2012 stocks: How Illinois cos. fared

If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

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Freezing rain, fog expected to complicate roadways

The National Weather Service has issued a freezing rain advisory for northeast Illinois that warns of an ice storm that is expected to last until 9 p.m. this evening.

A mix of snow, sleet and freezing rain hit the Chicago area around noon, but there have been no reports of any major accumulation, said Bill Nelson, a meteorologist with the National Weather Service. Still, Nelson warned that a heavy fog will roll in after 7 p.m. tonight and could last until mid to late Monday morning.

According to the agency, the region was going to be hit with freezing rain, possibly mixed with sleet, that will turn to rain as the temperatures rise above freezing in later afternoon or early evening. The agency warns of ice accumulation, up to a tenth-of-an-inch or two, making travel hazardous and possibly leading to downed tree limbs and power lines.

Because the ground is below freezing, the precipitation will freeze on contact, the agency said, leaving sidewalks as well as streets with that potentially dangerous coating of ice.

Forecasters don't expect the storm to have any major lasting effects other than a widespread, dense fog that could pose trouble for drivers once it arrives later tonight.

"We just urge everybody to exercise caution and take things slow," Nelson said.

Much of the ice from today will likely melt as temperatures in the Chicago area reach the mid-30s overnight and slowly increase to the upper 40s by Monday, according to forecasters. Nelson added that it is normal for a heavy fog to appear when cold air is replaced with warmer air and moisture.

Meanwhile, some city and state agencies have already deployed crews to salt streets as the ice storm continues. The city's streets and sanitation department earlier today deployed its full feet of 284 plows to salt main streets, including Lake Shore Drive, and residential roads.

The state's transportation agency has 360 trucks in the northeastern part of Illinois ready to salt roads as soon as precipitation hits the area, said Mike Claffey, a spokesman for the Illinois Department of Transportation.

IDOT will be monitoring weather conditions, but roads will likely be slick this afternoon when the ice storm arrives, Claffey said. He also cautioned drivers to stay off the roads.

"It's going to be very slippery, tricky driving conditions," Claffey said. "If you don't have to be out, you should not be."

jmdelgado@tribune.com

Twitter: @jendelgado1

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Japan to start 4K TV broadcast in July 2014: report

TOKYO (Reuters) - The Japanese government is set to launch the world's first 4K TV broadcast in July 2014, roughly two years ahead of schedule, to help stir demand for ultra high-definition televisions, the Asahi newspaper reported on Sunday without citing sources.

The service will begin from communications satellites, followed by satellite broadcasting and ground digital broadcasting, the report said.

The 4K TVs, which boast four times the resolution of current high-definition TVs, are now on sale by Japanese makers including Sony Corp , Panasonic and Sharp Corp . Other manufacturers include South Korea's LG Electronics .

Japan's Ministry of Internal Affairs and Communications had aimed to kick-start the 4K TV service in 2016. That has been brought forward to July 2014, when the final match of the 2014 football World Cup is set to take place in Brazil, the Asahi report said.

In Japan, the development of super high-definition 8K TVs is in progress, and the Ministry of Internal Affairs and Communications plans to launch the test 8K TV broadcast in 2016, two years ahead of schedule, it said.

(Reporting by Osamu Tsukimori; Editing by Paul Tait)

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Djokovic completes Australian Open hat trick

MELBOURNE, Australia (AP) — No shirt ripping or bare-chested flexing this time.

Novak Djokovic completed his work before midnight, defeating Andy Murray in four sets for his third consecutive Australian Open title and fourth overall.

It was also the second time in three years Djokovic had beaten his longtime friend in this final. So the celebration was muted: a small victory shuffle, raised arms, a kiss for the trophy. No grand histrionics, although that's not to say the moment was lost on him.

"Winning it three in a row, it's incredible," Djokovic said after his 6-7 (2), 7-6 (3), 6-3, 6-2 victory Sunday night. "It's very thrilling. I'm full of joy right now. It's going to give me a lot of confidence for the rest of the season, that's for sure."

Nine other men had won consecutive Australian titles in the Open era, but none three straight years. One of them was Andre Agassi, who presented Djokovic with the trophy.

A year ago, Djokovic began his season with an epic 5-hour, 53-minute five-set win over Rafael Nadal at the Australian Open, the longest Grand Slam final. He tore off his shirt to celebrate, the TV replays repeated constantly at this tournament.

He mimicked that celebration after coming back to beat Stanislas Wawrinka in five hours in a surprisingly tough fourth-round victory this time.

Since then, he's looked every bit the No. 1 player. He said he played "perfectly" in his 89-minute win over fourth-seeded David Ferrer in the semifinals Thursday night. Murray struggled to beat 17-time major winner Roger Federer in five sets in the semifinals Friday night, and still had the bad blisters on his feet to show for it in the final.

In a final that had the makings of a classic when two of the best returners in tennis were unable to get a break of serve in the first two sets that lasted 2:13, the difference may have hinged on something as light as a feather.

Preparing for a second serve at 2-2 in the second set tiebreaker, Murray was rocking back about to toss the ball when he stopped, paused and then walked onto the court and tried to grab a small white feather that was floating in his view. He went back to the baseline, bounced the ball another eight times and served too long.

After being called for a double-fault, Murray knocked the ball away in anger and flung his arm down. He didn't get close for the rest of the tiebreaker and was the first to drop serve in the match — in the eighth game of the third set. Djokovic broke him twice in the fourth set, which by then had turned into an easy march to victory.

"It was strange," said Djokovic, adding that it swung the momentum his way. "It obviously did. ... He made a crucial double-fault."

Murray didn't blame his loss on the one distraction.

"I mean, I could have served. It just caught my eye before I served. I thought it was a good idea to move it," he said. "Maybe it wasn't because I obviously double-faulted.

"You know, at this level it can come down to just a few points here or there. My biggest chance was at the beginning of the second set — didn't quite get it. When Novak had his chance at the end of the third, he got his."

Djokovic had five break-point chances in the opening set, including four after having Murray at 0-40 in the seventh game, but wasn't able to convert any of them.

Then he surrendered the tiebreaker with six unforced errors. Murray appeared to be the stronger of the two at the time. He'd beaten Djokovic in their last Grand Slam encounter, the U.S. Open final, and had the Serb so off balance at times in the first set that he slipped to the court and took skin off his knee.

Murray held serve to open the second set and had three break points at 0-40 in the second game, but Djokovic dug himself out of trouble and held.

"After that I felt just mentally a little bit lighter and more confident on the court than I've done in the first hour or so," Djokovic said. "I was serving better against him today in the first two sets than I've done in any of the match in the last two years."

Djokovic said he loves playing at Rod Laver Arena, where he won his first major title in 2008. He now has six Grand Slam titles altogether. Federer has won four of his 17 majors at Melbourne Park, and Agassi is the only other player to have won that many in Australia since 1968.

Djokovic was just finding his way at the top level when Agassi retired in 2006, but he had watched enough of the eight-time major winner to appreciate his impact.

"He's I think one of the players that changed the game — not just the game itself, but also the way the people see it," Djokovic said. "So it was obviously a big pleasure and honor for me to receive the trophy from him."

Agassi was among the VIPs in the crowd, along with actor Kevin Spacey and Victoria Azarenka, who won the women's final in three sets against Li Na the previous night.

Murray broke the 76-year drought for British men at the majors when he won the U.S. Open last year and said he'll leave Melbourne slightly more upbeat than he has after defeats here in previous years.

"The last few months have been the best tennis of my life. I mean, I made Wimbledon final, won the Olympics, won the U.S. Open. You know, I was close here as well," he said. "No one's ever won a slam (immediately) after winning their first one. It's not the easiest thing to do. And I got extremely close.

"So, you know, I have to try and look at the positives of the last few months, and I think I'm going the right direction."

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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Guild gold: Actors gather for SAG's big night

LOS ANGELES (AP) — A puzzling Academy Awards season will sort itself out a bit more on Sunday with the Screen Actors Guild Awards, where top performers gather to honor their own in what often is a prelude for who'll go home with an Oscar.

Among nominees for the 19th annual guild awards are Oscar winners Daniel Day-Lewis, Sally Field and Tommy Lee Jones for the Civil War epic "Lincoln"; Hugh Jackman and Anne Hathaway for the Victor Hugo musical adaptation "Les Miserables"; and Jennifer Lawrence, Bradley Cooper and Oscar recipient Robert De Niro for the oddball romance "Silver Linings Playbook."

De Niro and Jones are in an exclusive supporting-actors group where all five nominees are past Oscar winners. The others are Alan Arkin for the Iran hostage-crisis thriller "Argo," Javier Bardem for the James Bond adventure "Skyfall" and Philip Seymour Hoffman for the cult drama "The Master."

Honors from the actors union, next weekend's Directors Guild of America Awards and Saturday night's Producers Guild of America Awards — whose top honor went to "Argo" — typically help to establish clear favorites for the Oscars.

But Oscar night on Feb. 24 looks more uncertain this time after some top directing prospects, including Ben Affleck for "Argo" and Kathryn Bigelow for "Zero Dark Thirty," missed out on nominations. Both films were nominated for best picture, but a movie rarely wins the top Oscar if its director is not also in the running.

Steven Spielberg's "Lincoln" would seem the Oscar favorite with 12 nominations. Yet "Argo" and Affleck were surprise best-drama and director winners at the Golden Globes, and then there's Saturday's Producers Guild win for "Argo," leaving the Oscar race looking like anybody's guess.

The Screen Actors Guild honors at least should help to establish solid front-runners for the stars. All four of the guild's individual acting winners often go on to receive the same prizes at the Academy Awards.

Last year, the guild went just three-for-four — with lead actor Jean Dujardin of "The Artist" and supporting players Octavia Spencer of "The Help" and Christopher Plummer of "Beginners" also taking home Oscars. The guild's lead-actress winner, Viola Davis of "The Help," missed out on the Oscar, which went to Meryl Streep for "The Iron Lady."

The guild also presents an award for overall cast performance, its equivalent of a best-picture honor. The nominees are "Argo," ''The Best Exotic Marigold Hotel," ''Les Miserables," ''Lincoln" and "Silver Linings Playbook."

Yet the cast prize has a spotty record at predicting the eventual best-picture recipient at the Oscars. Only eight of 17 times since the guild added the category has the cast winner gone on to take the best-picture Oscar. "The Help" won the guild's cast prize last year, while Oscar voters named "The Artist" as best picture.

Such past guild cast winners as "The Birdcage," ''Gosford Park" and "Inglourious Basterds" also failed to take the top Oscar.

Airing live on TNT and TBS, the show features nine television categories, as well.

The SAG ceremony also includes awards for film and TV stunt ensemble. The film stunt nominees are "The Amazing Spider-Man," ''The Bourne Legacy," ''The Dark Knight Rises," ''Les Miserables" and "Skyfall."

Receiving the guild's life-achievement award is Dick Van Dyke, who presented the same prize last year to his "The Dick Van Dyke Show" co-star, Mary Tyler Moore. Van Dyke's award will be presented by his 1960s sitcom's creator and co-star, Carl Reiner, and Alec Baldwin.

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Online:

http://www.sagawards.com

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2012 stock report: Pains and gains

If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

Read More..

Fire 'rekindles' at Bridgeport warehouse

A vacant warehouse in Bridgeport continues to burn.

Staff report

10:50 a.m. CST, January 26, 2013

A nearly 100-year-old Bridgeport warehouse is on fire again this morning after it was gutted during a 5-alarm fire on Tuesday, according to the Chicago Fire Department.

About 10 a.m., a tower ladder truck was sent to the scene to handle the rekindle at the ruins, according to the fire department.

Last night, as crews began demolishing the warehouse at 3757 S. Ashland Ave., the fire department officially released its conclusion as to how it began.

"In layman's terms, that means something that was burning such as a flame or match got near something that would burn," Langford said.

Langford said the building had no gas or electric service and no one was known to be living there. But the night of the blaze, Fire Commissioner Jose Santiago told reporters that in the past, firefighters had been called to the warehouse for small fires caused when squatters lit fires to stay warm.

The matter has been forwarded to the Chicago Police Bomb and Arson unit to determine if the fire involved foul play, Langford and police said.

Friday morning, a private wrecking company hired by the owners of the building began its demolition, Chicago Fire Department spokeswoman Meg Ahlheim said.

Tuesday night, a fire department battalion chief spotted smoke from the blaze as he drove past around 9 p.m. A third of the department's on-duty personnel were called to fight a fire fed by century-old support timbers. Crews have remained there since, dousing flames from the smouldering debris.

chicagobreaking@tribune.com

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Samsung puts lid on capex for the first time since financial crisis

SEOUL (Reuters) - Samsung Electronics Co turned cautious on spending for the first time since the global financial crisis, keeping its annual investment plan unchanged at 2012 levels, as demand for computer chips wanes and the smartphone market slows.

Samsung, one of the industry's most aggressive spenders, has ramped up capital expenditure every year since 2004 except 2009 to meet soaring demand for its array of consumer electronics and mobile devices. It sold a record 700,000 smartphones a day in the last quarter.

But with the personal computer market shrinking for the first time in 11 years, the global smartphone market growing more slowly, and Apple Inc moving to buy fewer of Samsung's microprocessors used in the iPhone and iPad, the South Korean IT giant is now forced to keep a lid on spending.

"Overall its earnings momentum remains intact, and smartphone shipments will continue to grow even in the traditionally weak first quarter, as Samsung's got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively," said Lee Se-chul, a Seoul-based analyst at Meritz Securities.

Samsung, which reported a record quarterly and annual profit on Friday, said it would keep 2013 capital expenditure unchanged from 2012.

"The key word for us in investment in 2013 is flexibility. We'll decide as the market demand dictates," Robert Yi, head of Samsung's investor relations, told analysts.

Data from the company shows Samsung started to slow down planned investment in the last quarter.

Samsung said it spent 4.4 trillion won in October-December, pushing its 2012 investment to a record 23 trillion won ($21.5 billion). But the company said in October that it was on course to spend 25 trillion won in 2012.

Analysts had expected a 4-20 percent cut in Samsung's 2013 capital spending.

By contrast, Taiwanese rival TSMC is planning to raise its capital expenditure to $9 billion this year, aimed in part at winning Apple orders away from Samsung.

Shares in Samsung fell 2.1 percent as of 0250 GMT, lagging a 1.1 percent decline in the wider market.

RECORD EARNINGS

Samsung had poured money into factories to boost production of chips and panels used in Apple products and its Galaxy range devices, pushing its operating profit to 8.84 trillion won in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.

Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled to 5.44 trillion won in the quarter from a year earlier, lifted by a broader offering of smartphones - from the very cheap to the very expensive.

The division accounted for 62 percent of Samsung's overall fourth-quarter profit, up from 55 percent a year earlier.

Samsung is also seeing strong sales of its Note phablet, which analysts expect to help Samsung get through any seasonal weakness better than rivals.

Samsung, which doesn't provide a breakdown of smartphone sales, is estimated to have sold around 63 million smartphones in the last quarter, including 15 million Galaxy S IIIs and 7 million Note IIs.

The company also said 2012 operating profit rose 86 percent to an all-time high of 29 trillion won.

SAMSUNG VS APPLE

Samsung sold 213 million smartphones last year and enlarged its share of the global market to 30.4 percent from around 20 percent in 2011, a report by market research firm Strategy Analytics showed on Friday. The sharp increase reflects Samsung's aggressive marketing of its wide product range.

Apple's share of the market rose slightly to 19.4 percent from 19.0 percent in 2011, according to the report.

Globally, sales of smartphones surged 42.7 percent last year to 700 million, Strategy Analytics said.

Samsung said on Friday it expects the global smartphone segment to shrink in January-March from the seasonally strong fourth quarter, and that growth of the overall handset market will slow to the mid single-digits this year.

The forecast is in line with industry estimates, with signs of a slowdown having already emerged.

Apple shipped 47.8 million iPhones in the three months ended December, a record that nonetheless disappointed many analysts accustomed to years of outperformance. The Cupertino, California-based company also missed Wall Street's revenue forecast for a third straight quarter as iPhone sales lagged expectations.

Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as 'must-have' as they were.

By contrast, shares in Samsung have risen 12 percent in the same period as the company once seen as quick to copy the ideas of others now sets the pace in innovation.

At the world's biggest electronics show in Las Vegas this month, Samsung unveiled a prototype phone with a flexible display that can be folded almost like paper, and a microchip with eight processing cores, creating a buzz that these may be used in the next Galaxy range.

"It's very probable to us that the Exynos 5 Octa (processor) will find its way into the Galaxy S4," UBS analyst Nicolas Gaudois wrote in a recent note.

"It also looked as if the curved display is close enough to finished product. We came away even more convinced that displays will provide significant differentiation to Samsung devices, and application processors will materially grow over time," Gaudois said. ($1 = 1066.2000 Korean won)

(This story corrects 19th paragraph to show Apple's 2012 smartphone market share rose slightly according to Strategy Analytics.)

(Reporting by Miyoung Kim; Editing by Ryan Woo)

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Stan Musial remembered during funeral Mass

ST. LOUIS (AP) — Stan Musial was remembered as a Hall of Famer on and off the field during a 2-hour funeral Mass.

Broadcaster Bob Costas, his voice cracking at times, pointed out during Saturday's lengthy tribute that in 92 years of life, Musial never let anyone down.

Among those in attendance were baseball Commissioner Bud Selig, former St. Louis standout Albert Pujols and Hall of Famers Bob Gibson, Lou Brock, Bruce Sutter and Red Schoendienst.

The 90-year-old Schoendienst once roomed with Musial.

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