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Top line performance: Top line grew 8.8% driven by volume growth and price increases across our regions. Organic volume growth of 4.1% was a result of a 7% volume growth in Brazil, partly offset by a 3.5% volume decline in Latin America South. Canada and Hila-Ex volumes grew 2.3% and 1.1%, respectively, in the period.
Cost of Goods Sold (COGS) and Selling, General & Administrative (SG&A) expenses: COGS per hectoliter decreased by 4.3% in the quarter as expected gains on our hedges, lower commodity prices for PET and corn and productivity initiatives more than offset inflation in the period. SG&A (excl. depreciation & amortization) increased organically by 13.5% driven by higher volumes, inflation, timing of certain investments and higher accruals for variable compensation in the period.
EBITDA, Operating Cash Flow and Net income: Our Normalized EBITDA reached R$2,383.1 million in Q2 2009, an organic growth of +13.8 % and margin expansion of 230 bps in the second quarter to 44.6%. Operating cash flow generation was R$1,991.1 million in Q2 2009, an increase of +31.4% yoy. Our Normalized Net income was R$1,391.4. million (+35.1%) in Q2 2009 while our Normalized Earnings per share (EPS) grew 34.6% yoy.
Payout and Financial Discipline: In Q2 2009, we paid interest on own capital (IOC) totaling around R$262 million. Since then, we paid dividends and IOC of approximately R$745 million beginning July 31 and declared additional dividends and IOC of approximately R$ 1.0 billion, to be paid beginning October 2, 2009. There were no share buybacks in the quarter.
BENTONVILLE, Ark., Aug. 13 /PRNewswire-FirstCall/ — Wal-Mart Stores, Inc. (NYSE: WMT – News) today reported diluted earnings per share from continuing operations for the second quarter of fiscal year 2010 of $0.88, at the top of the company’s guidance of $0.83 to $0.88. The effect of currency exchange rates reduced earnings by approximately $0.04 per share. Walmart earned $0.86 per share from continuing operations in the second quarter last year.
Net sales for the second quarter were $100.082 billion, a decrease of 1.4 percent from $101.546 billion in the second quarter last year. Without the negative impact of currency exchange rates equal to $4.199 billion, net sales for the quarter increased 2.7 percent to approximately $104.281 billion on a constant currency basis (which assumes currency exchange rates remained the same as the prior year). Income from continuing operations increased to $3.449 billion from $3.401 billion in the same period last year.
“Our earnings exceeded consensus estimates and were at the top of our guidance,” said Mike Duke, Walmart president and chief executive officer. “We are pleased with the performance of our operations around the world. We believe that our comparable store sales continued to outperform the retail sector almost everywhere we do business.
“In a sales environment more difficult than we expected, we managed our operations in a disciplined manner. Our U.S. segments delivered strong inventory performance, which contributed to the company’s healthy increase in year-over-year earnings,” Duke said. “We are accelerating our focus on reducing our expenses.
“Customers around the world are forced to do more with less and they rely on Walmart to help them save money,” Duke added. “The improvements in our stores are attracting new customers and keeping the loyalty of the millions who shop with us. We are confident about Walmart’s long-term future and ability to build on its leadership position.”
Net Sales……
LONDON (MarketWatch) — Watson Wyatt Worldwide, Inc /quotes/comstock/13*!ww/quotes/nls/ww (WW 38.84, -0.54, -1.37%) said fourth-quarter net income fell 25% to $31 million, or 73 cents a share, from $42 million, or 95 cents a share, earned in the year-earlier period. Exchange-rates had a negative impact of 10 cents a share in the latest quarter and severance expense a negative impact of 7 cents a share. The consensus forecast was for earnings of 70 cents a share, according to a poll of 8 analysts conducted by FactSet Research. Revenue declined 13% to $397 million. In fiscal 2010, the Arlington, Va.-based employee-benefits services company expects revenue in the range of $1.63 billion to $1.70 billion and adjusted earnings excluding severance and merger costs of $3.40 to $3.60 a share.
MENOMONEE FALLS, Wis.–(BUSINESS WIRE)–Kohl’s Corporation (NYSE:KSS – News). Kohl’s Corporation today reported results for the quarter and year-to-date periods ended August 1, 2009 and raised its fiscal 2009 earnings guidance.
Kohl’s Corporation reported net income for the quarter ended August 1, 2009 of $229 million, or $0.75 per diluted share, compared with $236 million, or $0.77 per diluted share, a year ago. Net sales were $3.8 billion, an increase of 2.2 percent for the quarter. Comparable store sales for the quarter decreased 2.3 percent.
For the six months ended August 1, 2009, net income decreased 5.4 percent to $368 million, or $1.20 per diluted share, compared to $389 million, or $1.26 per diluted share, for the six months ended August 2, 2008. Net sales increased 1.3 percent to $7.4 billion from $7.3 billion a year ago. Comparable store sales decreased 3.2 percent for the same period.
Kevin Mansell, Kohl’s president and chief executive officer, said, “Sales for the first half of 2009 exceeded our plans and indicated market share gains across most merchandise areas and regions. In addition, we continue to experience improvements in inventory management and increased penetration in “Only at Kohl’s” brands that have led to improved gross margins. Our expense performance matched our expectations despite our outperformance on the sales line. We will focus on providing value for our customer as they continue to be conservative in their spending in this environment.”
Mansell added, “I am very proud of our 121,000 associates and the role they played in these results and want to thank them for their hard work, loyalty and dedication in delivering on our promise to ‘expect great things’ from Kohl’s.”
Expansion Update
During the first six months of 2009, Kohl’s successfully opened 19 stores. The Company ended the quarter with 1,022 stores in 49 states, compared with 957 stores in 47 states at the same time last year. The Company expects to open an additional 37 stores later this year for a total of 56 stores in fiscal 2009. By the end of August, the Company will have completed 51 store remodels, compared to 36 stores last year.
Earnings Guidance
For the third quarter, the Company expects total sales to range between negative 1 percent and positive 1 percent; comparable store sales to range between negative 5 percent and negative 3 percent; and gross margin as a percent of sales to increase 10 to 20 basis points over last year. The Company expects selling, general and administrative expenses to increase between 3 and 4 percent. This would result in earnings per diluted share of $0.40 to $0.44 for the third quarter.
For the fourth quarter, the Company expects total sales to range between negative 1 percent and positive 1 percent; comparable store sales to range between negative 5 percent and negative 3 percent; and gross margin as a percent of sales to increase 20 to 30 basis points over last year. The Company expects selling, general and administrative expenses to increase between 3 and 4 percent. This would result in earnings per diluted share of $0.99 to $1.06 for the fourth quarter.
The Company’s updated guidance for the fiscal 2009 is $2.59 to $2.70 per diluted share.
NEW YORK (MarketWatch) — Estee Lauder Cos. /quotes/comstock/13*!el/quotes/nls/el (EL 37.62, -0.02, -0.05%) said Thursday that it swung to a fiscal fourth-quarter loss of $17.9 million, or 9 cents a share, from a year-earlier profit of $120.2 million, or 61 cents a share. Sales in the three months ended June 30 fell 16% to $1.68 billion. Excluding restructuring charges, the company said it would have earned 20 cents a share in the latest period. Analysts, on average, expected Estee Lauder to earn 20 cents a share, according to FactSet Research. The cosmetics company said it expects to post earnings, excluding charges, of 23 cents to 30 cents a share in the first quarter and $1.55 to $1.70 for the full year. Analysts are looking for a first-quarter profit of 19 cents a share and a full-year profit of $1.70 a share, according to FactSet.
- Fiscal 2009 revenue and free cash flow1 increased 11% and 17%, respectively, year-over-year
- Fourth quarter revenue and free cash flow increased 9% and 14%, respectively, year-over-year
- Fiscal 2009 free cash flow totaled 84% of revenues
- Significant expansion of portfolio in fiscal 2009 with addition of Barrick royalties and agreement to acquire Andacollo property interests
- Gold accounted for 84% of revenues for fiscal 2009 versus 74% for the prior year
DENVER–(BUSINESS WIRE)–ROYAL GOLD, INC. (NASDAQ:RGLD – News) (TSX:RGL – News), a leading precious metals royalty company, today announced record royalty revenue of $73.8 million for fiscal 2009 (ended June 30), an 11% increase over revenues of $66.3 million in fiscal 2008. Net income totaled $38.3 million, or $1.09 per basic share, compared with net income of $24.0 million, or $0.62 per share, in fiscal 2008. Net income for fiscal 2009 included the effects of a one-time gain of $31.5 million, resulting from the restructuring of the Company’s royalties at the Cortez Pipeline Mining Complex (“Cortez”) in October 2008, and a $2.2 million one-time gain on the buy-back of the Benso royalty by the operator in May 2009. Excluding these items, the Company’s net income for fiscal 2009 was $16.4 million, or $0.47 per basic share.
For the fourth quarter ended June 30, 2009, royalty revenue reached a record high of $22.3 million, a 9% increase over royalty revenue of $20.4 million for the same period in fiscal 2008. The Company reported fourth quarter net income of $7.1 million, or $0.18 per basic share, as compared with fourth quarter net income of $7.0 million, or $0.21 per basic share for the previous period. Excluding the one-time gain on the Benso buy-back, the Company’s net income for the fourth quarter ended June 30, 2009 was $5.6 million or $0.14 per basic share.
Increased royalty revenue for fiscal 2009 was largely driven by production growth at Taparko and Leeville and new contributions from the Barrick royalty portfolio, including Siguiri and the consolidation of royalty interests at the Mulatos property, as well as commencement of production at Peñasquito and Dolores. These increases were partially offset by decreases in revenue at Cortez and Robinson.
Free cash flow for fiscal 2009 was $61.7 million ($1.75 per share), representing 84% of revenue. This compares to free cash flow for fiscal 2008 of $52.9 million ($1.70 per share), or 80% of revenues. Free cash flow for the fourth quarter was $19.4 million ($0.49 per share), representing 87% of revenue, compared to free cash flow of $17.0 million ($0.50 per share), or 83% of revenues, for the comparable period.
As of June 30, 2009, the Company had a working capital surplus of $312.5 million. Current assets were $318.7 million (including $294.6 million in cash and equivalents), compared to current liabilities of $6.2 million, resulting in a current ratio of 51 to 1.
Tony Jensen, President and CEO, commented, “Fiscal 2009 was a pivotal year of growth and development for Royal Gold. We reported record revenue and free cash flow for the eighth straight year. The Company’s strong results were driven by our focus on and execution of our long-term growth strategy, steady performance from our increasingly diversified portfolio, and a continuation of strong precious metals prices.”
Jensen continued, “Over the past several years, Royal Gold has built a high quality royalty portfolio with a strong pipeline of development projects. Two significant transactions during the year included the acquisition of the Barrick royalty portfolio and the signing of an agreement with a subsidiary of Teck Resources on the Andacollo mine. In fiscal 2010, we expect that the Dolores and Peñasquito royalties will begin to make significant revenue contributions and, assuming that the transaction closes, Andacollo could develop into our largest revenue source.”
MILWAUKEE, Aug. 13 /PRNewswire-FirstCall/ — Briggs & Stratton Corporation (NYSE: BGG – News)
Briggs & Stratton today announced fiscal 2009 fourth quarter consolidated net sales of $482.8 million and consolidated net income of $5.3 million or $0.11 per diluted share. The fourth quarter of fiscal 2008 had consolidated net sales of $581.1 million and consolidated net income of $0.5 million or $0.01 per diluted share. The consolidated net sales decrease of $98.3 million or 17% was due primarily to decreased shipment volumes in both the Engines and Power Products Segments.
Included in net income for the fiscal 2009 fourth quarter was a $5.8 million pretax ($3.5 million after tax or $0.07 per diluted share) expense associated with the closing of a manufacturing facility in Jefferson, Wisconsin. Included in the fourth quarter of fiscal 2008 was a $13.3 million pretax ($8.1 million after tax or $0.16 per diluted share) gain associated with the reduction of certain post closing employee benefit costs related to the closing of the Port Washington, Wisconsin manufacturing facility. After considering the impact of the fourth quarter items related to facility closures in both periods, fourth quarter consolidated net income was higher by $16.4 million as compared to the prior year. This increase was the result of lower spending, improved productivity, lower commodity costs and a lower effective tax rate, partially offset by the impact of decreased sales and production volumes.
For fiscal 2009, the company had consolidated net sales of $2.09 billion and consolidated net income of $32.0 million or $0.64 per diluted share. Fiscal 2008 consolidated net sales were $2.15 billion and consolidated net income was $22.6 million or $0.46 per diluted share. The $59.2 million decrease in consolidated net sales was due to the net effect of reduced shipment volumes, primarily related to lawn and garden equipment in the Power Products Segment, unfavorable currency exchange rates primarily related to the Euro and a mix of shipments that reflected lower priced units. Partially offsetting the consolidated net sales decrease were sales of $39.5 million included in the results for the first time this year due to the June 30, 2008 acquisition of Victa Lawncare Pty. Ltd., increased portable generator sales volume due to weather events and pricing improvements.
As noted above, included in fiscal 2009 consolidated net income is a $5.8 million pretax ($3.5 million after tax or $0.07 per diluted share) expense associated with the closing of the Jefferson, Wisconsin manufacturing facility. Fiscal 2008 consolidated net income included the $13.3 million pretax ($8.1 million after tax) gain associated with the reduction of certain post closing employee benefit costs referred to above and a $17.2 million pretax ($12.3 million after tax) net gain resulting from the redemption of preferred stock and the related dividends offset by expense from a snow engine recall. After considering the impact of these items, fiscal 2009 consolidated net income was higher by $33.3 million compared to the prior year, primarily the result of enhanced pricing, lower spending, improved productivity and lower interest expense. Partially offsetting these improvements was the impact of unfavorable currency exchange rates, higher commodity costs and mix of shipments that reflected lower margined product.
Engines:
Fiscal 2009 fourth quarter net sales were $336.0 million versus the $389.6 million for the same period a year ago, a decrease of $53.6 million or 14%. The decrease in net sales was the result of the mix of product shipped that reflected lower priced units, a 5% decrease in engine unit shipments compared to the same period a year ago and unfavorable currency exchange rates. Engine shipments were significantly impacted by the mix of lawn and garden products sold at retail, with higher priced riding equipment engines off more significantly than walk mower engines. Overall, we believe the current economic environment and weak consumer confidence are the main reasons for the sales decline.
Net sales for fiscal 2009 were $1.41 billion versus the $1.46 billion in the prior year, a decrease of $45.8 million or 3%. The decrease primarily results from the impact of the mix of product shipped that reflected lower priced units, a small decrease in engine shipments and unfavorable currency exchange rates. Product mix issues discussed for the fourth fiscal quarter were also applicable to the full fiscal year. Softer demand for engines for powered lawn and garden equipment was offset by the improvement in demand for engines for portable generators.
Income from operations for the fourth quarter of fiscal 2009 was $20.4 million, up $1.6 million from the $18.8 million during the same period in the prior year. Income from operations was similar between years, the result of lower spending, improved productivity and lower commodity costs, offset by lower sales and production volumes.
Income from operations for fiscal 2009 was $83.4 million, up $13.9 million from the $69.5 million in fiscal 2008. Fiscal 2008 consolidated net income included a $19.8 million expense for a snow engine recall. After considering the impact of the snow engine recall, fiscal 2009 income from operations was lower by $5.9 million compared to the prior year, primarily the result of less favorable Euro exchange rates and higher commodity costs in the current year, partially offset by lower engineering, selling and administrative expenses and improved productivity.
Power Products…….
NEW YORK (MarketWatch) — Dr Pepper Snapple Group Inc. /quotes/comstock/13*!dps/quotes/nls/dps (DPS 26.00, +2.48, +10.54%) said Thursday that its second-quarter earnings rose to $158 million, or 62 cents a share, from $108 million, or 42 cents a share, in the year-ago period. Analysts polled by FactSet Research were looking for earnings of 50 cents a share, on average. The Plano, Texas-based beverage company said it expects to earn $2.03 to $2.11 a share for the full year, or $1.88 to $1.96 a share on an adjusted basis. Analysts’ mean estimate is for full-year earnings of $1.77 a share, according to FactSet. Shares of Dr Pepper Snapple jumped more than 20% in premarket trading.
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