>>> AbbVie raises FY14 EPS guidance

AbbVie raises FY14 EPS guidance
Co issues in-line guidance for FY14 (Dec), sees EPS of $3.06-3.16 vs. $3.11 Capital IQ Consensus Estimate.
  • AbbVie's 2014 outlook continues to exclude any potential revenue from the expected 2014 U.S. launch of its hepatitis C (HCV) therapy which has been granted accelerated review by the U.S. Food and Drug Administration (FDA).
  • The co is raising its outlook, reflecting strong underlying business performance year to date and the expected continued positive trends over the remainder of the year, including the second quarter.

>>> Shire plc updates progress in presentation; sees product sales targets of $6

Shire plc updates progress in presentation; sees product sales targets of $6.5 bln by 2016 and $10 bln by 2020

  • Shire is delivering a presentation today setting out the continued progress in executing its strategy, which centers on delivering innovative therapies for significant unmet need in Rare Diseases and other high-value specialty indications.
  • The Company is providing new, long-term, financial targets which highlight the significant potential for shareholder value creation.
  • From 2013 to 2020 Shire is targeting sustainable product sales growth leading to annual product sales (excluding the impact of any additional M&A, licensing and certain recent acquisitions) of US$10 bln by 2020, comprising US$7 bln from in-line product sales and US$3 bln in sales from existing pipeline products. In the medium term Shire is also targeting annual product sales of US$6.5 bln by 2016.
  • The Board believes that Shire's focused growth strategy and efficient cost base will continue to deliver significant shareholder value and patient benefits.day's presentation includes the following additional information in relation to Shire's risk adjusted financial targets and non-risk adjusted sales forecasts for selected key pipeline products:
    • Product sales targets of $6.5 bln by 2016 and $10 bln by 2020
    • Double-digit compound annual product sales growth from the current portfolio through 2020 (excluding the impact of M&A, in-licensing and pipeline development from certain recent transactions).
    • Rare Diseases business unit sales of over US$3 bln by 2020; Neuroscience business unit sales of over US$3 bln by 2020.
    • GI business unit sales of over US$1.3 bln by 2020; Lifitegrast product sales in 2020 of in excess of US$1 bln.
    • SHP465 product sales in 2020 of approximately US$500 mln (unrisked[6]); SHP607 (PREMIPLEX®) product sales in 2020 of in excess of US$500 mln (unrisked[6]); LDX product sales (as a treatment of Binge Eating Disorder) in 2020 of approximately US$300 mln (unrisked[6])
    • Pipeline intrathecal programs product sales in 2020 of approximately $400 mln
    • Peak sales potential (unrisked) for LUM001 and LUM002 of in excess of US$3 bln in total; and Peak sales potential (unrisked) for the innovative pipeline of over $7 bln.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: PLXT +8.2%, ASTI +6.5%, LULU +5.2%, AZC +4.7%, CBST +4.5%, SPPI +3.2%, MCRS +2.5%, BHP +2%, CLF +1.8%, RIO +1.5%, XRX +1.5%, MY +1.1%, INO +1%, MT +0.9%, MU +0.8%, GE +0.3%

Gapping down: XXIA -5.6%, ETRM -5.5%, KNDI -4.7%, ZQK -3.5%, NBG -2.8%, IRE -2.4%, ASML -2.4%, NVDA -1.7%, AMD -1.7%, COH -1.6%, BUD -1.2%, ING -0.9%, EGO -0.8%, DB -0.6%

(BN) *SHIRE DECLINES TO COMMENT ON WHETHER OTHER COS HAVE APPROACHED

 BN 06/23 11:29 *SHIRE CEO SAYS HIS ONLY DEFENSE IS TRACK RECORD, STRATEGIC PLAN
 BN 06/23 11:28 *SHIRE GROWTH SHOULD COMMAND PREMIUM OF `SOME SIGNIFICANCE'
 BN 06/23 11:27 *SHIRE HOLDERS SHOULD BE COMPENSATED FOR GIVING THAT UP
 BN 06/23 11:27 *SHIRE HAS STRONG INDEPENDENT FUTURE, ORNSKOV SAYS
 BN 06/23 11:27 *SHIRE CEO ORNSKOV COMMENTS IN INTERVIEW IN LONDON
 BN 06/23 11:01 *SHIRE GROWTH STRATEGY TO DELIVER SIGNIFICANT SHRHOLDER VALUE
*SHIRE DECLINES TO COMMENT ON WHETHER OTHER COS HAVE APPROACHED
2014-06-23 11:30:22.70 GMT

--PHIL SERAFINO

-0- Jun/23/2014 11:30 GMT

>>> FMC Corp guides Q2 EPS below consensus; lowers FY14 guidance

FMC Corp guides Q2 EPS below consensus; lowers FY14 guidance; provides segment guidance (weather was a factor)

Co issues downside guidance for Q2 (Jun), sees EPS of $0.95-1.05 vs. $1.11 Capital IQ Consensus Estimate.

Co issues downside guidance for FY14 (Dec), lowers EPS to $4.10-4.30 from $4.35-4.55 vs. $4.44 Capital IQ Consensus.
  • The co previously reported that the prolonged cold weather in North America had delayed first quarter sales. When providing previous guidance, the co expected these weather conditions to abate and for a recovery of these sales to occur in the remaining quarters of 2014. However, the weather conditions persisted later into Q2 than expected leading to reduced application of pre-emergent products. Although sales of Authority brand soybean pre-emergent herbicides increased as expected, the increase was not enough to offset lower than expected sales of other products, particularly Capture LFR corn insecticide.
  • In addition, the co reported that drought conditions in the Sao Paulo state of Brazil were delaying sales into the sugarcane segment. The co did not expect this drought to continue through Q2. These extended poor growing conditions have resulted in growers reducing their use of crop protection products. Furthermore, growers have significantly reduced the rate at which they are replanting, which has reduced the use of herbicides and insecticides in the sugarcane segment. The co does not expect conditions to improve in sugarcane during the remainder of 2014.
  • As a result of these factors, the co expects second quarter segment earnings for Agricultural Solutions to be up mid-single digits percent compared to the second quarter of 2013.
  • For the full year 2014, revenues and operating earnings for the Agricultural Solutions segment are expected to increase by a mid-single digits percentage over 2013.
  • The co reaffirms its previous guidance for the Health and Nutrition and the Minerals segments for both the second quarter and the full year 2014. Second quarter segment earnings for Health and Nutrition are expected to be up low-teens percent primarily due to higher volumes driven by end market demand. Full-year segment revenue is expected to be up mid- to high-teens percent driven by higher volumes in texture and stability solutions, natural colors and binder product lines and contributions from the omega-3 product line. Full-year segment earnings are expected to be up mid-teens percent due to strong demand for functional ingredients and benefits from new omega-3 sales.
  • Second quarter segment earnings for the Minerals segment are expected to be up low-teens percent resulting from operating improvements in both the Soda Ash and Lithium businesses. Full-year segment revenue is expected to be up mid- to high-single digits percent driven primarily by increased volumes in lithium and soda ash and short- and long-term contracted price increases in soda ash. Full-year segment earnings are expected to be up high-teens percent, reflecting lithium margin improvements and more favorable contractual soda ash pricing versus 2013.

>>> Integrys Energy Group To be acquired by Wisconsin Energy for equivalent of $


Integrys Energy Group To be acquired by Wisconsin Energy for equivalent of $71.47/shr in all-stock deal valued around $9.1B

Wisconsin Energy Corp. (NYSE: WEC) and Integrys Energy Group Inc. (NYSE: TEG) today announced that they have entered into a definitive agreement under which Wisconsin Energy will acquire Integrys in a transaction valued at $9.1 billion. Upon completion of the transaction, the combined company will be named WEC Energy Group, Inc. 

The combination of Wisconsin Energy and Integrys brings together two strong and well-regarded utility operators with complementary geographic footprints to create a larger, more diverse Midwest electric and natural gas delivery company with the operational expertise, scale and financial resources to meet the region's future energy needs. 

The combined entity is projected to have a regulated rate base of $16.8 billion in 2015, serve more than 4.3 million total gas and electric customers across Wisconsin, Illinois, Michigan and Minnesota, and operate nearly 71,000 miles of electric distribution lines and more than 44,000 miles of gas transmission and distribution lines. The combination brings together Wisconsin Energy's top-performing electric and gas utility We Energies and Integrys' strong electric and gas utilities Wisconsin Public Service, Peoples Gas, North Shore Gas, Minnesota Energy Resources and Michigan Gas Utilities. 

In addition to expanding and diversifying Wisconsin Energy's regulated holdings into other large Midwestern states, the combined company will hold a 60 percent stake in American Transmission Co. 

Gale Klappa, chairman and CEO of Wisconsin Energy said, "We believe this combination provides a unique opportunity to create the premier regulated utility system in the Midwest, with superior service and competitive pricing for years to come. The operational and financial benefits to all of our stakeholders from the customers and communities we serve, to the people we employ, to the shareholders who count on us to create value are clear, achievable and compelling." 

He continued, "We have been consistent in our commitment to undertake acquisitions or combinations only if we believe they will be accretive to earnings per share in the first calendar year after closing, be largely credit neutral and produce a growth rate at least equal to Wisconsin Energy's stand-alone growth rate. This combination meets or exceeds those criteria on all counts." 

Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Integrys shareholders will receive common stock at a fixed exchange ratio of 1.128 Wisconsin Energy shares plus $18.58 in cash per Integrys share. 

Total consideration is valued at $71.47 per Integrys share, with a consideration mix of 74 percent stock and 26 percent cash. This represents a 17.3 percent premium to Integrys' closing price on June 20, 2014 and a 22.8 percent premium to the volume-weighted average share price over the past 30 trading days ending June 20, 2014. Upon closing of the transaction, Integrys shareholders will own approximately 28 percent of the combined company. 

The proposed dividend policy of the combined company will be designed to initially keep Integrys' shareholders neutral after taking into consideration both the stock and cash they received. In the period before closing, Wisconsin Energy plans to continue its current dividend policy, which calls for a 7-8 percent annual increase in the dividend. "At closing, we would expect a further dividend increase for the Wisconsin Energy shareholders to reflect the dividend policy of the combined company," Klappa said. "In future years, the projected payout target for the combined company will be 65-70 percent of earnings," he added. The dividend policy of the combined company is expected to be accretive to all shareholders in future years. Also, Integrys announced that it is in the late stages of a competitive process to divest Integrys Energy Services, its non-regulated marketing subsidiary. In January 2014, it also announced an agreement to sell Upper Peninsula Power Company to Balfour Beatty Infrastructure Partners. 

"As part of our ongoing assessment of Integrys' portfolio of businesses, we previously determined it was appropriate to divest Integrys Energy Services' retail electric and natural gas business and began that process earlier this year," said Schrock. "The process is moving forward as we expected and we anticipate completing it soon." Approvals and timing The transaction is subject to approvals from the shareholders of both companies, the Federal Energy Regulatory Commission, Federal Communications Commission, Public Service Commission of Wisconsin, Illinois Commerce Commission, Michigan Public Service Commission and the Minnesota Public Utilities Commission. The transaction also is subject to the notification and clearance and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions

(ZH) China Beige Book, HSBC Manufacturing PMI Paint Diametrically Opposing Pictu

China Beige Book, HSBC Manufacturing PMI Paint Diametrically Opposing Pictures Of China's Economy

S&P 500 futures are jumping exuberantly as Japan and China PMIs print above expectations and back in expansion territory (Japan best in 3 months, China best in 7 months). This is China's best 2-month PMI rise since Oct 2010 (which makes perfect sense amid the collapsing housing market and CCFD ponzi probe) - which provides the perfect propaganda meme that targeted RRR cuts workl. However, while stocks don;t care to scratch the surface, there are 2 glaring similarities that could become a problem. Both China and Japan saw employment drop(Japan's first in 11 months) and furthermore both China and Japan saw input prices rise and output prices decline - not exactly the margin expansion dream everyone is hoping for... and all this as China's Beige Book shows the slowdown deepening on weak investment.
China's Manufacturing PMI saw its best 2 months since Oct 2010... so RRRs work right?
Which is odd given that GDP expectations continue to collapse... (h/t @M_McDonough )
And China and Japan both see employment drop and margin pressures build...
as Japan employment tumbles...
But none of that "fact" details matter - you buy stocks...
As China's Beige Book was anything but positive...
  • CHINA BEIGE BOOK SAYS SLOWDOWN DEEPENING ON WEAK INVESTMENT
  • CHINA BEIGE BOOK SAYS FEWER COMPANIES ACCESSED CREDIT IN 2Q
China’s economy continues to decelerate quarter-on-quarter, driven by “perhaps unprecedented weakness” in capital expenditure, China Beige Book says in its 2Q survey released today.
* Fewest number of firms increasing investment and most pronounced quarter-on-quarter drop in 10 quarters of surveys
* Fewer companies surveyed accessed credit from banks, shadow lenders and the bond market
* Survey finds loan rates inverted, with bank interest rates ticking up in the quarter while non-bank rates saw a “substantial slide” to below levels offered by banks
* Firms appear to be responding to current economic conditions by borrowing and spending less
* Weakness in investment has “sweeping effects” on sectors, regions and gauges of company performance
* Services weakened more sharply while transportation, mining, and retail slowed
* Manufacturing showed year-on-year growth for the fourth quarter in a row and was stable vs previous quarter
* In property sector, residential and commercial realtors “were pummeled,” while builders reported higher starts and rising prices, with stable or larger proportions reporting revenue growth
* Investment slowdown depressed growth in hiring, wages, laboractivism
* Worst-performing sector was minerals as coal producers sawrevenue contraction

(BFW) France’s Energy Shift Will Be Financed by Private Sector: Sapin

 BN 06/23 08:40 *FRANCE'S ENERGY SHIFT WILL BE `PROFITABLE,' SAPIN SAYS
 BN 06/23 08:40 *FRANCE'S ENERGY SHIFT WILL BE PRIVATE SECTOR-FINANCED: SAPIN
France’s Energy Shift Will Be Financed by Private Sector: Sapin
2014-06-23 08:47:43.530 GMT


By Tara Patel
     June 23 (Bloomberg) -- French policy to promote renewable
energies and improved efficiency will mostly be financed by the
private sector, Finance Minister Michel Sapin said today.
  * Policy will be “profitable,” he said in a speech in Paris
  * Loans at heart of policy: Sapin
  * Earlier Energy Minister Segolene Royal said state will
    promote interest-free loans for home improvement projects to
    improve energy efficiency
Link to Company News:{EDF FP <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Tara Patel at +33-1-5365-5058 or
tpatel2@bloomberg.net

>>> Siemens interested in EUR 5bn-EUR 6bn ThyssenKrupp Elevator acquisition

Siemens interested in EUR 5bn-EUR 6bn ThyssenKrupp Elevator acquisition 

German conglomerate Siemens is interested in ThyssenKrupp Elevator, ThyssenKrupp's Elevator Technology unit, Der Tagesspiegel reported.

The German-language report cited unnamed financial sources as saying that Siemens was willing to pay EUR 5bn-EUR 6bn for the unit, which ThyssenKrupp does not want to sell.

The report said that following the failure to reach a deal to acquire Alstom, Siemens CEO Joe Kaeser could now concentrate fully on the 'Vision 2020' project which included acquisitions alongside organic growth.


Source Der Tagesspiegel

>>> What to look at today - 23/06/2014

US Market closed higher, on the Week S&P+1.6%, Energy lead the move with Crude Still strong on Iraq situation, +2.7% on the week. Tech was week with ORCL...VIX @ 10.67 +0.47%, volume were above average thanks to quadruple witching & S&P Rebalancing. 1.7bil shares traded...Asia higher after better June flash Man. PMI, at 6 month high and 1st expansion in 2014...China quarterly Beige Book for Q2 that was slightly more downbeat, indicating fewer companies had access to credit amid weakening investment environment. Beige Book also warned that the economy continues to decelerate q/q, driven by perhaps unprecedented weakness in capex...Oil still strong


Eur$ 1.3609 S&P +0.22% EuroStoxx +0.05% FTSE +0.07% Dax +0.05% SMI -0.14%

Macro
- China Manufacturing Index Rises to Seven-Month High as Li Spurs Recovery
- China Beige Book Says Slowdown Deepens on Weaker Investment
- Barclays Lifts 2014 China GDP Growth Forecast to 7.4% From 7.2%
- ECB unlikely to raise interest rates until 2016 when economic recovery gains momentum - Nowotony
- Obama Warns ISIS Could Destabilize Region
- Most European Banks See No Extra Capital Need After ECB Review

What to look at today :
- AIR FP : ANA Says It Will Spend About 150b Yen Annually on New Aircraft
- ALO FP : GE Says Moving to Next Phase of Alstom Alliance
- ARM LN : ARM Momentum May Be Turning, Royalties Should Accelerate: MS
- ASC LN : ASOS Website Stops Taking Orders After Warehouse Fire
- AV/ LN : Overweight Aviva, JPMorgan Says; Blue Sky Valuation 644p/Shr
- BNP FP : BNP Said Close to $9b Accord With U.S. in Sanctions Case, BNP May Get Ban on U.S. Dollar Transactions
- EN FP : France Reaches Deal With Bouygues for Up to 20% of Alstom
- CCL LN : Buy Carnival, 2Q EPS May Be Above Guidance, Deutsche Bank Says
- CU FP : Club Med bidder Investindustrial conducts due diligence advised by Lazard; Bonomi asks for stay of execution
- DMGT LN : Overweight Daily Mail, Valuation Attractive, JPMorgan Says
- DETNOR NO : Det Norske To Close Gap on Lundin, Credit Suisse Says
- DTE GY : Sprint Gets Commitments for $20b Bridge Loan
- DSM NA : Buy DSM, Nutrition Undervalued, BofAML Says After Meeting
- EDF FP : EDF Needs to Make Productivity Gains, Royal Tells Le Figaro
- EDF FP : France Tariff Freeze Credit Negative for EDF, Moody’s Says
- EIR UK : Eircom Plans to Raise ~EU1B in Share Sale to Trim Debt: Times
- ELIOR FP : Elior Over-Allotment Raises IPO Proceeds to ~EU954m vs ~EU847m
- HL/ LN : Hargreaves May Outperform on Growth Opportunities: Credit Suisse
- IHG LN : Wyndham Worldwide Made Offer for InterContinental: Sky
- IPG US : Interpublic could be a target for Dentsu
- MONC IM : Moncler Chairman Remo Ruffini Says 2Q in Line With Objective
- PSON LN : Pearson Outlook Improved, May See EPS Bouncebank: Morgan Stanley
- RNO FP : Nissan, Honda Add More Than 2 Million Vehicles to Defective Air-Bag Recall
- SHP LN : AbbVie May Raise Shire Bid as High as GBP55/Shr: Jefferies
- SHP LN : Shire Plans Investor Call Tomorrow to Boost Defense: Telegraph
- SHP LN : AbbVie’s Gonzalez Seeks Instant Diversity in Drive to Buy Shire
- SHP LN : Biogen, Eli, Celgene, Allergan May Counterbid for Shire: UBS
- SIE GY : Kaeser Says Siemens Still Open for Negotiation With Alstom: Bild
- SIE GY : *SIEMENS’ KAESER CONTINUES TO LOOK FOR TAKEOVER TARGETS: BILD
- FR FP : Valeo CEO Sees Strong Revenue Growth Until 2018, Figaro Says