New Mauritius Hotels posts 25 pct drop in full-year profit

 Luxury hotels group New Mauritius Hotels (NMH) reported a 25 percent fall in full-year pretax profit, citing higher finance costs and fewer tourists, and forecast a 15 percent drop in first-quarter earnings.
Ranked among the Indian Ocean island's most-traded stocks, NMH said on Wednesday that pretax profit for the year to September 30 fell to 603 million Indian rupees, with earnings per share down 20 percent at 3.60 rupees.
The hotels group said that it won't pay a dividend this year, given the difficult conditions in the local tourism industry. Last year it paid a dividend of 2.50 rupees per share.
Shares in the group, which owns eight hotels in Mauritius and one in the Seychelles, closed unchanged at 52 rupees before its results were released.
Tourism, a traditional cornerstone of the Mauritius economy, has been forecast to account for 7.9 percent of domestic product in 2012, down from 8.4 percent last year. The downturn in tourism has been caused largely by economic turmoil in the euro zone - the sector's key source market.

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FedEx: cost plan can counter sluggish growth

 FedEx is more pessimistic about the U.S. economy than it was three months ago, but more assured of its own ability to grow earnings.
The world's second-largest package delivery company lowered its economic forecast for the U.S., saying that there remains a lot of uncertainty for the company and the country.
Its forecast for the current quarter, which incorporates the critical holiday season, falls short of Wall Street expectations.
But FedEx maintained its forecast for the full fiscal year ending in May, counting on a massive cost reduction plan and a slightly more optimistic view of growth overseas. Shares rose 2.6 percent in afternoon trading.
FedEx Corp. posted earnings of $438 million, or $1.39 per share for the quarter that ending in November, compared with $497 million, or $1.57 per share, a year ago. That was below the $1.41 per share that Wall Street was expecting, according to a poll of analysts by FactSet.
Revenue rose to $11.1 billion from $10.6 billion previously, as the company scaled back its operation to better match demand and some of its raised rates. Analysts forecast revenue of $10.84 billion.
Growth in the company's freight and ground operations boosted results, but FedEx reported "persistent weakness" in its core express network. Operating income in that segment fell 33 percent. FedEx and its larger rival UPS Inc. have both seen consumers and businesses opt for slower shipping options to cut costs.
FedEx said on Wednesday that it expects earnings will be between $1.25 and $1.45 per share in the third quarter. Analysts that follow the company were predicting per-share earnings of $1.45.
The company, based in Memphis, Tenn., also said it expects to earn between $6.20 and $6.60 per share for the year ending in May, excluding any charges from the company's buyout plan. Wall Street is looking for $6.34.
Earlier this month FedEx said it will offer some employees up to two years pay to leave, starting next year. The voluntary program is part of an effort to cut annual costs by $1.7 billion within three years. The plan also includes cutting aircraft and underused assets.

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FedEx says it can grow by cutting costs

 FedEx may be pessimistic about the U.S. economy, but it's confident about growing its earnings.
The world's second-largest package delivery company, a bellwether for economic health because of the vast number and kinds of shipments it handles, lowered its economic forecast for the U.S., saying there remains a lot of uncertainty for the country.
FedEx maintained its earnings forecast for the full fiscal year ending in May, counting on a massive cost reduction plan and a slightly more optimistic view of growth overseas. Shares rose 84 cents to close at $93.20 Wednesday, even though its forecast for the current quarter, which includes the critical holiday season, falls short of Wall Street expectations.
FedEx Corp. posted earnings of $438 million, or $1.39 per share for the quarter that ended in November, compared with $497 million, or $1.57 per share, a year ago. Superstorm Sandy shaved 11 cents per share off of earnings in this year's quarter, as shipping volumes fell and costs rose.
Revenue rose to $11.1 billion from $10.6 billion a year ago, as the company scaled back its operation to better match demand and some of its raised rates.
Wall Street expected $1.41 per share in the recent quarter on revenue of $10.84 billion, according to FactSet.
Growth in the company's freight and ground operations boosted results, but FedEx reported "persistent weakness" in its core express network. Operating income in that segment fell 33 percent. FedEx and its larger rival UPS Inc. have seen consumers and businesses opt for slower shipping options to cut costs. As a result, FedEx is offering buyouts and shedding aircraft and other assets to reduce its costs and adjust to the new normal.
Earlier this month FedEx said it will offer some employees up to two years pay to leave, starting next year. The voluntary program is part of an effort to cut annual costs by $1.7 billion within three years.
FedEx said on Wednesday that it expects earnings of $1.25 to $1.45 per share in the third quarter. Analysts predicted per-share earnings of $1.45.
The company, based in Memphis, Tenn., also estimated $6.20 and $6.60 per share for the year ending in May, excluding charges from the company's buyout plan. Wall Street is looking for $6.34 per share.

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Burundi tea earnings rise 27 pct in November on high prices

 Burundi's tea export revenues rose 27 percent in November from the same month last year thanks to a stronger regional market, a tea board official said on Thursday.
The state-run tea board (OTB) said it collected $1.80 million from the sale of 589,907 kg, up from $1.42 million earned in November 2011 from the export of 563,140 kg.
"Supplies of the commodity in the region were low following a fall in overall production, especially with Kenya," Joseph Marc Ndahigeze, OTB's export official, told Reuters.
"This has boosted prices and earnings for Burundi's tea."
Kenya is the top tea producer in the East African region and landlocked Burundi exports 80 percent of its tea through a weekly auction held in Kenya's Indian Ocean port city of Mombasa.
Ndahigeze said the export average price per kg jumped to $3.06 from $2.54 the previous year.
OTB said total export earnings between January and November reached $24.7 million, exceeding the $22.2 million collected in 2011.
Tea is Burundi's second largest hard currency earner after coffee and employs some 300,000 small holder farmers in a nation of 8 million people.

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Discover Financial Services 4Q net income rises

 Discover Financial Services on Thursday reported higher earnings for its fiscal fourth quarter, as users of its namesake credit card stepped up purchases and the company wrote off fewer unpaid balances.
Even so, the Riverwoods, Ill.-based company's results fell short of Wall Street expectations, and investors sent its shares down over 3 percent Thursday.
Discover, the nation's sixth-largest credit card issuer, said total loans, credit card loans and Discover card sales volume increased 6 percent in the quarter, which coincided with the tail end of the back-to-school shopping season and the ramp up to the December holidays — key periods when consumers traditionally spend more.
Discover card sales volume increased to $26.5 billion, while credit card loans at the end of the quarter totaled $49.6 billion. Private student loans rose 6 percent, while personal loans climbed 24 percent, the company said.
"Our strong receivables and sales growth results demonstrate the effectiveness of our marketing programs, consumers' preference for cash rewards and our acceptance and awareness initiatives," Chairman and CEO David Nelms said during a conference call with analysts.
While Discover's customers racked up more debt, more of them paid off credit card balances on time. The delinquency rate on credit-card loans over 30 days past due was 1.86 percent, an improvement of 53 basis points from a year earlier. The rate of charge-offs, when the company writes off unpaid credit card balances, dropped to a historic low of 2.29 percent.
"While the continued improvement in credit appears to be nearing an end, we don't believe we are at a point where charge-offs are poised to rise significantly," Nelms said.
Nationwide the rate of credit card payments at least 90 days overdue edged up in the third quarter to 0.75 percent, according to credit reporting agency TransUnion. The rate is coming off historically low levels, however.
Discover has traditionally had one of the lowest rates for default and delinquency in the credit card industry, the result of tighter lending standards and close monitoring of problem accounts.
The company has reported improvement in its customers' default and late-payment rates since the Great Recession, as cardholders moved to pay down debt and boost savings.
Late-payment rates tend to creep higher in the fall, particularly as cardholders spend more money on holiday shopping, travel and other expenses. The company said that seasonal factor led to a slight increase in its credit card loan delinquency rate between the third and fourth quarter.
While Discover's rates for late payments and defaults remain low, the company has been making more loans. As a result, it has been setting aside more funds to cover potential loan losses.
In the September-to-November quarter, Discover increased its provision for loan losses by 6 percent to $338 million, noting that was somewhat offset by a drop in the number of unpaid credit card balances that had to be written off.
Meanwhile Discover's payment-services business, which competes with Visa and MasterCard, saw dollar volume increase 13 percent in the latest quarter.
In a client note Thursday, RBC Capital Markets analyst Jason Arnold said Discover is benefiting from increased acceptance of its cards and favorable credit trends.
"We remain very enthused by Discover's fundamental position and believe the company remains well positioned for loan and (earnings per share) growth," wrote Arnold, who has a $50 price target on the stock.
For the period ended Nov. 30, Discover earned $541 million, or $1.07 per share. That compares with $513 million, or 95 cents per share, a year earlier.
Analysts surveyed by FactSet expected earnings of $1.12 per share.
Revenue climbed 11 percent to $2 billion, after interest expense. Wall Street forecast $1.96 billion.
Also on Thursday, Discover declared a dividend of 14 cents per share. It will be paid on Jan. 17 to shareholders of record on Jan. 3.
Discover shares fell $1.36, or 3.4 percent, to close at $38.41 Thursday. The stock is up 60 percent this year.

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Kate and William to spend Christmas Day with her parents

 Prince William and his pregnant wife Kate will spend Christmas Day with her parents, their office said on Saturday, in a break with the tradition of royals joining The Queen at her country estate at Sandringham.
The Duke and Duchess of Cambridge will celebrate in private with Carole and Michael Middleton at their home in the village of Bucklebury, about 50 miles (80 km) west of London.
"The Duke and Duchess of Cambridge will spend Christmas Day privately with the Middleton family," a St James's Palace spokesman said.
The couple's decision was taken with the approval of the Queen. They are expected to visit Sandringham, in eastern England, for part of the Christmas holiday.
Kate, 30, who married the second-in-line to the throne in April 2011, spent four days in hospital this month with an acute form of morning sickness.
Members of the British royal family usually spend Christmas at Sandringham and stay until February, following a custom set by Queen Elizabeth's father and grandfather. Kate and William spent Christmas there last year, meeting scores of well-wishers.
The Middletons are likely to join millions of Britons in watching Queen Elizabeth's annual Christmas broadcast, a tradition that her grandfather George V started in 1932.
For the first time, the monarch has recorded her television broadcast in 3D. It will be shown at 1500 GMT on December 25.

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UK prosecutors consider charges over royal hoax call

 British detectives investigating the death of a nurse found hanged after she took a prank phone call at a hospital treating Prince William's pregnant wife Kate have passed an evidence file to prosecutors, police said on Saturday.
Public prosecutors must decide whether the case is strong enough to bring charges over a stunt that was condemned around the world and fuelled concerns about media ethics.
Indian-born Jacintha Saldanha, 46, was found hanging in her hospital lodgings in London, days after she answered the hoax call from an Australian radio station, an inquest heard.
She put the call through to a colleague who disclosed details of the Duchess of Cambridge's condition during treatment for an extreme form of morning sickness in the early stages of pregnancy.
"Officers submitted a file to the Crown Prosecution Service (CPS) for them to consider whether any potential offences may have been committed by making the hoax call," London's Metropolitan Police said in a statement.
A CPS spokesman confirmed it had received the file, but declined to comment on the timing or nature of possible charges.
"That is what we will be considering," he said.
Prime Minister David Cameron has described the case as a "complete tragedy" and has said many lessons will have to be learned from the nurse's death.
Australia's media regulator has launched an investigation into the phone call. Southern Cross Austereo, parent company of radio station 2Day FM, has apologised for the stunt.
Britain's own media is already under pressure to agree a new system of self-regulation and avoid state intervention following a damning inquiry into reporting practices.
The presenters who made the call, Mel Greig and Michael Christian, have apologised for their actions.

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Prince William to spend Christmas with the in-laws

 Prince William will spend Christmas with his pregnant wife Kate and his in-laws in the southern England village of Bucklebury, royal officials said Saturday.
That means a family Christmas for the Duchess of Cambridge, who was recently hospitalized after suffering from severe morning sickness.
A statement from St. James' Palace, William's official residence, didn't go into much detail, saying only that the prince and Kate would spend their time in Bucklebury "privately." But a recent article penned by Kate's sister, Pippa Middleton, gave some insight into what a Bucklebury holiday might look like for the royal pair.
"The Middletons' Christmas should be blissfully calm. We're good at keeping each other's spirits up," Pippa wrote in the most recent edition of Britain's Spectator magazine. She added that her father, Michael, liked to surprise the family with bizarre costumes.
"He buys a new costume each year and typically gets a bit carried away — a couple of Christmases ago, he appeared in an inflatable sumo outfit," she wrote.
British royals traditionally spend the holidays at Sandringham, a vast estate in eastern England, and a spokesman for William said that royal couple would pay a visit at some point over the festive season. He noted that William's absence from Sandringham had been approved by his grandmother, Queen Elizabeth II, and her husband, Prince Philip.
He spoke on condition of anonymity because palace rules forbid his identification in the press.

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Pope pardons ex-butler who stole, leaked documents

 Pope Benedict XVI granted his former butler a Christmas pardon Saturday, forgiving him in person during a jailhouse meeting for stealing and leaking his private papers in one of the gravest Vatican security breaches in recent times.
After the 15-minute meeting, Paolo Gabriele was freed and returned to his Vatican City apartment where he lives with his wife and three children. The Vatican said he couldn't continue living or working in the Vatican, but said it would find him housing and a job elsewhere soon.
"This is a paternal gesture toward someone with whom the pope for many years shared daily life," according to a statement from the Vatican secretariat of state.
The pardon closes a painful and embarrassing chapter for the Vatican, capping a sensational, Hollywood-like scandal that exposed power struggles, intrigue and allegations of corruption and homosexual liaisons in the highest levels of the Catholic Church.
Gabriele, 46, was arrested May 23 after Vatican police found what they called an "enormous" stash of papal documents in his Vatican City apartment. He was convicted of aggravated theft by a Vatican tribunal on Oct. 6 and has been serving his 18-month sentence in the Vatican police barracks.
He told Vatican investigators he gave the documents to Italian journalist Gianluigi Nuzzi because he thought the 85-year-old pope wasn't being informed of the "evil and corruption" in the Vatican and thought that exposing it publicly would put the church back on the right track.
During the trial, Gabriele testified that he loved the pope "as a son loves his father" and said he never meant to hurt the pontiff or the church. A photograph taken during the meeting Saturday — the first between Benedict and his once trusted butler since his arrest — showed Gabriele dressed in his typical dark gray suit, smiling.
The publication of the leaked documents, first on Italian television then in Nuzzi's book "His Holiness: Pope Benedict XVI's Secret Papers" convulsed the Vatican all year, a devastating betrayal of the pope from within his papal family that exposed the unseemly side of the Catholic Church's governance.
The papal pardon had been widely expected before Christmas, and the jailhouse meeting Benedict used to personally deliver it recalled the image of Pope John Paul II visiting Mehmet Ali Agca, the Turkish gunman who shot him in 1981, while he served his sentence in an Italian prison.
The Vatican spokesman, the Rev. Federico Lombardi, said the meeting was "intense" and "personal" and said that during it Benedict "communicated to him in person that he had accepted his request for pardon, commuting his sentence."
Lombardi said the Vatican hoped the Benedict's pardon and Gabriele's freedom would allow the Holy See to return to work "in an atmosphere of serenity."
None of the leaked documents threatened the papacy. Most were of interest only to Italians, as they concerned relations between Italy and the Vatican and a few local scandals and personalities. Their main aim appeared to be to discredit Benedict's trusted No. 2, the secretary of state, Cardinal Tarcisio Bertone.
Vatican officials have said the theft, though, shattered the confidentiality that typically governs correspondence with the pope. Cardinals, bishops and everyday laymen write to him about spiritual and practical matters assuming that their words will be treated with the discretion for which the Holy See is known.
As a result, the leaks prompted a remarkable reaction, with the pope naming a commission of three cardinals to investigate alongside Vatican prosecutors. Italian news reports have said new security measures and personnel checks have been put in place to prevent a repeat offense.
Gabriele insisted he acted alone, with no accomplices, but it remains an open question whether any other heads will roll. Technically the criminal investigation remains open, and few in the Vatican believe Gabriele could have construed such a plot without at least the endorsement if not the outright help of others. But Lombardi said he had no new information to release about any new investigative leads, saying the pardon "closed a sad and painful chapter" for the Holy See.
Nuzzi, who has supported Gabriele as a hero for having exposed corruption in the Vatican, tweeted Saturday that it appeared the butler was thrilled to speak with the pope and go home. "Unending joy for him, but the problems of the curia and power remain," he wrote, referring to the Vatican bureaucracy.
A Vatican computer expert, Claudio Sciarpelletti, was convicted Nov. 10 of aiding and abetting Gabriele by changing his testimony to Vatican investigators about the origins of an envelope with Gabriele's name on it that was found in his desk. His two-month sentence was suspended. Lombardi said a pardon was expected for him as well. He recently returned to work in the Vatican.
Benedict met this past week with the cardinals who investigated the origins of the leaks, but it wasn't known if they provided him with any further updates or were merely meeting ahead of the expected pardon for Gabriele.
As supreme executive, legislator and judge in Vatican City, the pope had the power to pardon Gabriele at any time. The only question was when.

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Abducted German aid worker seen alive in video

A German aid worker abducted in Pakistan 11 months ago was seen alive in a video broadcast Saturday urging authorities to fully meet his captors' demands, warning that otherwise they could kill him within days.
The undated video — probably recorded under duress by his captors — was broadcast Saturday by Pakistan's Dunya TV. The German Foreign Ministry in Berlin said it "knows the case" and is aware of the video. A duty spokeswoman declined to elaborate.
Aid organization German Agro Action declined to confirm whether the video indeed showed one of its two staffers abducted in the central Pakistan city of Multan in January. Spokeswoman Simone Pott only acknowledged "we know the video."
The aid worker, identifying himself in the video as 59-year-old Bernd Muehlenbeck, said he was captured by mujahedeen — a generic term for militant Islamic extremists — but didn't specify who they were or what their demands were.
In the message — whose content is likely to have been dictated by the captors — he said he was kidnapped "by mujahedeen because of the bad policies of the German government."
In January, gunmen seized the two foreign aid workers, Muehlenbeck and an Italian colleague, from just outside their office in Multan and bundled them into a car, according to Pakistan security officials. The men were working for a development project helping victims of the 2010 floods, the officials said.
Muehlenbeck did not name or explicitly mention his Italian colleague, but repeatedly used the plural when speaking about his situation.
He appealed to authorities not to attempt freeing them by force. "I would like to live and I would like to see back my family alive," he said, speaking in English with a slight German accent.
In the video lasting just less than a minute, Muehlenbeck is heard speaking calmly in front of a white wall, wearing glasses and a dark hoody.
He said he could be killed by his captors at any time. "We don't know when. Maybe today, maybe tomorrow, maybe in three days."
Pakistan, a poor predominantly Muslim nation of about 180 million, is struggling to fend off an insurgency fueled by Islamic extremists, many of whom are believed to hide in the lawless provinces bordering Afghanistan.
Kidnappings for ransom are common in Pakistan. Islamist militants have also abducted people. Several aid workers have been targeted over the past years.
This week saw a gruesome series of deadly attacks on Pakistanis working on a polio vaccination campaign. Six of the aid workers gunned down were women, three of whom were teenagers. Two other workers were critically wounded.

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