Member Info for jange

Optos, the medical retinal imaging company, unveiled Tuesday a four per cent dip in headline revenues amid a tough European economy. The eye scanner firm reported $40.3m in headline revenues for the three months to December 31st, compared to $41.9m the previous year, driven by a drop in finance and operating leases as more customers opted to buy devices outright. However, Optos had a strong underlying revenue growth of 18% compared to the year earlier, buoyed by a large volume of capital sales. The group won 274 new customers during the first quarter of the year which it said was traditionally its weakest period. Optos sold 267 of its Daytona devices during the period to new and existing customers. The company also rented out 250 Daytona devices to a major corporation for a year. Chief Executive Officer, Roy Davis, said he was encouraged by the results given the strain of the economy. "Our underlying revenue growth for (the first quarter) was positive, against a robust comparable period," he said.

The firm's tropical fruit juice business Beihai Perfuming Garden Juice Company, was slammed by lower average selling price of its pineapple juice concentrates as a result of the destocking by Thai and Philippine producers. Asian Citrus said it was "too early in the financial year" to judge its full-year performance but it will reflect the price achieved for the group's summer orange crop, the selling price of pineapple juice concentrates and the impact of weather on the volume of fertilisers and pesticides used by the group. The group cultivates and sells Navel, Hamlin, Pineapple and Hong Jiang and Valencia oranges to supermarket chains, corporate customers, wholesalers and sole proprietors in China.

Asian Citrus Holding shares were down three per cent after the orange plantation operator projected rotten half year results. The company expects to record a decrease in core net profit for the six months to December 31st, following a squeeze on winter orange production, according to a trading update Tuesday. The group was hit by a 26.9% decrease of output from its Hepu plantation in Guangxi, an autonomous region of southern China, during the period. Poor weather conditions and heavy rainfall in 2012 meant the company consumed a higher volume of fertilisers. Results were also impacted by high labour costs following general wage inflation in the People's Republic of China.

Positive Points: The results materialised at the upper end of analyst estimates. For the fourth quarter, volumes rose by 3%, although were offset by a 2% negative currency impact and a 1% reduction from business portfolio changes. The company previously commenced a restructuring plan to increase productivity, enhance competitiveness and accelerate growth. The plan will deliver pre-tax cost savings of about $450 million ($300 million in 2013) by eliminating corporate costs supporting Performance Coatings and taking additional cost-cutting actions to improve competitiveness. The restructuring plan includes eliminating about 1,500 positions globally. Agriculture sales of $1.5 billion were up 18% on 11% higher volumes. Nutrition & Health sales of $853 million were up 3% on higher volume, reflecting improved demand for specialty food ingredients. The group enjoys significant diversity in both product type and geographical location. The company continues to be viewed as something of a global economic barometer. The quarterly dividend payment announced is the 434th consecutive quarterly dividend since the company's first dividend in the fourth quarter of 1904.

Negative Points: The Chief Executive noted that "weakness in markets served by Performance Chemicals and Electronics & Communications provided significant challenges in 2012." Weaker demand in both the US and Europe for products such as paint pigments and solar panels impacted. Overall group volumes during the full year 2012 declined by 2%. Accompanying management outlook comments noted that "first half 2013 operating earnings are expected to decline modestly on a year-over-year basis." Volatile energy, currency and commodity prices continue to provide uncertainty moving forward. The dividend payment has remained unchanged since 2008.

Financial Highlights: Earnings Per Share (EPS) from continuing operations, excluding significant items, came in at 11 US cents versus prior year earnings of 26 US cents. Sales of $7.3 billion equalled the prior year. For the full year, EPS from continuing operations, excluding significant items, of $3.33 was reported, down from $3.55 in 2011. Sales rose by 3%.

Fourth quarter results: The results materialised at the upper end of analyst forecasts - the share price gained in opening trade. Improved demand for both automotive plastics and packaging materials helped its Performance Materials division counterbalance difficulties elsewhere. Increased demand underwrote a 3% improvement in volumes for the Performance Materials business, with management highlighting "stable packaging markets and strong demand in the North American automotive market." Less favourably, at its Performance Chemicals business, sales fell by 15% on 8% lower volumes and 7% lower prices, impacted by reduced paint pigment sales, whilst the group's Electronics & Communications also dragged on overall performance. In all, management noted that "DuPont stands stronger today than it did a year ago." Sales for the full year rose by 3% to $34.8 billion, with a 6% increase in developing markets.

Positive Points: Verizon Wireless, the mobile-phone joint venture with Vodafone Group Plc, added 2.1 million monthly contract users, with 8% signing up for smartphones in the quarter. At the end of 2012, the company had 98.2 million retail connections, a 6.6 % increase year on year, including 92.5 million retail post-paid connections. The carrier reported 144,000 FiOS Internet and 134,000 FiOS TV net additions in the quarter, bringing the company to a total of 5.4 million FiOS Internet and 4.7 million FiOS TV customers. Verizon enjoys a strong financial position. It continues to focus on maximizing free cash flow, maintaining a strong balance sheet and reducing debt.

Negative Points: The company's results were affected by costs associated with Hurricaine Sandy, which devastated the Northeast region of the US last year, and by a change in the valuation of its pension liabilities owed to its employees. Although the use of smartphones and other wireless devices has flourished, there are now fewer new customers to sign, leaving carriers to entice customers from their rivals. That may incur higher subsidy costs. Verizon's Wireline business is highly exposed to domestic GDP growth and employment as well as to global economic growth. The company faces fierce competition. Revenue pressure may be seen if they engage in aggressive price wars.

Financial Highlights: Verizon reported a loss of $4.23 billion that compared to a loss of $2.02 billion a year earlier. Revenue jumped 5.7% to $30.05 billion, a rise of 4.5% that compared to Wall Street expectations of $29.83 billion. Wireless revenue rose 9.5% to $20 billion. Total debt for 2012 declined to $52 billion from $55.2 billion.

Fourth quarter results: The largest US phone carrier by subscribers disclosed a quarterly loss that widened due to restructuring charges and Hurricane Sandy related expenses. Meanwhile, Wireless services revenue in the period grew 9.5% to $20 billion, while retail service revenue jumped 8.4% to $15.8 billion. The increase in wireless revenue helped compensate for slower sales to business and landline customers. Elsewhere, Verizon's Wireline business benefited from increased FiOS Internet and television subscriptions and expanded networking and cloud-computing services, mitigating the impact of a shrinking landline business.

Positive Points: Organic group revenue growth came in at the upper end of expectations. Soft drinks volumes were 3% higher, lager volumes rose by 6% in Latin America and by 4% in Africa. Profits in Latin America, the company's largest region, rose by 15% at the half year stage, helped by selective price increases and savings from more efficient purchasing. Within the group's Asia Pacific region, volumes grew by 18% in India, with the company highlighting continued strong growth across the portfolio. In addition and importantly, the company pointed towards an improving trend in lager volumes for its Australian business, with sales for the quarter 4% below the prior year on a pro forma basis, excluding the impact of the termination of some licensed brands, compared with an 8% decline in the previous six months. The group acquired Australian brewer Foster's in December 2011. The board noted that "the integration programme in Australia remains ahead of schedule in respect of both synergy delivery and capability build." SAB Miller is the world's second biggest brewer by volume after Anheuser-Busch InBev. Around 70% of SAB Miller's sales still come from the Emerging Markets. The group's dividend policy continues to be progressive. The half year dividend was increased by 12%.

Negative Points: Organic lager volume growth came in at the lower end of analyst estimates, with trading across the group's regions mixed. For its European business, management highlighted "depressed consumer confidence". Volumes in Poland were down 2% and declined by 11% in the Czech Republic. Organic lager volumes in Asia Pacific declined by 1% (this excludes Australia volumes altogether), largely as a result of subdued volumes in China. Management pointed towards the exceptionally cold and wet winter across the country. China is the world's biggest beer market. The group's relatively recent acquisition of Australian brewer Fosters has raised concerns. The Foster's deal increased the group's exposure to mature markets. In Australia, as of the November half year results, volumes declined by 13% as Foster's lost share in a shrinking market. Financing for the deal has helped push group net debt up from $6.5 billion to over $17 billion as of the half year point. Raw material and input cost pressures remain a concern. Currency movements had an adverse impact on group revenue growth in the first half, principally due to the weakening of the South African rand and Central European currencies.

Highlights: Organic group revenue grew by 8% Lager volumes on an organic basis grew by 2% Soft drink volumes on an organic basis grew by 2%

Third quarter trading statement: The update broadly reassured investors - the share price moved marginally higher in early trading. While growth in organic lager volumes proved to be at the lower end of forecasts, overall group revenue growth on an organic basis (minus acquisitions and disposals) came in at the upper end of forecasts. On the downside, European lager volumes rose by 1% on an organic basis, with management highlighting that "some beer markets were impacted by depressed consumer confidence" during the period. Furthermore, lager volumes in Asia Pacific declined by 1% on an organic basis (which excludes Australia volumes altogether), largely as a result of subdued volumes in China, which declined 3%. This was mainly due to an exceptionally cold and wet winter across the country according to management. More positively, its Latin American business saw lager volumes up by 6%. In Africa, the board noted that "most markets continued to grow strongly", while at its South African business, lager volumes also rose, growing by 3% over the period. In all, management noted that "overall, financial performance for the quarter was in line with our expectations." For now, whilst concerns regarding both the group's relatively recent acquisition of Australian company Fosters and the outlook for major world economies such as China continue to weigh, the group's exposure to expanding disposable incomes in the Emerging Markets continues to appeal

Positive Points: Record annual attributable gold production of 473,034 ounces, up 5.4% year on year was achieved. Construction of the US$500 million San Julián silver mine commenced following board approval in October 2012. Cost control initiatives remain in focus for management across all operations. This was to allow for expected inflation in operating materials and longer haulage distances. A strong pipeline of projects was reported, with exploration expenses reaching $234 million that saw encouraging results, mainly at Herradura, Noche Buena, Lucerito, Guachichil and Guanajuato mines. A US $270 million exploration budget has been approved for 2013. Fresnillo has a strong and long tradition of mining, with a proven track record of mine development. The company's goal is to maintain its position as the world's largest primary silver company, producing 65 million ounces of silver and 500,000 ounces of gold by 2018.

Negative Points: One of the key challenges facing the mining industry is rising cost pressures. All of Fresnillo's operations are in Mexico. The revenue stream is denominated in US$ and upwards of 70% of the cost base is denominated in Mexican pesos, therefore any significant shift in the US$ /Peso exchange rate could impact profitability. Silver has displayed a greater degree of volatility than other precious metals over recent years. This volatility and over supply potential could see silver prices fluctuate and impact on future profits. While Fresnillo's revenue will be driven by the global demand for silver and gold, its cost base will be influenced by local currency rates, as well as country-specific economic issues such as labour availability, wages and inflation. The group faces operational risk at its existing mines and execution risk on its development projects

Production report: The world's largest primary silver producer, and Mexico's second largest gold producer, Fresnillo Plc reported record annual attributable gold production of 473,034 ounces, up 5.4% and exceeding the full-year target of 460,000 ounces. The better than expected performance was mainly due to a successful first year of operations at its Noche Buena mine and continuous ramp-up at its Saucito mining operations. The company said silver production reached 41Moz, in line with its guidance, as the ramp-up at Saucito offset an anticipated natural drop in silver ore grade at its Fresnillo mine. Looking forward, Fresnillo expects silver production to remain stable at 41Moz, while gold production is expected to continue to grow to reach 490,000 ounces. In accordance with the group's strategy to maintain a strong pipeline of projects and prospects, its exploration budget is to be increased to $270 million, up 15% on the $234 million spent in 2012. Furthermore, the board approved the group's San Julián project in October, with capital expenditure estimated at US$500 million. This key project is important in achieving Fresnillo's goal of producing 65 million ounces of silver a year by 2018

Cash and cash equivalents at the period stood at £5.8m (2011: £5.9m). Finally, the manager explained that its dividend payment policy has normally been based on a split of one third/two thirds between the interim and the final, and currently there are no plans for that to change, despite the lower (and hopefully temporary) dividend cover. Management is also currently in the process of implementing the findings of a review focused on product restructuring and process improvement. It expects that programme to result in annualised cost savings of at least £1m, to be reflected fully in its 2013/14 financial year.

City of London's FuM at the beginning of the current financial year, on June 1st, stood at 2.9bn pounds. That was, itself, also lower than the 4.8bn (3bn pounds) as of November 30th 2011. Cardale also believes that it the firm benefits from the above trend then, "the operational gearing inherent in City of London's business model, together with the reduced costs and commissions, will produce a welcome uplift in revenues, profitability, dividend cover and ultimately, dividends themselves." Revenues, representing the Group's management charges on FuM, were £15.1m, instead of the £17.2m seen a year ago. Profit before tax of £4.7m decreased in comparison to the £5.7m of a year back. Despite all of the above the outfit paid out an interim dividend of 8p per share on December 28th.