Trade war takes toll on profits

Tyson Foods Inc. expects its profit to be down this year because of increasing trade disputes with China and Mexico. 

Tariffs imposed on American pork from China and Mexico have brought hog prices down, Bloomberg reported. Tyson is also facing less demand for chicken. Its earnings in 2018 are expected to be about $5.70 to $6 a share, down from the expected earnings of $6.55 to $6.70 a share. 

“The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein," Chief Executive Officer Tom Hayes was quoted as saying in the article. 

Tyson is the parent company of Tyson Mexican Original in Portland. 



Golf outing

The Geneva Chamber of Commerce is hosting its 14th annual golf outing later this month. 

The event will begin with lunch and registration at noon Aug. 10 at 207 Wabash Valley Golf Club, Geneva. There will be door prizes, along with first, second and third place prizes. The winner will receive a traveling trophy. 

For more information, email [email protected].



Acquires

NextEra Energy has acquired a Florida natural gas company. 

The energy company announced it had completed its acquisition of Florida City Gas for about $530 million in cash, the Orlando Sun-Sentinel reported. It’s part of a planned $6.48 billion in acquisitions to expand NextEra’s reach in Florida and to add natural gas assets.

Florida City Gas serves 110,000 customers in four counties and has 3,700 miles of natural gas pipelines. It will operate independently of NextEra. 

NextEra Energy, which operates Bluff Point Wind Energy Center in Jay County, will also acquire Gulf Power, an electric utility company, for $5.75 billion. 



Value decreases

Ardagh Group’s market value has taken a substantial hit as the company’s earnings are down. 

Chairman Paul Coulson’s 33 percent stake in the business was down by $620 million compared to May 2017; at its highest, his stake was valued at close to $1.9 billion. The decrease in market value came as the company’s earnings were down 6 percent in the second quarter. The decease was caused in party by lower volumes and higher transportation costs in its U.S. glass packaging business, the Irish Independent reported. 

Ardagh is the parent company of glass factories in Dunkirk and Winchester. 



Earnings up 

First Financial Bancorp’s earnings for the second quarter increased by more than $13 million compared to 2017.

The bank’s net income was $36.4 million, or 37 cents per diluted common share, in the second quarter this year. Last year, second quarter income was $22.7 million, or 37 cents per diluted common share. 

Expenses of $24.3 million related to the bank’s merger with MainSource Financial Group, which was completed in May, reduced its earnings per diluted common share by 20 cents, the company said in a press release. 

For the first six months of 2018, the earnings were 83 cents per diluted common share, compared to 76 cents during the first six months of 2017. 

The company, which has First Financial Bank locations in Portland and Fort Recovery, currently has $13.9 billion in assets. 

Record income 

First Merchants Corp. is reporting a record second quarter net income of $39.6 million, squashing the previous record of $24.1 million for the same quarter in 2017. 

CEO Mike Rechin told investors the company is approaching the $10 billion total asset mark, which could be achieved next year, Inside Indiana Business reported. 

The Muncie-based bank, which is celebrating its 125th year, has made 18 acquisitions in 30 years, two of which were fully integrated during the second quarter. 

First Merchants Bank has a branch and a drive-thru location in Portland.



Profit increases 

Honda Motor Co. saw an 11.2 percent rise in operating profit for its first quarter, which runs from April to June. 

Honda is a key customer of FCC (Indiana). 

Operating profit was $2.69 billion for the quarter, compared to $2.42 billion a year ago. Higher automobile sales in North American coupled with an increase in motorcycle sales in Asia contributed to the profit. 

According to Reuters, first quarter profit was originally estimated to be $2.24 billion. 

Honda has upgraded its forecast for the year’s operating profit from $6.29 billion to $6.38 billion. 

Fall short 

Yum Brands Inc. saw its second quarter sales at Taco Bell and Pizza Hut fall short of estimates. 

Sales at Pizza Hut, which were expected to increase 1.21 percent, fell by 1 percent. Taco Bell had a 2 percent rise, falling short of expected increases. Both restaurants have a location in Portland. 

Net income of the company was $321 million, or 97 cents per share, for the second quarter, compared to $206 million or 58 cents per share during the same period in 2017. Yum earned 82 cents per share, surpassing expectations of 74 cents. Total revenue fell by 5.5 percent to $1.37 billion, less than the originally estimated $1.36 billion. 



Investigation stalls 

There is still no end to an investigation into whether Walmart bribed foreign government officials to fast-track store openings in several countries. 

For the last six years, the company has been under investigation by U.S. authorities over whether it bribed officials in Mexico, India and China over a period of 10 years to open stores quickly. 

Eight months ago, Walmart set aside $300 million for a possible resolution, Bloomberg reported. However, that resolution seems to have stalled. 

Prosecutors are insisting that Walmart admit to misconduct as part of any deal, a person familiar with the matter told Bloomberg. 

There are also delays with the Securities and Exchange Commission, along with staff turnover during the first 18 months of the Trump administration. 

Walmart said it was continuing discussions in an effort to reach a resolution. 

The Justice Department and the SEC declined to comment for the Bloomberg article. 



Urges 

California’s Insurance Commissioner has urged the U.S. Justice Department to block the planned merger of CVS Health and health insurance provider Aetna.

Commissioner Dave Jones said the merger would “have significant anti-competitive impacts on American consumers and health care and health insurance markets.” He said the merger would reduce competition and would likely lead to increased prices and decreased quality for consumers. 

While his comments won’t stop CVS and Aetna from proceeding in their effort, Forbes reported the comments could have an impact as the Justice Department evaluates the deal.