Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss. Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that have already reported -- Valero Energy Corp. (VLO) and Sunoco Inc. (SUN). However, compared to the year-ago period, Tesoro’s earnings per share plunged 87.1%, while sales declined 45.4% to $4.7 billion -- severely hampered by depressed refining margins and lower throughput on the back of weak fuel demand and high inventories. Refining Segment Results Tesoro’s refining segment experienced a significant decline in operating income (operating income of $84 million vs. $476 million in the year-earlier quarter) due to struggling profit margins for the production of distillate ...

Vulcan Materials (VMC) reported a 20% fall in net profits to $48 million or 38 cents per share in the third quarter, from $60 million or 53 cents per share in the year-ago period. The decline was on the back of a 19%-29% fall in sales volumes for the company’s key product lines. However, the company did manage to meet the Zacks Consensus Estimate. Revenue declined 23% to $778 million. Gross profit as a percent of net sales -- excluding depreciation, depletion and amortization -- increased to 34% from 31% in the prior-year quarter. This was attributed to Vulcan’s efficient cost management and productivity improvements. Segment Performance Revenue in the Aggregates segment shrank 19% to $533 million due to lower shipments, which more than offset the earnings benefit from improved prices, lower unit costs for diesel fuel and cost control measures. Shipments declined 20% due ...

Global paints and coatings supplier PPG Industries (PPG) reported third quarter earnings of $161 million or 96 cents, better than the Zacks Consensus Estimate of 89 cents. Although earnings were down 29% year on year, results improved considerably sequentially on cost reduction. PPG Industries had reported earnings of 19 cents and 91 cents in the first and second quarters of 2009, respectively. Reported sales of $3.2 billion for the quarter was a decline of 24% from the same period of the previous year, driven by lower sales volumes and prices. The segmental break-up is as follows: Performance Coatings: Sales declined 12% due to lower volumes across all businesses. Weaker foreign currency was also a factor, offset by pricing gains. However, earnings from the segment rose 5% on lower overhead costs resulting from aggressive cost-management strategies and restructuring actions. Industrial Coatings: Sales for the quarter decreased ...

Public Service Enterprise Group (PEG) reported operating earnings of 63 cents per share for the second quarter, a cent above the Zacks Consensus Estimate of 62 cents. Operating earnings was 61 cents per share in the same quarter a year ago. Operating revenues were almost flat at $2.6 billion mainly due to challenging market environment and unusually cooler summer.   Income from continuing operations improved to $311 million from a loss of $166 million as the company managed to bring down the operating costs. Operating expenses decreased 19% to $1.9 billion (75% of revenues) from $2.4 billion (93% of revenues), primarily driven by lower energy costs (down 30%).   PSEG Power’s operating earnings improved 5 cents to 47 cents per share, largely owing to higher contracted pricing and lower fuel costs. It gained due to higher generation from low-cost nuclear fleet, which increased more than 2% despite a ...

Tesoro Corporation (TSO) reported a weaker-than-expected second-quarter 2009 loss, reflecting lower gross margins and decreased throughput on the back of weak fuel demand and high inventories. This was partially offset by lower operating costs. Loss per share came in at $0.33, below the Zacks Consensus Estimate of $0.30. In the year-ago period, the Texas-based marketer of petroleum products earned $0.03 per share. Revenue was down 53.0% year-over-year to $4.2 billion. Refining Segment Results Tesoro’s refining segment experienced a significant decline in operating income (operating income of just $7 million vs. $85 million in the year-earlier quarter) due to struggling profit margins for the production of distillate fuels (like heating oil and diesel), as well as narrowing of the sweet/sour crude spread. The company’s throughputs also suffered from the maintenance at its Alaska and Golden Eagle, California refineries. Throughput Total refining throughput averaged 565 ...

Capstone Turbine Corp. develops, manufactures, markets, and services microturbine technology solutions. As the world’s leading producer of low-emission microturbine systems, the company was first to commercially market viable microturbine energy products. To date, Capstone Turbine has shipped more than 4,000 Capstone MicroTurbine® systems to customers worldwide which collectively have logged millions of documented runtime operating hours.

The Capstone MicroTurbine™ is a compact, turbine generator that delivers electricity onsite. The company’s MicroTurbine can be used for a wide array of applications ranging from remote locations to city centers, delivering clean, high quality power, with superior safety and emissions. Features include maintenance-free air bearings, the lowest emissions of any non-catalyzed fossil fuel combustion, and digital power conversion.

Advanced engineering and more than 100 patents put the Capstone MicroTurbines in a class of their own. Capstone’s MicroTurbines have just one moving part, no gearbox or other mechanicals, and use no lubricants or hazardous materials, requiring

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Chris Mayer with the Penny Sleuth says that railroad executives have been pretty confident in their ability to continue to raise prices on their customers in the middle of a recession - making these two buffet-backed railroad stocks attractive buys.

The Financial Times led off one headline column this week thundering:

“The world economy will this year suffer its worst performance for more than 60 years with a serious risk that 50 million people will lose their jobs, international organizations warned yesterday.”

The consensus has gelled. Now it’s just a matter of who can come up with more staggering figures. The IMF says global output will fall for the first time since the World War II. And 50 million are a lot of people.

Where to invest is the question. In pockets of strength is one answer. Where might these be?

Warren Buffett likes railroads and recently upped his stake in

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After a two-day “holiday” to start the week–Martin Luther King Day today (Monday) and Inauguration Day tomorrow (Tuesday)–it’ll be back to business on Wednesday as Congress begins to grill U.S. Treasury Secretary nominee Timothy Geithner – the appointment many observers believe to be the most important of the new Barack Obama administration.

Geithner, currently the president of the Federal Reserve Bank of New York, is viewed by Democrats and Republicans alike as probably the most qualified candidate to succeed current Treasury Secretary Henry M. “Hank” Paulson Jr., since whoever fills this post will have to be able to step right in and make whatever moves are needed to fix a financial system that seems to get worse by the week. Geithner is actually viewed as perhaps the one candidate with the qualifications, personality and personality needed for success.

But there’s a problem.  The man chosen by President-elect Obama

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Donald Coxe’s monthly investment report, entitled “Basic Points” (subtitled “Capitalism Faces Its Greatest Challenge” for the November 2008 edition), has just been published. He is Global Portfolio strategist of BMO Financial Group and widely followed for his “big picture” views.

Like many commentators, Donald was caught by surprise by the rapid financial meltdown and plunging commodity prices. He said: “… we certainly didn’t anticipate the sustained earthquakes and hurricanes we have experienced in recent months.” He argues that it will be a long time before complacency returns, but that the “era of fear” will probably end soon.

Donald’s latest investment recommendations are reported in the paragraphs below, but I do recommend you also read the

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China Energy Recovery Inc. (OTCBB: CGYV) engages in energy recovery systems with a focus on the Chinese market. The company captures industrial waste energy and uses it to generate low-cost electrical power, enabling companies to lower energy costs and reduce their carbon footprint. China Energy today announced its financial results for the nine months and third fiscal quarter ended September 30, 2008.

“We announced last quarter that our company has been producing new products at an accelerated rate, and we’re pleased to see that at this point in time China Energy Recovery is setting historical records for that growth,” China Energy CEO Qinghuan Wu stated in the press release.

For the three-month period the company posted revenue increase of 56.7 percent to $6.1 million, as compared to $3.9 million reported in the same period of 2007. Gross profit rose to $1.6 million from $0.1 million, an astounding 1,099.4 percent increase, fueled

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