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Tata Motors to ‘significantly’ pare debt of $6.4 bn in three years

Stock Alert: J. M. Smucker Climbs 8% On Upbeat Q1 Results, Outlook

Shares of J M Smucker Inc. (SJM) are gaining almost 8 percent or $8.97 in Tuesday’s morning trade at $121.96, after the food products maker reported better-than-expected financial results for the first quarter and also raised its outlook for fiscal 2021.

Tuesday, J M Smucker reported first-quarter net income of $237.0 million or $2.08 per share, up from $154.6 million or $1.36 per share in the year-ago period. Adjusted earnings were $2.37 per share, while analysts polled by Thomson Reuters excepted earnings of $1.67 per share.

Net sales for the quarter grew 11 percent to $1.97 billion from $1.78 billion last year. The Street expected revenue of $1.81 billion.

For fiscal 2021, the company now expects adjusted earnings per share in a range of $8.20 to $8.60, up from the prior guidance range of $7.90 to $8.30 per share. Net sales are now anticipated to range from flat to up 1 percent compared to the prior year. Previously, the company projected net sales to decline in a range of 2 percent to 1 percent. Analysts expect earnings of $8.16 per share for the year.

J M Smucker has traded in a range of $91.88 to $122.49 in the past 52 weeks.

European Economics Preview: Germany Ifo Business Confidence Data Due

Business confidence and revised quarterly national accounts from Germany are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany’s revised GDP data for the second quarter. According to preliminary estimate, the economy contracted 10.1 percent sequentially versus a 2 percent fall in the first quarter.

In the meantime, Statistics Norway releases the second quarter GDP data. The mainland Norway is forecast to shrink 6.1 percent sequentially versus a 2.1 percent drop in the first quarter.

At 3.00 am ET, producer prices from Spain and industrial production from Austria are due.

Half an hour later, Statistics Sweden is set to issue producer prices for July. Prices had declined 3.8 percent on year in June.

At 4.00 am ET, Germany’s ifo business confidence survey results are due. Economists forecast the business climate indicator to rise to 92.2 in August from 90.5 in July.

In the meantime, unemployment data is due from Poland. The jobless rate is seen unchanged at 6.1 percent in July.

At 6.00 am ET, the Confederation of British Industry publishes Distributive Trades survey data for August. The retail sales balance is forecast to rise to 8 percent from 4 percent in July.

At 8.00 am ET, Hungary’s central bank is set to announce its interest rate decision. The bank is set to keep its key rate unchanged at 0.60 percent.

Stock Alert: Portland General Electric Company Drops 11% On Lower Earnings Guidance

Shares of Portland General Electric Company (POR) are falling more than 11% Tuesday morning after the company lowered its full-year earnings guidance.

The company has lowered its full-year earnings to the range of $1.30 to $1.60 per share from $2.20 to $2.50 per share, provided earlier, due to the impacts of higher net variable power costs. Analysts polled by Thomson Reuters expect the company to report earnings of $2.39 per share for the period.

The stock is currently trading at $37.26. It has traded in the range of $36.00- $63.08.

Facebook stock climbs after it expands shopping in main app, Instagram

Facebook stock climbed 2.5 percent Tuesday afternoon after the social network announced expanded shopping capabilities on its main app as well as on Instagram.

Shoppers will now be able to make purchases from any business directly within the Instagram app. Previously, only certain businesses were eligible for Instagram Checkout. BigCommerce, one of the companies that Facebook has partnered with to enable in-app checkout, was up 27 percent on the news.

Facebook shares were up 2.9 percent Tuesday afternoon at $279.19.

The company is scaling up its e-commerce capabilities as more and more businesses have turned to its platform to reach customers during the coronavirus pandemic.

Facebook also announced on Tuesday that its upgrading Instagram Shops to allow stores to communicate with shoppers via the app’s built-in messaging capabilities, as well as to let stores do QVC-style live streams where they can show off goods in real-time.

It’s also introducing a dedicated Facebook Shops tab on its app and website where users will be able to buy products from businesses.

Facebook Shops will be similar to Instagram Shops, which was introduced in May and allows business to create an online storefront within the app where customers can browse their selection and choose products to buy.

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Tata Motors to ‘significantly’ pare debt of $6.4 bn in three years

Have set targets to generate free cash flows, says chairman.

Tata Motors Ltd. will significantly reduce its group automotive debt of ₹48,000 crore ($6.4 billion) over the next three years, the company’s chairman said during its annual shareholder meeting.

Tata Motors is ‘deleveraging this business substantially’ and has set targets to generate free cash flows, N. Chandrasekaran said.

Automakers globally have been hit by the COVID-19 pandemic which has hurt demand for cars and disrupted supply chains because of curbs on travel and the movement of goods.

This has derailed Tata Motors’ turnaround plans for its domestic business and British luxury unit, Jaguar Land Rover (JLR), but the company said it is committed to cutting costs, tightening investment spending and improving profitability.

‘Unlocking non-core’

“The company is working with agility to transform towards a future that is strong, sustainable, and financially rewarding,” Mr. Chandrasekaran said, adding that the group would also look to ‘unlock’ non-core investments.

Tata Motors’ domestic business is expected to generate free cash flows from fiscal year 2021 while JLR will achieve this a year later in 2022, CFO P.B. Balaji said.