Johannesburg – South African bonds surrendered
brief budget-inspired gains on Wednesday after the market
digested the deficit forecasts unveiled by Finance Minister
Pravin Gordhan and found them unconvincing.

“The budget is not as good as the initial numbers look,”
said George Glynos, managing director at financial consultancy
ETM.

“Bonds have trimmed their gains. They responded to the
budget deficit figures but now that the market is dissecting
them they do not look realistic,” he told Reuters.

Bond yields initially dropped as Gordhan said in his annual
budget speech that the budget deficit would narrow to 4.6
percent of gross domestic product in the financial year ending
March 2013 from a 4.8% shortfall in 2011/12.

But as the numbers sank in, the market questioned future
deficit projections such as four percent of GDP in 2013/14
because the economic growth outlook remains sluggish.

The yield on the 2026 bond went up to 8.24
percent, after hitting a session low of 8.18 percent shortly
after the budget speech began.

The 2015 bond also gave up gains with its yield
rising to 6.61 percent, from a session low of 6.58 percent.

The rand was virtually unchanged, trading around 7.73
against the dollar, and it was seen tracking global events for
direction.

“There is no reason in this budget why the rand should go
stronger. Now that this is out of the way it will respond to
offshore developments again,” said Glynos.

Technically, the rand could soften and target levels around
7.87 or 7.88/dlr, which it tested last week but found support.

Washington Post reporters or editors recommend this comment or reader post.

The Dow Jones industrial average closed higher today after hitting the intraday high of 13,000 for the first time since May 2008. The stock index is at a nearly four-year high, closing just below 13,000.

The Dow closed at 12,967, up 0.13 percent, while the SP 500 closed at 1,362, up 0.08 percent.

Paul Larson, chief equities strategist for investment firm Morningstar, said the 13,000 mark is an arbitrary number without much intrinsic value to the markets. Still, it is twice the intraday market low of 6,440 at the height of the recession March 9, 2009.

The Dow opened this morning at 12,980 while the SP 500 opened to 1,364, which was that index’s highest close since 2008. The Dow Jones industrial average closed Friday at 12,950, up 0.35 percent, and the SP 500 closed at 1,361.

With European finance ministers agreeing to a new bailout package for Greece, all eyes were watching whether the Dow would pass the psychological threshold of 13,000 after markets were closed Monday in honor of Presidents Day. The index briefly passed the mark shortly before 11:30 a.m. ET before returning to about 12,995.

“There’s nothing magical about the 13,000 level, but it could help boost investor sentiment to some extent,” Scott Brown, an economist with Raymond James, said. But, he added, “it’s encouraging that the market is absorbing bad news on Walmart and second-guessing on the Greek bailout.”

Larson said the Greek deal did not provide as much positive “pop” to shares as might be expected because the solvency issue in Greece is far from over.

“You don’t solve a debt problem with more debt,” Larson said. “Maybe the immediate crisis of the country going through a disorderly default next month has been diverted, but that doesn’t mean long-term issues have been solved.

Early this morning, eurozone finance ministers finished seven months of deliberating in Brussels and agreed to a bailout plan for Greece of 130 billion euros, or about $171.5 billion, its second in three years. Martin Koehring, an economist for the Economist Intelligence Unit, said that without the bailout, Greece faced the prospect of defaulting on a 14.5 billion euro, or about $19.1 billion, bond redemption due by March 20.

“If we get a resolution or even improvement as far as Greece and stress in the financial markets is concerned, that could boost some of the gains we’re seeing in the stock markets,” Nick Bennenbroek, head of currency strategy for Wells Fargo, said before the deal.

In the United States, Home Depot announced strong fourth-quarter earnings, including $774 million in net income, a 32 percent increase. Kraft reported fourth-quarter net income of $830 million, up from $540 million, in line with expectations.

Walmart, however, reported a 15 percent drop in profit for the fourth quarter to $5.16 billion, missing estimates.

European shares were slightly this morning after seeing their highest close Monday in almost seven months.

In London, the FTSE 100 index was up 0.68 percent at 5,945, after an earlier drop. Asian shares finished mixed before the Greek deal had been reached. Japan’s Nikkei 225 index closed down 0.2 percent at 9,463, and Hong Kong’s Hang Seng rose 0.3 percent to 21,479.

European equities were lower partly on “buy the rumor, sell the news,” Brown said. He said shares were also down after a Financial Times report of a confidential European Union memo that questioned Greece’s ability to service its restructured debt.

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Investors continued to steer money into stock mutual funds in February, though with much less enthusiasm. According to statistics released today by the Investment Company Institute, investors placed an estimated $1.04 billion into equity funds during the week ended Wednesday, Feb. 15, less than half the $3.64 billion they poured into the funds a week earlier.

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Foreign stock funds received the lion’s share of the infusion, gaining $1.01 billion for the week. U.S. stock funds received the remaining $35 million. 

Bond funds once again claimed the day, posting estimated inflows of $8.20 billion, their largest weekly inflow this year.  Of the $8.20 billion, $6.46 billion went into taxable bond funds with the remaining $1.73 billion going into municipal bond funds.

Hybrid funds—those that invest in both stocks and fixed-income securities—took in a respectable $2.66 billion in new investments, up from the $2.49 billion they posted in inflows a week earlier. 

All told, mutual funds posted estimated inflows of $11.90 billion for the week, down from the previous week’s inflow of $13.18 billion, which set a record for the year.  

The weekly fund flow estimates are derived from data covering more than 95% of industry assets, according to ICI. The statistics cover long-term mutual funds, those the ICI defines as investing in long-term instruments. 

Margarida Correia writes for Bank Investment Consultant.

Under the proposal, the top tax rate would drop from 35 percent to 28 percent, and some popular breaks would be scaled back for upper-income taxpayers, although aides provided scant details.

“We want middle-income Americans to be the place we focus our help, because it’s middle-income Americans that have been hurt by this Obama economy,” Romney said as he outlined parts of his plan in a campaign appearance in Arizona, one of two states holding a primary Tuesday. Michigan is the other.

Romney did not propose cutting marginal tax rates in a book-length jobs plan he released last year. Now facing a challenge from rival Rick Santorum, Romney is working to court conservative voters who have been reluctant to embrace his candidacy.

Romney’s proposal sharpened his differences with President Barack Obama, who favors allowing tax cuts enacted under President George W. Bush to expire on higher incomes.

Romney also proposed changes to raise the Social Security retirement age for younger workers and curtail annual benefit increases. He would also allow younger workers to choose a voucher to pay for private insurance instead of participating in traditional Medicare.

Romney said he plans to pay for the tax cuts by limiting some of the popular deductions and exemptions for charitable giving, savings, mortgage interest and other areas. Campaign officials would not explain what deductions and exemptions Romney would limit or who would be affected, though they said the changes will be targeted at the wealthiest households.

Romney said his plan would not raise the federal deficit because economic growth and more tax revenue from ending deductions and exemptions would pay for it. His aides didn’t offer specifics.

“For high-income folks, we’re going to cut back on that so we make sure that the top 1 percent keeps paying the share that they’re paying or more,” Romney said.

Romney also cast the proposal as a boon to small-business owners who pay individual rates on their earnings.

“By lowering those marginal rates, we help businesses that pay at the individual tax rate to have more money so they can hire more people,” he said.

Obama’s campaign said Romney’s plan was a boon for the wealthiest. “He’s giving more tax breaks to millionaires and billionaires, raising defense spending to an arbitrarily high level, and lowering corporate taxes without explaining how he would pay for them,” spokesman Ben LaBolt said in a statement.

Romney’s proposals are an expansion on what he laid out in his campaign book, “No Apology,” and on a 59-point jobs plan he outlined in September.

In that plan, Romney said he opposed raising taxes and would not allow tax cuts passed under Bush to expire. Ending those cuts would make the top tax rate 39.6 percent.

Romney originally planned to unveil his economic plan in a major economic speech in Detroit on Friday, set to happen at Ford Field, where the Detroit Lions play football. His campaign said he decided to unveil the plan earlier because he wants to focus on it during Wednesday night’s GOP debate.

Obama also unveiled a corporate tax plan Wednesday, one calling for a 28 percent tax. White House spokesman Jay Carney said the timing was not planned to preempt Romney’s announcement.

Romney, who released much of his corporate tax plan last year, would lower it to 20 percent. He says economic growth would make the plan revenue neutral.

Several consumer discretionary and tech exchange-traded funds on Wednesday came off 52-week highs reached in the prior session, retreating along with a pause in the broader market.

On Tuesday, the iShares SP Global Information Technology Sector Index 



/quotes/zigman/296176
/quotes/nls/ixn
IXN



, the Technology Select Sector SPDR Fund



/quotes/zigman/1475411
/quotes/nls/xlk
XLK



, the Vanguard ETF Information Technology fund



/quotes/zigman/1485075
/quotes/nls/vgt
VGT



, and the iShares DJ U.S. Technology Select Sector Index Fund



/quotes/zigman/1476362
/quotes/nls/ivw
IVW



all reached their respective 52-week highs, and on Wednesday found themselves down between 0.2% and 0.3%.

After market close Tuesday, Dell Inc.’s  



/quotes/zigman/27952
/quotes/nls/dell
DELL



quarterly earnings missed Wall Street estimates by a penny.  Dell shares are down about 6%. After the close Wednesday, Hewlett-Packard Co. 



/quotes/zigman/229301
/quotes/nls/hpq
HPQ



is scheduled to report quarterly results. H-P shares are down 1% in recent trading.

Also hitting their 52-week highs on Tuesday were consumer discretionary ETFs. Those ETFs include the SPDR SP Retail ETF



/quotes/zigman/478011
/quotes/nls/xrt
XRT



, the Consumer Discretionary Select Sector SPDR Fundxl



/quotes/zigman/246177
/quotes/nls/xly
XLY



, the iShares DJ U.S. Consumer Services Sector Index Fund



/quotes/zigman/1476572
/quotes/nls/iyc
IYC



, the Vanguard ETF Consumer Discretionary fund



/quotes/zigman/1485001
/quotes/nls/vcr
VCR



, and the Market Vector Retail ETF



/quotes/zigman/7871037
/quotes/nls/rth
RTH



. Of those, only the SPDR SP Retail ETF traded higher Wednesday, up about 0.2% on the day.

Also on Tuesday, the SPDR SP Regional Banking ETF



/quotes/zigman/478050
/quotes/nls/kre
KRE



reached a new 52-week high of $27.50. Shares of the ETF fell 1.8% to $26.74 on Wednesday.

– Wallace Witkowski

Articles

• 
  

  Europe woes drag world markets, JSE down
  

• 
  

  Fuel levy increase leads bonds weaker
  

• 
  

  JSE slips at noon in choppy session
  

The local near-dated Alsi contract ended 177
points, or 0.58%, lower to 30,265.

The rand was at 7.72 from R7.73
against the US dollar on Tuesday, while gold was quoted at US$1,753.47 a troy
ounce from US$1,757.46/oz before.

The total number of contracts that
exchanged hands was 38,336 from 21,990 on Tuesday.

US stocks opened a
touch lower as European business activity unexpectedly slowed, prompting
investors to pause after rising to the cusp of multi-year highs, Dow Jones
Newswires reports.

The Dow was pulling back slightly after peeking
briefly above the 13,000 level in intraday action on Tuesday. The Dow, which is
looking to close above the threshold for the first time since May 2008, finished
Tuesday with a modest gain of 16 points.

Also hurting sentiment was a
reading on business activity in the eurozone, which unexpectedly contracted in
February. Markit Economics’ purchasing managers’ index fell to 49.7 from
January’s 50.4, below expectations of a rise to 50.8. Readings below 50 imply
contraction.

Separately, some uncertainty remained over how Greece’s
second bailout deal, secured on Tuesday, would be implemented and how effective
it would be.
 

The company said the board intended to use the purchase consideration to reduce its levels of debt, inject working capital into its remaining subsidiaries and pay a special dividend to its shareholders.

“The rationale for the disposal is to expunge PSV’s primary debt and inject free cash flow back into the remaining subsidiaries for working capital purposes,” the company said.

PSV’s pump business operates primarily in South Africa and Zambia.

According to the company, it has established an extensive product base in mines, municipalities, paper mills, minerals beneficiation companies, ports and harbours, water authorities, power generation utilities and petrochemical refineries throughout Africa and worldwide.  

The company has set effective date of the disposal on the first day of the month, following the date on which the last of the conditions precedent have been fulfilled or waived

Shareholders were advised to exercise caution when dealing in PSV’s securities

Audio

• 
  

  The Budget: NHI and tolling
  

Articles

• 
  

  Cosatu rejects Gauteng freeway tolling
  

• 
  

  Gauteng tolling to start on April 30
  

• 
  

  Gauteng tolling given the green light
  

• Download the full Speech

He said SA needs to become a solidarity society so that the legacy of the past can be addressed and inequality reduced.  Speaking at a media briefing ahead of delivering the 2012/13 Budget, he said: “We need to move out of our comfort zone and ask ourselves ‘what am I willing to sacrifice’, as we cannot reduce inequality without sacrifice.”

“Although the government has set out an ambitious infrastructure spending programme, the financing of it is manageable. So I trust you will join me in seeing the glass as being half full rather than half empty,” Gordhan said.

The toll fee decision is part of this solidarity drive. “This budget has been crafted at a challenging but hopeful time. We have to say to our people that economic uncertainty will be with us for some time, yet we have a programme of economic change that can steadily roll back unemployment, poverty and inequality.

“It requires an extraordinary national effort from all role-players, committed not just to identifying the barriers to progress, not just to proposing solutions, but also working together, over the long haul” he said in his Budget speech.

Go to Budget 2012 Special Report

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Hosting the call to review results for the fiscal third quarter will be
Timothy E. Conver, chief executive officer, Jikun Kim, chief financial
officer, and Steven A. Gitlin, vice president of investor relations.

Conference Call Event Summary

Date: March 6, 2012
Time: 1:30 PM PT (2:30 PM MT, 3:30 PM CT, 4:30
PM ET)
Toll-free: (877) 561-2749
International: (678) 809-1029

Investors with Internet access may listen to the live audio webcast via
the Investor Relations section of the AeroVironment, Inc. website, http://investor.avinc.com.
Please allow 15 minutes prior to the call to download and install any
necessary audio software.

Audio Replay Options

An audio replay of the event will be archived on the Investor Relations
section of the Company’s website, at http://investor.avinc.com.
The audio replay will also be available via telephone from Tuesday,
March 6, 2012, at approximately 4:30 p.m. Pacific Time through Tuesday,
March 13, at 9:00 p.m. Pacific Time. Dial (855) 859-2056 and
enter the passcode 44382732. International callers should dial (404)
537-3406 and enter the same passcode number to access the audio
replay.

About AeroVironment, Inc.

AeroVironment is a technology solutions provider that designs, develops,
produces and supports an advanced portfolio of Unmanned
Aircraft Systems (UAS) and electric transportation solutions.
Agencies of the U.S. Department of Defense and allied military services
use the company’s electric-powered, hand-launched
unmanned aircraft systems extensively to provide situational
awareness to tactical operating units through real-time, airborne
reconnaissance, surveillance and communication. AeroVironment’s electric
transportation solutions include a comprehensive suite of electric
vehicle (EV) charging systems, installation and network services for
consumers, automakers, utilities and government agencies, power
cycling and test systems for EV developers and industrial
electric vehicle charging systems for commercial fleets. More
information about AeroVironment is available at www.avinc.com.

During his presentation, which is scheduled to begin at 11:10 a.m.
Eastern Time, Mr. Ficalora will discuss the Company’s business model and
its fourth quarter 2011 financial performance.

A simultaneous webcast of the presentation will be available at the
Company’s website, ir.myNYCB.com. A replay of the webcast will be
available later in the day, and will be archived at this website,
together with the accompanying PowerPoint slides, through March 14, 2012.

About New York Community Bancorp, Inc.

With assets of $42.0 billion at December 31, 2011, New York Community
Bancorp, Inc. is the 21st largest bank holding company in the nation and
a leading producer of multi-family mortgage loans in New York City, with
an emphasis on apartment buildings that feature below-market rents. The
Company has two bank subsidiaries: New York Community Bank, a thrift
with 241 branches serving customers throughout Metro New York, New
Jersey, Ohio, Florida, and Arizona; and New York Commercial Bank, with
34 branches serving customers in Manhattan, Queens, Brooklyn, Long
Island, and Westchester County in New York.

Reflecting its growth through a series of acquisitions, the Community
Bank operates through seven local divisions, each with a history of
service and strength: Queens County Savings Bank in Queens; Roslyn
Savings Bank on Long Island; Richmond County Savings Bank on Staten
Island; Roosevelt Savings Bank in Brooklyn; Garden State Community Bank
in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida
and Arizona. Similarly, the Commercial Bank operates 17 of its branches
under the divisional name Atlantic Bank. Additional information about
the Company and its bank subsidiaries is available at www.myNYCB.com
and www.NewYorkCommercialBank.com.

“We continue to have a strong prospect
list which supports our growth projection for 2012.”

Full year new awards were strong at $26.9 billion, which compares with
record bookings of $27.4 billion a year ago, reflecting substantial
mining metals orders in the II segment and sizable orders in Oil
Gas. Consolidated backlog rose to a new year-end high of $39.5 billion,
up 13 percent from a year ago.

“I am pleased that Fluor has delivered another year of strong new
awards, resulting in double-digit backlog growth and earnings per share
at the top end of our expectations for 2011,” said Chairman and Chief
Executive Officer David Seaton. “We continue to have a strong prospect
list which supports our growth projection for 2012.”

Corporate GA expense for the year rose to $163 million, up from
$156 million a year ago, mainly due to higher management incentive
compensation which was partially offset by overhead cost reductions.
Fluor’s financial condition remains very strong, with cash plus current
and noncurrent marketable securities totaling $2.8 billion, which is up
from $2.6 billion a year ago. During 2011, the Company generated $890
million in cash flow from operating activities, repurchased $640 million
worth of Fluor shares, and paid out $88 million in dividends. The
Company also took advantage of attractive market rates and completed a
$500 million offering of 10-year unsecured notes to enhance cash
balances in the United States.

Outlook

Despite continuing economic uncertainty, the Company remains encouraged
about future opportunities across its diverse end-markets, and is
maintaining its EPS guidance for 2012 at the previously announced range
of $3.40 to $3.80 per diluted share, which includes the estimated impact
of ongoing operating expenses of approximately $0.20 per share
associated with the Company’s investment in NuScale Power.

Business Segments

Fluor’s Oil Gas unit reported segment profit of $276 million in 2011,
down from $344 million in 2010 which included higher margin contribution
from projects that were completed or nearing completion. Revenue rose by
3 percent to $8.0 billion in 2011. Full year new awards in 2011 totaled
$8.3 billion, which compares with $9.7 billion in 2010. In the fourth
quarter, the segment booked a $1.5 billion award for the construction
management of Syncrude Canada Ltd.’s Mildred Lake project in Alberta,
Canada. Ending Oil Gas backlog rose 6 percent from a year ago to end
2011 at $15.1 billion.

The Industrial Infrastructure group reported segment profit of $389
million, reflecting strong profits from the mining metals and
infrastructure business lines. This compares with a segment loss of $170
million in 2010. The Greater Gabbard Offshore Wind Farm project, which
is nearing completion, has experienced a number of issues which
substantially increased the estimated cost to complete the project. On
the Greater Gabbard project, results for 2011 included charges of $60
million, while 2010 was impacted by provisions totaling $343 million.
Results for 2010 were also impacted by a $95 million charge related to a
bankruptcy court ruling on a completed road project. Total revenue for
the segment rose 41 percent to $9.7 billion in 2011, mainly due to
increases in mining metals project volume. New awards remained strong
at $12.2 billion, which compares with $12.5 billion last year. Year-end
backlog rose to a segment record $19.6 billion, representing a 16
percent increase over 2010.

Government posted segment profit of $145 million, which compares with
$142 million reported a year ago. Revenue in 2011 grew by 12 percent to
$3.4 billion. Improved results primarily reflect higher levels of
project execution activities on LOGCAP IV task orders in Afghanistan.
New awards totaled $3.7 billion for the year, up 35 percent from $2.8
billion in 2010, reflecting initial funding of the Portsmouth Gaseous
Diffusion project and increased funding of LOGCAP IV task orders. Ending
backlog rose to $1.1 billion, compared with $751 million a year ago.

Segment profit for Global Services rose 14 percent to $152 million in
2011, compared with $133 million in 2010. Revenue increased by 5 percent
to $1.6 billion. Improved financial results were primarily due to growth
in the equipment business line. Full year new awards of $1.0 billion
were down from $1.6 billion a year ago, reflecting a reduced volume of
operations and maintenance activities. Ending backlog declined to $1.9
billion from $2.1 billion a year ago.

Fluor’s Power group reported segment profit of $81 million, down from
$171 million last year, on a 56 percent decline in revenue to $743
million. Lower segment results primarily reflect the completion or
near-completion of several large projects and relatively low new award
volume in 2010. With a strong second half, 2011 new awards rose to $1.6
billion, a substantial improvement from $757 million in 2010. The fourth
quarter included an award from the Lower Colorado River Authority to
build a 540-megawatt gas-fired combined-cycle power plant in Texas.
Power segment backlog rose to $1.8 billion from $972 million a year ago,
reflecting the recent increase in new awards.

Fourth Quarter Results

Net earnings attributable to Fluor for the fourth quarter of 2011 were
$153 million, or $0.90 per diluted share, compared with $117 million, or
$0.65 per diluted share, in 2010. Fourth quarter segment profit totaled
$279 million, compared with $77 million a year ago which included
pre-tax charges of $180 million on the Greater Gabbard Offshore Wind
Farm project and $28 million on a gas-fired power plant in Georgia.
Fluor’s tax rate in the fourth quarter of 2011, at 26 percent, was lower
than expected due to the favorable resolution of various tax issues and
audits. Fluor’s consolidated tax expense in the fourth quarter of 2010
included a $152 million benefit from the tax restructuring of a foreign
subsidiary, largely arising from the financial impact of the Greater
Gabbard losses on the affected subsidiary. Corporate GA expenses in the
fourth quarter of 2011 were $61 million, which compares with $58 million
reported a year ago. Revenue for the quarter of $6.3 billion was
19 percent higher than last year, mainly due to a significant increase
in Industrial Infrastructure. Fourth quarter new awards were $4.3
billion, including awards of $2.5 billion in Oil Gas, $947 million in
Power and $504 million in II.

Fourth Quarter and Year-End Conference Call

Fluor will host a conference call at 5:30 p.m. Eastern Standard Time on
Wednesday, February 22, which will be webcast live on the Internet and
can be accessed by logging onto http://investor.fluor.com.
A supplemental slide presentation will be available shortly before the
call begins. The webcast and presentation will be archived for 30 days
following the call. Certain non-GAAP financial measures, as defined
under SEC rules, are included in this press release and may be discussed
during the conference call. A reconciliation of these measures is
included in this press release which will be posted in the investor
relations section of the Company’s website.

About Fluor Corporation

Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the
world’s most challenging and complex projects. Founded in 1912, John
Simon Fluor Sr. started the Company with a modest investment of $100.
Since those humble beginnings, the Company has grown into one of the
largest engineering construction companies in the world. Fluor is
celebrating its 100^th anniversary during 2012.

Today, through its global network of offices on six continents, the
company provides comprehensive capabilities and world-class expertise in
engineering, procurement, construction, commissioning, operations,
maintenance and project management. Headquartered in Irving, Texas,
Fluor is a FORTUNE 200 company and had revenue of $23.4 billion in 2011.
For more information, visit www.fluor100.com
and www.fluor.com.

Forward-Looking Statements: This
release may contain forward-looking statements (including without
limitation statements to the effect that the Company or its management
“believes,” “expects,” “anticipates,” “plans” or other similar
expressions). These forward-looking statements, including
statements relating to future backlog, revenue and earnings, expected
performance of the Company’s business and the outlook of the markets
which the Company serves are based on current management expectations
and involve risks and uncertainties. Actual results may differ
materially as a result of a number of factors, including, among other
things, failure to achieve projected backlog, revenue and/or earnings
levels; reduced profits or losses under contracts if costs increase
above our estimates; intense competition in the global engineering,
procurement and construction industry, which can place downward pressure
on the Company’s contract prices and profit margins; the Company’s
failure to receive anticipated new contract awards and the related
impacts on revenues, earnings, staffing levels and cost; a continuance
of the current sluggishness in the global economy; difficulties or
delays incurred in the execution of contracts, resulting in cost
overruns or liabilities, including those caused by the performance of
the Company’s clients, subcontractors, suppliers and joint venture or
teaming partners; the cyclical nature of many of the markets the Company
serves, including the Company’s commodity-based business lines, and the
Company’s vulnerability to downturns; foreign economic and political
uncertainties; failure to meet timely completion or performance
standards that could result in higher costs, reduced profits or, in some
cases, losses on projects; failure to obtain favorable results in
existing or future litigation or dispute resolution proceedings; the
financial viability and concentration of the Company’s clients,
subcontractors, suppliers and joint venture or teaming partners; risks
or uncertainties associated with events outside of our control, such as
the effects of severe weather, which may result in project delays,
increased costs, liabilities or losses on projects; client cancellations
of, or scope adjustments to, existing contracts, including the Company’s
government contracts that may be terminated at any time, and the related
impacts on staffing levels and cost; liabilities arising for faulty
engineering services; the potential impact of certain tax matters
including, but not limited to, those from foreign operations and ongoing
audits by tax authorities; delays or defaults in client payments; the
availability of credit and restrictions imposed by credit facilities,
both for the Company and our clients; failure to maintain safe worksites;
risks or uncertainties associated with acquisitions, dispositions and
investments; the Company’s ability to hire and retain qualified
personnel; decreased capital investment or expenditures, or a failure to
make anticipated increased capital investment or expenditures, by the
Company’s clients; and the timely and successful implementation
of strategic initiatives. Caution must be exercised in relying on
these and other forward-looking statements. Due to known and
unknown risks, the Company’s results may differ materially from its
expectations and projections.

Additional information concerning these and other factors can be
found in press releases as well as the Company’s public periodic filings
with the Securities and Exchange Commission, including the discussion
under the heading “Item 1A. Risk Factors” in the Company’s Form 10-K
filed on February 22, 2012. Such filings are available either publicly
or upon request from Fluor’s Investor Relations Department: (469)
398-7220. The Company disclaims any intent or obligation other than as
required by law to update its forward-looking statements in light of new
information or future events.

FLUOR CORPORATION

CONSOLIDATED FINANCIAL RESULTS

(in millions, except per share amounts)

Unaudited

CONSOLIDATED OPERATING RESULTS

THREE MONTHS ENDED DECEMBER 31

2011

2010

Revenue

$

6,252.1

$

5,266.8

Cost and expenses:

Cost of revenue

5,942.5

5,167.7

Corporate general and administrative expense

61.1

58.0

Interest income, net

(0.1

)

(1.4

)

Total cost and expenses

6,003.5

5,224.3

Earnings before income taxes

248.6

42.5

Income tax expense (benefit)

64.8

(96.6

)

Net earnings

183.8

139.1

Net earnings attributable to noncontrolling interests

(30.7

)

(22.0

)

Net earnings attributable to Fluor Corporation

$

153.1

$

117.1

Basic earnings per share

Net earnings

$

0.91

$

0.66

Weighted average shares

169.2

177.6

Diluted earnings per share

Net earnings

$

0.90

$

0.65

Weighted average shares

170.8

181.3

New awards

$

4,265.2

$

7,090.0

Backlog

$

39,483.7

$

34,908.7

Work performed

$

6,107.0

$

5,138.0

YEAR ENDED DECEMBER 31

2011

2010

Revenue

$

23,381.4

$

20,849.3

Cost and expenses:

Cost of revenue

22,232.5

20,144.0

Corporate general and administrative expense

163.5

156.3

Interest income, net

(16.4

)

(10.6

)

Total cost and expenses

22,379.6

20,289.7

Earnings before income taxes

1,001.8

559.6

Income tax expense

303.7

118.5

Net earnings

698.1

441.1

Net earnings attributable to noncontrolling interests

(104.4

)

(83.6

)

Net earnings attributable to Fluor Corporation

$

593.7

$

357.5

Basic earnings per share

Net earnings

$

3.44

$

2.01

Weighted average shares

172.5

178.0

Diluted earnings per share

Net earnings

$

3.40

$

1.98

Weighted average shares

174.6

181.0

New awards

$

26,896.1

$

27,362.9

Backlog

$

39,483.7

$

34,908.7

Work performed

$

22,808.8

$

20,360.1

FLUOR CORPORATION

Unaudited

BUSINESS SEGMENT FINANCIAL REVIEW

($ in millions)

THREE MONTHS ENDED DECEMBER 31

2011

2010

Revenue

Oil Gas

$

2,109.6

$

2,091.2

Industrial Infrastructure

2,707.5

1,636.6

Government

849.4

805.8

Global Services

403.2

423.8

Power

182.4

309.4

Total revenue

$

6,252.1

$

5,266.8

Segment profit $ and margin %

Oil Gas

$

71.4

3.4

%

$

78.7

3.8

%

Industrial Infrastructure

120.8

4.5

%

(102.4

)

-6.3

%

Government

36.7

4.3

%

37.1

4.6

%

Global Services

40.4

10.0

%

39.1

9.2

%

Power

9.3

5.1

%

24.3

7.9

%

Total segment profit $ and margin %

$

278.6

4.5

%

$

76.8

1.5

%

Corporate general and administrative expense

(61.1

)

(58.0

)

Interest income, net

0.1

1.4

Earnings attributable to noncontrolling interests

31.0

22.3

Earnings before taxes

$

248.6

$

42.5

YEAR ENDED DECEMBER 31

2011

2010

Revenue

Oil Gas

$

7,961.7

$

7,740.0

Industrial Infrastructure

9,700.4

6,867.2

Government

3,398.2

3,038.0

Global Services

1,577.7

1,508.6

Power

743.4

1,695.5

Total revenue

$

23,381.4

$

20,849.3

Segment profit $ and margin %

Oil Gas

$

275.6

3.5

%

$

344.0

4.4

%

Industrial Infrastructure

389.3

4.0

%

(169.7

)

-2.5

%

Government

145.5

4.3

%

142.2

4.7

%

Global Services

151.8

9.6

%

133.3

8.8

%

Power

81.1

10.9

%

170.9

10.1

%

Total segment profit $ and margin %

$

1,043.3

4.5

%

$

620.7

3.0

%

Corporate general and administrative expense

(163.5

)

(156.3

)

Interest income, net

16.4

10.6

Earnings attributable to noncontrolling interests

105.6

84.6

Earnings before taxes

$

1,001.8

$

559.6

FLUOR CORPORATION

Unaudited

SELECTED BALANCE SHEET ITEMS

($ in millions, except per share amounts)

DECEMBER 31,

DECEMBER 31,

2011

2010

Cash and marketable securities, including noncurrent

$

2,761.4

$

2,607.4

Total current assets

5,880.6

5,562.8

Total assets

8,270.3

7,614.9

Total short-term debt

19.5

96.7

Total current liabilities

3,840.1

3,523.4

Long-term debt

513.5

17.8

Shareholders’ equity

3,395.5

3,497.0

Total debt to capitalization % (based on shareholders’ equity)

13.6

%

3.2

%

Shareholders’ equity per share

$

20.09

$

19.82

SELECTED CASH FLOW ITEMS

($ in millions)

YEAR ENDED DECEMBER 31

2011

2010

Cash provided by operating activities

$

889.7

$

550.9

Investing activities

Net sales (purchases) and maturities of marketable securities

(133.4

)

437.5

Capital expenditures

(338.2

)

(265.4

)

Proceeds from disposal of property, plant and equipment

53.8

53.7

Other items

(18.6

)

(7.4

)

Cash (utilized) provided by investing activities

(436.4

)

218.4

Financing activities

Repurchase of common stock

(639.6

)

(175.1

)

Dividends paid

(87.7

)

(90.1

)

Proceeds from issuance of Senior Notes

495.6

-

Repayment of convertible debt

(77.2

)

(13.1

)

Distributions paid to noncontrolling interests

(103.7

)

(83.7

)

Capital contribution by joint venture partners

22.8

1.0

Repayment of corporate-owned life insurance loans

-

(32.2

)

Other Items

(6.0

)

3.3

Cash utilized by financing activities

(395.8

)

(389.9

)

Effect of exchange rate changes on cash

(31.1

)

68.5

Increase in cash and cash equivalents

$

26.4

$

447.9

Depreciation

$

199.4

$

189.4

FLUOR CORPORATION

Supplemental Fact Sheet

Unaudited

NEW AWARDS

($ in millions)

THREE MONTHS ENDED DECEMBER 31

2011

2010

% Chg

Oil Gas

$

2,549

60

%

$

4,400

62

%

(42

)%

Industrial Infrastructure

504

12

%

1,282

18

%

(61

)%

Government

125

3

%

533

7

%

(77

)%

Global Services

140

3

%

404

6

%

(65

)%

Power

947

22

%

471

7

%

101

%

Total new awards

$

4,265

100

%

$

7,090

100

%

(40

)%

YEAR ENDED DECEMBER 31

2011

2010

% Chg

Oil Gas

$

8,325

31

%

$

9,713

35

%

(14

)%

Industrial Infrastructure

12,238

45

%

12,505

46

%

(2

)%

Government

3,724

14

%

2,761

10

%

35

%

Global Services

1,028

4

%

1,627

6

%

(37

)%

Power

1,581

6

%

757

3

%

109

%

Total new awards

$

26,896

100

%

$

27,363

100

%

(2

)%

BACKLOG TRENDS

($ in millions)

AS OF DECEMBER 31

2011

2010

% Chg

Oil Gas

$

15,068

38

%

$

14,267

41

%

6

%

Industrial Infrastructure

19,601

49

%

16,862

48

%

16

%

Government

1,091

3

%

751

2

%

45

%

Global Services

1,881

5

%

2,057

6

%

(9

)%

Power

1,843

5

%

972

3

%

90

%

Total backlog

$

39,484

100

%

$

34,909

100

%

13

%

United States

$

8,572

22

%

$

8,985

26

%

(5

)%

The Americas (excluding the United States)

12,223

31

%

9,697

28

%

26

%

Europe, Africa and the Middle East

8,172

21

%

8,340

24

%

(2

)%

Asia Pacific (including Australia)

10,517

26

%

7,887

22

%

33

%

Total backlog

$

39,484

100

%

$

34,909

100

%

13

%

Atlanta Food Wine Festival offers: Learning Experiences, Tasting
Experiences as well as evening dinners and events. The Learning
Experiences include smart and entertaining cooking and cocktail
demonstrations, tasting seminars and panel discussions all designed by
industry. The daily learning sessions are followed by the Festival’s
delicious Tasting Tents. Unlike other tasting tents, the AFWF tents are
curated by chefs and feature a variety of tasting trails including:
Fried Chicken, BBQ, Lamb, Seafood, Sweets, Bourbon and Farm Fresh. The
food trails are complimented by wine and spirits from the region and
other “Southern” regions around the globe like Southern Europe, South
Africa and South America.

2012 Ticketing packages include:

• Tasting Tent Pass – Food and beverage lovers will salivate at
  the mere mention of the culinary delights gracing this year’s Tasting
  Tents. Chefs choose favorite recipes to highlight their journey
  through the South while mixologists, sommeliers and brewers craft the
  perfectly complemented libation. $100 per Tasting Tent ticket ($85
  – early bird)
• Day Pass – Day Passes are ideal for curious food and beverage
  enthusiasts, desiring to not only taste incredible flavors but also to
  educate themselves through the top minds in the culinary world. Day
  Passes include choice of three Learning Experiences, one Tasting Tent
  and gift bag. $185 per day ($135 – early bird)
• Three-Day Pass – If one day isn’t enough, Atlanta Food Wine
  Festival offers Three-Day Passes for guests looking to expand their
  tastes and minds. Ticketholders can choose nine Learning Experiences,
  enjoy three Tasting Tent sessions, receive a ticket to the Pig Out:
  Southern Style party and leave with a Festival gift bag. $500
  for Friday, Saturday and Sunday ($375 – early bird)
• Connoisseur Day Pass – If a more exclusive, lavish experience
  is what you seek, receive VIP treatment with the Connoisseur Day Pass.
  Live in the lap of luxury with a dedicated concierge to assist in
  planning the perfect gastronomic adventure which includes one Tasting
  Tent session with VIP entrance, one Connoisseur breakfast prepared by
  an award-winning chef, one evening dinner or event of your choice
  (excluding the Blackberry Farm dinner), access to the private
  Connoisseur Lounge and gift bag. $700 per day ($565 – early bird)
• Connoisseur Three-Day Pass – The ultimate Atlanta Food
  Wine Festival ticket, the Three-Day Pass offers the most exclusive
  schedule for food and beverage devotees. For an experience unlike any
  other, the Connoisseur Three-Day Pass dedicates a personal concierge
  to assist with the planning of your experience which includes choosing
  nine Connoisseur Learning Experiences and three Tasting Tent sessions
  with VIP entrance, invitations to three Connoisseur breakfasts,
  private dinners Thursday and Friday, the Blackberry Farm dinner on
  Saturday, and access to the elegant Connoisseur Lounge. Guests will
  also depart with a gift bag. $2,000 for Friday, Saturday and Sunday
  ($1,500 – early bird)

To purchase tickets, visit www.atlfoodandwinefestival.com.
Atlanta Food Wine Festival on Facebook
and Twitter.

Apollo Group, Inc.’s investor presentation is scheduled for Wednesday,
February 29, 2012, at 8:35 a.m. ET. The presentation will be webcast
live and archived on the Investor Relations section of the Company’s
website at www.apollogrp.edu.

About Apollo Group, Inc.

Apollo Group, Inc. is one of the world’s largest private education
providers and has been in the education business for more than 35 years.
The Company offers innovative and distinctive educational programs and
services both online and on-campus at the undergraduate, master’s and
doctoral levels through its subsidiaries: University of Phoenix, Apollo
Global, Institute for Professional Development and College for Financial
Planning. The Company’s programs and services are provided in 40 states
and the District of Columbia; Puerto Rico; Latin America; and Europe, as
well as online throughout the world.

For more information about Apollo Group, Inc. and its subsidiaries, call
(800) 990-APOL or visit the Company’s website at www.apollogrp.edu.

Goldman, Sachs Co. and Credit Suisse Securities (USA) LLC acted as
joint book-running managers for the offering.

The offering was made pursuant to an effective shelf registration
statement and was made only by means of a prospectus supplement and the
accompanying prospectus, copies of which may be obtained, when
available, by sending a request to: Goldman, Sachs Co., 200 West
Street, New York, New York 10282, Attn: Prospectus Department, 200 West
Street, New York, NY, 10282, Phone: 1-866-471-2526, Fax: 212-902-9316,
E-mail: prospectus-ny@ny.email.gs.com,
or Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One
Madison Avenue, New York, NY 10010, Phone: 1-800-221-1037, E-mail: prospectus@credit-suisse.com.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be
any sales of the securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction.

OYO Geospace designs and manufactures instruments and equipment used by
the oil and gas industry in the acquisition and processing of seismic
data as well as in reservoir characterization and monitoring activities.
The company also designs and manufactures equipment and film for the
thermal printing industry worldwide.

« L’eau est essentielle à la vie. Aucune plante, aucun animal, aucun
homme ne peut vivre sans eau. En tant que premier fournisseur mondial de
solutions de gestion de l’eau pour les services publics, Itron s’engage
pleinement à contribuer à la conservation de l’eau à travers le monde »

Le Forum Mondial de l’Eau est le plus grand rendez-vous mondial sur
l’eau. Le thème du forum 2012 est « Le temps des solutions » et
l’objectif de la conférence est d’élaborer des initiatives mettant en
œuvre des solutions concrètes et d’agir pour que la cause de la
conservation de l’eau se retrouve en tête des agendas politiques des
180 pays représentés.

Depuis des années, les solutions d’Itron ont aidé les services publics
du monde entier à gérer l’eau de façon responsable. De la surveillance
des infrastructures d’eau à la détection de fuites, Itron permet aux
services publics de réduire leurs coûts d’exploitation grâce aux données
fournies par des systèmes de mesure et d’optimiser l’approvisionnement
par rapport à la demande. L’objectif global est de contribuer à
préserver les ressources en eau et d’améliorer l’accès à l’eau pour le
plus grand nombre de personnes à travers le monde.

« L’eau est essentielle à la vie. Aucune plante, aucun animal, aucun
homme ne peut vivre sans eau. En tant que premier fournisseur mondial de
solutions de gestion de l’eau pour les services publics, Itron s’engage
pleinement à contribuer à la conservation de l’eau à travers le monde »,
a déclaré Marcel Reigner, PDG d’Itron Water.

Pour plus d’informations sur les solutions d’eau d’Itron, venez nous
rendre visite sur stand d’Itron au Forum ou obtenez toutes les mises à
jour à l’adresse http://www.itron.com/WWF2012.

À propos d’Itron
Itron est un important fournisseur de
solutions de gestion des ressources en énergie et eau destinées à près
de 8000 services publics dans le monde. Nous proposons des solutions de
bout en bout qui comprennent une technologie de mesure et de contrôle
d’électricité, de gaz, d’eau et d’énergie thermique, des systèmes de
communication, des logiciels et des services professionnels. Avec plus
de 9000 employés qui exercent leurs activités dans plus de 130 pays,
Itron permet aux services publics de gérer de façon responsable et
efficace les ressources en eau et en énergie. Pour participer à la
création d’un avenir durable, commencez ici : www.itron.com.

Le texte du communiqué issu d’une traduction ne doit d’aucune manière
être considéré comme officiel. La seule version du communiqué qui fasse
foi est celle du communiqué dans sa langue d’origine. La traduction
devra toujours être confrontée au texte source, qui fera jurisprudence.

“We are pleased to have another opportunity to return capital to our
shareholders, as the Company’s operating results and liquidity position
remain strong.”

Hugh Steven Wilson, Chairman of the Company’s Board of Directors, said,
“We are pleased to have another opportunity to return capital to our
shareholders, as the Company’s operating results and liquidity position
remain strong.”

About International Wire Group Holdings, Inc.

International Wire Group Holdings, Inc., through its wholly owned
subsidiaries, manufactures and markets wire products, including bare,
silver-plated, nickel-plated and tin-plated copper wire, for other wire
suppliers, distributors and original equipment manufacturers. Its
products include a broad spectrum of copper wire configurations and
gauges with a variety of electrical and conductive characteristics and
are utilized by a wide variety of customers primarily in the aerospace,
appliance, automotive, electronics/data communications,
industrial/energy and medical device industries. The Company
manufactures and distributes its products at 20 facilities located in
the United States, Belgium, France, Italy and Poland.

Forward-Looking Information is Subject to Risk
and Uncertainty

Certain statements in this release may constitute “forward-looking”
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward-looking terminology such as the words “believes,” “expects,”
“may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends,”
“plans,” “estimates,” or the negative of any thereof or other variations
thereof or comparable terminology, or by discussions of strategy or
intentions. These statements are not guarantees of future performance
and involve risks, uncertainties and assumptions as to future events
that may not prove to be accurate. Actual outcomes and results may
differ materially from what is expressed or forecasted in these
forward-looking statements. As a result, these statements speak only as
of the date they were made and we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Many important factors
could cause our results to differ materially from those expressed in
forward-looking statements. These factors include, but are not limited
to, fluctuations in our operating results and customer orders,
unexpected decreases in demand or increases in inventory levels, changes
in the price of copper, tin, nickel and silver, the failure of our
acquisitions and expansion plans to perform as expected, the competitive
environment, our reliance on our significant customers, lack of
long-term contracts, substantial dependence on business outside of the
U.S. and risks associated with our international operations, limitations
due to our indebtedness, loss of key employees or the deterioration in
our relationship with employees, litigation, claims, liability from
environmental laws and regulations and other factors.

ITWG-G

DELTIC TIMBER CORPORATION
CONSOLIDATED FINANCIAL DATA SUMMARY

2011

2010

Net sales

$

28,813,000

33,701,000

Net income/(loss)

(208,000

)

1,273,000

Earnings/(loss) per common share

Basic

(.02

)

.10

Assuming dilution

(.02

)

.10

Average common shares outstanding

Basic

12,474,412

12,370,857

Assuming dilution

12,474,412

12,464,907

YEAR-TO-DATE

2011

2010

Net sales

$

121,847,000

141,623,000

Net income

2,659,000

12,397,000

Earnings per common share

Basic

.21

0.99

Assuming dilution

.21

0.99

Average common shares outstanding

Basic

12,449,897

12,364,123

Assuming dilution

12,552,185

12,460,363

Deltic Timber Corporation’s President and Chief Executive Officer, Ray
C. Dillon, announced today that financial results for the fourth quarter
of 2011 were a loss of $.2 million, $.02 a share, which compares to net
income of $1.3 million, $.10 a share, in the corresponding quarter of
2010. The decrease is due mainly to a reduced pine sawtimber harvest
volume sold at a lower average per-ton sales price, combined with the
sales of fewer acres of non-strategic hardwood bottomland. For the year
of 2011, net income was $2.7 million, $.21 a share, compared to $12.4
million, $.99 a share, for the twelve months ended December 31, 2010.
Net cash provided by operating activities was $.2 million for the fourth
quarter of 2011, which compares to $2.4 million for the same period of
last year. Cash provided by operating activities for the year of 2011
was $14.6 million compared to $28.9 million for the prior year.

Commenting on the results, Mr. Dillon stated, “Despite the continued
weak markets for dimension lumber and residential real estate caused by
the low level of housing starts and excess single family homes for sale
in the United States, Deltic’s excellent portfolio of assets produced
both positive net income and respectable cash flows for yet another
year. We did not sell all of the hardwood bottomland acreage planned for
2011, as we kept this sales activity at the level the market would
absorb, while maintaining the average sales price received per acre.
Having our Mills segment generate positive operating income in this
lumber market environment was quite an accomplishment. The slight loss
for the fourth quarter was largely the result of timing. Good logging
conditions existed for much of the year and allowed us to complete a
large percentage of our annual timber harvest in the first three
quarters of the year, and we closed on the sale of a significant
commercial real estate site back in the second quarter.”

The Woodlands segment reported operating income of $4 million in the
fourth quarter of 2011, compared to $7.9 million for the same period of
2010. The pine sawtimber harvest during the fourth quarter period was
83,246 tons, a 38 percent decrease when compared to a harvest of 134,602
tons for the same period of last year. This decrease in harvest volume
was due to timing, as unusually dry logging conditions in Deltic’s
operating areas earlier in the year enabled the Company to accomplish a
large percentage of its planned annual harvest for 2011 in the first
three quarters of the year. The average per-ton sales price for pine
sawtimber was $21 in the fourth quarter of 2011, which compares to $28
per-ton for the same period of 2010. The decrease was due to lower
demand from sawmills in the Company’s operating area, as they reduced
production to meet market demands. During the fourth quarter of 2011,
Deltic harvested 92,934 tons of pine pulpwood at an average price of $8
per ton, compared to 94,365 tons harvested at an average price of $9 per
ton for the same period of 2010. Oil and gas revenues from lease rentals
and net royalties were $1.5 million for the fourth quarter of 2011
versus $1.4 million in 2010’s fourth quarter. Deltic sold approximately
1,125 acres of recreational-use hardwood bottomlands for an average
sales price of $1,500 per acre in the fourth quarter of 2011 versus
2,939 acres sold at an average sales price of $1,500 per acre for the
same period of 2010, as the Company reduced sales volume to the level of
market demand.

The Mills segment reported $.6 million in operating income in the fourth
quarter of 2011 compared to an operating loss of $1.1 million during
2010’s fourth quarter. The improvement was primarily due to a lower cost
for the logs used to manufacture lumber, resulting from the decreased
average sales price for pine sawtimber stumpage in Deltic’s operating
region. The average lumber sales price was $253 per thousand board feet
for the fourth quarter of 2011, which was a three percent increase when
compared to $245 per thousand board feet for the same period one year
ago. The lumber sales volume was 59.1 million board feet in 2011’s
fourth quarter, a 13 percent decrease when compared to 2010’s fourth
quarter sales volume of 68.2 million board feet. The Company reduced
lumber production to match demand during the fourth quarter of 2011.

The Company’s Real Estate segment had operating income of $.1 million in
the fourth quarter of 2011 compared to an operating loss of $.6 million
for the same period of 2010. The Company sold 1.38 acres of commercial
property for $411,600 per acre during the current year’s fourth quarter,
while there were no sales of commercial real estate acreage during the
prior year’s fourth quarter. Residential lot sales totaled nine lots in
2011’s fourth quarter, a decrease of six lots when compared to the
corresponding quarter of 2010. The current quarter’s average sales price
was $58,700 per lot, which compares to $68,900 per lot for 2010’s fourth
quarter. The reduced average sales price per-lot was due to the mix of
lots sold, as the Company has not reduced lot prices.

Corporate operating expense was $3.7 million for the fourth quarter of
2011, which compares to $4.4 million for the same period of 2010. The
decrease was primarily due to lower general and administrative expenses,
mainly employee incentive plan expenses. Deltic’s equity in the results
of Del-Tin Fiber was a loss of $.6 million for the current year quarter
versus earnings of $.4 million for the same period in 2010. During the
fourth quarter of 2011, Del-Tin Fiber continued to experience higher
resin glue costs and a weaker market for medium density fiberboard when
compared to the same period of 2010. Deltic recorded an income tax
benefit of $.2 million in the current year quarter compared to income
tax expense of $.2 million in the corresponding quarter of 2010. The
income tax rate for the fourth quarter of 2011 benefitted from the
impact of certain permanent tax differences relative to the amount of
pretax financial results for the quarter, while the same period of 2010
benefitted from the impact of recording a discrete tax item.

Capital expenditures were $5.4 million for 2011’s fourth quarter and
$15.7 million for the year of 2011. For the corresponding periods of
2010, capital expenditures totaled $6.8 million and $15.6 million,
respectively.

For the year of 2011, the pine sawtimber harvest was 606,311 tons
compared to 609,867 tons for 2010. The average pine sawtimber sales
price for 2011 decreased $4 per ton from that of 2010, to $23 per ton.
Sales of non-strategic timberland for the year of 2011 totaled 2,726
acres with an average sales price of $1,500 per acre, while in 2010, the
Company sold 4,061 acres with a per-acre sales price of $1,600. Oil and
gas lease rental and royalty income was $6.4 million in 2011 versus $5.7
million in 2010. Lumber sales volume decreased six percent from 270.8
million board feet in 2010 to 254.3 million board feet in 2011. The
average finished lumber sales price decreased $36 per thousand board
feet, to $254 per thousand board feet in 2011. Residential lot sales for
the current year totaled 31 lots at an average price of $63,500 per lot
versus sales of 28 lots in 2010 at $81,400 per lot. Deltic sold 27.36
acres of commercial real estate at $116,700 per acre in 2011, which
compares to a sale of 19 acres for $334,000 per acre in 2010. Equity in
earnings of Del-Tin Fiber was $.3 million in 2011, while 2010’s equity
in earnings was $4.1 million.

Regarding the outlook for the first quarter and year of 2012, Mr. Dillon
stated, “We currently anticipate the pine sawtimber harvest to be
140,000 to 160,000 tons and 550,000 to 600,000 tons, respectively.
Finished lumber sales are estimated to be 50 to 70 million board feet
for the first quarter and 250 to 275 million board feet for the year,
but these volumes are dependent upon market conditions. Residential lot
sales are projected at three to six lots and 15 to 25 lots for the first
quarter and year of 2012, respectively. Commercial acreage within Chenal
Valley continues to receive interest, but due to the volatile nature of
commercial real estate transactions and the significant number of
factors involved, it is difficult to anticipate future closings.”

Statements included herein that are not historical in nature are
intended to be, and are hereby identified as, “forward-looking
statements” within the meaning of the Federal Securities Laws. Such
statements reflect the Company’s current expectations and involve
certain risks and uncertainties. Actual results could differ materially
from those included in such forward-looking statements. Factors that
could cause such differences include, but are not limited to, the
cyclical nature of the industry, changes in interest rates, credit
availability, general economic conditions, adverse weather, cost and
availability of materials used to manufacture the Company’s products,
and the other risk factors described from time to time in the reports
and disclosure documents filed by the Company with the Securities and
Exchange Commission.

Deltic will hold a conference call on Thursday, February 23, 2012, at
10:00 a.m. Central Time to discuss fourth quarter and year of 2011
earnings. Interested parties may participate in the call by dialing
1-800-510-9834 and referencing participant passcode identification
number 21940441. The call will also be broadcast live over the Internet
and can be accessed through the Investor Relations section of the Deltic
website, at www.deltic.com.
Online replays of the call will be available through the Deltic website,
and a recording of the call will be available until Friday, March 2,
2012, by dialing 1-888-286-8010 and referencing replay passcode
identification number 71273769.

Both parties showed rare bipartisanship last week, and the GOP-
led House of Representatives on Friday voted to pass the extension
of the payroll tax cut and jobless benefits for the long-term
unemployed for the rest of this year on an overwhelming vote of 293
to 132.

The Senate on Friday followed shortly afterward with a vote 60 to
36 vote.

“This tax cut makes a difference for a lot of families,” Obama
said at a Tuesday White House event marking the passage of the tax
cuts. He was expected to sign the bill into law in coming days.

The agreement represents a victory for Obama and his fellow
Democrats, who have argued that payroll tax cut for Americans could
provide a boost to the nascent economic recovery. Republican
lawmakers also have reason to welcome the deal, as it gets a
politically troubling issue off the table.

The bill could avoid a payroll tax hike for Americans on March 1,
renewing unemployment benefits for the long-term unemployed as well
as averting a steep cut in Medicare doctors’ fees.

Failure to extend the payroll tax holiday will reduce U.S. real
gross domestic product (GDP) in 2012 by 0.4 percentage point, while
not extending the unemployment benefits will translate into a 0.3
percentage point real GDP growth decrease this year, Moody’s
Analytics chief economist Mark Zandi wrote on his blog.

The payroll tax was first reduced from 6.2 percent to 4.2 percent
in the beginning of 2011 at the request of Obama to bolster
consumption and economic recovery. Obama and his fellow Democrats
have fought hard to renew the tax cut to woo middle- class voters,
triggering rounds of bitter partisan wrangling in recent months.

Payroll tax, or employment tax, was imposed by the U.S. federal
government on both employees and employers to fund entitlement
programs including Social Security and Medicare.

The two-percentage-point payroll tax cut fell short of Obama’s
goal of halving it to 3.1 percent put forward last year in his 447-
billion-dollar jobs bill, which has been blocked by rival
Republicans who insisted that new fiscal spending moves would add
red ink to the federal government as the nation’s total public debt
has surpassed 15 trillion U.S. dollars.

The bill is also designed to wind down the program of extended
federal jobless benefits approved by Congress during the recession.
The bill caps the current maximum duration 99 weeks of jobless
benefits to 73 weeks, depending on different states’ jobless rates.

MIXED REACTION

In an presidential election year, the payroll tax and jobless
benefits deal drew hyperbolic rhetoric from the rival parties.

With public approval rating for Congress at a record low, U.S.
House Speaker John Boehner, the top GOP congressman, and his top GOP
lieutenants said last week that they would not insist that the cost
of the deal be offset with spending cuts elsewhere.

The passage of the 143-billion-dollar measure before this week’ s
congressional recess ended a contentious political fight, but
sparked mixed reaction from Republicans and Democrats. Boehner and

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Telenor Group plans to form a new Indian company

Norwegian telecom giant Telenor has stepped up the fight against Unitech! It has sent a notice to Unitech to dissolve the agreement. Telenor has also sought government’s permission for smooth transition of Uninor business into new company.

Telenor Group, which is looking forward to form a new Indian company to take its operations ahead in India, says that its new Indian company will be a platform for fresh licences. The company expects Uninor board to transfer the business into new company.  

Telenor says that it has taken full responsibility for Uninor’s financial security. Uninor is a joint venture of Telenor and Unitech. “Uninor business will go on till new India unit formed,” says Telenor. The Norwegian company further says that it will seek FIPB approval for 74% ownership in new company.

There’s a new study out from the Cornell Higher Education Research Institute that suggests that differential tuition—the practice of charging some students more than others at public institutions—is on the rise. The study found 143 colleges or universities with some form of differential tuition, including 29 percent of bachelor’s institutions, 11 percent of master’s institutions, and 41 percent of doctoral institutions. The number of schools following the practice has grown every year since 1985.

Why should this matter to business students? As we reported back in March, the burden of many differential tuition policies falls disproportionately on business students (as well as engineering and nursing). At the University of Virginia’s McIntire School of Commerce, business students pay $3,000 a year more than everyone else. At the University of Tennessee, Knoxville, they pay $50 more per credit hour, a surcharge that will add about $3,200 to the their tuition bill over four years.

Many schools that are opting for differential tuition are doing so out of desperation. When Tennessee started last year, the number of undergraduate business majors had more than doubled since 2004, while the number of faculty hadn’t budged. State budget cuts were looming, federal stimulus funds were drying up, and classes were packed. Without more cash, the school would have had to start turning students away.

Given that the average tuition at four-year public colleges is now $8,244 for in-state students and $20,770 for out-of-state students, three grand is nothing to sneeze at. But is differential tuition fair?

The logic behind differential tuition rests on the assumption that business and engineering students will earn more over the course of their lives. But the sad truth is that not everyone graduates with a degree. According to the federal government just over half the students who start a bachelor’s degree program graduate in six years. For business students in the other half who are charged a differential tuition, the higher tuition just means a bigger student debt load–a hole made all the more impossible to dig oneself out without the job opportunities and higher salary that a degree would bring.

For now though, let’s consider those who do graduate with a business or engineering degree and who go on to earn those fabulous salaries. If they’re earning more, then they’re paying more in taxes, a portion of which goes to support the very same institutions that awarded their degrees (or state institutions in another state, if they move). In effect, they’re already paying a differential tuition–to Uncle Sam and for the rest of their lives. Hitting them up for another $3,000 while they’re still in school adds insult to injury.

Business has been one of the most popular majors on college campuses for many years, so charging business students more makes a certain intuitive sense. After all, if business teaches us anything it’s that when demand increases and supply remains constant, prices will rise. But should education–a social good paid for at least in part by taxpayers–follow the dictates of supply and demand?

I would argue no. If business and engineering education does, in fact, lead to a more productive and better-paid citizenry, then colleges shouldn’t be in the business of discouraging it by charging more. If anything, they should use differential tuition to discourage academic disciplines with less economic impact and poorer job prospects. As a society, we need to decide what we value more and start pricing college accordingly.