Editor’s Note: Related tickers: Wal-Mart Stores, Inc. (NYSE:WMT), Tesco Corporation (USA) (NASDAQ:TESO), Goldman Sachs Group, Inc. (NYSE:GS), Virgin Media Inc. (NASDAQ:VMED), BT Group plc (ADR) (NYSE:BT), Theravance Inc (NASDAQ:THRX), Transocean LTD (NYSE:RIG), The Boeing Company (NYSE:BA), BHP Billiton Limited (NYSE:BHP), Antofagasta plc (LON:ANTO), Rolls-Royce Holding PLC (LON:RR), GlaxoSmithKline plc (LON:GSK), British Sky Broadcasting Group plc (LON:BSY), Wm. Morrison Supermarkets plc (LON:MRW), J Sainsbury plc (LON:SBRY)
Miners seen offering dividend promise as spending drops (Reuters)
Mining companies, under pressure to rein in spending and sell non-core assets, could hand back more cash than expected to shareholders, even in the event of weaker commodity prices. The mining sector has traditionally taken a conservative approach to payouts, as companies preferred to plough spare cash into mines and projects. Yet with investors calling for spending restraint and better returns, miners could surprise with share buybacks or special dividends, analysts said on Thursday. …Nomura said copper producer Antofagasta plc (LON:ANTO) and BHP Billiton Limited (NYSE:BHP), the world’s largest miner, also stood out with “significant balance sheet headroom”, though family-controlled Antofagasta remains among the sector’s most conservatively run companies.
Antofagasta plc Receives “Neutral” Rating from Nomura (ANFGY) (UtahPeoplesPost)
Antofagasta plc (LON:ANTO)’s stock had its “neutral” rating restated by analysts at Nomura in a research report issued to clients and investors on Thursday, Analyst Ratings Network reports. Other equities research analysts have also recently issued reports about the stock. Analysts at Liberum Capital reiterated a “hold” rating on shares of Antofagasta plc (LON:ANTO) in a research note to investors on Friday, May 3rd. Separately, analysts at Beaufort Securities reiterated a “buy” rating on shares of Antofagasta plc (LON:ANTO) in a research note to investors on Thursday, May 2nd. Finally, analysts at Morgan Stanley reiterated an “underweight” rating on shares of Antofagasta plc (LON:ANTO) in a research note to investors on Wednesday, May 1st.
Rolls-Royce Holding PLC : Rolls-Royce awarded $35 million contract to repair US Navy T56 engines (4-Traders)
Rolls-Royce Holding PLC (LON:RR) has been awarded a $35 million contract extension for repair and overhaul of T56 engines on US Navy aircraft. The services contract covers depot-level repair of the T56 Series III engine modules to support fielded P-3 and derivative aircraft, as well as T56-powered C-130 and C-2 aircraft. …he repairs will take place at Rolls-Royce Holding PLC (LON:RR) Engine Services Oakland, US (RRESO). In addition to T56 repair and overhaul, RRESO services AE 1107C, F405 and M250 engines for other military customers.
Rolls Royce to replace engine on grounded LOT Dreamliner-airline (Reuters)
Rolls Royce (LSE: RR.L – news) will replace one of the engines of a The Boeing Company (NYSE:BA) Dreamliner owned by Polish carrier LOT and grounded in Chicago, LOT’s spokesman said on Monday, citing a technical issue. Marek Klucinski confirmed the report by Polish TVN24 news channel. “One of the engines will be replaced by Rolls Royce. We are running checks on all four engines in our (two) Dreamliners,” the spokesman said. The other Dreamliner is grounded in Warsaw. “The engine will be replaced by Wednesday. We expect both our Dreamliners to be operational by the end of May and confirm that they will be reinstated in the fleet on June 5,” the spokesman said. LOT was the first European airline to take delivery of The Boeing Company (NYSE:BA)’s trouble-plagued Dreamliner jets last year before they were grounded due to battery issues.
Rolls-Royce Holding PLC : Rolls-Royce to power 100th Drillship (4-Traders)
Rolls-Royce Holding PLC (LON:RR) has signed a contract to deliver drillship propulsion systems to the world’s largest drilling company Transocean LTD (NYSE:RIG). This latest contract marks the 100th drillship to feature Rolls-Royce Holding PLC (LON:RR) propulsion equipment. In recent months Rolls-Royce has won orders to supply propulsion systems for seven new drillships totaling close to £100 million, including options, from a variety of customers including Transocean LTD (NYSE:RIG). These ships will be built in the Samsung, Daewoo and Hyundai shipyards in Korea. Rolls-Royce Holding PLC (LON:RR) is the leading supplier of large thrusters to these specialist vessels, with a market share in excess of 70 per cent. Drillships typically operate in the oil and gas fields off the coasts of Brazil, West Africa and the Gulf of Mexico.
Elan strikes $1 bln royalty deal with Theravance (Reuters)
Elan stepped up its bid to keep its independence on Monday by agreeing a $1 billion deal to buy 21 percent of the royalties that U.S. company Theravance Inc (NASDAQ:THRX) receives from GlaxoSmithKline plc (LON:GSK) for its respiratory drugs. The Irish drug maker last month rejected a $5.7 billion bid from Royalty Pharma and has made a series of moves to counter the bid, contingent on 90 percent acceptance, since the U.S. investment firm declared its interest in February. …Elan’s chief executive Kelly Martin denied that Monday’s deal was designed to frustrate the Royalty bid.
Glaxo, Theravance Win Approval for Lung Disease Treatment (3) (BusinessWeek)
GlaxoSmithKline plc (LON:GSK) and Theravance Inc (NASDAQ:THRX) won U.S. approval of their once-daily drug Breo Ellipta to treat a lung disorder that is the third-leading cause of death. Theravance Inc (NASDAQ:THRX) rose to its highest price in almost six years after the Food and Drug Administration today cleared the dry powder inhaler to treat exacerbations of chronic obstructive pulmonary disease, or COPD, and airflow obstruction. COPD, often caused by cigarette smoking, is an umbrella term for emphysema and chronic bronchitis.
BT Boosted by Broadband Investment (WSJ)
U.K. telecommunications operator BT Group plc (ADR) (NYSE:BT) Friday marked an end to 4½ years of declining revenue, as billions of pounds spent on new cables for superfast fiber broadband started to pay off. The U.K. is undergoing a sea-change in the telecom and media industry as the lines become blurred between telecom, Internet and television. BT Group plc (ADR) (NYSE:BT), the former telecom monopoly, has suffered from dwindling demand for its fixed line phone services and lost out to rivals like British Sky Broadcasting Group plc (LON:BSY) and Virgin Media Inc. (NASDAQ:VMED) +0.14% who have grabbed customers by offering bundled phone, broadband and television packages.
BT boss: ‘We want to bring sports back to fans’ (Telegraph)
Ian Livingston is on ebullient form in his office at the top of BT Group plc (ADR) (NYSE:BT) headquarters by St Paul’s Cathedral. The 48-year-old Scot has just presented his company’s strongest annual results for several years and sent it headlong into battle with British Sky Broadcasting Group plc (LON:BSY) with the commercial launch of BT Sport, its £1bn per year television venture. …BT Group plc (ADR) (NYSE:BT)’s strategy is clear for the first time. It has taken the lessons of British Sky Broadcasting Group plc (LON:BSY)’s success using football to attract pay TV customers and hopes to lure broadband and telephone customers back from rivals who have hurt the company’s consumer business in recent years. For the first time since the foundation of the Premier League, live coverage will be available for “free”.
Ocado squeezed high on hopes of Morrisons deal (Yahoo)
Shares in British online grocer Ocado continue their roller coaster ride this week, squeezed 13 percent higher by hopes the firm will soon tie-up a partnership deal with Wm. Morrison Supermarkets plc (LON:MRW), Britain’s No. 4 grocer. Ocado on Friday reiterated Wm. Morrison Supermarkets plc (LON:MRW)’ comment on Thursday that talks were continuing, with a further announcement to be made “in due course”. Sentiment in Ocado is also boosted by Goldman Sachs Group, Inc. (NYSE:GS), upgrading the stock to a buy rating from a previous neutral stance and by longstanding bear Panmure Gordon upping its price target to 130 pence from 50 pence, though it maintained its sell stance.
Morrisons’ quarterly sales fall again (Reuters)
Britain’s No. 4 grocer, Wm. Morrison Supermarkets plc (LON:MRW), said quarterly underlying sales fell again, as its limited exposure to convenience stores and lack of an online food offer continued to hurt. Morrisons, which trails market leader Tesco Corporation (USA) (NASDAQ:TESO), Wal-Mart Stores, Inc. (NYSE:WMT)‘s Asda and J Sainsbury plc (LON:SBRY) in UK market share, said on Thursday sales at stores open over a year fell 1.8 percent, excluding fuel, in the 13 weeks to May 5. That compared with analysts’ average forecast of down 2 percent, according to a Wm. Morrison Supermarkets plc (LON:MRW) poll, but was an improvement on a fourth quarter decline of 4.1 percent.
