TheChek News Flow

Reports Q1 (Mar) earnings of $0.49 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 8.8% year/year to $4.99 bln vs the $4.93 bln consensus.

• First-quarter 2014 consolidated copper sales of 871 million pounds were lower than first-quarter 2013 sales of 954 million pounds and the January 2014 estimate of 1.0 billion pounds.
• First-quarter 2014 consolidated gold sales of 187 thousand ounces were lower than first-quarter 2013 sales of 214 thousand ounces and the January 2014 estimate of 325 thousand ounces.
• Lower copper and gold sales volumes primarily reflected lower volumes from PT-FI because of the post-January 12, 2014, restrictions on concentrate exports from Indonesia, which resulted in a deferral of approximately 125 million pounds of copper and 140 thousand ounces of gold in first-quarter 2014.
• Consolidated sales for first-quarter 2014 totaled 871 million pounds of copper, 187 thousand ounces of gold, 27 million pounds of molybdenum and 16.1 million barrels of oil equivalents (MMBOE), compared with 954 million pounds of copper, 214 thousand ounces of gold and 25 million pounds of molybdenum for first-quarter 2013.
• Guidance: Consolidated sales for the year 2014 are expected to approximate 4.3 billion pounds of copper, 1.6 million ounces of gold, 97 million pounds of molybdenum and 64.2 MMBOE, including 1.1 billion pounds of copper, 320 thousand ounces of gold, 24 million pounds of molybdenum and 15.2 MMBOE for second-quarter 2014.

Reports Q1 (Mar) earnings of $0.98 per share, $0.10 worse than the Capital IQ Consensus Estimate of $1.08; revenues rose 2.6% year/year to $13.78 bln vs the $13.88 bln consensus.

• Guidance: Co sees FY14 EPS at low end of $5.05-5.30 range vs. $5.16 Capital IQ Consensus Estimate, due to the challenging start to 2014
• Unusually harsh weather weighed on operating profit by approximately $200 million, due to increased expenses and slower revenue growth.
• Average daily shipments in the U.S. climbed 4.2% driven primarily by large e-commerce shippers using lightweight deferred shipping solutions.
• "Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter, resulting in lower UPS operating results versus the prior year," said Scott Davis, UPS chairman and CEO. "International and the Supply Chain and Freight segment benefitted from positive momentum during the quarter as customers utilized the strategic investments made by UPS to strengthen our portfolio."

Reports Q1 (Mar) adj. earnings of $0.06 per share, $0.01 better than the Capital IQ Consensus of $0.05; revenues rose 1.4% year/year to $37.4 bln vs the $36.88 bln consensus.

• Strong core operating performance during the quarter was more than offset by a net loss from special items of $0.4 billion, or $(0.23) per diluted share, and a $1.3 billion pre-tax charge primarily for the cost of recall-related repairs, or $(0.48) per diluted share.
• Earnings before interest and tax (EBIT) adjusted was $0.5 billion and included the impact of a $1.3 billion pre-tax charge for recall-related costs and $0.3 billion in restructuring costs. This compares to the first quarter of 2013, when the company recorded EBIT-adjusted of $1.8 billion, which included a pre-tax charge of $0.1 billion for recalls and $0.1 billion in restructuring costs.
• • GM North America reported EBIT-adjusted of $0.6 billion which included the impact of a $1.3 billion pre-tax charge for recall costs in the quarter. This compared with EBIT-adjusted of $1.4 billion in the first quarter of 2013.
  • GM Europe reported EBIT-adjusted of $(0.3) billion, which includes $0.2 billion for restructuring costs. This compares with EBIT-adjusted of $(0.2) billion in the first quarter of 2013.
  • GM International Operations reported EBIT-adjusted of $0.3 billion, compared with EBIT-adjusted of $0.5 billion in the first quarter of 2013.
  • GM South America reported EBIT-adjusted of $(0.2) billion, compared with EBIT-adjusted of $0.0 billion in the first quarter of 2013.
• First quarter automotive cash flow from operating activities of $2.0 billion and automotive free cash flow of $0.2 billion were both significantly improved compared with the first quarter of 2013.
• GM ended the quarter with very strong total automotive liquidity of $37.4 billion. Automotive cash and marketable securities was $27.0 billion compared with $27.9 billion at year-end 2013.

Reports Q1 (Mar) earnings of $1.61 per share, excluding non-recurring items, $0.39 better than the Capital IQ Consensus Estimate of $1.22; revenues rose 0.2% year/year to $13.24 bln vs the $13.01 bln consensus.

• Co raises guidance for FY14, sees EPS of $6.10 vs. $5.85 Capital IQ Consensus Estimate, up from $5.85; sees FY14 revs of $56 bln vs. $55.62 bln Capital IQ Consensus Estimate.
• The co's outlook for sales and revenues remains unchanged at $56 billion in a range of plus or minus 5%. However, there are a range of macro-economic and geo-political uncertainties that could slow the growth of global GDP and impact the sales of Caterpillar's products in 2014. These potential events are a concern, and the company will monitor them closely and take actions to respond if needed.
• Operating profit for the first quarter of 2014 was $1.398 billion, an increase of $180 million from the first quarter of 2013. The increase was primarily the result of lower manufacturing costs, decreased SG&A and R&D expenses and the favorable impact of currency.
• These favorable impacts were partially offset by higher restructuring costs of $142 million and lower sales volume. Additionally, Financial Products' operating profit was lower primarily due to the absence of favorable reserve adjustments at Caterpillar Financial Insurance Services.

Reports Q1 (Mar) earnings of $0.84 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.86; revenues rose 4.8% year/year to $30.82 bln vs the $30.68 bln consensus.

• Co reaffirms guidance for FY14, sees FY14 revs of +4% to ~$125.4 bln vs. $125.16 bln Capital IQ Consensus Estimate; sees continued high segment EBITDA margin on service revenues
• Wireless:
• • Total revenues were $20.9 billion in first-quarter 2014, up 6.9 percent year over year. Service revenues in the quarter totaled $18.0 billion, up 7.5 percent year over year. Retail service revenues grew 6.7 percent year over year, to $17.2 billion.
  • Retail postpaid ARPA (average revenue per account) increased 6.3 percent over first-quarter 2013, to $159.67 per month. In first-quarter 2014, wireless operating income margin was 35.0 percent and segment EBITDA margin on service revenues was 52.1 percent. This compares with 32.9 percent and 50.4 percent, respectively, in first-quarter 2013.
  • Verizon Wireless added 549,000 retail net connections, including 539,000 retail postpaid net connections, in the first quarter. These additions exclude acquisitions and adjustments. At the end of the first quarter, the company had 103.3 million retail connections, including 97.3 million retail postpaid connections, a 4.4 percent increase year over year.
• Wireline:
• • In first-quarter 2014, consumer revenues were $3.8 billion, an increase of 6.2 percent compared with first-quarter 2013.
  • Consumer ARPU for wireline services increased to $120.17 in first-quarter 2014, up 11.3 percent compared with first-quarter 2013. Outlook: Verizon continues to target consolidated top-line growth of 4 percent and adjusted consolidated EBITDA margin expansion in 2014, with positive contributions to profitable growth from both wireless and wireline.

Reports Q1 (Mar) earnings of $0.26 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.27; revenues rose 36.6% year/year to $509.8 mln vs the $539.12 mln consensus.

• Production of 119.9 billion cubic feet equivalent (Bcfe), an increase of 34 percent over last year's comparable quarter.
• Higher equivalent production and realized natural gas prices drove the quarter's overall improvement, partially offset by lower realized oil prices and increased operating expenses associated with higher production.
• • Total per unit costs (including financing) decreased to $2.66 per Mcfe in the first quarter of 2014, down 19 percent from $3.29 per Mcfe in the first quarter of 2013. All operating expense categories decreased on a per unit basis relative to last year's comparable quarter except for exploration expense, which was flat relative to the first quarter of 2013, and transportation and gathering expense, which increased as a result of slightly higher transportation rates and new transportation agreements in the Marcellus.

Reports Q1 (Mar) earnings of $1.50 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $1.47; revenues rose 2.0% year/year to $1.16 bln vs the $1.18 bln consensus.

Co issues guidance for FY14, lowers EPS to $6.00-6.20 from $6.10-6.30, to give effect to a change in the anticipated number of diluted weighted average shares outstanding for 2014, not comparable to $6.21 Capital IQ Consensus; reaffirms FY14 revs +2.5-4.5% (+3-5% constant FX) to ~$4.74-4.83 bln vs. $4.8 bln Capital IQ Consensus Estimate.

Zimmer also announced that it has entered into a definitive agreement to acquire Biomet in a cash and stock transaction valued at ~$13.35 bln, including the assumption of net debt. See 7:09 comment.

Reports Q1 (Mar) earnings of $0.04 per share, $0.32 worse than the Capital IQ Consensus Estimate of $0.36; revenues fell 6.8% year/year to $538.9 mln vs the $596.99 mln consensus.

• "The first quarter performance fell short of our expectations... Winter's blast affected every factory in the United States with fuels costs up. The aftermarket and OEM farm business declined and OE construction business was also below forecast. The mining business was nonexistent in the first quarter. January and February business was weak. March improved but could not offset the severe declines in the first two months of 2014. Agriculture and construction seems to be improving slightly going forward but a recovery in the mining looks like a long haul. Due to the uncertainty in the markets we serve, the 2014 management goals published November 25, 2013 have been rescinded and are being reconsidered."

Reports Q1 (Mar) earnings of $1.43 per share, excluding non-recurring items, $0.33 worse than the Capital IQ Consensus Estimate of $1.76; revenues fell 6.3% year/year to $5.51 bln vs the $5.49 bln consensus.

• The first quarter 2014 Adjusted EPS1 excluded the previously announced $0.25 favorable tax impact from cash repatriation in the first quarter 2014. In addition, the first quarter 2014 Adjusted EPS1 excluded a favorable FAS/CAS Adjustment of $0.18, compared with an unfavorable FAS/CAS Adjustment of $0.14 in the first quarter 2013.

Co reaffirms guidance for FY14, sees EPS of $6.74-6.89, excluding non-recurring items, vs. $6.93 Capital IQ Consensus Estimate; sees FY14 revs of $22.5-23.0 bln vs. $22.83 bln Capital IQ Consensus Estimate.

• The Company had bookings of $4.3 billion in the first quarter 2014, and ended the first quarter 2014 with a backlog of $32.2 billion and a funded backlog of $22.7 billion, an increase of $222 million compared to the first quarter 2013.