Opinion | Biden’s Big, Bold, Surprising Plan for a Green Transition (I Hope)
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By Thomas L. Friedman
Opinion Columnist
Adidas Cuts FY22 Outlook
German sportswear maker Adidas AG (ADDYY.PK,ADDDF.PK) cut its outlook for financial year 2022 reflecting slower recovery in Greater China and potential slowdown in other markets.
adidas now expects currency-neutral revenues to grow at a mid- to high-single-digit rate in 2022. Previously, it was expected at the lower end of the 11% – 13% range.
The company now projects annual net income from continuing operations to reach
a level of around 1.3 billion euros. Previously, it was expected at the lower end of the 1.8 billion euros – 1.9 billion euros range.
adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.
The company reported that its preliminary net income from continuing operations for the second quarter declined to 360 million euros from last year’s 387 million euros reflecting a one-time tax benefit of more than 100 million euros due to the reversal of a prior year provision.
Currency-neutral revenues grew 4% in the second quarter. The increase was driven by strong double-digit growth in North America and Latin America, high-single-digit growth in EMEA as well as a return to growth in Asia-Pacific. In euro terms, sales increased 10% to 5.596 billion euros.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
Qiagen Raises FY Outlook
Diagnostics and research company Qiagen NV (QGEN,QGENF) said that it has increased its adjusted earnings per share and net sales outlook for full-year 2022.
The company now projects annual adjusted earnings per share to be to at least $2.30 at constant exchange rate per share compared to the prior outlook of at least $2.14 at constant exchange rate.
The company raised annual outlook for net sales to at least $2.2 billion at constant exchange rate from the prior outlook of at least $2.12 billion at constant exchange rate.
The updated outlook included a reaffirmation of the goal for double-digit CER sales growth from the non-COVID product groups, which grew 12% CER in the first half of 2022, but for a decline in COVID-19 sales amid volatile pandemic trends.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
China Leaves Lending Rates Unchanged
China’s central bank held its benchmark lending rates steady, as widely expected, on Wednesday despite the tightening stance adopted by its global peers.
The People’s Bank of China kept the five-year loan prime rate, or LPR, the benchmark for mortgage rates, unchanged at 4.45 percent.
The rate was lowered by a record 15 basis points in May and by five basis points in January.
The one-year LPR was also left unchanged at 3.70 percent. The previous change in the rate was a five basis point cut in January.
The LPR is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This lending rate replaced the central bank’s traditional benchmark lending rate in August 2019.
Last week, the PBoC had retained the one-year medium-term lending facility rate at 2.85 percent and the seven-day reverse repurchase agreement rate at 2.1 percent. The central bank had injected liquidity of CNY 100 billion via one-year MLF and CNY 3 billion through seven-day reverse repo operations.
Official data showed that the economy grew only 0.4 percent in the second quarter, casting doubt over Beijing’s ability to achieve its full year growth target of around 5.5 percent. Nonetheless, economic activity started to improve in June after the easing of the pandemic related restrictions.
British American Tobacco H1 Adj. Profit Rises
British American Tobacco Plc (BATS.L,BTI) reported first-half adjusted profit from operations of 5.64 billion pounds, an increase of 7.8%. Adjusted earnings per share was 167.4 pence, up 8.6%.
Reported pretax profit was 3.06 billion pounds for the six months ended 30 June 2022 compared to 4.38 billion pounds, prior year. Earnings per share was 80.8 pence compared to 141.6 pence.
Revenue increased to 12.87 billion pounds from 12.17 billion pounds, last year.
Smurfit Kappa Posts Strong H1 Results
Paper-based packaging solutions provider Smurfit Kappa Group plc (SKG.L), on Wednesday, reported first-half profit before income tax €769 million versus €413 million last year. On a per share basis, basic earnings surged 85% to 221.9c from 119.9c earned a year ago.
Revenue for the half year ending 30 June 2022 amounted to €6.39 billion, 36% higher than the previous year’s revenue of €4.68 billion.
Tony Smurfit, Group CEO, said, “Our strong performance is a result of the many actions we have taken over a number of years. These actions include significant customer-focused investments to meet growth, providing the most innovative and sustainable paper-based packaging in the marketplace and selective acquisitions ensuring security of supply to our customers.”
Trevor Noah Is a Fan of Pope Francis
“He’s reached out to other faiths, he said gay people can get into heaven, and don’t forget he added a pop and lock to the sign of the cross,” Noah joked on Tuesday.
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By Trish Bendix