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Tenneco 03-22 01:57 GMT  
(Report with Analyst's Data Sheet) 
Tenneco's (TEN) fourth quarter organic growth was better than the consensus, but margins were weaker; a trend expected to continue in 2019 from slowing global light...
Spin-Off Ahead  by Evan Mann, CFA
CBS 03-22 01:41 GMT  
(Report with Analyst's Data Sheet) 
Now that Disney has acquired the Fox assets, Comcast has taken over Sky, and Discovery has long since merged with Scripps, deal rumors are focused on CBS and Viacom. ...
It's Showtime For CBS by Dave Novosel, CFA
Deutsche Bank 03-21 03:21 GMT  
(Report with Analyst's Data Sheet) 
On Sunday, Deutsche Bank and Commerzbank confirmed that they are engaged in merger discussions, but cautioned there is no certainty that a transaction...
Merger Muddle by Kathleen Shanley, CFA
Lamar Advertising Co. 03-21 02:43 GMT  
(Report with Analyst's Data Sheet) 
Lamar Advertising (LAMR) not long ago made another acquisition that expanded its outdoor advertising business. The company has grown the number...
Screen Time by Kim Noland
Avianca Holdings SA 03-21 00:57 GMT  
(Report with Analyst's Data Sheet) 
When it signed an order for A320neo planes in 2015, Avianca Holdings SA (PFAVHC) was expecting a much stronger market over the subsequent 5 years...
Scaling Down by Cedric Rimaud, CFA
General Mills, Inc. 03-20 20:03 GMT
(Comment)
General Mills posted strong results for the fiscal third quarter that ended on February...
Earnings by Dave Novosel, CFA
General Mills posted strong results for the fiscal third quarter that ended on February 24th. Organic net sales increased 1%, which is better than the first two quarters of the year, and as good as growth has been over the past couple of years. Unfortunately, growth is likely to slow toward the .10% to .30% range in the fourth quarter. In the North American Retail segment, organic sales were basically flat. Operating margins increased 250 basis points, attributable to cost savings initiatives and positive price realization. Convenience Stores & Foodservice organic net sales rose 3%, driven by growth for the Focus 6 platforms, including frozen meals, snacks, frozen baked good, and yogurt. Margins were up 230 bps because of cost savings initiatives, positive price realization, and mix. Organic net sales declined 2% in the Europe & Australia unit and margins fell slightly due to significant input cost inflation. The Asia & Latin America segment delivered a 7% increase in organic sales and turned profitable in the quarter. Pro forma Pet segment net sales rose 4%, while margins decreased because of higher input costs and plant start-up costs. GIS has generated more than $700 million of free cash flow through the first three quarters, and has used it to reduce debt. Leverage is down to 4.4x.
Nutrien 03-20 15:47 GMT
(Comment)
Fertilizer giant Nutrien has been paying down debt since it was created from the merger between Potash...
New Issue by Carol Levenson, CFA
Fertilizer giant Nutrien has been paying down debt since it was created from the merger between Potash Corp. of Saskatchewan and Agrium at the start of last year. But yesterday it issued $1.5 billion in ten-year and thirty-year maturities. The proceeds will be used in part to redeem $500 million in high coupon debt maturing in May, which should save some interest expense given that yesterday's deal came at a weighted average coupon of 4.6%. The remainder of the proceeds are to be used for reducing "other debt" and for general corporate purposes. The issuance extends Agrium's maturities and likely will be used primarily for refinancing debt, and thus not adding to Agrium's debt load. On the other hand, we do not anticipate further material debt reduction, now that leverage has subisded to the 2x range. We have had an "outperform" on Agrium, and reiterate it for the new issue (ten year notes priced at T+163). We will have more in an upcoming full report.
Newell Brands 03-18 16:06 GMT
(Comment)
Last week Newell Brands announced the unexpected retirement of its longtime CEO, Michael Polk,...
Management Change by Carol Levenson, CFA
Last week Newell Brands announced the unexpected retirement of its longtime CEO, Michael Polk, effective at the end of the second quarter. With no successor lined up, the company has hired a search firm to find a new CEO. The timing is odd, and Mr. Polk is only 58, but the company's spin is that it is near the completion of its "accelerated transformation plan," making it the right time for a management transition. This morning Newell announced another divestiture of a noncore unit, the Process Solutions business, which makes custom-designed plastic and metal products for industrial and consumer applications. The aftertax proceeds from this sale to a private equity firm are estimated at $500 million, well below 2018 sales of $640 million. Unlike previous divestiture announcements, this one made no mention of the use of proceeds. This confirms our belief that debt reduction is no longer the primary use of divestiture proceeds, especially as the company (using some unusual math, as discussed in our report dated 2/19/19) believes it has met its leverage target of 3.5x as of the end of the year. Bear in mind, however, that this is still high leverage, and management had said it intended to go beyond this and reduce leverage further. A new CEO, a new CFO, prominent activist representation on the board, and a depressed stock price raise event risk considerably.
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Mar 13, 2019 | WSJ
EM on JC Penney '' Long Way to Go"
Feb 26, 2019 | Barron's
GC on Investment Grade Top Ten Featured: - Q - "2019's Best Corporate Bond Bets Are Brought to You From Last Year's M&A"
Feb 20, 2019 | Bloomberg
DN on Rural Phone companies: Regarding the (Windstream) ruling - Q- "The court decision speeds up what had been seen as a slow and steady deterioration for the phone companies."
Feb 19, 2019 | WSJ
CL on Royal Caribbean -Q-"...Royal Caribbean also has developed strong distribution relationships with travel agents."
Jan 10, 2019 | Bloomberg
CL on PG&E's Downgrade to Junk -Q- "The other shoe has dropped" for PG&E...which might be the tipping point in favor of a bankruptcy decision."
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