Morningstar, Inc. (NASDAQ:MORN), Sugar Creek Financial Corp. (OTC:SUGR), WR Berkley Corp. (NYSE:WRB) and Cambridge Bancorp (OTC:CATC) declare dividends.
The Board of Directors of Morningstar, Inc. (MORN) declared a quarterly common stock dividend of $0.10 per share payable 6/15/11 to shareholders of record at the close of business on 5/31/11.
The Board of Directors of Sugar Creek Financial Corp. (SUGR) declared a quarterly common stock dividend of $0.05 per share payable 7/29/11 to shareholders of record at the close of business on 7/15/11.
The Board of Directors of WR Berkley Corp. (WRB) declared a quarterly common stock dividend of $0.08 per share payable 7/1/11 to shareholders of record at the close of business on 6/14/11.
The Board of Directors of Cambridge Bancorp (CATC) declared a quarterly common stock dividend of $0.35 per share payable 7/1/11 to shareholders of record at the close of business on 6/10/11.
Showing posts with label Morningstar. Show all posts
Showing posts with label Morningstar. Show all posts
Wednesday, May 18, 2011
Thursday, March 3, 2011
Morningstar Slashes Dupont's (DD) Credit Rating
Citing weak credit metrics from Dupont (NYSE:DD), Morningstar cut their credit rating on the company from A- to BBB+.
Morningstar said the closing of the $6.3 billion deal with Danisco in the second half, which was funded with new debt and cash, was the major impetus behind the decision.
"DuPont's elevated level of total indebtedness and large pension deficit--two areas where we had expected to see more progress at this point in the economic recovery--also lead us to believe a BBB+ rating represents a more appropriate assessment of underlying credit quality.
"We acknowledge DuPont's 2010 operating results represented a significant improvement over the prior year. A 21% revenue rebound combined with an over 350 basis-point improvement in EBITDA margin increased absolute EBITDA by 75% over 2009, and cut the year-end gross debt leverage from 3.8 times to 2.2 times. However, after adjusting for the pension deficit ($5.5 billion as of year-end 2010, not materially changed from prior years) and the Danisco acquisition, we expect to see a total adjusted gross leverage of over 5 times in 2011 (granted, only half of Danisco’s earnings contribution is included in the pro forma statement for 2011). In 2012, we expect leverage to decline to 4.7 times with full-year Danisco earnings.
"While we expect DuPont's credit metrics to gradually improve in the next few years, significant capital expenditures and shareholder distributions mean it would take significant time and management commitment for DuPont to reduce leverage to levels commensurate with our prior A- rating. We estimate the company will generate $4.5 billion-$5 billion in cash from operations annually in the next two years, which largely would be consumed by $2 billion in annual capital expenditures plus $1.5 billion-$2 billion annual dividends, leaving little room for voluntary debt reduction and/or large pension contributions in the near term."
DuPont closed in New York at $53.06, dropping $0.16, or 0.30.
Morningstar said the closing of the $6.3 billion deal with Danisco in the second half, which was funded with new debt and cash, was the major impetus behind the decision.
"DuPont's elevated level of total indebtedness and large pension deficit--two areas where we had expected to see more progress at this point in the economic recovery--also lead us to believe a BBB+ rating represents a more appropriate assessment of underlying credit quality.
"We acknowledge DuPont's 2010 operating results represented a significant improvement over the prior year. A 21% revenue rebound combined with an over 350 basis-point improvement in EBITDA margin increased absolute EBITDA by 75% over 2009, and cut the year-end gross debt leverage from 3.8 times to 2.2 times. However, after adjusting for the pension deficit ($5.5 billion as of year-end 2010, not materially changed from prior years) and the Danisco acquisition, we expect to see a total adjusted gross leverage of over 5 times in 2011 (granted, only half of Danisco’s earnings contribution is included in the pro forma statement for 2011). In 2012, we expect leverage to decline to 4.7 times with full-year Danisco earnings.
"While we expect DuPont's credit metrics to gradually improve in the next few years, significant capital expenditures and shareholder distributions mean it would take significant time and management commitment for DuPont to reduce leverage to levels commensurate with our prior A- rating. We estimate the company will generate $4.5 billion-$5 billion in cash from operations annually in the next two years, which largely would be consumed by $2 billion in annual capital expenditures plus $1.5 billion-$2 billion annual dividends, leaving little room for voluntary debt reduction and/or large pension contributions in the near term."
DuPont closed in New York at $53.06, dropping $0.16, or 0.30.
Thursday, October 14, 2010
Freeport (NYSE:FCX) Fair Value Raised by Morningstar (Nasdaq:MORN)
Morningstar (Nasdaq:MORN) said they are raising their fair value estimate for Freeport-McMoRan (NYSE:FCX) by $4 a share on the soaring price of gold.
"We are raising our fair value estimate for Freeport-McMoRan FCX by $4 per share to reflect the rapid appreciation we've seen in gold over the past few months. In contrast to our long-term price forecast for copper, which is informed by our view of the likely path of supply and demand in the coming years, we rely on the futures curve for our gold price estimate. With the yellow metal now trading at $1,374/oz in the spot market, up from a third-quarter average of $1,227/oz, the valuation implications for Freeport, which is on pace to produce 1.8 million oz this year (down from 2.6 million oz in 2009 due to mine sequencing at Grasberg), are significant," said Morningstar on their Website.
This is important because Freeport and other miners who aren't considered primarily a gold mining company, historically haven't traded at the premiums a large number of perceived pure gold miners have.
So for Freeport to have its fair value raised based on its gold assets could help the company rise in price even more, as the future of its copper business should continue add significant value to the company and its shareholders.
Concerning copper, Morningstar added, "Our higher published fair value estimate also includes the effects of the recent surge in copper prices, now at $3.81/lb in the spot market (thanks, China!), up from a third-quarter average of $3.29/lb."
Freeport is the second-largest copper producer in the world, and can produce up to 1 million ounces of gold at their Grasberg mine. They're also the No. 1 producer of Molybdenum.
Freeport was trading at $99.46, gaining $0.38, or 0.38 percent, at 1:48 PM EDT.
"We are raising our fair value estimate for Freeport-McMoRan FCX by $4 per share to reflect the rapid appreciation we've seen in gold over the past few months. In contrast to our long-term price forecast for copper, which is informed by our view of the likely path of supply and demand in the coming years, we rely on the futures curve for our gold price estimate. With the yellow metal now trading at $1,374/oz in the spot market, up from a third-quarter average of $1,227/oz, the valuation implications for Freeport, which is on pace to produce 1.8 million oz this year (down from 2.6 million oz in 2009 due to mine sequencing at Grasberg), are significant," said Morningstar on their Website.
This is important because Freeport and other miners who aren't considered primarily a gold mining company, historically haven't traded at the premiums a large number of perceived pure gold miners have.
So for Freeport to have its fair value raised based on its gold assets could help the company rise in price even more, as the future of its copper business should continue add significant value to the company and its shareholders.
Concerning copper, Morningstar added, "Our higher published fair value estimate also includes the effects of the recent surge in copper prices, now at $3.81/lb in the spot market (thanks, China!), up from a third-quarter average of $3.29/lb."
Freeport is the second-largest copper producer in the world, and can produce up to 1 million ounces of gold at their Grasberg mine. They're also the No. 1 producer of Molybdenum.
Freeport was trading at $99.46, gaining $0.38, or 0.38 percent, at 1:48 PM EDT.
Thursday, June 24, 2010
Freeport-McMoRan (NYSE:FCX) Issued "BBB" Rating by Morningstar
Freeport-McMoRan (NYSE:FCX) is now being covered by Morningstar, and their first credit rating for the company was a "BBB."
Morningstar said, "After retiring a sizable chunk of debt in 2009 and early 2010, Freeport reported pro forma total debt of $5.1 billion at April 1. With a significant cash hoard, only modest maturities over the next five years, and preferred dividend requirements ending with the mandatory conversion of $2.875 billion in convertible preferred stock in May, Freeport has a solid liquidity profile."
The credit rating would have been higher if not for asset risks associated high-risk countries, said Morningstar. They were referring to the Freeport Grasberg mining gem in Papua, with risks of social unrest and the government seeking higher rents.
Freeport has also invested billions in the Tenke project in Congo, where risk is even higher in regard to either a incremental expropriation, or possibly even an outright one.
In other words, the risks are outside of operational control, and while the rewards are potentially high, so are the potential losses.
Morningstar said, "After retiring a sizable chunk of debt in 2009 and early 2010, Freeport reported pro forma total debt of $5.1 billion at April 1. With a significant cash hoard, only modest maturities over the next five years, and preferred dividend requirements ending with the mandatory conversion of $2.875 billion in convertible preferred stock in May, Freeport has a solid liquidity profile."
The credit rating would have been higher if not for asset risks associated high-risk countries, said Morningstar. They were referring to the Freeport Grasberg mining gem in Papua, with risks of social unrest and the government seeking higher rents.
Freeport has also invested billions in the Tenke project in Congo, where risk is even higher in regard to either a incremental expropriation, or possibly even an outright one.
In other words, the risks are outside of operational control, and while the rewards are potentially high, so are the potential losses.
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