Boeing Terminates $4.2 Bln Deal With Embraer

Boeing Co. (BA) has terminated a $4.2 billion deal to acquire the commercial plane division of Brazilian aircraft manufacturer Embraer.

The companies had planned to form a joint venture in which Boeing would have take an 80 percent stake in that division.

The deal was supposed to be finalized by last Friday, but Embraer did not satisfy conditions under the agreement, Boeing said.

The planned partnership had received approval from all necessary regulatory authorities, except the European Commission.

However, Boeing said that it will maintain its existing Master Teaming Agreement with Embraer that was originally signed in 2012 and expanded in 2016 to jointly market and support the C-390 Millennium military aircraft.

Meanwhile, Embraer said that Boeing wrongfully terminated the agreement, and it will seek all remedies against Boeing for the damage incurred.

The Brazilian company alleged that Boeing engaged in a systematic pattern of delay and repeated violations of the agreement, because of its unwillingness to complete the transaction in light of its own financial condition as well as 737 MAX and other business and reputational problems.

Embraer believed it was in full compliance with its obligations under the agreement and that it satisfied all conditions required to be accomplished by April 24, 2020.

KUKA Group Posts Negative EBIT In Q1; Orders Down 23% – Quick Facts

KUKA Group (KUKAY.PK,KUKAF.PK) reported a first quarter loss before interest and taxes of 34.2 million euros compared to profit of 22.2 million euros, prior year. This resulted in a negative EBIT margin of 5.5% compared to positive EBIT margin of 3.0%.

First quarter sales revenues were 624.6 million compared to 737.7 million euros, last year, a 15.3% decrease on the prior-year period. Orders received were 689.0 million euros, down 23%.

“We are acutely feeling the impacts of the pandemic around the globe. Like many other companies, we have ramped down our activities or temporarily closed sites, especially in affected regions. It has also not been possible to continue many projects at customer loca-tions,” said Peter Mohnen, CEO.

Kuehne & Nagel Q1 Profit Down On Weak Volumes; Warns On Major Challenges

Swiss logistics firm Kuehne + Nagel International AG (KHNGY) reported Monday that its first-quarter earnings declined 23.2 percent to 139 million Swiss francs from last year’s 181 million francs.

The company noted that business volumes declined sharply in the first quarter due to the coronavirus pandemic.

EBIT fell 24 percent from last year to 184 million francs, and operational profit or EBITDA declined 9.6 percent to 378 million francs.

Net turnover dropped 6.2 percent to 4.91 billion francs from 5.24 billion francs a year ago.

Looking ahead, Detlef Trefzger, CEO, said, “Our company will face major challenges in the coming months, but is well positioned in view of its customer proximity, agility and digital offerings. A high level of liquidity characterises the company’s solid financial strength.”

Adidas Q1 Profit Drops – Quick Facts

Adidas (ADDYY.PK,ADDDF.PK) reported that its first-quarter net income attributable to shareholders dropped to 31 million euros or 0.16 euros per share from 632 million euros or 3.18 euros per share in the same quarter last year.

Net income from continuing operations decreased 97% to 20 million euros from the previous year.

The company’s gross margin decreased 4.2 percentage points to 49.3%. It was mainly hurt by a less favorable regional mix due to the overproportionate sales decline in Greater China, negative currency developments as well as costs related to the cancellation of purchase orders in order to adjust the inbound flow of inventories to the current circumstances.

Currency-neutral revenues decreased 19% in the first quarter, reflecting a 20% sales decline at brand adidas, while Reebok sales were down 12%. In euro terms, revenues also decreased 19% to 4.753 billion euros from last year.

The company said it is still not able to provide an outlook for the full year 2020 that includes the coronavirus impact.

Britain making good progress with antibody tests, junior minister says

LONDON (Reuters) – Britain is continuing to test whether antibody tests can be used in the fight against the novel coronavirus and is hopeful they will work, junior health minister Edward Argar said on Monday.

“Tests continue to be tested, the sign at the moment is positive but we’re not there yet in saying this is 100% going to work,” he told Talk Radio.

“We are continuing to research at pace … we are making very good progress now and I am hopeful we will see some positive news on that front.”

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Bank of Japan Governor Haruhiko Kuroda delivers his post-policy meeting press conference. Japanese language only.

Italian bond yields plunge on S&P ratings relief

LONDON, April 27 (Reuters) – Italian government bond yields dropped between 14 and 17 basis points across the curve on Monday after S&P Global left the debt-laden country’s credit rating unchanged in investment grade territory late on Friday.

Italy’s benchmark 10-year bond yields were lower 16 basis points at 1.73% on the first day of trading after the decision, while the closely-watched spread over German bond yields dropped to its tighest level in over a week, at 218 bps., (Reporting by Abhinav Ramnarayan Editing by Tommy Reggiori Wilkes)

KYOCERA FY Profit Rises; Sales Revenue Down 1.5% – Quick Facts

KYOCERA CORP. (KYO) reported profit attributable to owners of the parent of 107.7 billion yen for the year ended March 31, 2020, an increase of 4.4 percent from prior year. Basic earnings per share was 297.36 yen compared to 284.94 yen. Fiscal year sales revenue declined 1.5 percent to 1.6 trillion yen.

For the year ending March 31, 2021, the company projects: basic earnings per share of 242.92 yen; and sales revenue of 1.5 trillion yen.

For fiscal 2020, the amount of the year-end dividend will be 80 yen per share, resulting in an annual dividend of 160 yen per share. Kyocera currently expects the annual dividend for fiscal 2021 to be 120 yen per share.