (Glenmark) and aims to be a global integrated Generic and API leader.

GGL has an established presence in North America, a developing EU presence and Argentina and maintains marketing front-ends in these countries. It primarily sells its FDF products in the US and the European Union, as well as its oncology FDF products in South America.'

The Company supplies APIs to customers in approximately 63 countries, including the US, various countries in the EU, South America and India.

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Thursday, March 25, 2010

GlaxoSmithKline: The Unluckiest Pharma Company in the World

GlaxoSmithKline (GSK), the world’s second-largest drug maker, just can’t seem to catch a break.

It appears the Swiss pharma giant can do nothing right these days. First, there was Advair, the asthma drug that worsened the condition with prolonged use, then there was Avandia, the diabetes drug which has been shown to cause heart attacks. Now, there is GSK’s vaccine for the diarrhea-inducing virus Rotarix. The vaccine was found to contain traces of the supposedly innocuous pig disease called porcine circovirus.

Several governments have advised their doctors to avoid treating patients with the drug until the risk of the unintended ingredients can be determined. Switzerland is the most recent country to issue a cease and desist order. The company spokespeople insist this is only a temporary precaution, and that those who have already been inoculated with the drug have nothing to fear. Stay tuned for further mishaps from GlaxoSmithKline, we predict their heavy-hitter, Tums, will be shown to cause indigestion and heartburn.

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Pfizer and GlaxoSmithKline in deal to supply low-cost vaccines

Pfizer and GlaxoSmithKline will supply hundreds of millions of doses of their pneumonia vaccines to the world's poorest countries at heavily discounted prices under a novel agreement, reports the New York Times.


The deal was announced by the Gavi Alliance, a non-profit organisation, which estimated the program could save a total of 900,000 lives by 2015 and up to seven million lives by 2030.

Pneumococcal disease not only kills small children but also maims, leaving survivors with high rates of mental disability, seizures and deafness, says Sarah Boseley in the Guardian. She continues: "There's no doubt about the good that such a vaccine can do. But there will continue to be questions about the way the deal has been done, not least because it is the first of its kind and sets a pattern for the future".


Pfizer and GlaxoSmithKline will provide up to 300 million doses each of their vaccines over a 10-year period under the new agreement. The price for the first 20% of the supply will be $7 a dose. Then the price will drop to $3.50 a dose for the remainder. The vaccines would be paid for by donations raised by Gavi and by the governments of the countries that ordered the vaccines. In Western markets, the pneumococcal vaccines sell for $54 to $108 a dose.

"For the price of a Starbucks latte, developing countries are going to be able to buy a dose of a life-saving vaccine," said Orin Levine, director of the international vaccine access center at the Johns Hopkins Bloomberg School of Public Health, who has worked with GAVI.

The NYT reports that officials involved in the deal say that it historically took many years for a vaccine developed in the West to trickle down to developing countries. But the new program would make the first vaccines available to Africa this year.

"American kids and African kids will get this new vaccine in the same year," Dr. Levine of Johns Hopkins said. "That's just never happened before."


Conoco to halve its 20 percent stake in LUKOIL

ConocoPhillips said it plans to halve its 20 percent equity stake in Russian oil major LUKOIL as part of a program to boost returns and reduce debt.

Conoco, which has big exposure to a weak refining market and is challenged by exploration and production assets in North America that are tilted toward less-profitable natural gas, lags its oil major peers in returns.

ConocoPhillips released a bare-bones plan to revive its finances five months ago, which included the sale of $10 billion in assets.

At the time, investors and analysts speculated that Conoco might sell part of its stake in the Russian oil major and last week Reuters reported that Conoco had decided to do so.

It is "more appropriate" for the company to use proceeds from part of its LUKOIL interest to increase shareholder value, Jim Mulva, Conoco chief executive, told the company's annual meeting with analysts. But he also said it was important for the company to remain in Russia.

LUKOIL was the most likely buyer of the 10 percent stake, which is worth $4.9 billion, analysts at Raymond James said in a research note.

LUKOIL Vice President Leonid Fedun told analysts in London that his company would not rule out buying the shares being sold by Conoco, but added that the Kremlin could oppose such a move.

Conoco said potential dispositions in 2010 include its interests in the Syncrude oil sands project and the Rex pipeline, 10 percent of its Lower 48 and Western Canada portfolio, and its remaining gasoline retail operations.

About half of the assets will be sold in 2010, and the remainder in 2011, the company said.

The company also said it plans a $5 billion share repurchase program and will raise its dividend 10 percent.

The third-largest U.S. oil company said it expects per share production growth of 3 percent in 2010 and 2011 and 3 percent to 5 percent in subsequent years.

At 1600 GMT, the company's shares were up 7 cents, or 0.1 percent, at $52.58 on the New York Stock Exchange.

LUKOIL's Fedun said planned tax breaks in Russia meant its cash flows could rise and that the Kremlin could object if this money was spent buying back the shares.

"The political leadership of the country may see it negatively," he said.

He added that any purchase would depend on LUKOIL's other financial obligations and said he himself would not buy the shares. Fedun already owns 9 percent of LUKOIL.

LUKOIL, Russia's No. 2 oil producer missed forecasts when posting a 23 percent drop in 2009 profit on Wednesday.

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Buffett's Berkshire Hathaway continues to dump Moody's stock

Warren Buffett continues to show that he's no longer in the mood to be a Moody's investor.

Buffett's Berkshire Hathaway reported additional sales of the credit rating firm in an SEC filing Monday. Berkshire has reported such sales at least a half-dozen times in the past year and seems on its way to liquidating the entire stake.

The latest filing reported that Berkshire sold 815,905 shares last week. That raised about $24 million for Berkshire, mere pocket change.

Berkshire still owned about 31 million shares of Moody's Corp. as of the filing.

Berkshire is required to report the transactions within two days of their occurrence because it owns more than 10 percent of the company's stock. Once that ownership level falls below 10 percent, which it seems nearly certain to do, Berkshire will no longer have to update its sales each time they're made.

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Sunday, March 14, 2010

GlaxoSmithKline makes vaccine executive changes

British pharmaceutical company GlaxoSmithKline PLC on Friday announced two changes in the executive lineup of its vaccines business.

Jean Stephenne was appointed chairman of GSK Biologicals with immediate effect. He will also continue in his current role as president of GSK Biologicals.

Over the next two years, Glaxo said, operational responsibility will be taken over by Dr. Moncef Slaoui, who will also continue as chairman for research & development.

"Jean has built a world-leading vaccines business and as chairman will continue to be instrumental in driving forward our public health agenda," said Chief Executive Andrew Witty.

"Moncef has more than 17 years experience working in the vaccines area and has played a critical role in developing the strong pipeline we have today. These changes will ensure continued strong focus on delivery and development of this pipeline."

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Growing transportation demand suggests global freight recession over: United Parcel Service

United Parcel Service (NYSE:UPS) and logistics firm Expeditors International (Nasdaq:EXPD) have indicated that strong air freight growth last fall continued through at least January.

A recent surge in demand for rail, truck and air transportation suggests the global freight recession may have ended, industry analysts said Friday.

After bottoming out in the second quarter of 2009, demand has materially strengthened over the last four weeks, says a report from UBS analysts Rick Paterson and Fadi Chamoun.

The International Air Transportation Association recently revised its outlook, saying cargo volumes should increase by 12 per cent in 2010. That's up from seven per cent in earlier forecasts.

The Port of Long Beach says its container traffic grew by 30 per cent in February from last year.

The American Trucking Association said its seasonally adjusted truck tonnage index was up 1.9 per cent in January.

Railways in Canada and the United States saw their non-coal volumes increase over the last week from a year ago.

Total carloads grew by 13 per cent to 739,292, the highest level since November 2008. They are also up 3.5 percentage points from the previous week.

Carloads were down 9.8 per cent from 2008 but things are at least moving in the right direction, added Walter Spracklin of RBC Capital Markets.

Canadian railways were ahead of their U.S. peers, with carloads up by 20.5 per cent compared to an 11.4 per cent increase south of the border, he said in a report.

Canadian carloads improved 9.5 percentage points from the previous week, while U.S. carloads were up 2.2 percentage points.

Canadian National Railway's (TSX:CNR) carloads grew the most, up 23.8 per cent over the week, compared to a group average increase of 13 per cent.

So far this year, its carloads are up 13.4 per cent.

At Canadian Pacific Railway (TSX:CP), carloads increased by 5.3 per cent during the week and five per cent for the year to date. Intermodal traffic grew by 19.2 per cent for the week but is down 0.9 per cent year to date.

Overall Canadian volumes were driven by an 86-plus per cent surge of gravel and metallic ores. Chemicals were up 34.3 per cent and automobiles 42.5 per cent.

Grains decreased by 5.7 per cent in the week. Pulp and paper products were down marginally but lumber was up 13.6 per cent.

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Thursday, March 11, 2010

GE Capital, Navistar Partner On Truck Loans

General Electric Co.'s (GE) financing unit will provide customer loans for commercial truck maker Navistar International Corp. (NAV), giving Navistar the ability to finance larger truck fleet purchases.

The partnership between the two companies, which will be called Navistar Capital, will effectively transfer Navistar's retail-level lending operations from its finance subsidiary to General Electric Capital Corp. The new venture will commence in about 90 days, the companies said Tuesday.

About 60 Navistar Financial employees who support its retail lending business will join GE Capital to manage lending under the new venture, the companies said. Navistar Financial, meanwhile, will continue to provide financing for truck purchases by the company's independent dealers.

The two companies declined to divulge how much money GE Capital is committing to Navistar Capital or the details about profit-sharing between the companies. The agreement announced Tuesday will run for three years, followed by one-year automatic renewals that will run indefinitely.

Navistar Financial has been providing customer loans totaling $1 billion to $2 billion a year. The company's traditional focus has been on small and medium-sized trucking companies that have limited credit options elsewhere.

But Navistar has been under pressure in the past year to expand its lending volume as large trucking companies look to the company for purchase financing as they replace their truck fleets. Tighter credit standards have put bank loans off limits for many of these companies, prolonging a sales slump in the commercial truck industry that began in 2007.

Navistar said the ability to provide in-house financing for large truck deals will make the Illinois company more competitive with rivals such as Daimler AG's (DAI, DAI.XE) Freightliner truck line and Paccar Inc. (PCAR).

GE Capital has provided financing for Navistar's customers in Canada for the past 25 years. The Connecticut company also has similar partnerships with other equipment makers, including for the Bobcat-brand of compact construction equipment. GE Credit operates about 40 commercial lending programs across a variety of industries.

Navistar noted that the infusion of capital from GE will allow Navistar to expand its financing options, particularly a lease-to-own program for trucks buyers. Navistar Capital also is expected to strengthen Navistar's balance sheet by lessening Navistar Financial's reliance on borrowing to generate capital for loans.

"The deal is a mild positive for Navistar," said Gregg Lemos Stein, a credit analyst with Standard & Poor's, in a written statement. "We believe the alliance will reduce the risk of heavy funding requirements at Navistar Financial Corp."

Navistar, which has a below-investment-grade credit rating, has been an active issuer in the public market for asset-backed securities. Navistar Financial in January was in the market with a $250 million equipment bond for dealer financing. The security is eligible for financing under the Federal Reserve's Term Asset-Backed Securities Loan Facility, which is intended to rejuvenate the consumer loan-backed market.

Bill McMenamin, vice president of Navistar Financial, predicted the company will lessen its exposure to the asset-backed market once Navistar Capital takes over customer lending.

"Navistar Financial will become a smaller, but more conservatively financed company," he said.

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Thursday, February 18, 2010

Walmart Sales Fell 2% in the Fourth Quarter

Wal-Mart Stores Inc. (WMT ), the world's largest retailer, reported that sales fell 2% in the fourth quarter compared to the same period last year. More bad news is on the way. Walmart also forecast a "challenging" first quarter.

All of the big guns at Walmart offered their reasons for the decline. Deflation in the price of groceries, which account for 40% of sales, was one factor. Price discounts in electronics and flat screen TVs were also cited.

Tom Schoewe, chief financial officer, said customer traffic had fallen and, among other things, cited the remodeling of Walmart stores under Project Impact.

The retailer reported adjusted earnings of $4.5 billion or $1.17 per diluted share. Full-year sales increased 4.6% to $112 billion. International sales surpassed $100 billion.

Mike Duke, chief executive, said sales had exceed expectations for the fourth quarter. It ended the year with inventory down 7.8%. He expects the first quarter to be "challenging."

For the current fiscal year, the company expects diluted earnings per share to come in at $3.90 to $4.00. First quarter earnings per share are expected to be between $0.81 to $0.85.

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GE and Hitachi want to use nuclear waste as a fuel

One of the world's biggest providers of nuclear reactors, GE Hitachi Nuclear Energy (a joint venture of General Electric and Hitachi), wants to reprocess nuclear waste for use as a fuel in advanced nuclear power plants, instead of burying it in waste repositories such as that proposed at Nevada's Yucca Mountain.

Conventional nuclear power plants in the US only harness around five percent of the energy of nuclear fuels. The reprocessing technique would separate nuclear waste into different types of fuels, some of which can be used in conventional nuclear power plants, and some of which can only be used in advanced fast neutron reactors. Reprocessing of nuclear waste to extract more useable fuel has been criticized in the US because it produces pure plutonium, which could be stolen and used to make nuclear weapons. To get around this difficulty, GE Hitachi’s proposed method produces a fuel that is much harder to steal.

The GE Hitachi process separates wastes from conventional nuclear power plants into three streams, by applying voltage to a molten salt. The first waste material consists of the products of fission, which cannot be further used as fuel and will need to be stored, but the storage time required is reduced from tens of thousands of years to a few hundred years (although a small fraction of the material will still need to be stored for over 10,000 years). The second material is uranium that does not have enough fissile material to be used in the light water uranium reactors in the US, which need enriched uranium, but it can be used by deuterium (heavy water) uranium reactors, which are used in Canada.

The final group of waste products is a mixture of transuranic elements including plutonium and neptunium. The plutonium is not separated from the other elements, and the mixture releases 1,000 times more heat and 10,000 times more neutrons than pure plutonium. This makes it much harder to steal, and therefore less of a security risk, and it is also much easier to detect. The mixture of transuranic elements can be used in nuclear reactors that use molten sodium as the coolant rather than water, and this type is used in Japan and a few other countries. GE Hitachi has designed a reactor known as the PRISM reactor that would be able to use the mixed fuel, but sodium cooled reactors have not been approved for use in the US.

A GE Hitachi spokesman said previous US administrations had little interest in re-using spent nuclear fuel, but the Obama administration is increasing support for nuclear power and looking at possibilities such as reprocessing. If adopted, the proposal would significantly decrease the amount of dangerous nuclear waste that needs to be stored.

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GE Energy, Partner Seek Smarter Way To Charge Electric Cars

GE Energy has entered into a partnership with electric vehicle plug developer Juice Technologies LLC to integrate smart-metering technology into charging devices. GE Energy, a unit of General Electric Co. (GE), has been developing products and services to help the integration of advanced energy technologies into the transmission system in a way that allows better use of power resources. The partnership with Juice is its first move into electric car charging technology.

With advanced metering technology incorporated into charging devices developed by Juice, GE hopes vehicle owners will be able to manage the charging, the same way smart meters are being deployed to help people monitor electricity use. Clemente also said utilities may eventually develop a rate system whereby electric vehicle owners would have an incentive to charge up their cars during off-peak hours, and the smart charging stations would help them control that.

GE said it will start offering the chargers with Juice's technology in the second half of this year.

GE is in talks with original equipment manufacturers in the auto industry to discuss the adoption of its meters, which it believes will be used both at homes as well as in public charging infrastructure.

Some electric vehicle developers are offering charging kits to be installed in their customers' homes. For instance, ClipperCreek Inc. delivered chargers for Tesla Motors Inc.'s Roadster and BMW AG's (BMW.XE) Mini E, and Nissan USA has a deal with AeroVironment Inc. (AVAV) to use its chargers for the fully electric Nissan Leaf.

Juice Technologies, which worked with utilities and the Ohio State University's Center for Automotive Research to develop its technology, has also developed a kit for homeowners to manage their energy consumption that is marketed under the brand PlugSmart.

Juice is backed by private individual investors as well as "a significant equity investment" by a large consumer electronics company, with which Juice is working to market its home energy management technology, said Aaron Martlage

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Monday, February 15, 2010

ConocoPhillips President Dies in Avalanche

State troopers are watching the weather for a chance to return to the scene of an avalanche that killed Conoco Phillips Alaska President Jim Bowles and left another Conoco worker missing Saturday on the Kenai Peninsula.

Low clouds, high winds and heavy rain prevented searchers from looking for the body of 40-year-old Alan Gage Sunday, according to troopers. Friends say the father of two disappeared in a cloud of snow when a slide walloped their snowmachine group in the Grandview area wilderness.

He is presumed dead.

Other snowmachiners on the trip said it took as little as 15 minutes to generally locate Bowles -- head of the largest oil and gas producer in Alaska -- but 90 minutes to shovel him out of the snow. Members of the group said they then tried for up to an hour and a half to revive him.

"We dug and probed and CPR'd until it was dark," said Ed Gohr, a former Conoco employee who is part-owner of an equipment rental company and rode with Bowles and Gage Saturday.

Gohr and another snowmachiner, CH2M Hill Vice President Bob Lacher, described the avalanche moment-by-moment Sunday. Here's what happened, they said:

Bowles and another rider were at the front of a pack of about 10 snowmachiners riding in groups along a relatively flat bench. They traveled beside a tall mountain -- it looked to be 3,000 to 4,000 feet -- loaded with snow.

Gage was following close behind the two leaders. At some point, Bowles' snowmachine became stuck, Lacher said, and another rider ran over to help.

"About that time, I just happened to be looking up as I was traveling up the bench and saw the first of about four or five pieces of the mountain break loose," Lacher said.

The avalanche began about 500 to 700 yards above the snowmachiners, he said. The first wave of snow hammered the rider who had been trying to help Bowles, slamming him into the throttle. His machine accelerated to safety.

But Bowles was caught -- pinned beneath 10 feet of snow, his friends said.

GAGE DISAPPEARS

Lacher managed to turn his machine around and speed back the way he'd come.

"Just as I did, I saw Al (Gage) up and to the left get hit with the main force of the avalanche and disappear in a cloud," he said.

Lacher waved and pointed, warning the nearest snowmachiners to spin around and accelerate out from under the avalanche, he said

After the avalanche, other snowmachiners in the area joined in the search. They could see one of the skis from Gage's snowmachine poking through the snow, but no sign of the rider, the men said.

"Because Jim had a beacon we were able to find him, I'd say in 15 or 20 minutes, we knew what part of the mountain he was buried under," Lacher said.

The slide came maybe 100 yards from an area where the group had been riding for 25 minutes, Gohr said.

ROLE OF BEACONS

The avalanche was reported to troopers at about 12:30 p.m. along the west ridge of Grandview, about a half mile from Mile 43 of the Alaska Railroad tracks between Girdwood and Seward.

Initial trooper reports said Bowles was buried for about 45 minutes before friends located him, and announced dead after rescuers tried to revive him for at least 30 minutes.

"One of the party members rode down about a mile to the railroad tracks and contacted a railroad worker who then contacted us," said Trooper Howie Peterson.

The section of the avalanche that caught the snowmachiners was about 150 yards high by 150 yards wide, Peterson said. "It was a heavy, slow moving slide."

Troopers said late Saturday night that Bowles and Gage weren't wearing beacons. But Bowles was apparently found with the device, troopers spokeswoman Megan Peters said Sunday.

Troopers still believe Gage was not carrying a beacon. Lacher and Gohr, his fellow snowmachiners, agree.

Gage's wife, Dalon Gage, says that's hard to imagine. Her husband her "always played it safe," she said.

"This was not a go goof-off, play around, screw-off group of guys," Dalon Gage said. "They were very safe, well-versed, trained."

BAD WEATHER

Alan Gage grew up in Alaska and is an avid outdoorsman who often hunted and fished with other members of Saturday's group, she said.

He worked for the oil field services company Veco for eight or nine years before joining Conoco about five years ago, where he worked as a project control lead for the company's capital projects division, Dalon Gage said. Conoco runs the big Kuparuk River and Alpine oil fields on the North Slope.

Along with Bowles, most of the snowmachine group were friends who work in the energy business or supporting industries and get together for outdoor trips, the snowmachiners said.

Lacher and Gohr worked with Gage at Veco at one time, they said. Another of the snowmachiners along on the trip, Eric Spitzer, is a state trooper who led the efforts to revive Bowles, Lacher said.

The search for Gage was called off as darkness fell Saturday night, while poor weather prevented Troopers from looking again on Sunday.

There was a low cloud ceiling, high winds and heavy rain in the region, Peterson said. "Everything is ready to go as far as the search. It's just weather permitting."

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