Company news in brief![]()
Anglo American ups dividend
Anglo American raised it dividend payout by 27% and announced a US$1 billion share buyback as it posted its best first-half results since 2011, driven by higher iron ore prices and the ramping up of operations at Minas-Rio in Brazil.
Anglo American reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$5.45 billion in the six months ended June 30, beating the US$5.16 billion expected by a company-compiled consensus of 12 analysts.
In response to the commodity market crash of 2015/16, Anglo American said it would narrow its business to copper, platinum group metal and diamonds.
It halted an asset sell-off as the market recovered, so it benefited from this year's outperformance of iron ore that followed cyclone disruption of output Australia and reduced production in Brazil after a Vale dam burst in January that killed at least 240 people.
Analysts said the results were strong and the buyback, which begins immediately, was a positive surprise. "It remains our top pick amongst the global diversifieds for its operational performance and copper optionality," BMO Capital Markets said in a note. – Nampa/Reuters
InBev’s beer sales growth hits 5-year high
Anheuser-Busch InBev, the world's largest brewer, beat earnings expectations in the second quarter after beer sales grew at their fastest pace in over five years, helped by increases in Latin America, Europe and Africa.
For the second quarter, earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 9.4% on a like-for-like basis to US$5.86 billion, compared with the US$5.73 billion average of analysts based on Refinitiv data.
The company said that its net debt was US$104.2 billion at the end of June, unchanged from the close of 2018, and that its net debt to EBITDA ratio dipped to 4.58 from 4.61.
It aims to bring this ratio down to below four by the end of 2020. Its ultimate goal is a multiple of around two. – Nampa/Reuters
Total plans US$5 billion in asset sales
French energy giant Total said on Thursday it will sell assets worth around US$5 billion mostly from its upstream exploration and production business as it seeks to focus on low breakeven projects that can withstand low oil prices.
The company reported a 19% drop in adjusted net profit in the second quarter at 2.9 billion compared with the same period last year which it attributed to a combination of unfavourable market factors.
These include low oil prices compared with the second quarter of 2018, down 7%, a sharp fall in gas prices, while its refining margin tumbled.
The company, which has carried out a spree of acquisitions and expansion particularly in the gas and electricity market, said it was preparing its future by focusing on its core strength in the gas segment and deep offshore.
The strategy would be complemented by the divestment of assets that only break even at high oil and gas prices, such as the recent sale of mature assets in the UK North Sea, Total said in a statement. – Nampa/Reuters
Diageo's profit rises on strong demand
Diageo, the world's largest spirits company, reported higher annual profit on Thursday, helped by growth across all its markets, an improved price mix and cost controls.
The maker of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness stout said operating profit rose 10% to 4 billion pounds (US$4.99 billion) for the year ended June 30.
Diageo has been restructuring in recent years to improve performance and streamline its portfolio by selling non-core businesses and underperforming labels, while trying to bulk up on newer, hipper brands. It has looked to focus on its Scotch business and grow its operations in India and the United States.
Organic net sales rose 6.1% with Asia Pacific rising 9% in net sales from strong demand in China and India. Net sales in North America rose 5%, while Europe and Turkey reported a 4% rise.
Total reported net sales increased 5.8% to 12.9 billion pounds. The company reported pre-exceptional earnings per share of 130.8 pence, beating company supplied estimates of 128.8 pence. – Nampa/Reuters
Nissan to cut 12 500 jobs as crisis deepens
Nissan Motor Co unveiled its biggest restructuring plan in a decade, axing nearly a tenth of its workforce and flagging possible plant closures to rein in costs that ballooned when Carlos Ghosn was CEO.
The cuts announced on Thursday followed a collapse in Nissan's quarterly profit, highlighting how a crisis – brought about by sluggish sales and rising costs - is deepening at Japan's No. 2 automaker in the wake of a financial misconduct scandal over Ghosn. Ghosn has denied the charges.
Nissan's first-quarter operating profit plunged 98.5% to 1.6 billion yen (US$14.80 million), its worst performance since a loss in the March 2008 quarter.
The automaker said global vehicle production will fall 10% through the year to March 2023 while global sales till then will increase modestly to 6.0 million units annually from the current 5.5 million.
The company maintained its profit forecast of 230 billion yen for the year ending March 2020, a 28% drop from last year and its weakest in more than a decade. – Nampa/Reuters