>>> Zimmer Hldgs beats by $0.03, misses on revs; lowers FY14 EPS to reflect shar

Zimmer Hldgs beats by $0.03, misses on revs; lowers FY14 EPS to reflect share count following acquisition of Biomet; reaffirms FY14 revs

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.

>>> Titan Intl misses by $0.32, misses on revs; 2014 management goals published

Titan Intl misses by $0.32, misses on revs; 2014 management goals published November 25, 2013 have been rescinded

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 Due to the uncertainty in the markets we serve, the 2014 management goals published November 25, 2013 have been rescinded and are being reconsidered."

>>> Raytheon misses by $0.33, reports revs in-line; reaffirms FY14 guidance

Raytheon misses by $0.33, reports revs in-line; reaffirms FY14 guidance

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.

>>> Delphi Automotive beats by $0.12, reports revs in-line; guides Q2 EPS in-lin

Delphi Automotive beats by $0.12, reports revs in-line; guides Q2 EPS in-line, revs below consensus; guides FY14 EPS in-line, revs in-line

Reports Q1 (Mar) earnings of $1.20 per share, $0.12 better than the Capital IQ Consensus Estimate of $1.08; revenues rose 6.3% year/year to $4.28 bln vs the $4.29 bln consensus.
Guidance:
  • Q2 - Co issues guidance for Q2, sees EPS of $1.27-1.35 vs. $1.31 Capital IQ Consensus Estimate; sees Q2 revs of $4.375-4.475 bln vs. $4.48 bln Capital IQ Consensus Estimate.
  • FY14Co issues in-line guidance for FY14, sees EPS of $4.80-5.00 vs. $4.89 Capital IQ Consensus Estimate; sees FY14 revs of $17.2-17.6 bln vs. $17.45 bln Capital IQ Consensus Estimate.
Share Repurchase update
During the first quarter of 2014, Delphi repurchased 2.38 million shares for approximately $157 million under its existing $750 million share repurchase program, leaving ~$33 million available for future share repurchases under this program.

>>> Zimmer Holdings Inc To Combine with Biomet, Inc. in Transaction Valued at $1

Zimmer Holdings Inc To Combine with Biomet, Inc. in Transaction Valued at $13.4B; Deal EPS accretive in Y1
- Boards of Directors have approved a definitive agreement under which Zimmer will acquire Biomet in a cash and stock transaction valued at approximately $13.35 billion, including the assumption of net debt. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first quarter of 2015.
- The transaction is valued at $13.35 billion and consists of a combination of cash and common stock. Zimmer will pay $10.35 billion in cash and will also issue to Biomet's equity holders an aggregate number of shares of Zimmer common stock valued at $3.0 billion. The cash portion will be funded by existing cash on hand, as well as proceeds obtained from a newly committed $3.0 billion senior unsecured term loan and newly issued senior notes. 
- Stronger financial profile and solid earnings accretion: The 2013 combined calendar year revenues of Zimmer and Biomet total approximately $7.8 billion, with combined adjusted EBITDA of $2.8 billion. The transaction is expected to be double-digit accretive to Zimmer's adjusted diluted earnings per share in the first year following the closing. Zimmer also expects to achieve net annual synergies of approximately $270 million by the third year following the closing of the transaction, with approximately $135 million anticipated in the first year. 
- The combined company will continue to be headquartered in Warsaw, Indiana, maintain regional offices around the world and is anticipated to preserve a long-term commitment to its talented team members. Upon completion of the transaction, David Dvorak will be President and Chief Executive Officer of the combined company. In conjunction with the closing of the transaction, two representatives of Biomet's principal stockholders will join the combined company's Board, which will be expanded accordingly. - Source

>>> Altria reports EPS in-line, revs in-line; reaffirms FY14 EPS guidance

Altria reports EPS in-line, revs in-line; reaffirms FY14 EPS guidance

Reports Q1 (Mar) earnings of $0.57 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.57; revenues rose 0.9% year/year to $4.01 bln, excluding excise tax, vs the $4.03 bln consensus.
  • Co reaffirms guidance for FY14, sees EPS of $2.52-2.59 vs. $2.56 Capital IQ Consensus Estimate.
  • "During the first quarter, Altria grew adjusted diluted EPS by 5.6% behind the strength of our core tobacco businesses and their leading premium brands," said Marty Barrington, Chairman and Chief Executive Officer of Altria. "Our smokeable and smokeless products segments grew their adjusted operating companies income and expanded margins."

>>> Mead Johnson Nutrition beats by $0.11, beats on revs; raises FY14 EPS in-lin

Mead Johnson Nutrition beats by $0.11, beats on revs; raises FY14 EPS in-line with consensus

Reports Q1 (Mar) earnings of $1.02 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.91; revenues rose 7.3% year/year to $1.11 bln vs the $1.1 bln consensus.

  • Co issues guidance for FY14, raises EPS to $3.60-3.72 from prior guidance of $3.50-3.62 vs. $3.62 Capital IQ Consensus Estimate; sees FY14 revs of +8% in constant dollars calc ~ $4.536 bln, may not be comparable to $4.44 bln Capital IQ Consensus Estimate. "Of the expected $0.10 increase in earnings per share, approximately two-thirds is attributed to the New Pension Accounting with the remainder the result of stronger anticipated operational performance. To provide a better view of underlying operational performance, pension MTM actuarial gains or losses will be treated as a Specified Item"
  • Gross margin for the first quarter of 2014 was 63.6 percent, up from 62.9 percent in the first quarter of the prior year.
  • Outlook Details: "We now anticipate constant dollar sales growth of approximately eight percent for the full year 2014, up from seven percent in our prior guidance, on expected stronger revenue momentum," Mr. Jakobsen said. "We are planning for higher demand-generating investments throughout the remainder of the year, despite foreign exchange pressure on our earnings." With the New Pension Accounting changes and stronger underlying business performance, the company has raised guidance and expects full-year non-GAAP EPS to be in the range of $3.60 to $3.72 per diluted share."

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.