2024-04-25 12:32
April 25 (Reuters) - Chemicals maker Dow (DOW.N) New Tab, opens new tab forecast second-quarter sales below expectations on Thursday amid weak demand for consumer durables and continuing uncertainty over the health of European economies. Retail sales in Germany, Europe's largest economy, fell unexpectedly in February, while the continent's manufacturing activity continued its decline during the first quarter. Consumer durables demand continues to be muted but the company expects margin expansion in Europe in its industrial intermediates and infrastructure segment, Jeffrey Tate, Dow's chief financial officer, said on a call with analysts. The Midland, Michigan-based company expects second-quarter sales of about $11 billion, up from the first quarter but below Wall Street estimates of $11.64 billion, according to LSEG data. "After six quarters of negative earnings revisions, we have now reached a point in the cycle where Dow's market outlook has become marginally more constructive," said Vertical Research Partners analyst Kevin McCarthy. "However, a relative dearth of prospective free-cash-flow remains a concern among some investors." Shares of Dow were down 1.5% amid broader market declines. Dow's net sales declined by 9% to $10.77 billion in the first quarter, hurt by a 10% fall in local prices. Chemical firms had raised their prices in 2022 to tackle inflation after Russia's invasion of Ukraine tightened feedstock supplies. However, an uptick in volumes and lower costs of feedstock such as natural gas helped the company top first-quarter profit estimates. Dow said volumes rose 1%, supported by all regions except Europe, the Middle East, Africa and India. "In the near-term, demand in key end-markets from packaging and mobility to energy applications are trending sequentially higher," Dow Chief Executive Jim Fitterling said. The company reported operating earnings per share of 56 cents for the quarter ended March 31, compared with the average analyst estimate of 45 cents. Sign up here. https://www.reuters.com/markets/commodities/chemicals-maker-dow-beats-quarterly-profit-estimates-2024-04-25/
2024-04-25 12:15
MOSCOW, April 25 (Reuters) - Russia and North Korea plan to sign several documents on cooperation in agriculture, the TASS news agency said on Thursday, citing the North Korean embassy in Moscow. Russia's agriculture minister on Wednesday discussed deepening ties with North Korea with one of Pyongyang's top agriculture officials. North Korea has long grappled with food shortages, in part due to prolonged U.N. sanctions over its weapons programmes and seasonal natural disasters. Sign up here. https://www.reuters.com/world/asia-pacific/russia-north-korea-sign-agriculture-cooperation-documents-says-tass-2024-04-25/
2024-04-25 11:50
JOHANNESBURG, April 25 (Reuters) - Inflation in key African economies will slow into next year but remain stubbornly high in Nigeria due to sporadic flooding and difficult terrain for the naira currency, a Reuters poll found. The acute shortage of dollars in much of the continent including Angola, Nigeria and Zambia has often put home inflation under significant strain due to a reliance on single commodity currency inflows such as crude oil and copper. Still, the poll of 15 analysts taken in the past week showed inflation would moderate more in countries with better diversified sources of dollar revenues such as Kenya. Inflation in Nigeria is expected to quicken to 29.1% this year from an average of 24.5% last year, before it slows to 17.2% next year. It hit a 28-year high of 33.2% in annual terms last month. Nigeria central bank governor Olayemi Cardoso raised the monetary policy rate by 200 basis points to 24.75% last month after a 400 basis point hike in February. Even with a more coherent monetary policy now in place, and potential naira stability, Nigerian inflation will only fall slowly this year, Citi wrote in a note to clients. The high inflation rate reflects ongoing elevated food price inflation which accounts for around 50% of the CPI basket and is only marginally impacted by monetary policy, Citi added. High food price inflation is a result of flooding seen in many parts of the country in recent years, the rising cost of fertilizer and continuing insecurity in many food-producing regions. Ghana inflation averaged 40.3% last year, but is expected to slow markedly to 18.7% this year and then to 12.1% in 2025. Angolan inflation is forecast to slow to last year's average of 13.6% next year from 23.7% this year, while in Zambia it was seen slowing to 8.0% in 2025 from 12.3% this year. Inflation in Kenya will remain one of the most-tamed in the region apart from South Africa, slowing to an average of 5.6% next year compared with 6.3% this year, the poll found. Standard Chartered said it lowered its inflation forecasts last week to allow for recent Kenyan shilling appreciation and improved food prices. A separate poll earlier this month predicted inflation in South Africa would slow to 4.6% next year from 5.1% this year. (Other stories from the Reuters global economic poll) Sign up here. https://www.reuters.com/world/africa/inflation-key-african-economies-slow-into-next-year-2024-04-25/
2024-04-25 11:39
April 25 (Reuters) - CMS Energy (CMS.N) New Tab, opens new tab reported a rise in first-quarter profit on Thursday, as the electric and gas utility benefitted from higher sales and improved weather which lowered storm-related restoration costs. Operating expenses for the first quarter, which include restoration costs, fell to $1.76 billion from $1.97 billion in the year-ago quarter. U.S. natural gas futures fell about 30% sequentially in the January-March quarter, which helped utilities such as CMS Energy reduce their costs. CMS Energy, which provides services to about 6.8 million customers across Michigan, also reaffirmed its full-year adjusted profit forecast of $3.29 to $3.35 per share, compared with analysts' estimates of $3.33 per share, per LSEG data. "We experienced a warmer-than-normal winter but remain on track to deliver our full-year earnings guidance," said Garrick Rochow, CEO of CMS Energy. Peers such as Xcel Energy (XEL.O) New Tab, opens new tab and PG&E Corp (PCG.N) New Tab, opens new tab also benefitted from lower operating expenses and reported a rise in first-quarter profit earlier today. The Jackson, Michigan-based firm said net income attributable to shareholders rose to $285 million, or 96 cents per share, in the quarter ended March 31, from $202 million, or 69 cents per share, a year ago. Sign up here. https://www.reuters.com/business/energy/cms-energy-posts-higher-first-quarter-profit-helped-by-robust-demand-lower-costs-2024-04-25/
2024-04-25 11:39
April 25 (Reuters) - Xcel Energy (XEL.O) New Tab, opens new tab posted a better-than-expected first-quarter profit on Thursday, as the electric and natural gas utility benefited from lower operating expenses due to cost-cutting initiatives and lower natural gas costs. Xcel has been embroiled in legal battles over its role in the Texas Smokehouse Creek blaze that raged in Texas, with two lawsuits claiming that it was negligent in maintaining electrical infrastructure. The firm had said last month that its facilities were likely to have started the fire, the largest on record in the state, and recorded a related $215 million pre-tax charge during the quarter. "We are navigating changes in weather and climate-induced impacts on our operations. Wildfire mitigation and system resiliency will continue to be priorities going forward," CEO Bob Frenzel said. Still, the firm, which serves 3.7 million customers across eight U.S. states, reported an adjusted quarterly profit of 88 cents, above Wall Street expectations of 78 cents, according to LSEG data. Its operating expenses were $2.97 billion, 15.3% lower than the prior year as the cost of natural gas sold and transported shrunk by 44% year over year. The company said lower operation and maintenance costs were primarily due to decreased labor and benefit expenses. Xcel cut over 4% of its workforce in 2023 and had eliminated 159 roles as well as offered buyouts to 400 employees last quarter amid inflationary pressures. Sign up here. https://www.reuters.com/business/energy/xcel-energy-posts-q1-profit-beat-cost-cutting-measures-bear-fruit-2024-04-25/
2024-04-25 11:38
KINSHASA, April 25 (Reuters) - Democratic Republic of Congo is pushing Apple Inc (AAPL.O) New Tab, opens new tab for information about its supply chain over concerns it may be tainted with conflict minerals sourced from the country, international lawyers engaged by Congo said on Thursday. Congo, particularly its eastern region, has been plagued by violence since the 1990s, killing millions as struggles over national identity, ethnicity, and resources saw neighbouring countries invade and a myriad of armed groups spring up. Conflict has arisen over the control of illicit trade in tin and gold as well as in coltan and tantalum - widely used in cell phones and computers - all mined in Congo before being smuggled out through neighbouring Rwanda, Uganda and Burundi. In September 2023, Congo President Felix Tshisekedi met with international law firm Amsterdam & Partners LLP to investigate the supply chain of tin, tungsten and tantalum - known as 3T minerals - due to concerns about illegal exports, the law firm said. It said it had notified Apple CEO Tim Cook on Monday of a series of questions based on fears about its supply chain and also wrote to Apple subsidiaries in France, demanding answers within three weeks. "Although Apple has affirmed that it verifies the origins of minerals it uses to manufacture its products, those claims do not appear to be based on concrete, verifiable evidence," Amsterdam said in a statement on Thursday. "The world's eyes are wide shut: Rwanda's production of key 3T minerals is near zero, and yet big tech companies say their minerals are sourced in Rwanda," it said. Apple did not immediately reply to an emailed request for comment. The company, which does not directly purchase, procure or source primary minerals, has been openly auditing its suppliers for several years and publishing its findings. In a report last year, it said that 100% of identified smelters and refiners in the supply chain for all applicable Apple products manufactured in 2023 had participated in an independent third-party conflict minerals audit for 3T minerals and gold (3TG). "We found no reasonable basis for concluding that any of the smelters or refiners of 3TG determined to be in our supply chain as of December 31, 2023 directly or indirectly financed or benefited armed groups in the DRC or an adjoining country," the Apple report said. The Amsterdam statement coincided with the release of a report by the law firm accusing Rwanda and private entities of laundering 3T and other conflict minerals from Congo. Rwanda and Congo's governments did not immediately respond to requests for comment. Congo is the world's leading producer of tantalum, followed by Rwanda. It is also the number one producer of copper and cobalt, a key ingredient in electric batteries. Most of Congo's mineral resources are concentrated in the east, where insecurity has worsened since a rebel group known as the M23 made a major comeback in March 2022. Sign up here. https://www.reuters.com/markets/commodities/dr-congo-presses-apple-over-minerals-supply-chain-lawyers-say-2024-04-25/
