Lower Copper and Gold Prices Weigh on Freeport-McMoRan’s Quarter

Stronger-than-expected oil and gas volume highlighted Freeport-McMoRan’s third quarter on the operating front. However, lower copper and gold prices pressured cash flow and net debt rose in the quarter. We expect still-lower prices and continue to doubt Freeport can meaningfully deleverage unless it undertakes significant asset sales and cuts its dividend. Production and cost figures were solid. Strong output in the Eagle Ford and Gulf … Continue reading Lower Copper and Gold Prices Weigh on Freeport-McMoRan’s Quarter

Kimberly-Clark Withstands Pressure, Posts Adequate Earnings Results in Quarter

With a portfolio of leading brands and an expansive global distribution network, Kimberly-Clark continues to withstand the challenges resulting from intense competitive activity and lackluster macro conditions. Management raised the lower end of its full-year adjusted earnings per share expectations to $5.65-$5.75 (from $5.60 and compared with our forecast of $5.71), partly reflecting a lower tax rate and share count. Our $93 fair value estimate … Continue reading Kimberly-Clark Withstands Pressure, Posts Adequate Earnings Results in Quarter

Anixter Posts Disappointing Q3 Revenue

Anixter reported third-quarter revenue and net income that imply 2013 results will be below street expectations, primarily because of emerging-market customer (13% of quarterly sales) project delays into the fourth quarter and early 2014.  Additionally, heavy-truck manufacturing customers have delayed their anticipated business improvement into 2014, relative to prior expectations for strong sales in late 2013. We have modestly reduced our 2013 operating income and … Continue reading Anixter Posts Disappointing Q3 Revenue