FILE PHOTO: Lockheed Martin is seen at Euronaval, the world naval defence exhibition in Le Bourget near Paris, France, October 23, 2018. REUTERS/Benoit Tessier/File Photo
(Reuters) – Lockheed Martin Corp reported a better-than-expected 47 percent jump in quarterly profit on Tuesday and raised its annual profit forecast, helped by strong demand for its missiles and fighter jets, sending its shares up more than 5 percent in pre-market trading.
U.S. weapons makers have been expected to benefit from stronger global demand for fighter jets and munitions and higher U.S. defence budgets in fiscal 2020 as they announce first quarter earnings this week.
Lockheed’s Missiles and Fire Control business, which makes missile defences like the Terminal High Altitude Area Defence (THAAD), was one of its best-performing units.
On April 1, the unit was awarded a THAAD interceptor missile contract worth $2.4 billion, some of which are slated to be delivered to Saudi Arabia, which could boost earnings for the current quarter.
Overall, the Bethesda, Maryland-based company said its earnings rose to $1.70 billion, or $5.99 per share, in the first quarter ended March 31, from $1.16 billion, or $4.02 per share, a year earlier. That was partly helped by a $75 million dollar boost from additional tax deductions on foreign military sales.
Excluding that one-time gain, Lockheed reported $5.73 per share profit, well ahead of the $4.34 per share that Wall Street had expected, on average, according to IBES data from Refinitiv.
Lockheed’s overall net sales for the quarter rose 23 percent to $14.34 billion. The company’s sales backlog grew to $133.5 billion, up 3 billion over the quarter.
Operating margins at the aeronautics division, Lockheed’s biggest, fell to 10.5 percent in the first quarter from 10.8 percent a year earlier, but sales were up 27 percent to $5.5 billion on demand for the F-35 jet and some classified contracts.
The United States is considering expanding sales of Lockheed-made F-35 fighter jets to five new nations including Romania, Greece and Poland as European allies bulk up their defences in the face of a strengthening Russia, a Pentagon official told Congress in early April.
(Reporting by Mike Stone in Washington D.C. and Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Bill Rigby)
FILE PHOTO: A United Express Embraer ERJ-175LR airplane is pictured at Vancouver’s international airport in Richmond, British Columbia, Canada, February 5, 2019. REUTERS/Ben Nelms
(Reuters) – United Airlines on Tuesday reported a better-than-expected jump in first-quarter profit as it sold more tickets and cut costs, standing by its 2019 profit target even as its Boeing Co 737 MAX jets remain grounded.
Chicago-based United has removed its 14 MAX aircraft, which were suspended worldwide in March following two fatal crashes, from its flying schedule through early July, eating into U.S. airlines’ peak summer travel season.
Still, the airline’s parent United Continental Holdings Inc reiterated its estimate for adjusted earnings of $10 to $12 per share in 2019, and said its strategy for scheduling more flights out of its hubs was continuing to win customers.
Adjusted earnings per share rose to $1.15 in the first quarter, ending March 31, from 49 cents a year earlier, overcoming a U.S. government shutdown and severe winter weather earlier this year that curtailed flights.
Wall Street analysts on average had forecast 95 cents per share, according to IBES data from Refinitiv.
Its shares rose 2.8 percent in after-hours trading.
United has largely avoided cancelling MAX flights by servicing those routes with larger aircraft, but President Scott Kirby warned last week that the strategy could not last indefinitely.
The airline, which has been adding seats at a faster pace than rivals, trimmed its 2019 capacity growth target to between 4 percent and 5 percent from 4 percent to 6 percent previously, but did not say whether the decision reflected the effect of the grounded MAX.
Total operating revenue rose 7.1 percent to $8.73 billion in the quarter, while closely watched revenue per available seat mile rose 1.1 percent.
In the second quarter, United said it expects unit revenue to rise between 0.5 percent and 2.5 percent while unit costs, which fell 1.8 percent in the first quarter, were expected to be flat to 1 percent higher.
The No. 3 U.S. carrier is the first of three U.S. 737 MAX operators to report first-quarter results. Southwest Airlines Co and American Airlines Group Inc, which have removed their MAX jets from schedules into August, report on April 25 and April 26 respectively.
A Federal Aviation Administration review board said on Tuesday that it found a Boeing software update for the MAX to be “operationally suitable,” suggesting the lengthy regulatory process to get the planes back in the air was underway.
Rival Delta Air Lines Inc, which does not operate the 737 MAX, lifted its 2019 revenue forecast last week after reporting better-than-expected quarterly profit.
(Reporting by Tracy Rucinski in Chicago; Additional reporting by Sanjana Shivdas in Bengaluru; Editing by Bill Rigby)
FILE PHOTO: Cessna employee works on an engine of a Cessna business jet at the assembly line in their manufacturing plant in Wichita, Kansas March 12, 2013. REUTERS/Jeff Tuttle
(Reuters) – Cessna business jet maker Textron Inc reported a higher-than-expected quarterly profit on Wednesday, benefiting from robust aircraft deliveries, sending its share up 1.6 percent in early trading.
Business jet demand has been growing steadily in the United States, the world’s biggest market, on the back of an expanding economy and rising corporate profits.
Textron said it delivered 44 jets in the first quarter ended March 30, up from 36 last year. Commercial turboprop deliveries rose to 44 aircraft from 29 last year.
“We think this quarter has pretty much ticked all the boxes for Textron. Aviation growth has continued, with a positive book to bill in the quarter,” Vertical Research Partners analyst Robert Stallard said.
Textron has faced delays in final certification of its newest super mid-size Longitude jet, which is expected to contribute a ‘big chunk’ to the company’s revenue growth in 2019.
Analysts have warned that the certification delays from the U.S. Federal Aviation Administration due to partial government shutdown followed by the regulator’s intense focus on re-certifying Boeing Co’s 737 MAX aircraft might impact sales growth at the company in the short.
Though the aviation business was among the drivers for a profit beat, Textron’s revenue missed Wall Street estimates, hurt by lower sales in its systems unit, which makes tactical armored patrol vehicles.
Textron re-affirmed its full-year profit outlook range of $3.55 to $3.75 per share.
Sales in the company’s aviation business, its biggest, rose 12.3 percent to $1.13 billion in the first quarter, while sales in the systems unit fell more than 20 percent to $307 million.
The company’s net income fell to $179 million in the quarter ended March 30 from $189 million a year earlier.
Textron earned 76 cents per share, above analysts’ average estimate of 68 cents, according to Refinitiv data.
Textron’s revenue fell 5.7 percent to $3.11 billion, below analysts’ estimates of $3.17 billion.
(Reporting by Divya R and Ankit Ajmera in Bengaluru; Editing by Maju Samuel)
FILE PHOTO: A Tesla logo is seen at a groundbreaking ceremony of Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song/File Photo
(Reuters) – Tesla Inc shares fell more than 8 percent on Thursday after a bigger-than-expected drop in first-quarter deliveries, led by waning demand for its luxury Model S and X vehicles, added to worries about the electric carmaker’s finances.
At least four Wall Street brokerages cut their price targets on the company’s stock, citing concerns about profitability and revenue after deliveries of the higher-priced luxury cars more than halved compared to the fourth quarter.
RBC analysts called Model S/X deliveries “very disappointing” and estimated the numbers would translate to a more than $1 billion shortfall in revenue compared to previous estimates.
The company had already flagged in February that it expected to post a first-quarter loss as it launched its cheaper $35,000 version of the Model 3 sedan.
In the quarter, Tesla delivered 50,900 Model 3s, the linchpin of its growth strategy, falling short of analysts’ estimates of 58,900, according to IBES data from Refinitiv.
Tesla also pinned the blame for the first-quarter delivery drop to longer transit times, which analysts said could impact cash flow, even though the company claimed it had sufficient cash on hand.
The company said it had delivered only half of the quarter’s numbers by March 21, with 10,600 vehicles still in transit at the end of the quarter. By comparison, only 1,900 vehicles were in transit at the end of the fourth quarter.
Cowen and Co analysts said that the delivery and transit details suggested “cash was likely dangerously low” after Tesla paid off a $920 million convertible bond obligation in cash in the beginning of March.
Still, there were no new downgrades by brokerages on Tesla shares. The company is currently rated “buy” or higher by 12 of the 30 brokerages covering the company, 7 “hold” and 11 “sell” or lower.
The carmaker reaffirmed its forecast to deliver between 360,000 and 400,000 vehicles this year, and said U.S. orders for the new Model 3 outpaced what the company was able to fulfill in the quarter.
Nord LB analyst Frank Schwope called the numbers “more shocking than disappointing” and said there remain doubts whether Tesla could deliver 400,000 cars this year.
Lawyers for Tesla chief Elon Musk will argue on Thursday that he did not violate a fraud settlement with the U.S. Securities and Exchange Commission and should not be held in contempt, the latest twist in a high-profile battle between the billionaire and the government.
Musk’s fight with the SEC, to play out in a Manhattan federal court hearing, has raised investor worries that it could lead to restrictions on his activities or even his removal from Tesla, while distracting him at a pivotal point in the company’s expansion.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shounak Dasgupta)
March
6 (Reuters) – Amazon.com Inc will close all of its U.S. pop-up stores
and focus instead on opening more book stores, a company spokesperson
said on Wednesday.
The company’s shares closed down 1.4 percent at $1,668.95.
The news underscores how the online retailer is still working out its brick-and-mortar strategy.
Pop-up
stores for years helped Amazon showcase novel products like its
voice-controlled Echo speakers, but the company is now able to market
those products and more at its larger chain of Whole Foods stores,
acquired in 2017, and cashierless Amazon Go stores, which opened to the
public last year.
The
online retail giant will also open more “4-star stores” – stores that
sell items rated 4-stars or higher by Amazon customers, the spokesperson
added.
“After
much review, we came to the decision to discontinue our pop-up kiosk
program, and are instead expanding Amazon Books and Amazon 4-star, where
we provide a more comprehensive customer experience and broader
selection.”
Shares of bookseller Barnes & Noble Inc closed down 8.9 percent at $5.84.
(Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel)
(Reuters)
– The U.S. Federal Aviation Administration is investigating Southwest
Airlines Co for widespread failure to accurately track the combined
weight of checked bags loaded onto its jets, the Wall Street Journal
reported on Monday.
The
U.S. aviation safety agency’s year-long civil probe found systemic and
significant mistakes with employee calculations and luggage-loading
practices, resulting in potential discrepancies when pilots compute
takeoff weights, the Journal reported, citing government officials and
internal agency documents
The
FAA has not decided whether to impose fines or any other punishment,
the report cited people familiar with the investigation as saying.
The
inaccuracies ranged from a few dozen pounds to more than 1,000 pounds
(450 kg) in excess of what the paperwork indicated, sparking disputes
between the company and some agency inspectors about potential safety
consequences, the report said.
A
company spokeswoman said there was an open Letter of Investigation
(LOI), which is a common mechanism for the FAA to document and share
safety interests or concerns with an airline.
The
airline has not been issued fines and faces no enforcement action
regarding its weight and balance program, Southwest spokeswoman Brandy
King said.
“In
this case, the LOI addresses an issue that Southwest voluntarily
reported to the FAA last year and since that time, Southwest has
implemented controls to address weight and balance program concerns, and
shared those measures with the FAA,” King said.
The FAA said in a statement it initiated a probe against Southwest in 2018 regarding weight and balance performance data.
“Since
that time, the FAA has directed the development of a comprehensive
solution to the methods and processes used by Southwest Airlines to
determine this performance data,” it said in the statement. “The FAA
will not close its investigation until it is satisfied that Southwest’s
corrective actions are consistent and sustained.”
(Reporting by Rama Venkat in Bengaluru; Editing by Bernadette Baum and Peter Cooney)
(Reuters) – Shares in Tesla Inc fell nearly 4 percent on Thursday as Wall Street analysts following up on its fourth-quarter results questioned underlying demand for its crucial Model 3 sedan and the electric car maker’s ability to make inroads in China.
Tesla reported quarterly profit below analysts’ expectations on Wednesday and surprised investors by announcing that Chief Financial Officer Deepak Ahuja, 56, would leave and handover the reins to 34-year-old Zach Kirkhorn, its vice president of finance.
JPMorgan analysts were among those warning that Ahuja’s leaving deprived the company of long automotive industry experience and relative stability in a company which has seen a steady stream of senior staff come and go since 2016.
Analysts were also concerned by Tesla’s indication that it is only making cars for China and Europe right now, and expects a gap of about 10,000 vehicles between production and deliveries due to vehicles in transit at the end of the first quarter.
“This is a strong indication that demand in the U.S. for both the mid-range and long-range Model 3 versions has largely been exhausted, and the company is still working through the estimated ~6.8k of unsold Model 3 inventory,” Cowen analysts said.
Still, the fall in Tesla shares was less than that suggested by initial pricing after Wednesday’s results and also far smaller than some of the swings in one of the past year’s most volatile Wall Street stocks.
The company, which is striving to stabilise production and deliver consistent profit, ended the quarter with $4.3 billion in cash and said it had “sufficient cash on hand” to pay a $920 million convertible bond maturing in March.
Of the 31 brokerages covering Tesla, 10 have a “buy” or higher rating, 10 “hold” and 11 have a “sell” or lower rating and their median price target is 327.50.
Only four changed their price targets on the stock on Thursday, with two raises and two cuts. Wedbush cut its price target by $50 to $390 (297 pounds).
While Tesla is pumping money into a Shanghai factory, which it hopes to bring on line around the end of this year with a target of producing 500,000 vehicles a year, several analysts questioned whether that investment will pay off.
“Tesla serves the purpose of a ‘stalking horse’ to the fast growing domestic Chinese EV industry, but we believe it has limited to zero terminal value in a region where a number of domestic champions should emerge,” Morgan Stanley analysts said.
(Reporting by Sonam Rai and Jasmine I S in Bengaluru; Editing by Anil D’Silva)
Austin FC is set to begin play in MLS in 2021 as the league’s 27th club, commissioner Don Garber announced Tuesday. The club will become the city’s first team in a major professional sports league.
The announcement was made at Rustic Tap in Austin’s West Sixth district, with Garber alongside Austin FC chairman/CEO Anthony Precourt and Austin mayor Steve Adler. The club will soon build a privately funded, $225 million soccer stadium at McKalla Place. Groundbreaking will begin this year on the 20,000-seat stadium, which planned to be completed in time for the club’s first match.
“Austin is a thriving metropolitan city – the personification of what we mean when we say MLS is a ‘League for a new America,’” Garber said in a league release. “We are extremely proud to be the first major professional sports league to become part of the culture of this historic American city. In their support of a world-class soccer stadium that benefits everyone, the leadership of the City of Austin has shown tremendous faith in our league and game, and Anthony Precourt has paved the way for Austin FC to have great success on and off the field. To the people of Austin and the surrounding community, welcome to Major League Soccer.”
Austin FC will become the third MLS club in Texas, joining FC Dallas and the Houston Dynamo. Austin is the country’s 11th largest city and was selected by U.S. News and World Report in each of the last two years as the No. 1 place in the nation to live.
“This is a very proud moment for Precourt Sports Ventures, and we share it with the people of Austin, City leadership, the dedicated soccer fans of the region, and everyone who believed in our mission to bring Major League Soccer to this incredible community,” Precourt said. “The greatest way we can show our gratitude is in our actions as leaders of Austin FC. Our pledge is to build three essential pillars: a team that will be a perennial contender for MLS Cup, a stadium at McKalla Place that rivals the best sporting venues in North America, and a club that will bring people together and always give back.”
Said Mayor Adler: “This is a historic day for Austin, as MLS becomes the first major league to plant roots in our beautiful city. We believe professional soccer will bring a great and especially needed benefit to our city. In two years, this team and an elite soccer stadium will bring together all kinds of people from all over Austin in a way that we do not gather today. This is one important way we become a more socially integrated community. Thank you to Precourt Sports Ventures and MLS for bringing this opportunity to all the residents of Austin!”
CHICAGO (December 10, 2018) — Hyatt Hotels Corporation (NYSE: H) announced today the opening of Hyatt Regency Seattle, located in the heart of downtown at 808 Howell Street and near some of Seattle’s top attractions including the Space Needle, Chihuly Garden and Pike Place Market. With its sprawling, dynamic event space and number of guestrooms, Hyatt Regency Seattle is the largest hotel in the Pacific Northwest and new premier destination for meetings and events in the region. It joins two other Seattle-area Hyatt Regency hotels and offers a one-stop experience that puts everything guests need right at their fingertips.
The 45-story hotel features 1,260 guestrooms, all of which are furnished with floor-to-ceiling windows, sizeable modern bathrooms, 65-inch TVs and a collection of black-and-white photography, shot by six Seattle-based photographers, highlighting the natural beauty of the Pacific Northwest region. The hotel also offers guests a StayFit® Fitness Center, outfitted with Peloton bikes and other Technogym state-of-the-art cardio and strength equipment, and an expansive Hyatt Regency Club lounge with fire pits and wraparound patio that provides guests with stellar views of downtown Seattle.
Located just two short blocks from the Washington State Convention Center and adjacent to The Summit, the planned convention center expansion building slated to open Spring 2022, Hyatt Regency Seattle offers more than 103,000 square feet of dynamic meeting and event space for a variety of gatherings, ranging from intimate meetings to larger conferences and weddings.
“Progress is all around us,” says Hyatt Regency Seattle General Manager Tom Wolf. “No other addition to Seattle’s vastly updated cityscape is more important for Seattle tourism than the new, very visible contemporary building right in the middle of town: Hyatt Regency Seattle. With the opening of the largest hotel in the Pacific Northwest this year, Seattle will finally have the meeting space options it needs.”
Consistent with the Pacific Northwest theme throughout the property, meeting and event spaces are named after bodies of water located throughout Washington state:
The Columbia and Regency Ballrooms each offer 19,000+ square feet of space with 24- and 30-foot high ceilings, respectively.
Two junior ballrooms: Elwha Ballroom is 7,200 square feet, while Quinault Ballroom has 3,400 square feet of functional meeting space.
The high-end Deschutes Executive Boardroom, featuring a private balcony that can accommodate 24 people.
Eight pre-function spaces, each ranging from 4,292 to 7,022 square feet, which are flooded in natural light.
An additional 46 meeting rooms, ranging from 600 to 1,900 square feet, complete with floor-to-ceiling windows.
All meetings rooms are outfitted with audiovisual equipment, multiple electrical, microphone and phone outlets, as well as blackout blinds and T1 high-speed Internet with dedicated bandwidth capabilities.
The new Hyatt Regency Seattle also offers guests three on-site dining experiences:
Andare, a fast-casual Italian-style trattoria, which features a variety of homemade pasta dishes, salads and pizzas cooked in a wood-burning oven
Daniel’s Broiler, an upscale and locally renowned steakhouse owned by Schwartz Bros. Restaurants, which features USDA Prime steaks, seafood, an extensive wine list and a vast collection of whiskeys, as well as a piano bar
The Market, a 24-hour premium grab-and-go retail space with café seating, where guests can purchase freshly prepared hot and cold food and beverage items.
Built by local developer R.C. Hedreen Company, in collaboration with Seattle-based companies LMN Architects and Sellen Construction Group, the new hotel features elements that celebrate the Pacific Northwest region and can be seen throughout the property’s guestrooms and public spaces. Upon arriving, guests will notice the bright, open, and contemporary design, matched with floor-to-ceiling windows to let in as much natural light as possible, and purposefully selected, locally inspired art and photography.
R.C. Hedreen Company successfully builds and operates hotels in Seattle, and its portfolio includes Grand Hyatt Seattle and Hyatt Olive 8. To leave a lasting impact on the Pacific Northwest region with Hyatt Regency Seattle, local companies who understand Seattle real estate, LMN and Sellen, were brought in to collaborate, design and build the impressive sky-high hotel. LMN believes that architecture celebrates the inherent qualities of the region, community and site. Any new building functions in relationship to the fabric of its physical location and community of users, as well as its social, cultural and environmental context. Sellen is Seattle’s premiere builder – building communities, relationships and of course most of the significant buildings in town.
Additionally, Hyatt Regency Seattle is targeting LEED Gold Certification in 2019, which is the second highest green building rating in the world. As part of their efforts, Hyatt Regency Seattle has incorporated many sustainable elements into its guest amenities and overall design, including:
Premium large-format bath amenities in each guestroom bathroom, saving more than one million plastic bottles in waste.
Installing a light-colored roof to reduce the urban heat-island effect.
Incorporating a highly efficient laundry system that captures both heat and water after use to reduce the need for additional energy to preheat incoming water to the laundry system.
For more information about Hyatt Regency Seattle or to book your accommodations, please visit hyattregencyseattle.com.
