--> -ve SX3P, NESN UNA & BN....
BFW 06/18 12:04 ConAgra Cuts Forecast for 4Q
BN 06/18 12:04 *CONAGRA CITES WEAK PROFITS FOR PRIVATE BRANDS SEGMENT :1AG US
BN 06/18 12:04 *CONAGRA SEES MEETING FY15 DEBT REPAYMENT GOALS :CAG US
BN 06/18 12:04 *CONAGRA CITES CONSUMER FOODS SEGMENT 7% QTRLY VOLUME DECLINE
BFW 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:02 *CONAGRA CUTS FORECAST
BFW 06/18 12:02 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA: COMMITMENT TO STRONG DIVIDEND REAFFIRMED :CAG US
BN 06/18 12:01 *CONAGRA SEES FY16-17 COMP EPS GROWTH HIGH SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA SEES FY15 COMP EPS GROWTH MID SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA FOODS PLAN TO CONTINUE CURRENT $1/SHR ANNUAL DIVIDEND
BN 06/18 12:00 *CONAGRA SEES FY15 COMP EPS UP MID SINGLE DIGIT RATE
BN 06/18 12:00 *CONAGRA FOODS EST. $681M IMPAIRMENT CHARGE :1AG US
BN 06/18 12:00 *CONAGRA 4Q GAAP RESULTS INCL LARGE NON-CASH IMPAIRMENT CHARGES
BN 06/18 12:04 *CONAGRA CITES WEAK PROFITS FOR PRIVATE BRANDS SEGMENT :1AG US
BN 06/18 12:04 *CONAGRA SEES MEETING FY15 DEBT REPAYMENT GOALS :CAG US
BN 06/18 12:04 *CONAGRA CITES CONSUMER FOODS SEGMENT 7% QTRLY VOLUME DECLINE
BFW 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:03 *CAG NOW SEES 4Q ADJ. EPS 55C, SAW SLIGHTLY OVER 60C, EST. 62C
BN 06/18 12:02 *CONAGRA CUTS FORECAST
BFW 06/18 12:02 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA: COMMITMENT TO STRONG DIVIDEND REAFFIRMED :CAG US
BN 06/18 12:01 *CONAGRA SEES FY16-17 COMP EPS GROWTH HIGH SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA CUTS FORECAST FOR 4Q
BN 06/18 12:01 *CONAGRA SEES FY15 COMP EPS GROWTH MID SINGLE DIGIT RATE
BN 06/18 12:01 *CONAGRA FOODS PLAN TO CONTINUE CURRENT $1/SHR ANNUAL DIVIDEND
BN 06/18 12:00 *CONAGRA SEES FY15 COMP EPS UP MID SINGLE DIGIT RATE
BN 06/18 12:00 *CONAGRA FOODS EST. $681M IMPAIRMENT CHARGE :1AG US
BN 06/18 12:00 *CONAGRA 4Q GAAP RESULTS INCL LARGE NON-CASH IMPAIRMENT CHARGES
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals; Non-Cash Impairment Charges Recognized With No Impact on
2014-06-18 12:00:00.410 GMT
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals;
Non-Cash Impairment Charges Recognized With No Impact on Comparable EPS;
Fiscal 2014 Debt Reduction Goal Exceeded; Commitment to Strong Dividend
Reaffirmed
* Soft Consumer Foods volumes reduce fiscal 2014 fourth-quarter EPS
* Fiscal 2014 fourth-quarter GAAP results include large non-cash impairment
charges
* Fiscal 2014 operating cash flow and debt reduction goals exceeded
* Fiscal 2015 comparable EPS growth expectations of mid-single-digit rate
* Fiscal 2016-2017 comparable EPS growth expectations of high-single-digit
rate
Business Wire
OMAHA, Neb. -- June 18, 2014
Today ConAgra Foods (NYSE:CAG) is announcing that comparable fiscal 2014
fourth quarter earnings per share (EPS) will be below prior expectations.
While all financial details are not yet finalized and the results in today’s
release are preliminary, diluted per share performance from continuing
operations for the fiscal 2014 fourth-quarter, which ended on May 25, 2014 and
will be reported in more detail on June 26, 2014, is expected to be
approximately $(0.76) as reported, reflecting significant non-cash impairment
charges as well as other items impacting comparability. After adjusting for
items impacting comparability, fiscal 2014 fourth-quarter EPS is expected to
be approximately $0.55; the company’s previous guidance anticipated comparable
EPS slightly in excess of $0.60 for the quarter. The lower-than-planned
comparable EPS is largely the result of a 7% quarterly volume decline for the
Consumer Foods segment, as well as weak profits for the Private Brands
segment. Items impacting comparability are detailed on page 5 of this
document.
Gary Rodkin, CEO of ConAgra Foods, commented, “We are disappointed with the
Consumer Foods volume performance, which negatively impacted comparable EPS.
As we have communicated, we are in the process of improving product mix and
promotion strategies in the Consumer Foods segment for better results and
greater effectiveness, and we expect our volume performance to improve in
fiscal 2015 as a result of this. Given the profit challenges in our Private
Brands segment, we are also focused on margin improvement initiatives to
offset the impact of pricing concessions. Even though our earnings are below
expectations, we exceeded our fiscal 2014 operating cash flow and debt
reduction targets.”
He continued, “Given the challenges we faced in fiscal 2014 with regard to
Consumer Foods volumes and Private Brands profitability, we are in the process
of gradually strengthening several areas of our company. We anticipate fiscal
2015 to be a year of stabilization and recovery that delivers mid-single-digit
comparable EPS growth. Comparable EPS growth in fiscal 2016 and 2017 should
accelerate to a high-single-digit rate as we benefit from stronger underlying
operations, generate sizeable productivity and administrative savings, and
continue to realize substantial synergies from the Ralcorp transaction.
Administrative savings are expected to play a growing role in future EPS
performance as we implement effectiveness and efficiency initiatives resulting
from significant work over the past fiscal year. Throughout this period of
anticipated stabilization, recovery, and eventual acceleration of EPS
performance, we expect to have the flexibility to invest in our business for
good long-term growth. We plan to continue our current $1.00 per share annual
dividend payment, and remain committed to a strong dividend policy in the
future.”
Quarterly operating profit for the Private Brands is expected to show a
comparable year-over-year decline of approximately $60 million. While the
majority of the profit shortfall was driven by pricing concessions previously
discussed, cost challenges associated with integration and business transition
also weighed on profit performance. The company remains highly confident in
the long-term growth opportunities for the Private Brands segment given the
company’s strong value-added capabilities that will be leveraged in the years
ahead, the fundamental appeal of private brands to consumers, and the
strategic importance of private brands to the retail customer base.
Based on the challenges in the Private Brands segment in fiscal 2014 and the
gradual nature of the anticipated recovery from fiscal 2014 earnings levels,
the company’s current profit projections for the Private Brands segment are
below original plans for the next several years, despite continued
expectations for achievement of strong cost-related synergies in line with
original plans.
These revised profit projections, as well as expectations for continued profit
challenges for some retail brands (primarily Chef Boyardee), have resulted in
an estimated $681 million of non-cash impairment charges in the fiscal 2014
fourth quarter. These non-cash charges, most of which relate to the Private
Brands segment, reduce the amount of goodwill and other intangibles on the
company’s balance sheet, and the resulting non-cash expenses will be treated
as items impacting comparability. The revised profit projections for the
applicable segments have been taken into consideration in the fiscal 2015-2017
EPS growth expectations cited earlier in this release.
The company notes that it generated in excess of $1.5 billion of cash from
operations and repaid approximately $600 million of debt during fiscal 2014,
exceeding targets for the fiscal year. The company is confident in its ability
to meet its fiscal year 2015 debt repayment goals as well. The company will
provide more financial and operating details on the current quarter
performance, and future EPS outlook, with its regularly scheduled earnings
release on June 26, 2014.
About ConAgra Foods
ConAgra Foods, Inc., (NYSE: CAG) is one of North America's largest packaged
food companies with branded and private branded food found in 99 percent of
America’s households, as well as a strong commercial foods business serving
restaurants and foodservice operations globally. Consumers can find recognized
brands such as Banquet®, Chef Boyardee®, Egg Beaters®, Healthy Choice®, Hebrew
National®, Hunt's®, Marie Callender's®, Orville Redenbacher's®, PAM®, Peter
Pan®, Reddi-wip®, Slim Jim®, Snack Pack® and many other ConAgra Foods brands,
along with food sold by ConAgra Foods under private brand labels, in grocery,
convenience, mass merchandise, club and drug stores. Additionally, ConAgra
Foods supplies frozen potato and sweet potato products as well as other
vegetable, spice, and bakery products to commercial and foodservice customers.
ConAgra Foods operates ReadySetEat.com, an interactive recipe website that
provides consumers with easy dinner recipes and more. For more information,
please visit us at www.conagrafoods.com.
Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations and assumptions and
are subject to certain risks, uncertainties and changes in circumstances that
could cause actual results to differ materially from potential results
discussed in the forward-looking statements. These risks and uncertainties
include, among other things: ConAgra Foods’ ability to realize the synergies
and benefits contemplated by the acquisition of Ralcorp Holdings, Inc.
(“Ralcorp”) and its ability to promptly and effectively integrate the business
of Ralcorp; ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the recently formed joint venture combining the flour milling
businesses of ConAgra Foods, Cargill, Incorporated, and CHS Inc.; risks and
uncertainties associated with intangible assets, including any future goodwill
impairment charges; the availability and prices of raw materials, including
any negative effects caused by inflation or adverse weather conditions; the
effectiveness of ConAgra Foods’ product pricing, including product innovation,
any pricing actions and changes in promotional strategies; the ultimate
outcome of litigation, including the lead paint matter; future economic
circumstances; industry conditions; ConAgra Foods’ ability to execute its
operating and restructuring plans; the success of ConAgra Foods’ cost-savings
initiatives, and innovation and marketing investments; the competitive
environment; operating efficiencies; the ultimate impact of any ConAgra Foods
product recalls; access to capital; actions of governments and regulatory
factors affecting ConAgra Foods’ businesses, including the Patient Protection
and Affordable Care Act; the amount and timing of repurchases of ConAgra
Foods’ common stock and debt, if any; and other risks described in ConAgra
Foods’ reports filed with the Securities and Exchange Commission, including
its most recent annual report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Investors and security holders are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
they are made. ConAgra Foods disclaims any obligation to update or revise
statements contained in this press release to reflect future events or
circumstances or otherwise.
Regulation G Disclosure
Below is a reconciliation of preliminary Q4 FY14 diluted earnings per share
from continuing operations, adjusted for items impacting comparability.
Amounts may be impacted by rounding.
Q4 FY14 Diluted EPS from Continuing Operations
Q4 FY14
Diluted EPS from continuing operations $ (0.76 )
Items impacting comparability:
Net expense related to impairment charges, including the 1.47
impact on diluted share count
Net benefit related to sale of flour mills (0.13 )
Net expense related to restructuring, transaction, and 0.08
integration costs
Net benefit related to unusual tax matters (0.06 )
Net benefit related to unallocated mark-to-market impact of (0.02 )
derivatives
Net benefit related to historical legal matters (0.01 )
Net gain from sale of non-operating asset in the Commercial (0.01 )
Foods segment
Rounding (0.01 )
Diluted EPS, adjusted for items impacting comparability $ 0.55
Contact:
ConAgra Foods, Inc.
Media:
Teresa Paulsen, 402-240-5210
Vice President, Communication & External Relations
or
Analysts:
Chris Klinefelter, 402-240-4154
Vice President, Investor Relations
www.conagrafoods.com
-0- Jun/18/2014 12:00 GMT
2014-06-18 12:00:00.410 GMT
ConAgra Foods Announces Fiscal 2014 EPS Below Plan, Reduces EPS Goals;
Non-Cash Impairment Charges Recognized With No Impact on Comparable EPS;
Fiscal 2014 Debt Reduction Goal Exceeded; Commitment to Strong Dividend
Reaffirmed
* Soft Consumer Foods volumes reduce fiscal 2014 fourth-quarter EPS
* Fiscal 2014 fourth-quarter GAAP results include large non-cash impairment
charges
* Fiscal 2014 operating cash flow and debt reduction goals exceeded
* Fiscal 2015 comparable EPS growth expectations of mid-single-digit rate
* Fiscal 2016-2017 comparable EPS growth expectations of high-single-digit
rate
Business Wire
OMAHA, Neb. -- June 18, 2014
Today ConAgra Foods (NYSE:CAG) is announcing that comparable fiscal 2014
fourth quarter earnings per share (EPS) will be below prior expectations.
While all financial details are not yet finalized and the results in today’s
release are preliminary, diluted per share performance from continuing
operations for the fiscal 2014 fourth-quarter, which ended on May 25, 2014 and
will be reported in more detail on June 26, 2014, is expected to be
approximately $(0.76) as reported, reflecting significant non-cash impairment
charges as well as other items impacting comparability. After adjusting for
items impacting comparability, fiscal 2014 fourth-quarter EPS is expected to
be approximately $0.55; the company’s previous guidance anticipated comparable
EPS slightly in excess of $0.60 for the quarter. The lower-than-planned
comparable EPS is largely the result of a 7% quarterly volume decline for the
Consumer Foods segment, as well as weak profits for the Private Brands
segment. Items impacting comparability are detailed on page 5 of this
document.
Gary Rodkin, CEO of ConAgra Foods, commented, “We are disappointed with the
Consumer Foods volume performance, which negatively impacted comparable EPS.
As we have communicated, we are in the process of improving product mix and
promotion strategies in the Consumer Foods segment for better results and
greater effectiveness, and we expect our volume performance to improve in
fiscal 2015 as a result of this. Given the profit challenges in our Private
Brands segment, we are also focused on margin improvement initiatives to
offset the impact of pricing concessions. Even though our earnings are below
expectations, we exceeded our fiscal 2014 operating cash flow and debt
reduction targets.”
He continued, “Given the challenges we faced in fiscal 2014 with regard to
Consumer Foods volumes and Private Brands profitability, we are in the process
of gradually strengthening several areas of our company. We anticipate fiscal
2015 to be a year of stabilization and recovery that delivers mid-single-digit
comparable EPS growth. Comparable EPS growth in fiscal 2016 and 2017 should
accelerate to a high-single-digit rate as we benefit from stronger underlying
operations, generate sizeable productivity and administrative savings, and
continue to realize substantial synergies from the Ralcorp transaction.
Administrative savings are expected to play a growing role in future EPS
performance as we implement effectiveness and efficiency initiatives resulting
from significant work over the past fiscal year. Throughout this period of
anticipated stabilization, recovery, and eventual acceleration of EPS
performance, we expect to have the flexibility to invest in our business for
good long-term growth. We plan to continue our current $1.00 per share annual
dividend payment, and remain committed to a strong dividend policy in the
future.”
Quarterly operating profit for the Private Brands is expected to show a
comparable year-over-year decline of approximately $60 million. While the
majority of the profit shortfall was driven by pricing concessions previously
discussed, cost challenges associated with integration and business transition
also weighed on profit performance. The company remains highly confident in
the long-term growth opportunities for the Private Brands segment given the
company’s strong value-added capabilities that will be leveraged in the years
ahead, the fundamental appeal of private brands to consumers, and the
strategic importance of private brands to the retail customer base.
Based on the challenges in the Private Brands segment in fiscal 2014 and the
gradual nature of the anticipated recovery from fiscal 2014 earnings levels,
the company’s current profit projections for the Private Brands segment are
below original plans for the next several years, despite continued
expectations for achievement of strong cost-related synergies in line with
original plans.
These revised profit projections, as well as expectations for continued profit
challenges for some retail brands (primarily Chef Boyardee), have resulted in
an estimated $681 million of non-cash impairment charges in the fiscal 2014
fourth quarter. These non-cash charges, most of which relate to the Private
Brands segment, reduce the amount of goodwill and other intangibles on the
company’s balance sheet, and the resulting non-cash expenses will be treated
as items impacting comparability. The revised profit projections for the
applicable segments have been taken into consideration in the fiscal 2015-2017
EPS growth expectations cited earlier in this release.
The company notes that it generated in excess of $1.5 billion of cash from
operations and repaid approximately $600 million of debt during fiscal 2014,
exceeding targets for the fiscal year. The company is confident in its ability
to meet its fiscal year 2015 debt repayment goals as well. The company will
provide more financial and operating details on the current quarter
performance, and future EPS outlook, with its regularly scheduled earnings
release on June 26, 2014.
About ConAgra Foods
ConAgra Foods, Inc., (NYSE: CAG) is one of North America's largest packaged
food companies with branded and private branded food found in 99 percent of
America’s households, as well as a strong commercial foods business serving
restaurants and foodservice operations globally. Consumers can find recognized
brands such as Banquet®, Chef Boyardee®, Egg Beaters®, Healthy Choice®, Hebrew
National®, Hunt's®, Marie Callender's®, Orville Redenbacher's®, PAM®, Peter
Pan®, Reddi-wip®, Slim Jim®, Snack Pack® and many other ConAgra Foods brands,
along with food sold by ConAgra Foods under private brand labels, in grocery,
convenience, mass merchandise, club and drug stores. Additionally, ConAgra
Foods supplies frozen potato and sweet potato products as well as other
vegetable, spice, and bakery products to commercial and foodservice customers.
ConAgra Foods operates ReadySetEat.com, an interactive recipe website that
provides consumers with easy dinner recipes and more. For more information,
please visit us at www.conagrafoods.com.
Note on Forward-looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management’s current expectations and assumptions and
are subject to certain risks, uncertainties and changes in circumstances that
could cause actual results to differ materially from potential results
discussed in the forward-looking statements. These risks and uncertainties
include, among other things: ConAgra Foods’ ability to realize the synergies
and benefits contemplated by the acquisition of Ralcorp Holdings, Inc.
(“Ralcorp”) and its ability to promptly and effectively integrate the business
of Ralcorp; ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the recently formed joint venture combining the flour milling
businesses of ConAgra Foods, Cargill, Incorporated, and CHS Inc.; risks and
uncertainties associated with intangible assets, including any future goodwill
impairment charges; the availability and prices of raw materials, including
any negative effects caused by inflation or adverse weather conditions; the
effectiveness of ConAgra Foods’ product pricing, including product innovation,
any pricing actions and changes in promotional strategies; the ultimate
outcome of litigation, including the lead paint matter; future economic
circumstances; industry conditions; ConAgra Foods’ ability to execute its
operating and restructuring plans; the success of ConAgra Foods’ cost-savings
initiatives, and innovation and marketing investments; the competitive
environment; operating efficiencies; the ultimate impact of any ConAgra Foods
product recalls; access to capital; actions of governments and regulatory
factors affecting ConAgra Foods’ businesses, including the Patient Protection
and Affordable Care Act; the amount and timing of repurchases of ConAgra
Foods’ common stock and debt, if any; and other risks described in ConAgra
Foods’ reports filed with the Securities and Exchange Commission, including
its most recent annual report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Investors and security holders are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
they are made. ConAgra Foods disclaims any obligation to update or revise
statements contained in this press release to reflect future events or
circumstances or otherwise.
Regulation G Disclosure
Below is a reconciliation of preliminary Q4 FY14 diluted earnings per share
from continuing operations, adjusted for items impacting comparability.
Amounts may be impacted by rounding.
Q4 FY14 Diluted EPS from Continuing Operations
Q4 FY14
Diluted EPS from continuing operations $ (0.76 )
Items impacting comparability:
Net expense related to impairment charges, including the 1.47
impact on diluted share count
Net benefit related to sale of flour mills (0.13 )
Net expense related to restructuring, transaction, and 0.08
integration costs
Net benefit related to unusual tax matters (0.06 )
Net benefit related to unallocated mark-to-market impact of (0.02 )
derivatives
Net benefit related to historical legal matters (0.01 )
Net gain from sale of non-operating asset in the Commercial (0.01 )
Foods segment
Rounding (0.01 )
Diluted EPS, adjusted for items impacting comparability $ 0.55
Contact:
ConAgra Foods, Inc.
Media:
Teresa Paulsen, 402-240-5210
Vice President, Communication & External Relations
or
Analysts:
Chris Klinefelter, 402-240-4154
Vice President, Investor Relations
www.conagrafoods.com
-0- Jun/18/2014 12:00 GMT
Global E&P Spending May Rise 6% in 2014 to $712b, Barclays Says
2014-06-18 11:54:39.353 GMT
By Benjamin Dow
June 18 (Bloomberg) -- Spending increase of 6.2% y/y for
2014 would imply fifth straight year of growth since 2009
recession, Barclays says.
* Revises major integrated oil & gas spending to remain flat
y/y vs est. for 2.9% growth the broker made in Dec. 2013
* Sees strongest gains coming from North America, with growth
est. at 8.4% vs 7.3% in Dec.
* Raises est. for Canadian spending growth to 4.5% vs 3.2%
* Middle East estimated to have highest regional growth at
16%, Asia to have 8%, where NOCs, quasi-NOCs drive growth
* Cuts Latin America growth forecast to 5.5% vs 13% in Dec.;
Europe to contract 0.2% vs previous growth est. 7.8%
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To contact the reporter on this story:
Benjamin Dow in Moscow at +7-495-771-7735 or
bdow2@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
James Cone
2014-06-18 11:54:39.353 GMT
By Benjamin Dow
June 18 (Bloomberg) -- Spending increase of 6.2% y/y for
2014 would imply fifth straight year of growth since 2009
recession, Barclays says.
* Revises major integrated oil & gas spending to remain flat
y/y vs est. for 2.9% growth the broker made in Dec. 2013
* Sees strongest gains coming from North America, with growth
est. at 8.4% vs 7.3% in Dec.
* Raises est. for Canadian spending growth to 4.5% vs 3.2%
* Middle East estimated to have highest regional growth at
16%, Asia to have 8%, where NOCs, quasi-NOCs drive growth
* Cuts Latin America growth forecast to 5.5% vs 13% in Dec.;
Europe to contract 0.2% vs previous growth est. 7.8%
Link to Company News:883 HK <Equity> CN <GO>
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To contact the reporter on this story:
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To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
James Cone
--> FDX +4.5% Pre-mkt, UPS +1.77%
FedEx beats by $0.10, beats on revs; guides FY15 EPS in-line
Reports Q4 (May) earnings of $2.46 per share, $0.10 better than the Capital IQ Consensus Estimate of $2.36; revenues grew ~3.5% year/year to $11.8 bln vs the $11.64 bln consensus.
- Excluding business realignment program costs and aircraft impairment charges last year, operating results improved on higher volumes and operational efficiencies at FedEx Freight, increased volumes and yields at FedEx Ground, and better revenue and cost performance at FedEx Express.
- During Q4, the co acquired 9.9 million shares of FedEx common stock, increasing the fiscal 2014 purchase total to 36.8 million shares. As of May 31, 2014, 5.3 million shares remained under the existing share repurchase authorizations. Share repurchases benefited fourth quarter earnings by $0.12 per diluted share.
- Express rev up slightly to $7 bln; operating income +3% to $475 mln.
- Ground rev +8% to $3.01 bln; operating income +5% to $586 mln.
- Freight rev +12% to $1.55 bln; operating income +51% to $122 mln.
- The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. Capital spending for fiscal 2015 is expected to increase to ~$4.2 billion, which includes planned aircraft deliveries to support the co's fleet modernization program and continued expansion of the FedEx Ground network.
{SHP LN Equity GIP <GO>}
Early premarket gappers
Gapping up: NEWL +38.2%, ETRM +26.3%, ADBE +9.4%, GIGA +7.1%, PLUG +3%, CNHI +2.6%, BBRY +2.5%, ENB +2.4%, FCEL +2.1%, RDS.B +1.9%, DMND +1.9%, RDS.A +1.6%, SUNE +1.5%, FLXN +1.3%, CGEN +1.3%, TSN +1.2%, AZN +1.1%, MOVE +0.5%
Gapping down: ECYT -19.7%, LZB -10.7%, MUX -10.1%, GWPH -5.6%, NGL -5.1%, FBIZ -2.8%, CONE -2.5%, RYAAY -2.4%, SPWR -2.3%, ZBRA -1.9%, CBPO -1.7%, SCTY -1.1%, RCPT -0.6%
Gapping down: ECYT -19.7%, LZB -10.7%, MUX -10.1%, GWPH -5.6%, NGL -5.1%, FBIZ -2.8%, CONE -2.5%, RYAAY -2.4%, SPWR -2.3%, ZBRA -1.9%, CBPO -1.7%, SCTY -1.1%, RCPT -0.6%
Allergan Seen Making ‘Imminent’ Bid for Shire: SunTrust Robinson
2014-06-18 11:25:34.225 GMT
By Catherine Larkin
June 18 (Bloomberg) -- Allergan’s bid will be more
attractive than Valean’t proposal, allow more upside without
risk of holding VRX shrs, SuntTrust Robinson Humphrey analyst
John T. Boris said in note.
* Friendly AGN + SHPG deal will be viewed more favorably,
provide “more transparent and sustainable organic growth”
* Sees SHPG holders owning 30% of combined co., above tax
inversion threshold, assuming half stock/cash deal and 128m
shrs issued
* Rates AGN buy, PT $200; says combination with SHPG would be
valued at $210/shr base case or $233 in bull case
* NOTE: Yday, Valeant Says ‘There Is a Path to Shareholder
Vote’ on AGN Deal
* Shire Hires Citi as It Braces for Takeover Offers:
Reuters
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To contact the reporter on this story:
Catherine Larkin in Chicago at +1-312-443-5968 or
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To contact the editor responsible for this story:
Brad Skillman at +1-212-617-2763 or
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2014-06-18 11:25:34.225 GMT
By Catherine Larkin
June 18 (Bloomberg) -- Allergan’s bid will be more
attractive than Valean’t proposal, allow more upside without
risk of holding VRX shrs, SuntTrust Robinson Humphrey analyst
John T. Boris said in note.
* Friendly AGN + SHPG deal will be viewed more favorably,
provide “more transparent and sustainable organic growth”
* Sees SHPG holders owning 30% of combined co., above tax
inversion threshold, assuming half stock/cash deal and 128m
shrs issued
* Rates AGN buy, PT $200; says combination with SHPG would be
valued at $210/shr base case or $233 in bull case
* NOTE: Yday, Valeant Says ‘There Is a Path to Shareholder
Vote’ on AGN Deal
* Shire Hires Citi as It Braces for Takeover Offers:
Reuters
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To contact the reporter on this story:
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HypoVereinsbank is one of its online subsidiary DAB non-core business and drives the sale forward. The French bank Société Générale in Germany expressed interest in direct investment bank.
Hamburg - Germany The offshoot of the French bank Société Générale has interest in direct investment Bank (DAB). Their mother HypoVereinsbank (HVB) pushing ahead with the sale of the broker as manager magazine in its new issue (release date: June 20) reported, citing industry sources.
Unlike the French, who are so far represented in Germany in direct banking only with the mini-provider Onvista, but go for expansion: CEO Frédéric Oudéa (50) will in the next two years, up to four billion euros for the expansion of European business, including acquisitions provide. On the stock market, DAB is worth around 340 million euros, with its well 620 000 customers. By August, the deal could go through, they say.
The car manufacturer BMW wants to hedge his return with a long-term savings program. The project, for which according to the consolidated circles the consulting firm McKinsey has been commissioned, should save several billion euros.
Hamburg - The project run by 2020 and should reduce costs EUR per year by at least three to four billion, manager magazine reports in its new issue (publication date: June 20).
BMW Show Chartplans to increase its sales by 2016 to 2.5 million cars per year. 2013, the company had sold nearly two million cars and thereby achieved a return of 9.4 percent in the automotive business.
In particular, the results of the small models 1 Series and Mini CEO Reithofer had recently, though disappointed, says the company. Thanks to the austerity program, the CEO see the achievement of the return target by 2016 under normal circumstances and secured to. After that, however, still a yawning gap of several 100 million euro.
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Lululemon Gives Adidas to VF $1 Billion Reason for Bid: Real M&A 2014-06-18 11:00:01.1 GMT
(For a Real M&A column news alert: SALT REALMNA <GO>.)
By Brooke Sutherland and Scott Deveau June 18 (Bloomberg) -- Lululemon Athletica Inc. just got marked down by $1 billion. The yoga-pant maker plunged 16 percent after the company cut its full-year earnings forecast last week. That decline added to the $5.5 billion already wiped out in the last year amid a product recall and management shakeup, leaving Lululemon trading near its lowest earnings multiple since 2009. While the $5.6 billion retailer may not want to sell at this level, the drop could encourage an opportunistic buyer to make an approach, said Scott Rostan of Training The Street. Suitors willing to court Lululemon’s founder and largest shareholder Chip Wilson would get a company that’s projected to boost sales 46 percent over the next three years. VF Corp., the $27 billion owner of the Vans and The North Face brands, is one of the most likely candidates to consider acquiring Lululemon, said Canaccord Genuity Group Inc. Adidas AG also would make sense as a buyer because the $22 billion sporting-goods maker could use its international expertise to help guide Lululemon’s overseas expansion, Wedbush Inc. said. “If you believe the long-term growth prospects and fundamental value of the company, then maybe now is the time to talk to them,” Rostan, whose New York-based firm teaches new hires at investment banks how to structure mergers and acquisitions, said by phone. “Given where their valuation is now, there’s probably some sniffing going on.” A representative for Vancouver-based Lululemon didn’t immediately respond to phone or e-mail requests for comment.
Disappointing Report
Lululemon plunged last week, erasing more than $1 billion in market value in a single day, after saying sales have been slower than expected and full-year earnings will be lower than earlier forecast. While the stock has gained 3.9 percent since, the company’s market value is still down about $800 million. The shares had been slipping since last June, when Chief Executive Officer Christine Day announced she was stepping down. Sales growth has stalled in the last year as increased quality checks slowed deliveries of new apparel. It’s also been forced to re-woo shoppers after recalling a popular yoga pant line because they were too sheer. With the stock drop, Lululemon hasn’t been this cheap for potential buyers since July 2009, one month after the end of the worst U.S. recession since the Great Depression. The retailer’s price-earnings ratio of 21 yesterday is about half its five-year average, according to data compiled by Bloomberg. “It becomes a little bit more realistic,” even though Lululemon is still relatively expensive compared to peers, Howard Tubin, a New York-based analyst at RBC Capital Markets, a unit of Royal Bank of Canada, said in a phone interview. “They’re a large player in a very attractive segment of apparel, the women’s athletic apparel market. They have a lot of growth prospects.”
Sales Forecasts
Analysts estimate Lululemon will boost sales to $2.3 billion in the year ended January 2017 as it expands into men’s wear and international markets. That compares with $1.6 billion last year and represents a fivefold increase from the year ended January 2010. “It could be enticing to some,” Tubin said. Lululemon could be a good fit for VF because the larger company already has a presence in athletic apparel, said Camilo Lyon, a New York-based analyst at Canaccord. VF, which traces its retailing roots back to 1899, could also use its expertise to remedy Lululemon’s supply-chain challenges and cut costs, Lyon said.
Shining Light
Omar Saad of International Strategy & Investment Group LLC highlighted Lululemon as a potential takeover target for VF last month. A takeover at $50 a share, a 29 percent premium to yesterday’s close, could be accretive for the maker of Wrangler denim and Ella Moss dresses, he wrote. Lululemon’s “value proposition of superior product quality and an engaging store experience has been a beacon of light in the dark ocean of specialty retail mediocrity, leading to tremendous profitability and growth until this point,” Saad wrote in the May report. VF “has in spades what Lulu lacks,” such as a scaled supply chain. Adidas, which is based in Herzogenaurach, Germany, and gets more than 75 percent of its sales from outside North America, also could be a logical buyer should a deal occur, said Corinna Freedman an analyst at Wedbush. “That could make a lot of sense, especially given Adidas’ international expertise,” Freedman said by phone from New York. Laurent Potdevin, who took over as Lululemon’s CEO in January, said in March that he wants to accelerate the retailer’s international expansion plans. The company got 95 percent of its revenue last year from the U.S. and Canada.
Nike Gear
Nike Inc. may also be interested in adding Lululemon’s tank tops and yoga pants to its athletic lineup, according to Jennifer Black, chief executive officer at Lake Oswego, Oregon- based Jennifer Black & Associates LLC, who said the company’s takeover prospects will increase if it continues to struggle this year. “Shareholders will become frustrated,” Black said in a phone interview. “Shareholders are going to give them the benefit of the doubt for a long period of time. But if they don’t execute, they are an open target.” Representatives for Greensboro, North Carolina-based VF and Adidas declined to comment, as did a representative for Beaverton, Ohio-based Nike.
Stabilize First
Any suitor may want wait for an improvement in Lulu’s earnings before considering a deal, said Freedman of Wedbush and Jaime Katz of Morningstar Inc. “You want to see things stabilize before you jump into the crossfire,” Katz, a Chicago-based analyst, said in a phone interview. “It’s going to be a little bit of time before any other large retailer would feel comfortable folding this business in. It just seems like there’s a lot of internal turmoil that’s trying to settle itself down right now.” Part of that turmoil is related to Wilson, who last week voted against the re-election of his successor as chairman, saying the board has been too concerned with short-term results. With an almost 30 percent stake, Wilson can influence or control strategic changes, including approving a merger, Lululemon said in its most recent annual filing. “You have a very big shareholder who has a mind of his own,” Katz said. “In order to get everybody on board, Chip Wilson needs to be on board.”
Activist Interest
While Wilson and the rest of Lululemon’s management team probably isn’t interested in selling when the company’s stock is so low, its plunging shares could encourage an activist to approach and push for changes, including a sale, said Pamela Quintiliano, a New York-based analyst at SunTrust Banks Inc. “This space is filled with activists right now,” she said in a phone interview. “I don’t know that they’d be successful in pressuring, but I think there’s clearly an opportunity for someone to come in.” The drop may also be dramatic enough to entice buyers to approach on their own, said Frank Beck, president of Austin, Texas-based Beck Capital Management LLC. Beck said his firm, which oversees about $250 million, had sold its Lululemon shares before the earnings report last week. “The drop has at least gotten the valuation down low enough that, heck, if it went down a little lower, I’d probably consider buying shares myself,” Beck said in a phone interview. “It would be really attractive to a lot of companies.”
For Related News and Information: Lululemon Tumbles After Reducing Full-Year Earnings Forecast NSN N72O1T6VDKHZ<GO> Lululemon Falls as Forecast Trails Estimates Amid Product Delays NSN MXP9PM6S972Q<GO> Lululemon Says Chief Executive Officer Christine Day to Retire NSN MO71QX6TTDT7<GO> Lululemon’s acquisition news: LULU US <equity> TCNI MNA <GO> Top deal news: DTOP<GO> Real M&A columns: NI REALMNA <GO>
--With assistance from Lindsey Rupp in New York.
To contact the reporters on this story: Brooke Sutherland in New York at +1-212-617-0448 or bsutherland7@bloomberg.net; Scott Deveau in Toronto at +1-416-203-5701 or sdeveau2@bloomberg.net To contact the editors responsible for this story: Beth Williams at +1-212-617-2307 or bewilliams@bloomberg.net Whitney Kisling