Member Info for jange

Right on the money........

Antofagasta: Bank of America reduces target price from 1500p to 1400p and downgrades to neutral.

Anglo American: Deutsche Bank takes price target from 2200p to 2260p, while its buy recommendation remains unchanged.

Alternative Networks: Investec increases target price from 310p to 330p retaining a buy rating.

Positive Points: The company's current 2013 financial guidance stated that it assumes no significant financial impact from the Federal Aviation Administration's (F AA) directive. Boeing's order backlog grew to a record $390 billion, including $114 billion of orders during the year. The group delivered 165 planes in the quarter, 601 in total during 2012. It added that it is on track to produce 635 to 645 aircraft in 2013, including 60 787s. Following a strong contribution in 2012, the group's Defence, Space & Security's business said revenue for 2013 is expected to be between $30.5 and $31.5 billion, with operating margins greater than 9%.

Negative Points: Boeing said it is continuing to build the Dreamliner, but has halted deliveries after all the jets in service worldwide were grounded by aviation regulators who are investigating what caused lithiumion batteries to burn on two 787 jets earlier this month. The airline industry is correlated to economic growth, with consumer and business confidence a key factor. Uncertainties remain. The commercial aerospace industry is intrinsically linked to unpredictable action such as terrorism, volatile oil prices, and epidemics. Environmental issues also sit in the background. The company is subject to intense commercial competition. Boeing has significant exposure to the defence market which is at risk to spending cuts and the condition of existing US and allied military equipment.

Financial Highlights: Boeing reported a 30% fall in profit to $978 million. Revenues of $22.3 billion were recorded, up from $19.6 billion in the same quarter a year earlier.

Fourth quarter results: Dow Jones Industrial Average component Boeing reported a fall in profits but its results exceeded Wall Street expectations. Boeing said its current guidance for 2013 assumes "no significant financial impact" following the Federal Aviation Administration's 787 (Dreamliner) investigation earlier this month into the lithium-ion batteries used on the aircraft that had experienced multiple problems and raised questions about their reliability. Their action prompted the planes to be grounded worldwide. "Our first order of business for 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers," Chief Executive Officer Jim McNerney said in the statement. Boeing's 2012 performance was driven by its commercial aircraft division. It delivered 601 jets to customers last year, compared to 477 in 2011. The group's commercial aircraft division reported revenue of $14.2 billion for the fourth quarter, up 32%, and operating earnings of $1.3 billion, up 29%.

Positive Points: Reflecting the benefits of an accelerated cost optimisation programme, expectations for the full year remain unchanged. The board expects that around 55% of adjusted operating profits will be delivered in the second half. The company continued to highlight growth momentum in key markets in Africa, the Middle East and Asia-Pacific. Gains were again reported within key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of Imperial’s total stick equivalent volumes. The dividend policy remains progressive. The full year dividend was increased by 11%. Imperial Tobacco benefits from good geographical diversification (products are available in over 160 countries worldwide) and a multi-product portfolio provides a degree of business resilience and a strong platform to deliver future growth. Imperial has been linked with sporadic talk as a takeover target by larger peers

Negative Points: The board expects first half adjusted operating profit to be down year on year. Total stick equivalent volumes declined by 1%. Management noted that "growth momentum in key markets in Africa and the Middle East and Asia-Pacific is being offset by the current adverse market dynamics in Europe, with increasing levels of illicit trade." In Russia, part of its Rest of World region, volumes had been impacted by weaker than expected market demand. Like rivals, Imperial has suffered from a decline in smokers in mature markets. However, it has looked to offset this by hiking prices and expanding into Emerging Markets. Last year, Australia became the first country to pass plain packs laws, implemented in December (2012). Tobacco companies will have to sell products in identical packs with large health warnings on. Other governments such as the UK are thought to be considering such proposals. The tobacco industry is exposed to litigation which could have a significant impact on future financial performance.

Highlights: Stick equivalent volumes down 1% The board expects first half adjusted operating profit to be down year on year Management expectations for the full year remain unchanged

First quarter trading update: The announcement disappointed investors, with the share price down by nearly 5% as of mid morning trade. Management underlined a "challenging" macro environment, noting that "market trends had worsened in a number of key markets including in the European Union (EU) and Russia." As a result and given the group's ongoing investment plans, the board expects first half adjusted operating profit to be down year on year. In the EU, Imperial estimated that the legal stick equivalent market size was currently down around 5% with the legal cigarette market size down around 7%. More positively, and reflecting the benefits of an accelerated cost optimisation programme, expectations for the full year remain unchanged. The board expects that around 55% of adjusted operating profits will be delivered in the second half. Furthermore, the company continued to highlight growth momentum in key markets in Africa, the Middle East and Asia-Pacific, while stick equivalent volumes for fine cut tobacco grew by 9%, underwritten by strong growth in make your own tobacco in Western and Central Europe. Furthermore, in Australia, despite the recent introduction of plain packaging, the first few weeks had seen no significant change in consumption trends. On balance, whilst the group's dividend yield (over 4% as of 30 January 2013 - not guaranteed) remains attractive in the current low interest rate environment, we believe that current favourable analyst opinion may come under near term downward pressure.

Positive Points: Johnson Matthey would benefit from tightening emission legislation which is driving demand for auto catalysts and emission reduction technology. In October, Johnson Matthey acquired the Axeon Group for £40.6 million in cash. Axeon is a specialist in the design, development and manufacture of integrated battery modules and systems. The group reaffirmed its strong balance sheet. A rise in platinum prices would benefit the group's precious metals division.

Negative Points: Johnson Matthey's performance is closely linked to the automotive industry. A stalling of the recent recovery in the US and European autos volumes would negatively impact sales estimates. The group is exposed to foreign exchange fluctuation. The UK and Europe currently account for around 35% of group sales. If precious metal prices fell sharply, it would negatively impact on Johnson Matthey's expected profits.

Financial Highlights: Sales excluding precious metals were 2% lower at £635 million. Underlying pre-tax profits for the period was £84.3 million, down 19% on the same quarter a year earlier. The group's debt increased by £44 million to £739 million in the period, principally due to the acquisition of Axeon.

Third quarter interim statement: Faced with a continued challenging market, Johnson Matthey reported earlier today that sales, excluding precious metals were down 2% when compared with the same period last year at £635 million. Underlying pre-tax profit was down 19% at £84.3 million. The group's emission control technologies arm, which makes catalytic converters for cars and trucks, saw sales fall 6% to £346 million, a situation compounded by a weakness seen in demand for diesel cars in Europe. Within its precious metals division, sales fell 7% to £128 million with lower sales being the contributory factor. "In line with the guidance in our half-year report (Nov 2012), we continue to anticipate that the group's performance in the second half will be similar to that for the first six months of the year," the company said. On balance,

Positive Points: Current trading remains in line with management's expectations. United Utilities is confident of delivering a good underlying financial performance for the year ending 31 March 2013 and continues to be on track to meet its 2010-15 regulatory outperformance targets. The business met its regulatory leakage target for the sixth consecutive year in 2011/12 and remains on course to meet its target for 2012/13. Progress regarding Ofwat's customer service measure, the service incentive mechanism (SIM), in 2011/12 has continued into 2012/13. United has now moved up to 12th position out of 21 water companies for this measure. Its was 16th in 2011/12. The board summarized the group's financial position as being 'robust'. The Office for National Statistics recently left the way it calculates the Retail Price Index (RPI) measure of inflation unchanged. Adjustments could have negatively impacted on it and may have led to price increases for its customers. The group's business remains defensive when set against a backdrop of a challenging economic environment. The dividend yield (over 4% as of 30Jan2013 - not guaranteed) remains attractive in the current low interest rate environment. United Utilities is pursuing a progressive dividend policy, targeting annual growth of 2% above RPI inflation through to at least 2015.

Negative Points: Revenue had continued to increase at a rate slightly below the allowed regulated price rise for 2012/13, as expected by management, reflecting the ongoing impact of a tough economic climate on commercial volumes. Depreciation, power and other costs had also increased as expected, largely offsetting the increase in revenue. United Utilities operates in a highly regulated environment and is dependent on its ability to meet tough regulatory efficiency targets and frequent reviews. In July, government draft proposals included making it easier for business customers to choose their water suppliers and for new entrants to join the water market. The water industry is exposed to risks that include service interruptions, systems failures, water shortages or contamination of water supplies.

Financial Highlights: Remains on track to invest around £750 million in its asset base in 2012/13 Group net debt is similar to the position as of 30 September 2012. Gearing remains in the middle of Ofwat's assumed range (55% to 65% net debt to regulatory capital value)

Third quarter update: The announcement appeared to reassure investors, with the share price up over 1% in opening trade. Current trading was in line with management's expectations. The group's regulatory investment programme was highlighted as making good progress - around £750 million is being invested in the company's asset base during the current financial year - whilst progress in relation to the industry regulator's customer service measurement scheme was being made. Furthermore, United Utilities remained on track to meet its regulatory leakage target for the current financial year, with water resources in the region currently positive - reservoirs are around 90% full. The board summarized the group's financial position as being 'robust', whilst accompanying outlook comments highlighted confidence regarding the achievement of a good underlying financial performance for the current year (ending 31 March 2013), along with staying on track to meet its 2010-2015 regulatory outperformance targets.