By Deborah Adamson, <a href=cbs.marketwatch.com>CBS.MarketWatch.com Last Update: 5:32 PM ET April 30, 2003

HOUSTON (CBS.MW) -- ConocoPhillips reported a first-quarter profit and a dramatic jump in revenue on Wednesday, reversing last year's loss as higher energy prices and improved refining margins boosted results.

The integrated oil company (COP: news, chart, profile) said net income totaled of $1.4 billion, or $2.10 a share, compared with a loss of $102 million, or 27 cents, in the year-ago period.

Income from continuing operations came to $1.27 billion, or $1.86 a share; analysts polled by Thomson First Call had been expecting $1.72 a share in profit. The figure excludes discontinued operations and the impact of an accounting change. Last year, ConocoPhillips posted a loss of $98 million, or 26 cents a share.

Revenue was $27.1 billion, more than triple last year's $8.5 billion.

Average worldwide crude oil sales price topped $30.72 compared with $25.31 in the fourth quarter.

U.S. mainland natural gas prices averaged $5.47 per thousand cubic feet while worldwide prices topped $4.49. They compare with $3.43 and $3.27 in the prior period, respectively.

The company also decreased debt by $1.5 billion to $18.2 billion.

Upstream production came to $1.6 million barrels of oil equivalent per day. A decline in upstream activity -- which encompasses exploration, development and production -- in Venezuela was offset by higher output in Alaska, China and Indonesia.

Exploration and production income from continuing operations came to $1.14 billion, up from last year's $142 million. Higher crude oil and natural gas prices, increased production and its synergies from the Conoco and Phillips merger boosted performance.

Midstream income, which pertains to storage and transportation of energy, was $31 million, up from $12 million. Higher equity earnings from its stake in Duke Energy Field Services LLC plus an increase in Conoco's midstream operations enhanced the business.

In downstream operations, which encompass the refining and marketing of oil, capacity was at 92 percent in the quarter, up from 89 percent a year ago. Income from continued operations rose to $371 million vs. $87 million.

Higher refining margins and full quarter of operations at a U.K. refinery more than offset higher energy and turnaround expenses.

"Consistent with the integrated oil group, ConocoPhillips outpaced our (estimates) on a strong downstream quarter," said Tyler Dann, an analyst at Banc of America Securities, in a note to clients.

In the chemicals segment, ConocoPhillips lost $23 million from its 50 percent stake in Chevron Phillips Chemical Company LLC due to higher fuel and feed stock costs. Last year, it lost $11 million.

Dann maintained his "buy" rating on the company and views the stock as a "top pick" within integrated oils. The analyst's 12-month price target is $56.40.

Shares of ConocoPhillips rose 25 cents to finish the trading day at $50.30. Deborah Adamson is a reporter for CBS.MarketWatch.com in Los Angeles.

Tue April 29, 2003 09:11 AM ET (Adds quotes, details) By Elizabeth Lazarowitz

NEW YORK, April 29 (<a href=reuters.com>Reuters) - Stocks are poised to start Tuesday's session a touch higher as a fresh batch of earnings reports underpins investor hopes that companies have seen their worst, while Wall Street awaits key data on the U.S. consumer.

Expectation-beating first-quarter results from corporate America have fueled a sharp rally in the past seven weeks, and investors were sifting through more earnings from companies, including chemical maker DuPont Co. DD.N , drug maker Bristol-Myers Squibb Co. BMY.N and semiconductor manufacturer Altera Corp. ALTR.O .

"It's a follow-through from yesterday where psychology seemed to change," said James Volk, managing director of equity trading at D.A. Davidson & Co. "People were encouraged that the earnings season is just about behind us and there were no major downside surprises, as well as the perception that the economy really has, if not turned around, bottomed."

As Wall Street looks for signs that the economy is poised for a rebound, the market could take its early cues from the Conference Board's consumer confidence index.

Stocks roared higher on Monday, giving the blue chip Dow Jones industrial average .DJI its biggest gain in about a month, as investors celebrated solid results from McDonald's Corp. MCD.N and Procter & Gamble Co. PG.N

Standard & Poor's 500 stock index futures for June were up 3.30 points at 916.90, while Nasdaq futures for the same month were up 4.50 points at 1,112.

The Conference Board's consumer confidence survey, due at 10 a.m. (1400 GMT), could give investors a look at how the American consumer -- the linchpin of U.S. growth -- is holding up. Many economists expect that, with the resolution of major fighting in Iraq, consumer confidence got a big boost. The index is expected to read 69.8 in April, up from 62.5 in March.

Ahead of the open, the government reported U.S. employment costs in the first quarter of 2003 jumped by the highest margin in nearly 13 years as health insurance and pension plan costs shot higher.

The market is bracing for a barrage of economic data due later this week, including a closely watched gauge of the manufacturing sector and the government's monthly payrolls data.

"This will tell the market what the state of the economy is and it is probably not going to be as good news as earnings has been," said Bill Strazzullo, market strategist with State Street Corp. He said investors may be encouraged to lock in profits after the market's recent rally.

The Standard & Poor's 500 index .SPX , which is nearing three-month highs, is up more than 14 percent since it hit its 2003 lows on March 11.

Weaker oil prices, which soothed worries corporate profits could take a hit from higher energy costs, were also encouraging stock investors.

DuPont, the second-largest U.S. chemical company, on Tuesday returned to a first-quarter profit, as stronger sales offset surging energy and raw material costs, but it warned that second-quarter profits would miss Wall Street forecasts.

U.S. drugmaker Bristol-Myers Squibb reported its quarterly profit fell as competition from cheaper copycat medicines continued to hurt results.

Northrop Grumman Corp. NOC.N , the No. 3 U.S. defense contractor, on Tuesday posted higher quarterly earnings, excluding certain items, largely due to the new businesses recently acquired.

Halliburton Co. HAL.N , the world's No. 2 oilfield services company, on Tuesday said first-quarter earnings rose as North American drilling activity overcame international results hurt by war and political unrest in Venezuela, Nigeria and the Middle East.

Altera, a maker of programmable semiconductors, posted higher first-quarter profit than a year ago, beating Wall Street estimates on strong sales of new products and replenishing inventories that were depleted late last year.

In overseas trading, European stocks rose as corporate results from chemical giant BASF BASF.DE as well as telecom equipment titans Ericsson ERICb.ST and Alcatel CGEP.PA pleased investors.

The FTSE Eurotop 300 index .FTEU3 of pan-European blue chips rose 0.78 percent to 833, while the euro zone DJ Euro Stoxx 50 index .STOXX50E gained 0.8 percent to 2,363.

In Monday's U.S. session, the Dow Jones industrial average .DJI finished up 165.26 points, or 1.99 percent, at 8,471.61, its biggest rally since an advance of 215 points, or 2.6 percent, on April 2. All 30 Dow components ended higher, pushing the blue-chip Dow average back up into the black for the year.

The broader Standard & Poor's 500 Index .SPX rose 16.03 points, or 1.78 percent, to 914.84. The technology-laced Nasdaq Composite Index .IXIC gained 27.70 points, or 1.93 percent, to close at 1,462.24, based on the latest available figures.

(With additional reporting by Doris Frankel)

nzoom.com

Inflation in the United States was dormant last month outside a jump in energy costs, while groundbreaking for new homes rebounded with surprising vigour after a big weather-related drop, the government said.

The Consumer Price Index, the most popular gauge of US inflation, rose 0.3% last month, the Labor Department said. However, excluding volatile food and energy prices, the CPI was flat - the tamest reading on so-called core inflation since it was last unchanged in February 1999.

"This is more good news on the inflation front. This is a very, very benign number. It's a sign of price stability," said Richard DeKaser, chief economist at National City in Cleveland. Economists had expected the CPI to rise 0.4% and the core index to edge up 0.2%.

A separate report showed housing starts leapt 8.3% last month - the largest gain since September - to a seasonally adjusted 1.780 million unit annual rate, well above the 1.694 million pace analysts had expected.

"Housing starts remain a bright spot in an economy that otherwise seems to be sputtering," said said Dana Johnson, the head of research at Banc One Capital Markets in Chicago.

Johnson and other analysts said the big jump marked an advance from a February level that had been temporarily depressed by unusually harsh winter weather.

Prices for US Treasuries rose a shade and the dollar softened after the data. Stock prices rose at the opening bell, as investors focused on welcome earnings from high-tech bellwethers Intel and Microsoft.

A 4.6% surge in energy costs accounted for more than 90% of the 0.3% rise in the overall CPI, Labor said.

Energy prices rose at an annual rate of nearly 77% over the last three months as oil prices spiked on a workers' strike in oil-rich Venezuela and worries over the potential for supply disruptions as the United States prepared for war against Iraq. However, oil prices began to drop sharply shortly before the war began.

While gasoline prices jumped 4.1% last month, an economist with Labor's Bureau of Labor Statistics said they were likely to be down about 8% in the CPI report for April due out next month, based on Energy Department data.

According to an Energy Department report released on Monday, prices at the pump have fallen 13.3 cents to an average $US1.595 a gallon from the record high reached four weeks ago, just before the United States began bombing Baghdad.

Forbes.com-Reuters, 04.16.03, 10:53 AM ETBy Tim Ahmann

WASHINGTON, April 16 (Reuters) - Inflation in the United States was dormant last month outside a jump in energy costs, while groundbreaking for new homes rebounded with surprising vigor after a big weather-related drop, the government said on Wednesday.

The Consumer Price Index, the most popular gauge of U.S. inflation, rose 0.3 percent last month, the Labor Department said. However, excluding volatile food and energy prices, the CPI was flat -- the tamest reading on so-called core inflation since it was last unchanged in February 1999.

"This is more good news on the inflation front. This is a very, very benign number. It's a sign of price stability," said Richard DeKaser, chief economist at National City Corp. in Cleveland. Economists had expected the CPI to rise 0.4 percent and the core index to edge up 0.2 percent.

A separate report showed housing starts leapt 8.3 percent last month -- the largest gain since September -- to a seasonally adjusted 1.780 million unit annual rate, well above the 1.694 million pace analysts had expected.

"Housing starts remain a bright spot in an economy that otherwise seems to be sputtering," said said Dana Johnson, the head of research at Banc One Capital Markets in Chicago.

Johnson and other analysts said the big jump marked an advance from a February level that had been temporarily depressed by unusually harsh winter weather.

Prices for U.S. Treasuries rose a shade and the dollar softened after the data. Stock prices rose at the opening bell, as investors focused on welcome earnings from high-tech bellwethers Intel Corp. (nasdaq: INTC - news - people) and Microsoft Corp. (nasdaq: INTC - news - people).

PRESSURE DROP

A 4.6 percent surge in energy costs accounted for more than 90 percent of the 0.3 percent rise in the overall CPI, Labor said.

Energy prices rose at an annual rate of nearly 77 percent over the last three months as oil prices spiked on a workers' strike in oil-rich Venezuela and worries over the potential for supply disruptions as the United States prepared for war against Iraq. However, oil prices began to drop sharply shortly before the war began.

While gasoline prices jumped 4.1 percent last month, an economist with Labor's Bureau of Labor Statistics said they were likely to be down about 8 percent in the CPI report for April due out next month, based on Energy Department data.

According to an Energy Department report released on Monday, prices at the pump have fallen 13.3 cents to an average $1.595 a gallon from the record high reached four weeks ago, just before the United States began bombing Baghdad.

BARELY BUDGED

With energy prices already receding, economists said the core inflation gauge, which has barely budged in recent months, marked a better measure of inflation trends.

Over the 12 months ended in March, core inflation has risen just 1.7 percent, matching February's climb as the smallest in 37 years. For the first quarter, the core CPI advanced at just a 0.8 percent annual rate, a sharp slowdown from last year's 1.9 percent increase.

"It's a good story, but not surprising given that there's lots of slack in demand for goods and services," Banc One's Johnson said. "With the economy continuing to struggle, core inflation should continue to drift lower over the next three to six months."

Economists said the subdued reading on core inflation offers scope for the Federal Reserve to lower interest rates further if needed to spur stronger growth.

Clothing prices extended a long slide, dropping 0.4 percent. Medical care costs, which had risen sharply last year, gained just 0.2 percent. Shelter costs held steady for a second straight month. Car prices rose just 0.2 percent last month, defying expectations among some economists for a larger gain.

"There certainly was some discounting here still going on," Labor's Patrick Jackman said.

While housing starts were up sharply last month, permits for future construction fell 7 percent last month, suggesting builders may anticipating a cooling market.

Housing activity has remained healthy despite a sluggish broader economy as mortgage interest rates have slid to lows not seen since the early 1960s.

However, some recent data have suggested the market may be cresting, although most economists and industry participants say they expect an orderly correction rather than a bust.

"Construction remains fundamentally sound," National City's DeKaser said. (Additional reporting by Mark Felsenthal)

<a href=reuters.com>Reuters Wed April 16, 2003 08:57 AM ET By Tim Ahmann

WASHINGTON (Reuters) - A sharp rise in energy costs pushed U.S. consumer prices up in March but there was little sign of inflation pressures elsewhere in the economy, the government said on Wednesday.

The Consumer Price Index, the most popular gauge of U.S. inflation, rose 0.3 percent last month, the Labor Department said. However, excluding volatile food and energy prices, the CPI was flat -- the tamest reading on so-called core inflation since it was last unchanged in February 1999.

Economists polled by Reuters had expected the CPI to rise 0.4 percent and the core index to edge up 0.2 percent.

"This is more good news on the inflation front. This is a very, very benign number. It's a sign of price stability," said Richard DeKaser, chief economist at National City Corp. in Cleveland.

Labor said a 4.6 percent surge in energy costs accounted for more than 90 percent of the increase in the overall CPI.

While energy prices have risen at an annual rate of nearly 77 percent over the last three months as oil prices spiked, economists expect them to begin moving lower soon now that the war in Iraq is all but over.

The department said gasoline prices jumped 4.1 percent last month, while the cost of fuel oil gained 9.8 percent and natural gas prices rose 14.8 percent.

However, gasoline prices have moved down in recent weeks. According to a government report released on Monday, prices at the pump have fallen 13.3 cents to an average $1.595 a gallon from the record high reached four weeks ago, just before the start of the U.S.-led war against Iraq.

Patrick Jackman, an economist with Labor's Bureau of Labor Statistics, said based on Energy Department data, gasoline prices were likely to fall by about 8 percent in the CPI report for April, due out next month.

BARELY BUDGED

Closely watched core inflation has barely budged in recent months. Over the 12 months ended in March, it has risen just 1.7 percent, matching February's climb which was the smallest in 37 years.

The core CPI advanced at just a 0.8 percent annual rate in the first quarter, a sharp slowdown from the 1.9 percent increase registered last year.

"Smaller increases in the indexes for shelter and medical care, coupled with a larger decrease in the index for apparel, were largely responsible for the deceleration," the department said.

Clothing prices extended a long-term slide, dropping 0.4 percent last month. Medical care costs, which had risen sharply last year, gained just 0.2 percent. Shelter costs held steady for a second straight month.

Crude oil prices had risen sharply at the start of the year as a workers' strike in oil-rich Venezuela cut into supplies and worries mounted about the potential for further disruptions as the march to the Iraq war began.

However, prices began to slip shortly before the United States started bombing Baghdad.

Car prices rose just 0.2 percent last month, defying expectations among some economists for a sharp gain.

"There certainly was some discounting here still going on," Labor's Jackman said.

A report last week showed prices automakers received for new cars had risen 3.3 percent last month.