Welcome and thanks for reading! In this review, I will gather together important and interesting news and events over the last week related to my portfolio holdings. In my week review, I put also together some interesting articles from other websites that caught my attention during the past week.
News from My Portfolio Holdings:
Royal Bank of Canada: October 20, 2014
- Royal Bank of Canada to repurchase up to 12 million of its common shares. (More here)
Gjensidige: October 21, 2014 Third Quarter Result (More here)
Highlights third quarter 2014 (third quarter 2013):
- Profit/loss before tax expense: NOK 1,336.7 million (1,673.3)
- Profit per share: 2.00 (2.66)
- Earned premiums: NOK 5,203.6 million (4,866.9)
- Underwriting result: NOK 755.0 million (852.5)
- Combined ratio: 85.5 (82.5)
- Cost ratio: 14.5 (14.8)
- Financial result: NOK 552.0 million (825.7)
Highlights year to date 2014 (year to date 2013):
- Profit/loss before tax expense: NOK 4,240.5 million (3,291.0)
- Profit per share: 6.45 (5.07)
- Earned premiums: NOK 15,172.4 million (13,970.6)
- Underwriting result: NOK 2,055.1 million (1,643.9)
- Combined ratio: 86.5 (88.2)
- Cost ratio: 14.9 (15.3)
- Financial result: NOK 2,059.0 million (1,603.2)
Gjensidige: October 21, 2014
- At a board meeting on 20 October 2014, the Board decided to distribute excess capital in the form of increased dividend for the 2013 financial year of NOK 2,000 million, corresponding to NOK4.00 per share. (More here)
Orion Group: October 21, 2014 Interim Report January-September 2014 (More here)
- Operating profit was EUR 217 (202) million.
- Profit before taxes was EUR 214 (200) million
- Equity ratio was 55% (52%)
- ROCE before taxes was 39% (39%)
- ROE after taxes was 44% (41%)
- Basic earnings per share were EUR 1.21 (1.07)
- Cash flow per share before financial items was EUR 1.34 (0.56).
- The outlook estimate for 2014 remains unchanged. Orion estimates that in 2014 net sales and operating profit will be at similar level to 2013.
The Coca-Cola Company: October 21, 2014 Third Quarter Result (More here)
- Reported net revenues were even in the quarter and
declined 2% year to date.
Excluding the impact of structural changes, comparable currency neutral net
revenues grew 1% in the quarter and 2% year to date.
- Global unit case volume grew 1% in the quarter and 2%
year to date. Coca-Cola
International volume grew 1% in the quarter while North America volume declined
- Global price/mix increased 1% in both the quarter and year to date.
- Reported operating income increased 10% in the quarter
and 2% year to date.
Excluding the impact of structural changes, comparable currency neutral operating
income grew 5% in both the quarter and year to date, while the Company continued
to invest for growth in its brands with its global system partners.
- Third quarter reported EPS was $0.48, a decline of 13%,
and comparable EPS was
$0.53, even with the prior year quarter. Comparable currency neutral EPS increased
- Year-to-date cash from operations was $8.0 billion.
McDonald's Corporation: October 21, 2014 Third Quarter Result (More here)
- Global comparable sales decrease of 3.3%, reflecting negative guest traffic in all major segments and the impact of the previously-disclosed supplier issue in certain markets in APMEA
- Consolidated revenues decrease of 5% (4% in constant currencies), partly due to the impact of the supplier issue
- Consolidated operating income decrease of 14% (14% in constant currencies), approximately half due to the impact of the supplier issue, and the remainder largely due to soft operating performance in the U.S. and certain markets in Europe
- Effective tax rate of 44.4%, primarily due to an increase in tax reserves related to certain foreign tax matters
- Diluted earnings per share of $1.09, a decrease of 28% (28% in constant currencies). The following items, which total $0.42 per share, negatively impacted diluted earnings per share by 28% (28% in constant currencies) for the quarter:
- Returned $4.6 billion year-to-date September to shareholders through dividends and share repurchases, in connection with our $18-$20 billion, 3-year cash return target
AT&T: October 22, 2014 Third Quarter Result (More here)
- $0.58 diluted EPS compared to $0.72 diluted EPS in the year-ago quarter. Excluding significant items, EPS was $0.63 versus $0.66 a year ago
- Third-quarter consolidated revenues of $33.0 billion, up 2.5 percent versus the year-earlier period
- Strong cash from operations of $8.7 billion, with $3.5 billion in free cash flow
- More than 2 million new wireless and wireline high-speed broadband connections added
TAL International Group, Inc. October 22, 2014 Third Quarter Result (More here)
- TAL reported Adjusted pre-tax income of $1.47 per fully diluted common share for the third quarter of 2014.
- TAL reported leasing revenues of $150.5 million for the third quarter of 2014, an increase of 4.2% from the third quarter of 2013.
- TAL continues to achieve strong operational performance. Utilization increased 0.4% during the quarter and averaged 97.9% for the third quarter of 2014.
- TAL announced a quarterly dividend of $0.72 per share payable on December 23, 2014 to shareholders of record as of December 2, 2014.
- Effective as of September 1, 2014, TAL implemented a stock repurchase plan under its stock repurchase program. From September 1, 2014 through October 21, 2014, TAL repurchased 363,412 shares of its stock at an average price of $41.59 per share.
Fortum Corporation: October 23, 2014 Third Quarter Result (More here)
- Comparable operating profit EUR 183 (167) million, +10%
- Operating profit EUR 149 (96) million, of which EUR -34 (-70) million relates to items affecting comparability
- Earnings per share EUR 0.10 (0.04), +150%, of which EUR -0.03 (-0.05) per share relates to items affecting comparability
- Cash flow from operating activities totalled EUR 288 (401) million, -28%
- Comparable operating profit EUR 915 (979) million, -7%
- Operating profit EUR 2,778 (1,002) million, of which EUR 1,863 (22) million relates to items affecting comparability, i.e. mainly to the sale of the electricity distribution business in Finland
- Earnings per share EUR 2.91 (0.84), +246%, of which EUR 2.11 (0.03) per share relates to items affecting comparability. The main effect relates to the sale of the Finnish electricity distribution business totalling EUR 2.08 per share
- Sale of the Finnish and Norwegian electricity distribution as well as the Norwegian heat business finalised
- Cash flow from operating activities totalled EUR 1,310 (1,150) million, +14%
Neste Oil Corporation: October 23, 2014 Third Quarter Result (More here)
Third quarter in brief:
- Comparable operating profit totaled EUR 190 million (Q3/2013: EUR 217 million)
- Total refining margin was USD 10.94/bbl (Q3/2013: USD 8.61/bbl)
- Renewable Products' reference margin was USD 247/ton (Q3/2013: USD 453/ton)
- Renewable Products' additional margin was USD 174/ton (Q3/2013: USD 135/ton)
- Net cash from operations totaled EUR -144 million (Q3/2013: EUR 3 million)
January-September in brief:
- Comparable operating profit totaled EUR 329 million (1-9/2013: EUR 433 million)
- Return on average capital employed (ROACE) was 9.6% over the last 12 months (2013: 11.7%)
- Leverage ratio was 39.5% as of the end of September (31.12.2013: 30.0%)
- Comparable earnings per share: EUR 0.79 (1-9/2013: EUR 1.21)
Tele2: October 23, 2014 Third Quarter Result (More here)
- Net customer intake amounted to 166,000 (204,000) in Q3 2014.
- Net sales in Q3 2014 amounted to SEK 6,584 (6,500) million.
- EBITDA in Q3 2014 amounted to SEK 1,682 (1,471) million, equivalent to an EBITDA margin of 26 (23) percent.
- EBIT in Q3 2014 amounted to SEK 1,004 (747) million excluding one-off items. Including one-off items, EBIT amounted to SEK 1,004 (297) million.
- Profit before tax in Q3 2014 amounted to SEK 958 (138) million.
- Net profit /loss in Q3 2014 amounted to SEK 726 (–123) million.
Chevron Corporation: October 23, 2014
- Chevron Announces Oil Discovery in Deepwater U.S. Gulf of Mexico. (More here)
NCC: October 24, 2014 Third Quarter Result (More here)
July 1 – September 30, 2014
- Orders received: SEK 12,383 M (12,160)
- Net sales: SEK 14,796 M (13,129)
- Profit after financial items: SEK 881 M (748)
- Profit after tax for the period: SEK 696 M (614)
- Earnings per share: SEK 6.45 (5.67)
January 1 – September 30, 2014
- Orders received: SEK 42,910 M (42,617)
- Net sales: SEK 38,106 M (36,749)
- Profit after financial items: SEK 1,217 M (929)
- Profit after tax for the period: SEK 960 M (759)
- Earnings per share: SEK 8.88 (7.02)
AT&T: October 24, 2014
- AT&T Completes Sale of Connecticut Wireline Operations to Frontier Communications. (More here)
Articles that caught my attention:
- What Have We Really Lost? by Dividend Mantra
- United Technologies (UTX): A Diversified Dividend Powerhouse To Consider by Dividend Growth Investor on Seeking Alpha
- The Intersection of Dividend Growth Investing and Financial Independence by Passive Income Pursuit
- The Death of IBM by Roadmap2Retire
- Should You Buy IBM Stock Now? by Tim McAleenan Jr. on The Financial Home Of Tim McAleenan Jr.
- Is There Value In Coca-Cola and IBM After Big Respective Drops? by Dividend Mantra
- Is American Realty Capital Properties A 'Sucker Yield' Bet? by Brad Thomas on Seeking Alpha
- Time in the market is more important than timing the market by Dividend Growth Investor
- Dividend Aristocrats In Focus Part 25: Chevron (CVX) by Ben Reynolds on Sure Dividend
- The Concern About Coca-Cola Stock? Classic Short-Termitis by Tim McAleenan Jr. on The Financial Home Of Tim McAleenan Jr.
- The Bloggers' Dividend Growth Portfolio: Popular Dividend Growth Stocks Trading On U.S. Exchanges by FerdiS on Seeking Alpha
- AT&T: A High-Yield Telecom For Current Income by Dividend Growth Investor on Seeking Alpha
- Dividend Aristocrats In Focus Part 27: ExxonMobil (XOM) by Ben Reynolds on Sure Dividend
- 7 Dividend Achievers Good Enough To Buy And 10 To Watch by Tom Roberts on Dividend Yield - Stock, Capital, Investment
- When Opportunity Knocks, It's Wise To Open The Door - Low Valuation Trumps Growth by Chuck Carnevale on Seeking Alpha
I wish all readers a nice next week.