Editor’s Note: This is the Paw Print Rewind, a daily recap of the top news headlines.
Boeing profit up as plane deliveries surge
Boeing has doubled its quarterly cash flow, partly offsetting a big charge for its aerial tanker program.
The Chicago-based plane maker reported $2.6 billion in free cash flow in the second quarter, reversing an outflow in the first quarter, freeing up cash for Boeing to spend $2 billion buying back its own shares.
Net profit fell 33 percent to $1.11 billion ($1.59/share) largely due to the tanker charge.
“This certainly gives you confident that they’re going to get [to its full-year operating cash flow target].”
-Ken Herbert, Canaccord Genuity analyst
Revenue rose 11% to $24.54 billion, reflecting an 18% gain in the company’s commercial aircraft business, as it delivered a record 197 planes. Defense revenue fell three percent.
Deferred costs on Boeing’s 787 program rose by another $790 million to $27.7 billion.
Core earnings, which exclude pension and other costs, fell to $1.62/share from $2.42.
Coke reports higher revenues, sales
Coca-Cola has reported higher quarterly earnings and revenue as it raised prices and boosted North American sales volumes.
The Atlanta-based company has called 2015 a transition year as it tries to cut costs and boost sales of its mainstay sodas.
Global sales volumes of its sodas rose one percent in the second quarter, helped by growing demand for Coke Zero, Sprite, and Fanta.
Sales volumes of still beverages were up five percent, with increases in ready-to-drink tea and packaged water offsetting declines in juices.
For the second straight quarter, sales rose in North America, which accounts for nearly half of the total. Prices increased four percent in the quarter, while volume was up two percent.
Coke raised prices by switching to smaller packaging, and boosted ad spending for its brands.
Expanded distribution of Monster Beverage’s energy drinks in North America contributed to the increase.
Coca-Cola’s net revenue fell three percent to $12.16 billion, but it would have increased four percent without the impact of the strong dollar, acquisitions, and divestitures.
Net income attributable to shareholders rose nearly 20% to $3.11 billion ($0.71/share).
The company will buy back shares worth up to two billion to $2.5 billion this year.
“We looked at where we were from the first half of the year, and we looked at cash, particularly because of the currency getting worse in the back half and just tightened the range.”
-Kathy Walker, Coca-Cola CFO
“[The tighter range seemed] consistent with the share repurchase revision that we saw last October, where the company narrowed their outlook for buybacks.”
-Vivien Azer, Cowen and Co analyst
BlackBerry buying messaging alerts firm AtHoc to expand software base
BlackBerry is buying privately-held AtHoc, a provider of secure, networked crisis communications, as the Waterloo, Ontario-based company broadens its software offerings and generates revenue from its BBM messaging service.
AtHoc’s services are used by a number of clients like the U.S. Departments of Defense and Homeland Security to provide software that allows them to reach staff through their smartphones, or from digital displays, radios, and sirens, in times of crisis. The San Mateo, CA-based company helps organizations and people share information during business continuity and rescue efforts.
“AtHoc is an alerts system, but it also needs richer content and that can be provided by BlackBerry Messenger (BBM), which offers not just text, but voice, picture and video sharing, so we can provide a much richer experience to their clients.
“AtHoc, with its messaging alerts, is the next piece in the puzzle.”
-John Chen, BlackBerry CEO
“Becoming part of BlackBerry will give us the ability to scale more quickly to expand our global reach and introduce new applications for the AtHoc platform.”
-Guy Miasnik, AtHoc CEO
Macy’s expanding same-day delivery to new US markets
Macy’s is expanding same-day delivery to several new U.S. markets this summer, according to a company official.
The Cincinnati-based company already offers same-day delivery services in eight markets. By partnering with Deliv, a startup that uses a fleet of contract drivers to pick up online orders from stores and malls.
The initial plan is to offer the service in several more markets, according to a Macy’s official. Currently, Macy’s offers the service in Houston, Washington D.C., San Francisco, San Jose, Seattle, Chicago, Los Angeles, and New Jersey.
New International Space Station crew arrives after two-month delay
A Russian Soyuz capsule carrying three new crew members for the International Space Station arrived at the orbital outpost after a two-month launch delay, according to NASA.
Veteran Russian cosmonaut Oleg Kononenko and rookie astronauts Kjell Lindgren with NASA and Japan’s Kimiya Yui blasted off aboard a Russian Soyuz rocket from the Baikonur cosmodrome in Kazakhstan.
They’ve began a five-month mission aboard the station, a $100 billion laboratory that files about 250 miles above Earth.
The arrival of Lindgren, Kononenko, and Yui returns the space station to a full six-member crew for the first time in six weeks.
“We look forward to seeing them.”
-Scott Kelly, U.S. station flight engineer
Kelly and Russia’s Mikhail Kornienko are participating in the station’s first year-long mission, along with current station commander Gennady Padalka.
GM earnings more than double on U.S. truck demand
General Motors reported adjusted net income more than doubled in the second quarter, driven by North American truck sales and continued China strength.
Stripping out one-time charges, the Detroit-based company earned $1.29/share in the latest quarter, up from $0.58/share a year ago. Profits rose despite declining global vehicle deliveries and a 3.5% decline in worldwide revenue.
Net income rose to $1.1 billion ($0.67/share) from $200 million ($0.11/share) a year ago, when it was hurt by a big charge relating to recall costs.
In the past 12 months, GM’s return on investment capital was 23.4%, ahead of the 20% goal agreed to with the investor group. GM has also repurchased $2.1 billion of its shares for the year through July 21st.
GM’s North American operations’ profit doubled to $2.8 billion and profit margins of 10.5%, nearly double what it was a year ago.
Dow Chemical warns of soft China demand
Dow Chemical has warned of soft Chinese demand.
“China remains a mixed bag. A very solid Q2 for us is not necessarily a harbinger of Q3.”
-Andrew Liveris, Dow Chemical CEO
Demand from the automobiles, construction, water, and food safety industries would continue to drive Chinese demand, according to Liveris.
“Dow had a 14 percent growth rate in China, the CEO probably was implying that the company won’t be able to sustain that.”
-John Roberts, UBS analyst
The Midland, MI-based chemical maker’s sales fell 13.5% to $12.91 billion in the second quarter that ended on June 30, hurt by a strong dollar and weak oil prices.
Dow’s margins rose to 19% in the quarter from 15% a year earlier.
Excluding a $375 million pre-tax charge related mainly to a three percent workforce cut, the company earned $0.91/share in the quarter.
Syngenta spars with Monsanto over takeover
Syngenta and U.S. suitor Monsanto squabbled over an earnings report from the Basel, Switzerland-based company, with both sides claiming that they strengthened their case in a $45 million takeover battle.
Monsanto wants to combine its seeds business with Syngenta’s own seeds and pesticides. Syngenta has rejected the proposal and refused to open its books, despite Monsanto offering a $2 billion cash payment if the transaction fails to win regulatory approval.
“We said no in 2011, we said no in 2012, we said no in 2015. What part of no don’t they understand.”
-Michael Mack, Syngenta CEO
“Syngenta’s earnings announcement confirms it still does not have a long-term vision or plan that would create the same value at Monsanto’s very attractive 449 Swiss franc [per share] ($463.25) proposal.
“Monstanto remains ready to discuss with Syngenta a combination that would provide highly attractive returns to shareholders. The ball remains in their court.”
-Hugh Grant, Monsanto chairman
Bristol-Myers raises profit view
Bristol-Myers Squibb reported better quarterly results thanks to delayed reimbursement for two French Hepatitis C treatments and demand for other leading company medicines.
The New York-based drugmaker lost $130 million ($0.08/share) in the period, which compares to a $333 million profit ($0.22/share) a year earlier.
Excluding special items, including an $800 million research charge related to the company’s purchase of Flexus Biosciences, Bristol-Myers earned $0.53/share.
Sales of the company’s Yervoy drug for melanoma slipped eight percent to $296 million in the quarter, hurt by sales of newer melanoma treatments that also work by harnessing the immue system.
Company revenue rose seven percent to $4.16 billion.
New hepatitis C treatments Daklinza and Sunvepra had combined sales of $479 million in the quarter.
Results were also helped by demand for Opdivo, a treatment for melanoma and lung cancer that works by removing a mechanism cancer cell’s use to evade detection by the immune system. It had sales of $122 million in the quarter.