Low Coal Prices Drive Huaneng Earnings in Quarter

Huaneng Power International reported 2013 third-quarter earnings of $1.52 per ADR compared with $0.92 per ADR in 2012’s third quarter. The reported results included an asset impairment charge and loss on disposal of noncurrent assets that reduced reported earnings by roughly $0.24 per ADR. Low market coal prices continue to drive strong earnings. We are reaffirming our narrow moat and stable moat trend ratings and … Continue reading Low Coal Prices Drive Huaneng Earnings in Quarter

Still-Weak European Paper Demand Weighed on UPM’s 1Q Results

Despite relatively steady performance from the energy and pulp segments, UPM’s quarterly EBITDA contracted 20% year over year; EBITDA from the paper business was nearly halved over the same period. As the world’s largest producer of graphic paper, UPM remains highly dependent on its paper business, where volume continues to decline–European magazine papers fell 6%, newsprint fell 3%, and fine papers fell 6%–and present significant … Continue reading Still-Weak European Paper Demand Weighed on UPM’s 1Q Results

STERV Sees Loss in Paper and Writing Segment

In the second quarter, Finnish forest products company Stora Enso had a surprising loss in its Paper and Writing segment. Even though the secular headwinds for publishing paper in Europe are well known, Stora had previously been able to turn a consistent profit in the business in recent years. Management says it is stepping up its cost-cutting efforts in response to the loss, but many … Continue reading STERV Sees Loss in Paper and Writing Segment

CF Industries Continues to Boast Solid Earnings in Q2

CF Industries reported second-quarter results that were generally in line with analysts’ expectations. Nitrogen volumes were up 2.2% year over year as the nitrogen application season in North America finished at a rapid pace following delays to planting caused by wet weather in the Corn Belt. Last season, warm weather in the spring pulled planting forward. For the first six months of 2013, nitrogen volumes … Continue reading CF Industries Continues to Boast Solid Earnings in Q2

Parker Hannifin Falls Short of Expectations in Fourth Quarter

Parker Hannifin delivered fourth-quarter earnings of $1.78 per diluted share, resulting in full-year earnings of $6.26 per share. Both metrics were below our expectations as sluggish global demand in Parker’s end markets continues to stunt revenue growth. Additionally, the company has struggled to keep margins flat, which amplifies the impact on earnings. For 2014, the firm will spend roughly $100 million on restructuring, which should … Continue reading Parker Hannifin Falls Short of Expectations in Fourth Quarter

Tourmaline Posts Impressive Quarter Despite Challenges

Tourmaline Oil reported second-quarter results after the market closed on Friday. Despite weatherrelated setbacks, the company still increased production, and has now set the stage to deliver phenomenal growth in the second half of the year. Results for the quarter lined up with expectations. Production averaged 70.1 thousand barrels of oil equivalent per day versus our forecast of 70.9 mboe/d. Earnings per share was spot-on … Continue reading Tourmaline Posts Impressive Quarter Despite Challenges