DuPont slightly increased profit in Q2 2014

DuPontThe US chemical company DuPont slight increase in profit for the last quarter due to weak business in the agricultural sector. Profit increased by four percent to 1.07 billion USD or 1.15 USD per share compared to 1.03 billion USD or 1.11 USD per share a year earlier. Between April and June of DuPont revenue amounted to 9.71 billionUSD on a decline of 1% annually. The forecast of analysts was for a revenue of about 10.02 billion USD. Especially in the business of maize seed and pesticides against weeds, which is the main business for the company, DuPont reported a sharp drop. This operating earnings per share decreased by 11%. Businesses corn was weaker than expected, explains the concern. The company had to make higher write-offs due to high stocks. Better developed business with soy, but failed to fully offset weak sales of corn. Crop protection division has suffered because of bad weather especially in North America.
The second most important chemical Performance Chemicals division recorded a decline in sales of 8%. The traditional American company whose roots date back to 1802, is undergoing restructuring. DuPont is in the process of separation of its chemical division Performance Chemicals, which produces, among other things, the white pigment titanium dioxide and refrigerants (CFCs different). Company plans to sell the division by the end of 2015.

McDonald’s continues to lose customers in Q2 2014

McDonaldsThe US fast food chain McDonald’s failed to attract more customers to the restaurant in Q2 2014. The most important concern for the market as the revenues dropped and worldwide almost stagnant. McDonald’s reported profit fell by 1% in the second quarter.
“The company continues to experience difficulties and need to update their menus”, says Executive Director Don Thompson. The profit of McDonalds amounted to 1.39 billion USD (1.40 USD per share) in the second quarter from 1.4 billion USD (1.38 USD per share) yoy.
The revenues recorded a growth of 1% to 7.18 billion USD, while analysts had expected revenue of 7.29 billion USD and earnings per share of 1.44 USD per share.
The sales in new restaurants not reported growth, while in sites, working more than one year in USA fell by 1.5%, diverging forecasts for a decline of 0.3%. The company says the decline reflects negative trends in the market and that it will work to improve the stay of customers to return this segment of business to growth. Key points in this plan include better service, more active advertising and changes in restaurant menus.

Publicis H1 2014 profit dropped with 17%

PublicisThe French advertising company Publicis reported a weak first half, after the net profit declined by 16.9% to 260 million EUR. The performance of the company, whose merger with American Omnicom recently failed, was seriously affected by exchange rates. Deposition and dissolution of advertising campaigns and stalled economies in Europe and in the developing world also negatively affected the company’s revenue.
“These figures are disappointing by our standards. They do not reflect our full potential”, said chairman and CEO Maurice Levy. He added that Publicis was entirely focused on the merger with Omnicom and this has led to the diversion of focus from the core business of the company.
Publicis and Omnicom met insurmountable obstacles to the merger between the two, in their words, and so the deal was canceled in May. The merger would create the largest advertising agency in the world, but the problems started in April when CEO John Wren of Omnicom expressed doubts raised by tax complications.

Mondelez and DE Master Blenders consider selling coffee brands

DE Master BlendersMondelez International and DE Master Blenders are considering various options, including the potential sale of their French coffee brand L’Or and Grand Mere, at a time when they prepare the merger of its business with coffee, Reuters reported, citing its sources. In May, the two companies announced that they would form a joint venture controlled by private parent of DE Master Blenders – JAB Holding Co, it will become the second largest retailer of specialty coffee in the world after Nestle. The companies have hired investment bank Lazard as a consultant for strategic opportunities for the two French brands, according to Reuters sources.
Among the options is the ability to sell, but it is not the only option in which to work. It is not clear how big brands because it can be sold. L’Or, producing capsules for coffee, similar to the system of Nestle Nespresso, is currently owned by DE Master Blenders. Grand Mere, which was established in 1950, is owned by Mondelez. The brand is known for the image of the smiling grandmother.

Lindt buys Russell Stover

LindtThe Swiss chocolate producer Lindt & Sprungli has agreed to buy the US rival Russell Stover, the BBC reported. Under the agreement not to disclose the purchase price. According to Lindt takeover will help it expand in USA, making it the third-largest manufacturer of chocolate in North America.
“The biggest and most important strategic asset in our history is a unique opportunity”, said the Chairman of the Board of Lindt Ernst Tanner.
The company expects the deal to raise its profit after 2015, passing the threshold of 1.5 billion USD in annual sales in North America. Russell Stover has a brand of Whitman in USA, has four factories in the country and operates a chain of 35 stores. The annual sales of the company amounted to about 500 million USD.

Investors in Bank of Cyprus sell their shares

Bank of CyprusThe customers of Bank of Cyprus, whose deposits were seized as part of an exceptional move for the salvation of the financial system of the island countries, reducing their losses and sell shares in the lender at a below market value. In 2013, thousands of investors who have invested their funds in the Bank of Cyprus, including many British and Russians wanted to become shareholders in the lender after it overflowed their deposits in the company’s equity as part of a controversial plan for emergency assistance worth 10 billion EUR. About 47.5% of the money guaranteed by the government over a deposit of 100,000 EUR turned into equity of the bank.
After the unexpected move markets more than a third of the money fell into the 6, 9 and 12-month deposits. Meanwhile the shares of Bank of Cyprus were removed from trading on the stock exchanges in Nicosia and Athens. According to experts from the London-based company Exito Capital International Ben Rosenberger and Michelle Del Bo, who had previously been involved in the sale of Lehman Brothers, sellers so far are mainly international clients who want to withdraw their investment from the island through the sale of deposits and shares.

US pharmaceutical giant AbbVie in negotiations for the purchase of Shire

AbbVieThe US pharmaceutical company AbbVie started negotiations for the purchase of the British company Shire. The deal is estimated at 30 billion GBP, or 51 billion USD. The senior officials of the two companies had a meeting in New York, adds another publication. During the talks discussed the proposal of AbbVie of 51.15 GBP per share Shire.
The two companies and heading negotiations not for the first time. Back in May AbbVie announced its intentions to buy the British company. Subsequent talks held in Paris and Geneva, did not lead to a result. The comments of the sources of financial publications are that recent meetings may not lead to a deal. Part of the private shareholders Shire applied pressure to begin negotiations in the last days of May so far AbbVie submitted four offers to buy the British pharmaceutical company. According to UK law, however AbbVie is entitled to make a formal proposal for the purchase of the company by 18 July or abandon the deal.

Banco Espírito Santo with 2-3 billion EUR shortage of capital

BES aidBanco Espírito Santo has a shortage of capital of about 2-3 billion EUR. Still it is possible to rescue the bank in Cypriot style, in which unsecured creditors of Banco Espírito Santo and some large depositors can transform the receivables into capital. However, this would not be so politically acceptable than traditional rescue. Banco Espírito Santo is the only one of the three largest public banks in Portugal, which has not received a capital injection during the three-year international rescue program for the country, which expired in May. The capital of 12 billion EUR of aid was earmarked to support the banks, half of them have not yet been used.
According to the banker in Lisbon the rejection of the government loans by BES, formerly interpreted as a desire for independence can now be interpreted by some investors that was attempted less transparency. The Portuguese central bank and government ministers insist that Banco Espírito Santo (BES) – the largest public bank in the country in terms of assets. The assurances, however, so far failed to reassure investors. Yesterday, shares of BES decreased by 17% and generated sales of European markets to trade with them to stop. Earlier yesterday, Espírito Santo Financial Group (ESFG), for a group Espírito Santo holds 25% in BES, suspend the trading of its shares and bonds. Compared to last month, shares of BES and ESFG have lost half their value.

Hong Kong Airlines is considering the first IPO in two currencies

Hong Kong AirlinesThe little Airlines Hong Kong Airlines is considering plans to make the first in Hong Kong IPO in two currencies – in HKD and CNY. The airline has a fleet of about 23 aircraft combat high fuel prices and competition from larger regional rival Cathay Pacific Airways. The funds raised from the IPO will go to buy more aircraft were requested by the carrier. Hong Kong Airlines has not yet reached a final decision regarding the public offering and its details, but according to people familiar it is likely to occur in the last quarter of the year, would be worth of about 500 million USD. The IPO in two currencies can win fans for their innovation, but this transaction may be less alluring than a few years ago when the yuan appreciation, experts say. The yuan fell 2.5% against the USD since the beginning of the year. The only company in Hong Kong, which is traded in Chinese currency – Hui Xian Real Estate Investment Trust, raised 1.6 billion USD in an IPO in April 2011, when the yuan was still in an upward trend. Since then, however, the company’s shares owned by Hong Kong tycoon Li Kashin fell by 36% presenting with 1.2% in local benchmark Hang Seng Index.

EUR weakening is not the solution of the Eurozone problems

Peter PraetThe governments of the Eurozone countries must reform their economies and thus improve their competitiveness, instead of requiring the European Central Bank (ECB) to impose measures to weaken the euro, said board member Peter Praet of the ECB. His comment came in response to complaints from aircraft manufacturer Airbus on the strength of the single currency, French President Francois Hollande and Prime Minister of the country Manuel Valls also called for the weakening of the euro after France failed to achieve economic growth in the first quarter the year because of a drop in exports and consumer spending. According Praet however, reform, innovation and efficiency are key to competitiveness, while the change in the exchange rate is rather a help in the short term and not a solution.
The banker reassure the ECB sees no risk of deflation in the eurozone, but warned of risks to growth in the region. A year ago, the bank took the unprecedented policy of lowering interest rates and leaving them at ultra-low levels for an extended period of time in its fight against the risk of deflation. Praet also focused on the capital markets, where some asset classes, in particular shares breaking records, and many experts define profits as balloons and blamed lax policy of central banks for them. According Praet however ECB measures aimed at both prices and to financial stability.