WSJ : Barrick Gold Sent Revised Terms to Newmont Mining

Barrick Gold Sent Revised Terms to Newmont Mining

Barrick Sent Email to Newmont Management Tuesday But Did Not Receive Response

Barrick Gold Corp. ABX.T +1.14% has sent an email outlining revised terms to Newmont Mining Corp. NEM +3.51% for a merger between the two gold mining giants that stalled last week, according to people familiar with the matter.

The two sides had disagreed over plans for a spinoff of some assets and have been in informal contact in recent days to iron out their differences, according to these people.

A deal is far from certain. For a start, Toronto-based Barrick has yet to receive a response from its U.S. rival after the email was sent to Newmont's senior management on Tuesday, these people said.

Formal high-level talks weren't expected to continue until at least after Newmont's annual general meeting, which happened Wednesday, according to people familiar with the matter.

Merging the companies, which have a combined market value of more than $30 billion, would create a natural-resources giant with mines ranging from Indonesia to Africa and throughout North and South America.

The two sides have tried to come together at least three times before, leading some analysts to question whether they will complete a deal this time.

On Tuesday, Barrick Chairman Peter Munk said that it was "difficult to find a reason" for his company not to merge with Newmont in a deal that he said would provide cost savings given the proximity of the companies' mines in Nevada.

In coming together, both sides are looking at savings of $1 billion, people familiar with the matter said. Most analysts believe that would be closer to $500 million.

The two sides had clashed over how specific they should be, when announcing a deal, over which assets should go into the new spinoff, people familiar with the matter said.

>>> Potash beats on the top & bottom line; guides Q2 EPS below consensus; guides

Potash beats on the top & bottom line; guides Q2 EPS below consensus; guides FY14 EPS in-line

Reports Q1 (Mar) earnings of $0.38 per share, excluding non-recurring items (see below), $0.03 better than the Capital IQ Consensus Estimate of $0.35; revenues fell 20.0% year/year to $1.68 bln vs the $1.5 bln consensus. Co reported earnings of $0.40 per share ($340 million) for the first quarter of 2014, a total that included a $69 million ($0.06 per share) special dividend from our investment in Israel Chemicals Ltd. (ICL) as well as a $38 million ($0.04 per share) non-cash impairment charge related to our investment in Sinofert Holdings Limited (Sinofert). This result compares to the $0.63 per share ($556 million) earned in the same period last year.
  • Co issues downside guidance for Q2, sees EPS of $0.40-0.45 vs. $0.49 Capital IQ Consensus Estimate.
  • Co issues in-line guidance for FY14, raises bottom end of EPS to $1.50-1.80 from prior guidance of $1.40-1.80 vs. $1.67 Capital IQ Consensus Estimate.
  • Gross margin for the quarter totaled $565 million, below the $867 million generated during the first quarter of 2013. Despite an improving environment for both demand and pricing compared to the final quarter of 2013, realizations in all three nutrient segments lagged behind those of the first quarter last year and negatively impacted our earnings.
  • Adjusted earnings before finance costs, income taxes, depreciation and amortization and certain impairment charges2 (adjusted EBITDA) of $745 million and cash from operating activities of $539 million declined 23 percent and 27 percent, respectively from first-quarter 2013.
  • First-quarter 2014 potash gross margin of $300 million was below the $504 million generated during the comparable period last year as the favorable impact of lower per-tonne costs and slightly higher sales volumes was more than offset by lower prices.
  • Market Outlook Commentary: Recent potash contracts in China and India as well as a strong order book in key spot markets are expected to create an environment that should support robust shipment levels through at least the next two quarters. While we are beginning to see an improvement in rail deliveries help address the backlog of orders from the first quarter, significant product demands are expected to keep pressure on North American carriers. We continue to work closely with our transportation partners to minimize disruptions although these conditions are expected to result in ongoing tight global market fundamentals. For the full year, we maintain our view that global potash shipments could be in the range of 55-57 million tonnes.
  • Financial Outlook Commentary: Given a slightly improved potash pricing and demand outlook, we have increased our annual estimate for potash gross margin to $1.1-$1.3 billion and sales volumes to 8.3-8.7 million tonnes. In nitrogen, recent pricing strength has improved the near-term outlook. We anticipate typical seasonal trends will result in slightly weaker margins through the second half of 2014, although our higher sales volumes expectations should partially offset this impact. For the full year, we anticipate total gross margin will remain historically high but trail 2013's total.

>>> Eli Lilly reports EPS in-line, misses on revs; reaffirms FY14 EPS guidance,

Eli Lilly reports EPS in-line, misses on revs; reaffirms FY14 EPS guidance, raises FY14 revs following Lohmann acquisition

Reports Q1 (Mar) earnings of $0.70 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.70; revenues fell 16.4% year/year to $4.68 bln vs the $4.79 bln consensus.

Co issues guidance for FY14, reaffirms EPS of $2.72-2.80, excluding non-recurring items, vs. $2.81 Capital IQ Consensus Estimate; raises FY14 revs to $19.4-20.0 bln from $19.2-19.8 bln vs. $19.77 bln Capital IQ Consensus.
  • As described in the co's initial guidance, patent expirations are expected to drive a rapid and severe decline in U.S. Cymbalta and U.S. Evista sales. These revenue declines are expected to be partially offset by growth from a portfolio of other products including Humalog, Trajenta, Cialis, Forteo and Alimta, as well as the animal health business. In addition, strong revenue growth is expected in China, while a weaker Japanese yen will dampen revenue growth in Japan. The co now anticipates that gross margin as a percent of revenue will be ~73 percent in 2014.
  • "Lilly's first-quarter results reflect the substantial decline in revenue and earnings that we expected to encounter as a result of the recent U.S. patent expirations for Cymbalta and Evista," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. "Beyond our financial performance, the initial months of 2014 have included a series of key regulatory actions, pipeline announcements and business development transactions that solidify the company's future growth prospects, highlighted by the approval of Cyramza in the U.S. and the announced acquisition of Novartis Animal Health."

>>> Helmerich & Payne reports Q2 (Mar) results, revs in-line

Helmerich & Payne reports Q2 (Mar) results, revs in-line

Reports Q2 (Mar) earnings of $1.59 per share (incl several items -- see below), may not be comparable to the Capital IQ Consensus Estimate of $1.47; revenues rose 6.1% year/year to $889.1 mln vs the $890.93 mln consensus.

Co reported net income of $174.6 million ($1.59 per diluted share) from operating revenues of $893.4 million for the second quarter of fiscal 2014, compared to net income of $151.1 million ($1.39 per diluted share) from operating revenues of $838.3 million during the second fiscal quarter of 2013, and net income of $173.2 million ($1.59 per diluted share) from operating revenues of $889.2 million during the first fiscal quarter of 2014. Included in net income corresponding to this year's second fiscal quarter are approximately $0.02 per diluted share of after-tax gains related to the sale of used drilling equipment and approximately $0.12 per diluted share of after-tax gains on the sale of investment securities.

Included in both this year's first fiscal quarter and last year's second fiscal quarter were approximately $0.03 per diluted share of after-tax gains related to the sale of used drilling equipment. Given today's new build announcements, other previously announced contracts and ongoing conversations with customers regarding new FlexRig deliveries in early fiscal 2015, the Company is increasing its fiscal 2014 capital expenditures estimate from $950 million to $1.1 billion.

Outlook: In the U.S. land segment, the Company expects revenue days (activity) to increase by approximately seven percent during the third fiscal quarter as compared to the second fiscal quarter of 2014. The average rig revenue per day is expected to remain at approximately $28,000 and the average rig expense per day is expected to remain at roughly $13,000 during the third fiscal quarter. As of today, the U.S. land segment has 287 contracted rigs, including 161 under term contracts.

In the offshore segment, the Company expects the average rig margin per day to be approximately $25,000 during the third fiscal quarter and revenue days to increase by approximately one percent as compared to the second fiscal quarter of 2014.

In the international land segment, the Company expects total revenue days during the third fiscal quarter to be relatively flat and the average rig margin per day to decline by approximately five percent as compared to the second fiscal quarter of 2014.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: BODY 12.6% ANGI 9.2% INFN 7.7% AAPL 7.3% TQNT 6.5% CRUS 6.1% ZNGA 5.9% FTNT 5.3% AZN 5.2% FB 5.0% LRCX 4.7% ASGN 4.4% GWPH 4.3% PANW 4.0% BLDP 3.8% ETFC 3.3% HDSN 3.2% NOW 3.2% PDH 3.2% GTAT 2.7% CTXS 2.7% PTC 2.7% DDD 2.2% ELY 2.0% CRR 2.0% SYA 1.8% POT 1.8% FFIV 1.7% FEYE 1.6%

Gapping down: QDEL -14.3% HEAR -11.5% TNP -11.3% XLNX -4.6% CLB -4.5% FIO -4.4% SINA -4.3% QCOM -4.3% GHL -3.4% IM -3.4% CBI -3.2% MKSI -3.0% ALTR -2.8% SPNC -2.2% YGE -2.15 SLV -2.1% AGIO -1.8% ALGN -1.8%

>>> Diamond Offshore beats by $0.28, beats on revs

Diamond Offshore beats by $0.28, beats on revs

Reports Q1 (Mar) earnings of $0.93 per share, excluding non-recurring items ($0.12 benefit), $0.28 better than the Capital IQ Consensus Estimate of $0.65; revenues fell 2.8% year/year to $709.4 mln vs the $691.79 mln consensus.
  • Co reported net income for the first quarter of 2014 of $146 million, or $1.05 per share, compared with net income of $176 million, or $1.27 per share, in the same period a year earlier. Results for the quarter benefited from a $17 million, or $0.12 per share, credit to tax expense related to a settlement of certain disputes with Egyptian tax authorities.
  • "I am pleased to begin my tenure at Diamond Offshore with very solid first quarter results...Diamond Offshore has added new capacity and upgraded its fleet while maintaining the highest credit rating and strongest balance sheet amongst its peers. This places us in a strong position to navigate through any downturn, and take advantage of strategic opportunities that may materialize. We remain focused on delivering superior financial performance and providing sector-leading shareholder returns."

>>> Dunkin Brands misses by $0.02, reports revs in-line; reaffirms FY14 EPS guid

Dunkin Brands misses by $0.02, reports revs in-line; reaffirms FY14 EPS guidance, revs guidance; Dunkin US comps +1.2%

Reports Q1 (Mar) earnings of $0.33 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.35; revenues rose 6.2% year/year to $171.9 mln vs the $172.28 mln consensus.
  • Co reaffirms guidance for FY14, sees EPS of $1.79-1.83, excluding non-recurring items, vs. $1.81 Capital IQ Consensus Estimate; sees FY14 revs of +6-8% to ~$755.83-770.9 mln vs. $767.55 mln Capital IQ Consensus Estimate.
  • Dunkin' Donuts U.S. comparable store sales growth of 1.2%; international -2.4%.
  • Dunkin' Donuts U.S. revenues of $125.2 million represented an increase of 4.7 percent year-over-year. The increase was primarily a result of increased royalty income and an increase in gains from refranchising transactions, offset by a decline in franchise fees driven by the timing of franchise renewals.
  • Dunkin' Donuts International first quarter systemwide sales increased 0.4 percent from the prior year period, driven by sales growth in the Middle East, Germany, and Spain, offset by a decline in South Korea. On a constant currency basis, systemwide sales increased by approximately 3 percent.
  • FY14 Outlook Details: The Company expects Dunkin' Donuts U.S. comparable store sales growth of 3 to 4 percent and Baskin-Robbins U.S. comparable store sales growth of 1 to 3 percent. The Company expects that Dunkin' Donuts U.S. will add between 380 and 410 net new restaurants representing greater than 5 percent net restaurant growth and expects Baskin-Robbins U.S. will add between 5 and 10 net new restaurants. Internationally, the Company is targeting opening 300 to 400 net new restaurants across the two brands. Globally, the Company expects to open between 685 and 800 net new units.

>>> Time Warner Cable beats by $0.10, reports revs in-line

Time Warner Cable beats by $0.10, reports revs in-line

Reports Q1 (Mar) adj. earnings of $1.78 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.68; revenues rose 2.0% year/year to $5.58 bln vs the $5.64 bln consensus, driven primarily by growth of 24.4% in business services revenue and 10.8% growth in residential high-speed data revenue.
  • Adjusted OIBDA increased 3.6% to nearly $2.0 billion. Operating Income increased 3.0% to nearly $1.1 billion.
  • First-quarter 2014 average monthly revenue per residential customer relationship (ARPU) grew 0.6% to $105.45.
  • Residential high-speed data ARPU increased 8.7% to $46.32.
  • "I'm very pleased with our performance this quarter. Our residential subscriber growth was the best in five years and our business services revenue growth was close to 25 percent. These results underscore our commitment to deliver on our financial and operating plan as we prepare for our merger with Comcast."