3M discovers the sun rarely shines on conglomerates, while Xerox reveals the scars of its ill-fated hostile bid for larger rival HP. Catch up with concise views on the pandemic’s corporate and financial fallout here
3M is selling more respirators and masks to help contain Covid-19, but it’s still hurting from drops in transportation and consumer goods. The $90 billion company reported $8.1 billion in net sales and adjusted earnings of $1.3 billion, beating analysts’ estimates, according to Refinitiv. While the company’s like-for-like sales grew just 0.3%, respirators contributed a whole percentage point, worth $100 million.
That’s not enough to offset falling sales of other things 3M makes, ranging from Post-it notes to auto parts. And even though the company is providing an essential product for front-line medical workers, it has not raised prices. 3M is facing just as much uncertainty as other companies: it withdrew its full-year forecast, suspended its share repurchase program and cut costs.
Yet he failed to allow sovereign debt to be excluded from the most basic calculation of balance-sheet strength, the leverage ratio. The Federal Reserve has given U.S. banks that concession until March 2021, effectively encouraging them to load up on Treasuries. Europe’s restraint is laudable. European supervisors already allowed banks to breach their leverage ratios, so extra help would be overkill. Given Italian and Spanish bonds are riskier than U.S.
. Exor in early March agreed to sell PartnerRe for $9 billion to French insurer Covea. And the pending merger of Fiat Chrysler Automobiles with Peugeot promised 5.5 billion euros of dividends to shareholders, of which Exor is the largest. So Exor’s 500 million euro sale of 10-year bonds this week raised a few eyebrows.
But as with all best-laid plans, life gets in the way. Though Covea has signed on the dotted line, there are still a few
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