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Amid investors pressure on realigning few operations in Agriculture, Specialty Products and Materials Science business units, $DWDP reported its first quarterly earnings after the Dow-DuPont merger. Net sales jumped 23% to $15.3Bil for the third quarter of 2017. GAAP EPS plunged 49% to $0.32, while pro forma adj. EPS rose 10% to $0.55.
World's largest chemical company $DWDP reported a 4Q17 GAAP loss attributable to the company of $1.26Bil or $0.54 per share, driven by restructuring costs and write-down in asset values. Pro forma adjusted EPS, however, jumped 41% from a year ago. Correspondingly, revenue jumped 13% YoY, with net sales of $20.1Bil, helped by robust product demand.
Intel's revenue rose 4% in 4Q to $17.1Bil vs. last year. $INTC recorded an one-time tax charge of $5.4Bil due to tax reforms, which resulted in net loss of $0.7MM and loss per share of $0.15 for 4Q. Data Center Group continues to perform well for the chip maker growing 20% whereas its biggest segment Client Computing Group slipped 2% to $8.9Bil.
$NOC continues to expect that capital expenditures will remain elevated in 2018 and 2019 before starting to return to a new normal that reflects a larger business. For 2018, the company does have additional CapEx as well as $100-150MM in costs from incremental interest and transaction cost related to its pending acquisition of $OA.
For 2018, $NOC expects Technology Services sales to be in the mid $4Bil range, with an operating margin rate of about 10%. Lower 2018 revenue is primarily due to expected declines in the KC-10 and JRDC programs. Lower revenue for these programs is being partially offset by growth in other programs.
For 2018, $NOC expects Mission Systems sales to grow to the mid to high $11Bil range with an operating margin of about 13%. Primary revenue growth drivers include continued ramp-up on combat avionics and communications programs, including F-35 sensors, SABR radar, and infrared countermeasures.
For 2018, $NOC expect Aerospace Systems to grow at top line at a high single-digit rate to the high $12Bil range. Growth in restricted activities will continue to be a major driver of revenue growth, along with continued ramp-up on the F-35 program. The company expects 2018 operating margin at Aerospace Systems to be in the low to mid 10% range.
$NOC currently expect the $OA transaction to close in 1H of this year. In late November, $OA shareholders overwhelmingly approved the terms of the transaction. The FTC is reviewing the proposed transaction in the U.S. in consultation with the DoD and $NOC notified the European Commission on Jan. 18 under the simplified procedure notice.
For 2018, $NOC expects sales of about $27Bil and EPS of $15.00-15.25. The company predicts segment operating margin in low-mid 11% range and operating margin of about 12%. $NOC sees effective tax rate of about 19.5%, capital expenditures of about $1Bil and free cash flow in the range of $2.0-2.3Bil.
$NOC's Aerospace Systems sales for 4Q17 rose 5% year-over-year, due to growth in Manned Aircraft and Autonomous Systems. Mission Systems sales grew 6%, on higher volume for Sensors and Processing and Advanced Capabilities programs. Technology Services sales slid 1% on lower volume for System Modernization and Services and Advanced Defense Services.
$NOC's operating income for 4Q17 decreased to $767MM from $831MM last year. The decline is primarily due to higher transaction costs from pending acquisition of $OA and deferred state tax expense from discretionary pension contribution. It also includes changes in contract mix at Aerospace Systems and Mission Systems.
$NOC reported a drop in 4Q17 earnings due to higher tax expenses from Tax Cuts and Jobs Act enactment and $500MM discretionary pre-tax pension contribution related to the write-down of deferred tax assets. Net income fell to $178MM or $1.01 per share from $525MM or $2.96 per share last year. Sales rose 4% to $6.6Bil. Adjusted EPS was $2.82.
$PG plans to continue to keep bottom-line growing and to be growing margins through productivity which will both provide fuel for reinvestment and for margin improvement. $PG really doesn't view pricing and promotion as high in terms of its options to grow business. $PG is going to be continuing to invest in business to drive margins.
$PG said it will continue its strong track record of cash returned to shareholders. $PG expects to pay nearly $7.5Bil in dividends this year. $PG is lifting FY18 share repurchase outlook from $4-7Bil to $6-8Bil, reflecting strong operating cash flow, continued working capital progress, and the cash benefit enabled by the Tax Act.
$PG had already reduced number of agencies nearly 60% from 6,000 to 2,500, saved $750MM in agency and production costs, and improved cash flow by over $400MM additional through 75 day payment terms. In next phase, $PG expects to save another $400MM reducing number of agencies by another 50% and implementing new advertising and media agency models.