Tag: Reuters (Page 32 of 49)

Lockheed Martin Raises 2019 Profit Forecast, Shares Jump

April 23, 2019 / WIL BALDWIN

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)

U.S. Names Experts to Boeing Certification Review Panel

April 22, 2019 / WIL BALDWIN

WASHINGTON (Reuters) – U.S. Transportation Secretary Elaine Chao said on Monday she named four experts to a blue-ribbon committee to review the Federal Aviation Administration’s (FAA) aircraft certification process after two deadly Boeing 737 MAX crashes killed nearly 350 people.

Chao said she was naming NASA’s former aviation safety program director Amy Pritchett and Gretchen Haskins, chief executive of HeliOffshore Ltd, an international expert in aviation safety and a former U.S. Air Force officer.

She also named Kenneth Hylander, chief safety officer at Amtrak and a former senior safety executive at Delta and Northwest airlines, and J. David Grizzle, chairman of the board of Republic Airways and a former FAA chief counsel.

The committee is “specifically tasked to review the 737 MAX 800 certification process from 2012 to 2017, and recommend improvements to the certification process.”

U.S. lawmakers have criticized the FAA’s program that allows Boeing Co and other manufacturers to oversee the process that ensures air worthiness and other vital safety aspects of new aircraft.

Chao said last month the panel would be co-chaired by retired Air Force General Darren McDew, the former head of the U.S. Transportation Command, and Lee Moak, a former president of the Air Line Pilots Association.

Federal prosecutors, the Transportation Department’s inspector general and lawmakers are investigating the FAA’s certification of the 737 MAX 8 aircraft. A joint review by 10 governmental air regulators is also set to start April 29.

(Reporting by David Shepardson; Editing by Tom Brown)

Union Pacific Quarterly Profit Beats Estimates

April 18, 2019 / WIL BALDWIN

FILE PHOTO: A Union Pacific rail car is parked at a Burlington National Santa Fe (BNSF) train yard in Seattle, Washington, U.S., February 10, 2017. REUTERS/Chris Helgren

(Reuters) – Union Pacific Corp on Thursday reported a better-than-expected quarterly profit, as the U.S. railroad raised prices, helping offset the impact of severe winter weather and record flooding that damaged rails in the Midwest.

Shares rose 2.7 percent to $173.80 in premarket trading.

Union Pacific’s operating ratio, a measure of operating expenses as a percentage of revenue and a key metric for Wall Street, increased 1 point to 63.6 percent from a year ago.

A lower ratio means more efficiency and higher profitability.

Total operating revenue fell to $5.4 billion from $5.5 billion.

The Omaha, Nebraska-based company’s net income rose to $1.4 billion, or $1.93 per share, in the first-quarter ended March 31 from $1.31 billion, or $1.68 per share, a year earlier.

Analysts, on average, expected a profit of $1.89 per share and revenue of $5.50 billion, according to IBES data from Refinitiv.

Union Pacific and Berkshire Hathaway-owned BNSF are the largest U.S. freight rail operators with an annual revenue of more than $20 billion each.

(Reporting by Rachit Vats in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Shailesh Kuber)

United Airlines First-Quarter Profit Rises

April 17, 2019 / WIL BALDWIN

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)

Jet Airways to Suspend Operations After Banks Reject Funding

April 17, 2019 / WIL BALDWIN

MUMBAI/NEW DELHI, April 17 (Reuters) – India’s embattled Jet Airways Ltd is set to temporarily halt operations from Wednesday onward after its lenders rejected the airline’s plea for emergency funds, three sources from inside the company said on Wednesday.

The airline, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.

Separately, two sources at state-run banks told Reuters on Wednesday that the lenders had rejected the 4 billion rupees ($58 million) that Jet had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.

“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” said one of the bank sources directly involved in Jet’s debt resolution process.

All five sources declined to be named as they have not been authorized to discuss the matter with media.

Jet and its lead lender State Bank of India (SBI) did not immediately respond to requests for comment.

($1 = 69.4120 Indian rupees)

(Reporting by Tanvi Mehta and Promit Mukherjee in Mumbai and Aftab Ahmed and Aditi Shah in New Delhi; Writing by Euan Rocha; Editing by Susan Fenton)

Textron Profit Beats on Higher Aircraft Sales

April 17, 2019 / WIL BALDWIN

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)

Trump Says Boeing Should ‘Rebrand’ Grounded 737 MAX Jet

April 15, 2019 / WIL BALDWIN

FILE PHOTO: U.S. President Donald Trump speaks at the debut of the Boeing South Carolina Boeing 787-10 Dreamliner in North Charleston, South Carolina, U.S., February 17, 2017. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday urged Boeing Co to fix and “rebrand” its 737 MAX jetliner following two fatal crashes, as regulators worldwide continue to work with the planemaker to review its grounded best-selling aircraft.

The Federal Aviation Administration has been meeting major airlines and convened a joint review with aviation regulators from other countries, while federal prosecutors, the U.S. Department of Transportation inspector general’s office and a blue-ribbon panel are reviewing the plane’s certification.

In an early-morning post on Twitter, Trump, who owned the Trump Shuttle airline from 1989 to 1992 and is an aviation enthusiast, weighed in with his own advice.

“What do I know about branding, maybe nothing (but I did become President!), but if I were Boeing, I would FIX the Boeing 737 MAX, add some additional great features, & REBRAND the plane with a new name. No product has suffered like this one. But again, what the hell do I know?” Trump tweeted.

The plane’s grounding has also threatened the U.S. summer travel season, with some airlines removing the 737 from their schedules through August.

Trump issued the tweet as Boeing tries to restore trust in its fastest-selling jet, the main source of profits and cash at the Chicago-based planemaker which has won some 5,000 orders or around seven years of production for the aircraft.

Chief Executive Dennis Muilenburg has apologised on behalf of Boeing for lives lost in two recent accidents and promised that it would address the risk that flight software meant to prevent the plane stalling could be activated by wrong data.

Boeing has also held dozens of briefings and simulator sessions for airline executives and pilots and held worldwide meetings with airline branding and communications staff.

Pilots are expected to play a major role in regaining public confidence in the aircraft, but Trump’s tweet marks the first time the brand underpinning Boeing profits in coming years has been thrown into question at a high level.

Brand Finance, a UK-based consultancy that tracks the value of global brands, rejected the idea that Boeing should abandon the MAX brand but said its corporate reputation was in the firing line.

“This has without a doubt damaged Boeing’s reputation and we foresee a dent to the (Boeing) brand’s value at over $12 billion (£9 billion),” Chief Executive David Haigh said by email when asked about Trump’s comments.

“This is a temporary blip in the long run for Boeing,” he said, adding Toyota and others had recovered from similar high-profile crises without a drastic rebranding exercise.

Brand Finance had previously estimated the damage to the value of Boeing’s reputation at $7.5 billion immediately after the March 10 crash of an Ethiopian Airlines jetliner, the second fatal accident involving the 737 MAX in five months.

Boeing has the world’s most valuable aerospace brand, having seen the value of its overall corporate image rise by 61 percent to $32 billion in 2018, according to the same branding firm.

(Reporting by Susan Heavey, Tim Hepher; Editing by Jeffrey Benkoe and Toby Chopra)

British Airways CFO to Take Over as IAG Finance Chief

April 15, 2019 / WIL BALDWIN

The G-EUPH British Airways Airbus A319-131 makes its final approach for landing at Toulouse-Blagnac airport, France, March 20, 2019. REUTERS/Regis Duvignau/Files

(Reuters) – IAG said on Monday British Airways’ finance chief Steve Gunning will replace company veteran and chief financial officer Enrique Dupuy de Lôme, who steps down after more than eight years in the role.

Gunning, who joined British Airways in 1998 and has been its CFO since January 2016, will take over from de Lôme at IAG’s annual general meeting in June, the company said.

“After eight years as CFO of IAG and prior to that, 20 years as CFO of Iberia, I believe now is the right time for me to leave IAG,” de Lôme said.

IAG did not immediately respond to a request for comment on the reason for de Lome’s departure.

Gunning takes the role as the airline industry braces for a potential hit from Britain’s impending exit from the European Union.

Shares of IAG jumped to session highs after the announcement and were last up 1.1 percent at 548.4 pence on London’s main index.

(Reporting by Shashwat Awasthi and Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr)

Lufthansa Loses Challenge To Aid For Frankfurt Hahn Airport

April 12, 2019 / WIL BALDWIN

BRUSSELS (Reuters) – Lufthansa on Friday lost its court challenge against millions of euros in state aid being granted to Frankfurt-Hahn airport to the benefit of rival Ryanair, after failing to prove the payments dented its revenue or market share.

The German carrier took its case to the Luxembourg-based General Court after EU antitrust regulators in 2014 gave the green light to a series of support measures for the airport, which is 82.5-percent owned by China’s HNA Group with the rest held by the German state of Hesse.

The support given to the airport, which is only used by Ryanair and Wizz Air, included capital increases totalling 49 million euros (42.40 million pounds), direct grants and a charging scheme.

The German airline argued that many of the benefits of the aid were passed on to Ryanair, which was not paying high enough airport charges.

But Europe’s second-highest court said that Lufthansa had failed to show it took a financial hit or lost market share as result of the measures.

The airline can appeal at the Court of Justice of the European Union but only on points of law. The case is T-492/15 Deutsche Lufthansa v Commission.

(Reporting by Foo Yun Chee; editing by Philip Blenkinsop and Kirsten Donovan)

Qatar Airways Says Air Italy Stake Is In Compliance

April 11, 2019 / WIL BALDWIN

DUBAI (Reuters) – State-owned Qatar Airways on Thursday dismissed concerns its 49 percent stake in Air Italy breaches a 2018 aviation agreement between the United States and Qatar, designed to address U.S. concerns that Gulf airlines had an unfair competitive advantage.

The U.S is “looking very closely” at the deal after Republicans and Democrats said on Wednesday they were concerned it violated the agreement.

Qatar Airways bought a stake in Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced non-stop U.S. destinations from Milan.

Qatar Airways said the stake was “fully compliant” with the 2018 U.S.-Qatar Understandings, an additional pact that accompanied the U.S-Qatar Open Skies agreement.

Since 2015 the largest U.S carriers – Delta Air Lines, American Airlines Group and United Airlines – have argued their Gulf rivals are being unfairly subsidized by their governments, distorting competition.

Gulf airlines have always denied those accusations and last year separate voluntary agreements were reached between the U.S. and Qatar, and the U.S. and the United Arab Emirates to address the concerns. Measures included the airlines not adding new flights to the U.S.

However, Air Italy has been flying to New York and Miami since June last year and was due to start serving San Francisco and Los Angeles from this month and Chicago in May.

Qatar Airways said in a statement its investment in Air Italy, which closed in September 2017, preceded the 2018 agreement but complied with it.

It said its investments in other airlines were not raised as a point of concern during the discussions that led to the 2018 agreement and that the deal does not mention or prohibit cross-border investments.

Qatar Airways also said it did not codeshare on Air Italy’s flights to the U.S. and has no plans to do so.

(Reporting by Alexander Cornwell; Editing by Alexandra Hudson)

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