Exports Probably Kept U.S. Economy Expanding in Fourth Quarter

Feb. 28 (Bloomberg) -- The U.S. economy in the fourth quarter slowed less than previously projected as exports grew, economists said before revised government figures today.

Growth advanced at an annual pace of 0.8 percent from October through December compared with the 0.6 percent estimated last month, according to the median forecast of 74 economists surveyed by Bloomberg News. The rate of expansion would still be the second weakest in five years.

Payrolls and consumer confidence have dropped and the housing slump has intensified so far in 2008, raising the odds that the world's biggest economy will tip into a recession. Federal Reserve Chairman Ben S. Bernanke yesterday signaled he's ready to reduce interest rates again to sustain the expansion.

Last quarter ``leaves us without much momentum,'' said Ryan Reed, an economist at National City Corp. in Cleveland. ``Consumer spending was lackluster and it looks like it's deteriorating further.'

The Commerce Department report on gross domestic product is due at 8:30 a.m. in Washington. Economists' forecasts ranged from gains of 0.5 percent to 1.3 percent.

A separate report today is forecast to show the number of Americans filing first-time claims for jobless benefits rose to 350,000 last week, from 349,000 a week earlier, according to the survey median.

The trade gap narrowed in December more than the government estimated in its advance GDP report last month. For all of last year, the deficit shrank for the first time since 2001, helped by record exports.

Drop in Demand

Today's revisions may show the rest of the economy would have contracted without the boost from trade, according to a forecast by economists at Credit Suisse Holdings in New York. Reductions to prior estimates for construction and for consumer, business and government spending signal a 0.2 percent drop in demand excluding trade, they said.

``One could argue that the domestic recession began'' last quarter, Neal Soss, chief economist at Credit Suisse, said in a Feb. 21 note to clients. ``But there would be no debating that the rest of the world kept U.S. GDP growth above water at the end of last year.''

Consumer confidence fell this month to the lowest level since the start of the Iraq war as the job market deteriorated, according to a report this week from the Conference Board, a New York-based research group. Americans' expectations for the next six months dropped to the lowest level since January 1991.

Spending Slows

The decline may threaten consumer spending, which accounts for more than two-thirds of the economy, and further hurt growth. A report tomorrow is projected to show that spending in January rose just 0.2 percent, matching the previous month's gain as the smallest in six months.

Lowe's Cos., the world's second-largest home-improvement retailer, said this week that fourth-quarter profit fell and several ``challenging'' quarters remain as the worst housing slump in more than 25 years deepened.

``It will still be a tough housing market through the balance of 2008,'' Lowe's Chief Executive Officer Robert Niblock said in a Feb. 25 interview. ``It'll probably be into 2009 before you're seeing a recovery.''

The Fed ``will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks,'' Bernanke said in testimony to the House Financial Services Committee in Washington. Policy makers are scheduled to next vote on interest rates on March 18.

The U.S. central bank and the government are trying to head off a recession. President George W. Bush, on Feb. 13, signed a $168 billion stimulus package, including tax rebates to more than 130 million households.

news source : http://www.bloomberg.com/apps/news?pid=20601087&sid=aoONIFXK3ZF4&refer=home

Utah's Consumer Fraud Ranking Dropped in '07

A recent federal report dethroned Utah as the nation's capital of consumer fraud. The state dropped from being the 2006 leader to No. 11 in consumer fraud per capita.

Colorado took the crown, with nearly 240 complaints per 100,000 people, for a total of 11,364 complaints. Utah had 193.2 complaints per 100,000 people, for a total of 5,110 complaints. Consumer fraud cost Utahns an estimated $8.08 million in 2007.

Nationally, reports of consumer fraud increased 20 percent in 2007. Identity theft was the most commonly reported form of consumer fraud.

Dr. Warner Woodworth, professor of organizational leadership and strategy, has researched consumer fraud in Utah.

The state may be controlling consumer fraud more effectively, or other states may just be getting worse, he said.

Utah's fraud crisis may not be the root of the problem, Woodworth said. He said Utahns may be more susceptible to fraud for two reasons: they tend to bemore trusting of their friends and neighbors, and they are naïve of the trouble.

He said his research has shown that the real cause of fraud in Utah is not negligence.

"In my analysis, it's all greed," he said.

Scammers convince victims they are eligible to receive a great prize or a great deal, Woodworth said. The greed comes when people convince themselves that they deserve such a deal and even see it as a blessing.

Woodworth said that many fraud problems could be attributed to weak laws and a lack of financial discipline.

"I have students with 20 credit cards," he said.

Technology has now made it much easier for people to participate in fraudulent activities.

"It will continue to be a big problem in Utah because of greed and in our country because of technology," Woodworth said.

Credit card fraud made up 24 percent of identity theft complaints in the FTC's report. Victims do not usually discover fraudulent charges until receiving their credit reports.

"It is a very costly and difficult process to try to get your identity back," said Dr. Mark Zimbelman, associate professor of accounting.

Although consumer fraud is very common, steps can be taken to prevent it.

"Never give out any credit or personal information to anyone that contacted you by e-mail or phone," Zimbelman said. "You should contact them."

Consumers may not be able to prevent fraud, but both Zimbelman and Woodworth suggest consumers monitor their credit reports.

A free credit report can be ordered by visiting www.annualcreditreport.com, calling 1-877-322-8228 or completing the annual credit report request form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Fraud can be reported at www.ftc.gov or 1-877-FTC-HELP. The FTC gathers evidence and alerts law enforcement throughout the United States and Canada. Reporting fraud can prevent others from becoming victims and help to put an end to fraud.

news source : http://newsnet.byu.edu/story.cfm/67548

Get Your Free Credit Report -- Without the Hassle

We all have the legal right to see our credit-score reports for free, but getting them can be complicated.

Teresa Yakes learned the hard way just how complicated it is to get one of those reports. When she was struggling in May to avoid bankruptcy and working with a debt consolidation company, her lawyer told her to get her free credit-score report online. Yakes went to what seemed to her like the obvious place: freecreditreport.com. (Its Web page even features a smiling blond woman holding a giant orange card that says FREE CREDIT SCORE & REPORT.)

Weeks later, Yakes discovered that the site now expected her to pay a fee every month. "I thought, 'screw that,'" Yakes says. "It's supposed to be freecreditreport.com."

To be sure, freecreditreport.com's home page says in a box underneath the blond woman that if you order your free report at the site, you'll also begin a subscription to Triple Advantage Credit Monitoring. That not only gives you those promised "free" reports, but also checks them daily at a fee of $14.95 per month if you don't cancel your membership within a 30-day trial period.

"We do put that information in to make sure the consumer understands," says Kelly Poffenberger, a spokesman for the Dublin credit-reporting agency Experian Group, which owns freecreditreport.com.

Whether they understand what they're getting or not, many consumers are choosing to pay to see their credit scores these days, and agencies are earning gobs of money by selling services that take the concept of monitoring to new heights.

Experian, for example, raked in $450 million in revenue during full-year 2007 from products such as Triple Advantage Credit Monitoring, compared with $100 million five years ago. Meanwhile the company's rival, Equifax(EFX - Cramer's Take - Stockpickr), made $150 million in 2007, compared with $40 million five years ago, according to Michael Meltz, an analyst at Bear Stearns. "It's a big business," Meltz says.

It's happening even though the Fair and Accurate Credit Transactions Act of 2003 requires the agencies to notify consumers of their right to see their credit files for free. Despite that mandate, only 22% of nearly 5,000 people surveyed between March and June 2006 had gotten free credit reports around six months after they became available nationwide, according to the Federal Trade Commission's 2006 Identity Theft Survey Report, which was released in November.

So, how do you get the free kind of credit report? You can go to AnnualCreditReport.com, call 877-322-8228 or fill out the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. These are the only official channels to make a request for a free annual credit report.

You can order copies of your reports at once from all three agencies -- Experian, Equifax, and Chicago-based TransUnion -- if you want to keep an eye out for changes in your file or as a protection against the risk of someone using your personal information to obtain credit. You can also order one free report from a different agency every four months.

Consumer advocates say that doing these basics alone is the most sensible way to watch your credit score.

"We don't feel necessarily that it's worth it," to pay extra for credit monitoring services, says Linda Foley, founder of the San Diego nonprofit Identity Theft Resource Center. She points out that even daily monitoring services can't make up for the time lag between when someone has taken out credit in your name and when the issuers report that to agencies.

And other billers, such as utilities or hospitals, might not say anything to the credit-reporting agencies all the way until an unpaid bill in your name goes into collections, Foley adds. Instead of paying the agencies for a false sense of security, Foley recommends setting up your own, free credit monitoring service by ordering one report at a time every four months.

If you're looking to do this, consumer advocates warn to steer clear of the numerous sites that might seem to exist in order to offer free reports but then invite you to buy other related services. A 2007 Consumer Reports WebWatch analysis of 24 such Web sites found that nine were owned by or closely connected to TransUnion; eight were owned by or otherwise closely connected to Experian. The list includes TransUnion's TrueCredit.com and Experian's ConsumerInfo.com, among others; you can find the other 22 named here.

"If you go to TrueCredit itself, we tell you [on the home page] there's a free trial, but it's never promoting the product or the services as free," says Steve Katz, a spokesman at TransUnion. "It clearly lays out the cost."

Officials from all three agencies say consumers should find out about their credit scores by using the more full-fledged monitoring services available for sale.

"We have a lot of demand from consumers who want to take a much greater step than just getting their free report and taking a look once a year," says Chris Atwood, vice president of Equifax Personal Solutions. "Some consumers feel they want the ultimate in protection, regardless."



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http://www.thestreet.com/s/get-your-free-credit-report--without-the-hassle/funds/

Accertify Chooses Experian's Fraud Prevention Tool to Fight Online Fraud and Expedite Merchants' Order Review Process

CHICAGO, and COSTA MESA, Calif., Feb 13, 2008 /PRNewswire via COMTEX/ -- Accertify, a provider of leading-edge credit card fraud prevention solutions to online merchants, and Experian(R: 59.68, +0.96, +1.63%), a global information services company, today announced a strategic partnership to help e-commerce sites process orders quickly while reducing charge-backs and the total cost of fraud.

Under the partnership, Accertify will offer Experian's Credit Card Verification, an innovative credit card authentication tool, to Interceptas(TM: 110.22, -1.93, -1.72%) customers. Credit Card Verification provides robust consumer authentication and confirms the presence of a specific credit card account on a consumer's credit report. Interceptas(TM: 110.22, -1.93, -1.72%) is the first integrated platform designed from the merchant's perspective for combating card-not-present fraud, enabling the complete fraud prevention process to be managed with one comprehensive and highly flexible product.

Credit Card Verification authenticates the user's link to the card to avoid transaction processing delays and potential fraud. Credit Card Verification is the only tool that verifies a complete credit card number against a purchaser's full name and address.

"Annual Credit Reports Verification uses Experian's powerful File One(SM: 35.56, -0.50, -1.38%) credit database, which contains information on more than 215 million credit-active consumers," said Gary Kearns, president, Experian's Decision Analytics. "The ability to rapidly authenticate the purchaser's link to the credit card he or she is using will help reduce fraud significantly and facilitate increased sales, profits and business growth."

"We know that fraudsters work very hard to obtain legitimate credit card credentials," said Jeff Liesendahl, chief executive officer, Accertify. "Often merchants have no choice but to call the card-issuing bank to confirm that a card hasn't been compromised. This process is very time-consuming and requires significant manual effort.

"By integrating Experian's Credit Card Verification tool, Interceptas(TM: 110.22, -1.93, -1.72%) helps merchants eliminate the need to contact banks and cut the manual effort needed to combat fraud," Liesendahl added. "Interceptas(TM: 110.22, -1.93, -1.72%) is designed to lower merchants' total cost of fraud by driving orders to resolution as quickly as possible through automation and the best available antifraud tools."

About Accertify, LLC

Accertify is the first company to focus on developing fraud prevention tools and strategies from the perspective of merchants that accept card-not-present transactions. That focus led to the development of Interceptas(TM: 110.22, -1.93, -1.72%), which applies state-of-the-art automation to every step in the merchant's process of managing credit card reports fraud exposure. Accertify exemplifies a constant commitment to maintaining the best in fraud prevention strategies, and its management team combines complementary skills from fraud management, business software development, accounting and legal to assure that its customers receive the most comprehensive, cost-effective solution to credit card fraud available.

About Experian

Experian is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.

Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 36 countries worldwide, supporting clients in more than 65 countries. Annual sales are in excess of $3.8 billion.

For more information, visit the Group's Web site on http://www.experiangroup.com.

Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.

news source : http://www.foxbusiness.com/article/

A very wide loophole for unsolicited cards

Vivikka Molldrem of Edgewater was perturbed to find a Wal-Mart Discover Card in her name sitting in her home mailbox last month. All she had to do to activate the $1,000 credit limit card was call a toll-free number.

"I have never shopped at Wal-Mart, have never owned a Discover Card, and have never requested a Discover Card," Molldrem said. "I get credit card offers multiple times a week, and I usually just throw them in the trash without reviewing them carefully. This one looked like a typical credit card offer, but my husband opened it up while I was out of town and to his shock, it contained a fully functional card."

Tossing a fully functional card out could expose the couple, Molldrem said, to anyone picking through the trash and activating the card.

Wondering how the company could get her name and why it would expose people to security risks, Molldrem said the couple called the customer service number given on the back of the card. Molldrem said she was told that Wal-Mart Stores Inc. purchased the now-long-gone Montgomery Ward's store card list and issued the new Discover cards to people on that list.

Molldrem did own a Ward card years ago, but she has no interest in owning a Wal-Mart Discover Card, she said.

Is it legal for a company to send you an unsolicited credit card in the mail, she wondered? And who would she call to lodge a complaint?

The A:

There's no simple answer for either question.

First, I called Wal-Mart to inquire about the Discover cards. But a Wal-Mart spokesman said I should call Discover. When I called up Leslie Beyer, a spokesman for the Discover Network, she said I should call GE Money. Turns out, the Wal-Mart Discover Card is issued by GE Money, which used to be GE Consumer Finances.

Before I got a chance to speak with GE Money, I discovered that in 2001 a Wal-Mart spokesman had said Wal-Mart credit cards were being sent to customers who previously held accounts with Montgomery Ward. At the time, the spokesman said the effort was "an attempt to renew" the old Ward cards.

A GE Money spokesman said it was unlikely the company would send a card to a customer who did not request it, but regardless of whether GE Money, Wal-Mart or Discover was responsible, Molldrem has some rights.

The federal Truth in Lending Act does prohibit companies from sending cards to consumers without their request, but (and this is a big but) there are loopholes.

"What can happen is when a company buys another company, they can decide to switch credit card providers or they can renew a credit card list," said Linda Sherry, director of national priorities for advocacy group Consumer Action. "They're never supposed to send you a card you didn't request, but they can replace your card with another card."

As an example, Citigroup recently acquired the credit services division of Macy's and began replacing dormant credit accounts of more than 3 million Macy's cardholders with Citi MasterCards. Many consumers were not pleased to find out that their credit scores could have taken a hit if they canceled the card - which they didn't ask for in the first place - since they were essentially closing an old, but still open, line of credit.

"It appears to be legal," Sherry said. "But the bottom line is, it's not a good practice. And it certainly doesn't make a company look good. What happens when you issue these cards to an old address? People move."

Chi Chi Wu, staff attorney with the Boston-based National Consumer Law Center, called the practice "questionable."

"Creditors have exploited the loophole to do more and more things like flipping store cards to general purpose cards. The original intent of the law was to prevent these very situations," Wu said. "They say they 'renewed' cards, but no one was using these cards at the time. I'd definitely say it's questionable."

Molldrem should check her credit report, Sherry said, because even though the card wasn't activated, that does not mean the account is closed.

To reduce the amount of unsolicited credit card reports offers you receive in the mail, contact the three major credit bureaus by calling 888-567-8688 to opt out of the preapproved credit lists they sell to companies.

You can also complain to any of the federal regulators that oversee banks and finance companies. In this particular case, GE Money is regulated by the Office of Thrift Supervision, which is a part of the Department of the Treasury. You should also write to the Federal Reserve, Wu said.

news source : http://www.baltimoresun.com/business/

Consumers more wary of credit debt

RISING interest rates are making consumers wary about taking on new debt, with a new report showing applications for credit cards and personal loans slipping for the first time in four years.

The Veda Advantage Consumer Credit Demand Index for the second half of 2007 showed the number of consumer credit applications - for credit cards and personal loans - dipped by 2 per cent from a year earlier to 3.19 million.

That is almost 70,000 fewer than in the same period of 2006.

The slowdown in applications corresponds to a significant 35.5 per cent year-on-year increase in the number of payment defaults across 2007, it said.

"Mounting pressure of interest rate hikes and a volatile global economy brought on by America's credit crunch may have caused some Australian consumers to be cautious about taking on new credit card and personal loan debt in 2007,'' Veda's General Manager of Information Services and Solutions Erica Hughes said.

The Consumer Credit Demand Index is an indicator of consumer behaviour in the market and measures the number of individual credit applications, but does not record the dollar value of credit approvals.

As such, it is a measure of consumer sentiment rather than a measure of the volume or value of the overall credit market.

Personal loan applications edged up just 0.3 per cent in the six months to December 2007, a sharp slowdown from growth of 8.8 per cent in the same period of 2006.

The October-December quarter of 2007 saw a 0.8 per cent decrease in personal loan applications, with almost 6000 fewer inquiries than the year-before level.

Credit card inquiries recorded a three-year low in the six months to December 2007. Applications fell to 1.77 million, down 3.8 per cent or more than 70,000 from the same period in 2006.

The last three months of 2007, however, saw a gain of 0.6 per cent from the previous-year level, with almost 915,000 credit card inquiries.

Personal loan inquiries in the second half of 2007 saw a 5.8 per cent decrease compared with the first half, while credit cards grew by only 1.8 per cent, with approximately 31,000 more inquiries than in the January-June period.

"Both credit card and personal loan applications have slowed considerably in the last year when you look at the last three years of October-to-December data,'' Ms Hughes said.

"The year-on-year changes are significant, which could also indicate a greater saturation in the market and an adjustment to strong growth in 2005.''

In October-December 2005, the growth rates for credit cards and personal loans were 14.9 per cent and 6.7 per cent, respectively, compared with the 2007 final-quarter figures of 0.6 per cent growth and a 0.8 per cent decline.

news source : http://www.news.com.au/

10 Free Ways to Boost Your Financial Power

Whipping your finances into shape doesn't have to come at a price.

The news lately has been focusing on the money that people are likely to get back as a tax refund from the government as part of the economic stimulus plan.

But plenty of other freebies can spruce up your personal finances.

Here are 10 examples:

Credit Reports

The government allows you to get your credit report free each year from each of the three major credit-reporting agencies -- Equifax, Experian and Transunion -- in one of three ways:

# 1. Go to AnnualCreditReport.com and order it online.

# 2. Call toll-free 877-322-8228 to order it.

# 3. Request it by regular mail by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga. 30348-5281.

This will allow you to confirm that everything in your report is correct, ensuring that you get the best rates if you borrow money. If there are inaccuracies, your can correct them.

Receiving these reports can also tip you off early to possible identity theft, saving you countless hours of frustration and time that it would take to correct a fraud.

Tax Filing

Seventy percent of Americans can do their taxes at no cost.

If your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online through the IRS Web site.

Be sure to use the IRS Web site since it's the only place you can use the tax software and file at no cost. If you go directly to tax-software sites, you will be charged a fee to file.

Water-Conservation Kits

Contact your local water and sewer bureau to see if they offer free water-audit kits and water-conservation kits.

The water-audit kit will help you find areas where you may be wasting water. The water-conservation kit will help reduce your water usage.

A surprising number of these public-utility companies offer these both free. This saves you money in two ways: you won't need to pay for water-conservation devices and you'll create monthly savings by reducing the amount of water you use.

Free water-conservation kits usually contain faucet aerators, low flow shower heads, water gauges and shower timers. Here's an example.

Energy Audit

Many electric companies offer free energy audits where they will come to your home and evaluate where you may be wasting energy. Then you can see what will bring you the most savings on your energy bill.

In addition, they may offer free devices such as Energy-efficient light bulbs, weather stripping and caulk to help you save without having to buy these for yourself. Here's an example.

In addition, some may offer discounts and rebates for the purchase of energy efficient appliances all of which will help you pinpoint waste so you can save money.

Personal-Finance Education

More and more colleges are offering free online courses.

Among the wide variety of classes offered is one from University of California, Irvine, that is a personal-finance course.

Take it free of charge to help you learn the basics of personal finances or brush up what you have learned on your own.

Small-Business Education

If you'd like to boost your income by starting a part-time home business, the U.S. Small Business Administration offers a wide variety of classes at no cost that can help you.

This includes such information as how to write a business plan and how to register your company. Classes are usually held at locations across the U.S. You can find the classes nearest you through the SBA Local resource finder.

news source : http://www.thestreet.com/

Entrepreneurs avoid use of credit cards to fund business

People thinking about starting up their own companies are nearly always on the receiving end of some stern advice: Don’t use credit cards to fund your business.

But the truth is that most entrepreneurs do rely on plastic in the early—and sometimes later—stages of forming their business. A March, 2007, survey done by the National Association of the Self-Employed (NASE) showed credit cards were second in popularity only to savings as the preferred method of start-up funding and ongoing funding for micro-business owners—those with 10 or fewer employees.

When asked what they used for funding, 58% of the 469 survey respondents said “savings” , and 10% said “credit cards” for start-up ; 36% said “savings” , and 21% said “credit cards” for ongoing operations funding. The other choices, including money from friends and family, and bank or home equity loans, came in lower on the list of possible responses to both questions.

Of course, there’s a valid reason would-be entrepreneurs are warned against putting their start-up funding on credit cards. “The worst thing in the world is to have your business fail and be stuck personally with $50,000 in debt at 21% interest,” says Joe Knight, a coauthor of the book Financial Intelligence (Harvard Business School Press, 2005).

The good news is that with some restraint and wisdom, credit cards can function as part of a sensible start-up funding package. “When entrepreneurs take those first trembling steps, most have to take them alone. Credit can help them do that. And it can help them bridge the gap when they know that orders or sales are coming in, or a private investor is going to come through,” says George Whitehead, business development director for the National Endowment for Science, Technology, and the Arts, a public-private partnership that invests in early-stage companies in Britain. “All kinds of unexpected things happen to small businesses . Credit can act as a cushion.” But it’s a cushion that should be used sparingly and with caution, says Gene Fairbrother, president of Dallas’ MBA Consulting and lead small business consultant for the NASE.

Don’t make the mistake of thinking you can rack up debt on a business credit card and then walk away from it if your business venture doesn’t work out, Fairbrother says. So how can an entrepreneur use credit cards successfully to get a company off the ground? Here are some expert suggestions:

“A year prior starting a company, gather every credit card offer that comes your way, so you have a lot of credit pre-approved and accessible to tap into,” says Janice Machala, founder of business and financial services firm Paladin Partners, of Kirkland, Wash.

news source : http://economictimes.indiatimes.com/

Church & Dwight Reports 2007 Earnings of $2.46 Per Share

PRINCETON, N.J., Feb 05, 2008 (BUSINESS WIRE) -- Church & Dwight Co., Inc. (NYSE:CHD) today announced that full-year 2007 sales increased 14% to $2,220.9 million from $1,945.7 million in 2006. Organic sales growth for 2007 was approximately 5%, adjusting for revenue related to acquisitions and foreign exchange. Earnings per share were up 19% to $2.46 compared to $2.07 in the prior year. Cash flow from operations increased 34% to $249 million compared to $186 million in 2006, and free cash flow (cash from operations less capital expenditures) was up 44% to $200 million versus $139 million in the prior year.

James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."

Fourth Quarter Review

Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.

Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.

Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.

Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.

Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.

Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.

Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.

Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.

The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.

New Product Activity

On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."

In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.

In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.

In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.

During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.

Outlook for 2008

With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."

As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.

Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.

news source : http://www.foxbusiness.com/markets/

Church & Dwight Reports 2007 Earnings of $2.46 Per Share

PRINCETON, N.J., Feb 05, 2008 (BUSINESS WIRE) -- Church & Dwight Co., Inc. (NYSE:CHD) today announced that full-year 2007 sales increased 14% to $2,220.9 million from $1,945.7 million in 2006. Organic sales growth for 2007 was approximately 5%, adjusting for revenue related to acquisitions and foreign exchange. Earnings per share were up 19% to $2.46 compared to $2.07 in the prior year. Cash flow from operations increased 34% to $249 million compared to $186 million in 2006, and free cash flow (cash from operations less capital expenditures) was up 44% to $200 million versus $139 million in the prior year.

James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."

Fourth Quarter Review

Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.

Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.

Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.

Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.

Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.

Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.

Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.

Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.

The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.

New Product Activity

On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."

In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.

In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.

In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.

During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.

Outlook for 2008

With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."

As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.

Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.

news source :

Sector Snap: Credit Card Lenders

NEW YORK — A UBS Investment Research analyst cut his rating on credit card lenders on Monday, saying a recession will put more people out of work and many will not be able to pay their bills.

UBS Investment Research analyst Eric E. Wasserstrom, in keeping with UBS' outlook for a recession in the first half of the year, cut his rating on American Express Co., Capital One Financial Corp. and Discover Financial Services LLC to "Sell." He previously rated American Express a "Buy," and Capital One and Discover at "Neutral."

With the economy shrinking, Wasserstrom expects the unemployment rate to tick up. The job market is the most important pillar for credit quality, he said. With more people out of work, credit card lenders will report more bad debt on their books, he said.

Wasserstrom slashed his price target on American Express to $45 from $67. The stock closed Friday at $49.60, and in afternoon trading Monday lost $1.80, or 3.6 percent to $47.80.

Last month, the New York-based lender set aside $440 million to cover unpaid loans, and said growth in spending on its 84.7 million cards trailed off in December.

Wasserstrom cut his price target on Discover, which was spun off from Morgan Stanley last year, to $14 from $18. Discover's stock sank $1.72, or 9.6 percent, to $16.24. Discover Financial lost $391 million in the fourth quarter.

Shares of Capital One Financial fell $4.20, or 7.4 percent, to $52.81. The company's stock has lost about 30 percent of its value in the past year. Capital One wrote off $1.3 billion in loans in the fourth quarter and expects to write off $5.9 billion this year.

news source : http://www.chron.com/disp/story.mpl/ap/fn/5511875.html

Egg customer anger at credit move

Egg says 161,000 cards belonging to people whose credit profiles have deteriorated since they signed up will stop working in 35 days' time.
But people who insist they have good records have been contacting the BBC to say they are on the list.A Labour MP is asking the banking industry watchdog, the Financial Services Authority, to investigate.Nigel Griffiths, a former deputy leader of the House of Commons, said Egg's action was "unacceptable".A spokesman for the bank said those affected were customers it no longer wanted to lend to "regardless of their current status".Credit cards are being withdrawn from 7% of Egg's customers who it deems to pose an unacceptably "high risk".
This could include those who have missed repayments or exceeded their credit limit.
'Arbitrary action'

Cardholders will be able to continue making minimum monthly repayments on their balances but will not be able to spend any more after the deadline.
The move follows a "one-off" review after Egg was bought by US-based Citigroup for £575m last year.The bank is not demanding immediate repayment of balances or making any changes to customers' terms and conditions or their interest rates.
The 35-day notice period starts on receipt of the letter, which also provides details of how to appeal against the decision.

news source : http://news.bbc.co.uk/2/hi/business/7224268.stm