Ford Motor (F) has revealed its plan to invest R$4 billion ($2.26 billion) in order to benefit from government tax incentives and lower interest rates in Brazil that are fueling record sales. Presently, Ford is the fourth-largest automaker in the country. Ford has decided to spend R$2.8 billion at the Camacari plant -- a state-of-the-art plant in the northeastern state of Bahiato -- with the aim of increasing output by 20% to 300,000 vehicles a year. The plant produces the sport utility vehicle EcoSport and the Fiesta subcompact. The investment is expected to generate 1,000 jobs in the region. The remaining R$1.2 billion will be invested at Ford's factories in Sao Paulo including its Sao Bernardo plant and a testing facility in Tatui. So far, car sales in Brazil have been significantly helped by government tax incentives that lowered car prices and lured consumers to showrooms. ...

Last week, AGCO Corp. (AGCO) reported third-quarter results. The company posted earnings of 13 cents per share, compared $1.01 per share in the prior-year quarter. The significant decline in quarterly earnings was driven by lower sales volumes, weaker product mix and the negative impact of currency translation. Net sales in the quarter were $1,403.7 million, down 32.7% compared to the third quarter of 2008. AGCO is experiencing soft demand conditions in most of its markets. Lower commodity prices, along with expectations of decreased farm income, are hampering investments in farm equipment around the world. AGCO is aggressively cutting production in order to reduce its own and dealer’s inventories. Sales in North America were down 31.9% on a constant currency basis due to weaker sales of low horsepower tractors and hay products, as well as reduction in dealer inventory. Unit retail sales of lower horsepower tractors were ...

Praxair Inc. (PX) reported decent third-quarter results before the opening bell today.   Net income and earnings per share were $325 million and $1.04, respectively. These results include a net after-tax benefit of $7 million, or 2 cents of earnings per share, resulting from a $306 million pre-tax charge, and $313 million of income tax benefits, related primarily to a Brazilian government tax amnesty program.   Excluding these items, net income was $318 million and earnings per share were $1.02, as compared to $355 million and $1.11 in the prior-year quarter. It was also above the Zacks Consensus Estimate of $1 per share.   Sales in the quarter were $2,288 million, 20% below $2,852 million in the third quarter. Excluding the negative effects of foreign currency and cost pass-through, underlying sales were 9% lower due to 11% lower volumes partially offset by 2% higher overall pricing. Sequentially, ...

For Immediate Release

Chicago, IL – August 14, 2009 – Zacks Equity Research highlights Gafisa S.A. (GFA) as the Bull of the Day and King Pharmaceuticals (KG) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bally (BYI), International Game Technology (IGT) and WMS Industries Inc. (WMS).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We are reiterating our Outperform recommendation on Gafisa S.A. (GFA). We have been encouraged by the stimulus package and the new value-added tax relief recently announced by the Brazilian government.

Second quarter 2009 results were positive, mainly considering the international crisis, which has affected Brazil's construction sector.

The new Government Housing Program and the R$600 million debenture from Caixa Economica will help Tenda to expand its business plan

...

After cutting E-Jet deliveries for 2009 this week, Empresa Brasileira de Aeronautica S.A. (Embraer) (ERJ) President and CEO Frederico Curado announced that the company will keep stable deliveries in 2010 as well. Owing to the global economic downturn and tight financing market, ERJ expects E-Jet production levels to continue declining in 2010 after this year.

However, the Brazilian government is trying to aid Embraer through this difficult environment. Brazil’s BNDES is clearly ramping up its participation and will finance about a third of Embraer's commercial deliveries in 2009, up 11% from 2008.

The company expects to boost its deliveries in 2011 and beyond. As such, Embraer started building a new industrial unit in Évora, Portugal. The 15,000 square meter facility, scheduled for completion by the end of 2011, will be dedicated to manufacturing complex airframe structures and components in composite materials.

This strategic step is expected to improve

...

Given that there is some overlap with this subject on Russia, and its on-again, off-again statements about non-intervention, I thought I would post the beginning of this translation we have featured over on Venezuela Report.  Next time we see the Kremlin rush to protect the junta in Myanmar or the lovely leaders of Sudan from international criticism, perhaps some of this article may ring true. It has been a frequent argument on this blog that foreign policies held by certain countries striving for "non-intervention" in global affairs are at odds with long terms interests as well as other stated goals of diplomacy.  The case of Brazil is especially interesting, and as a rising economic power and regional player, the long-standing doctrine of non-intervention (which is irregularly broken, I should note) is currently receiving its hardest test as the ...

Petrobras suspended EWT due to machinery malfunction Early this week, Petroleo Brasileiro S.A., or Petrobras (PBR), Brazil’s state-run oil giant, suspended the extended well test (EWT) in the Tupi Area (in the Santos Basins pre-salt cluster), due to malfunctioning of its machinery like the Wet Christmas Tree (a submarine well flow control device) at well 3-RJS-646 and the adaptor base. The company has decided to replace the machinery, which is expected to take four months. PBR announced that EWT will continue after the replacement is completed. The Brazilian government is expected to change the nation's oil law, which we believe is not going affect Petrobras. The building of five refineries through 2020 will continue even if the changes limit Petrobras' access to the sub-salt area. The new law is not expected to hinder its ability to bid for exploration permits. Rather if production-sharing agreements ...

Embraer Closes Deal Worth US$104.68 million   Today, Empresa Brasileira de Aeronautica S.A. (ERJ), or Embraer, Brazil’s manufacturer of aircraft for commercial and government use, secured a US$104.68 million deal from Algeria's oil company Sonatrach to supply three 100-seat jets.   The deal would not only add new customers to its firm order backlog, but will also enhance the cash flow of the company. The company has maintained a high level of liquidity, with net cash position of US$122 million at the end of the first quarter of 2009. In addition, the company’s diversification into broader defense and corporate jets, as well as more geographically diversified clients, will provide additional and more stable earnings stream and cash flow growth in future. Moreover, lower oil prices from a high of US$150 per barrel to US$64 per barrel currently and the support of the Brazilian Government are positive support....

Petrobras to Benefit from New Exploration Model in Brazilian Pre-Salt AreaSome months ago, the Brazilian government set up a commission to discuss the matter and propose a new exploration model for the pre-salt area, where the giant field of Tupi is located.During the first half of 2009, all manner of strange proposition was reported in the Brazilian papers, creating some problems for Petrobras (PBR) among investors. At this point, it seems that we are close to some definition and that the oddest ideas were left behind in discussions.Yesterday, sources of the above-mentioned commission said that Petrobras will be treated as a preferential partner by the Brazilian Government. This means that Petrobras will have some advantages over other international players in the exploration of the giant field in the pre-salt area.Among those advantages was mentioned ...

For Immediate Release

Chicago, IL - June 10, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Vivo (VIV), Grupo Ultra (UGP), Cemig (CIG), Copel (ELP) and Petrobras (PBR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Tuesday's Analyst Blog:

Brazil GDP Better than Expected

Brazilian GDP for the first quarter 2009 was down -0.8% from the previous quarter and -1.8% from the same quarter 2008. The average expectation of the market was -2.1% from the previous quarter and -3.2% from the first quarter 2008.

We believe these numbers

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