>>> Johnson Controls confirms it will merge with Tyco (TYC)

Johnson Controls confirms it will merge with Tyco (TYC)
Under the terms of the agreement, which has been unanimously approved by both companies' Boards of Directors, Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Current Tyco shareholders will own approximately 44 percent of the equity of the combined company.

>>> Halliburton beats by $0.07, reports revs in-line (30.19)

--> HAL - not trading yet

Halliburton beats by $0.07, reports revs in-line

  • Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.24; revenues fell 42.1% year/year to $5.08 bln vs the $5.13 bln Capital IQ Consensus.
    • As a result of the downturn in the energy market and its corresponding impact on the company's business outlook, Halliburton recorded co-wide charges related primarily to asset write-offs and severance costs of ~$192 million, after-tax, or $0.22 Adjusted operating income was $473 mln in Q4, compared to adjusted operating income of $506 million in Q3.
  • Completion and Production rev -12% QoQ to $2.8 bln, primarily driven by activity and pricing headwinds in all regions; operating income -12% QoQ to $144 mln.
  • Drilling and evaluation rev -5% QoQ to $2.3 bln, driven primarily by decreased drilling activity and logging services in the United States, Latin America, and Europe/Africa/CIS, along with reduced project management activity and drilling services in Middle East/Asia; operating income flat QoQ at $399 mln.
  • "For our international business, fourth quarter revenue and operating income declined sequentially by 5% and 10%, respectively, as a result of price concessions and activity declines. In addition, due to customer budget constraints, we did not see the typical benefit from year-end equipment and software sales... North America revenue declined 13% sequentially, led by reduced activity and pricing concessions in US Land. Operating margins improved by 160 basis points, driven by cost reduction efforts, and year-end completion tool sales in the Gulf of Mexico.
  • "2016 is expected to be another challenging year for the industry."
  • Fully committed to Baker Hughes acquisition. "We are continuing our discussions with competition authorities, and recently offered an enhanced set of divestitures in an effort to resolve competition-related concerns as soon as possible."

>>> EU Commission confirms receipt of Portugal's 2016 draft budget on Friday, Ja

EU Commission confirms receipt of Portugal's 2016 draft budget on Friday, Jan 22nd - EU to provide update on budget in due time

Recent comments on Portugal budget:
- On Jan 15th Portugal PM Costa affirmed 2016 budget deficit to GDP target at 2.8% 
- On Nov 26th New Portugal govt sworn in by President Silva and was warned not to stray from budget consolidation path agreed with the EU. Later the - EU Commission stated that it was in contact with Portugal govt on several levels and awaiting 2016 draft budget

>>> LafargeHolcim expects synergies of CHF 1.5bn, possible share buybacks (trans

LafargeHolcim expects synergies of CHF 1.5bn, possible share buybacks

LafargeHolcim expects to reap synergies of CHF 1.5bn (EUR 1.36bn) through the merger of Holcim und Lafarge, Sonntagszeitung reported.

Its Chief Executive, Eric Olsen, told the Swiss weekly that while the merger had not yet resulted in the benefits expected, this was normal for such a complex, global merger.

Olsen said it would take time but the merger would generate a massive increase in value and shareholders would benefit through special dividends and share buyback programmes.

He added that the merger would enable annual investments to be reduced to CHF 2bn per year from CHF 3bn. Divestments of company units valued at CHF 3.5bn are also planned, Olsen stated, confirming previous company comments.

Sonntagszeitung