LONDON, Feb 16 (Reuters) - European company earnings growth is picking up this reporting season against a tentatively improving economic backdrop, but wary investors are demanding more than solid results to justify sky-high valuations. Companies representing 57% of Europe's market capitalisation have reported so far, achieving average earnings growth of ‌3.9% in the fourth quarter, ahead of estimates for a final result of a contraction of 1.1% based on LSEG I/B/E/S data. "Overall, EPS recovery is ‌on t ...

Core Viewpoint - JLT Mobile Computers reported a year of growth in order intake and sales despite challenges in the warehousing and logistics market, with a focus on cost reduction and diversification into other segments to improve performance [2][3][12]. Financial Performance - Order intake for the full year 2025 reached SEK 141.6 million, a 37% increase from SEK 103.0 million in 2024, while net sales grew to SEK 131.5 million, an 11% increase from SEK 118.4 million [1]. - Operating profit improved to SEK -1.9 million from -9.7 million the previous year, and profit after taxes was -2.5 million compared to -7.7 million in 2024 [1][5]. - Cash flow for the year was SEK 3.7 million, down from SEK 6.8 million in 2024 [1]. Market Dynamics - Demand in the warehousing and logistics segment remained low due to geopolitical uncertainties, prompting the company to explore opportunities in ports and construction machinery [3][12]. - The US dollar's depreciation against the Swedish krona negatively impacted earnings, leading to a gross margin decline of 8 percentage points to 38% [5]. Cost Management - The company implemented cost reduction measures, consolidating software development and discontinuing operations of JLT Software Solutions AB, resulting in a decrease in operating expenses to SEK 52 million [4]. - Inventory levels decreased to SEK 25.5 million, down SEK 13 million from the previous year, as the company focused on reducing excess stock [7]. Strategic Developments - Key events included a record-high order intake in the first quarter, the introduction of a new fixed-mount computer in the second quarter, and the launch of an AI-based safety solution in the third quarter [8][9][10]. - The company validated its computers for port operations and signed a partnership with MākuSafe in the fourth quarter, enhancing its position in the port segment [11]. Future Outlook - The company aims to leverage its strong market position in rugged vehicle computers and anticipates growth as market conditions improve in 2026 [12].

UK vehicle production fell 15.5% in 2025, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). UK factories turned out a total of 764,715 units – 717,371 cars and 47,344 commercial vehicles, with output falling by 8.0% and 62.3% respectively. Volumes were constrained by a number of factors, including a cyber incident stopping production at Jaguar Land Rover; new tariffs on trade across the Atlantic; the consolidation of two CV plants into one (Stellantis/Vauxhall); and ...

Core Insights - The rally in the market has been primarily driven by concerns regarding tightening supply and tariff uncertainty in the U.S. [1] Group 1 - The tightening supply has raised alarms among investors, contributing to the upward movement in prices [1] - Tariff uncertainty is creating additional volatility in the market, influencing investor sentiment [1]

Core Viewpoint - Royal Bank of Canada reported a significant increase in provisions for credit losses due to ongoing risks associated with US tariffs, indicating potential challenges in the lending environment [1] Group 1: Financial Performance - The bank took C$984 million ($711 million) in provisions for credit losses (PCLs) on impaired loans in its fiscal fourth quarter [1] - This figure represents a 7.8% increase from the previous quarter (Q3) [1] - The amount is comparable to the C$985 million recorded in Q1, which coincided with the early weeks of the second Trump administration [1]

Core Insights - 2025 was a significant year for ex-U.S. equities, driven by a declining dollar, tariff uncertainty, and domestic concentration risk, which led investors to seek opportunities abroad [1] Group 1 - Broad ex-U.S. equities performed well, rewarding investors who diversified their portfolios outside the U.S. [1]

Core Viewpoint - The current market conditions for metals, particularly silver and copper, are characterized by supply and demand challenges, speculative trading, and geopolitical factors, making it difficult to predict further price increases. Group 1: Market Dynamics - There are significant supply and demand issues affecting the metals market, including mining and production quality challenges for silver, which contribute to its outperformance [2][3] - Under-investment in mining has led to an inability to meet current demand levels, both physical and speculative [3] - Central banks are not purchasing silver or copper, indicating a lack of institutional support for these metals [3] Group 2: Industrial Demand - The electrification trend is driving demand for copper, particularly in data centers and grid infrastructure, while silver is seeing increased demand from solar panel production [5] - Retail demand for silver is rising as consumers shift from gold to more affordable options like platinum and silver, particularly in markets like India and China [6] Group 3: Speculative Trading - There is a significant amount of speculative activity in futures and options markets, contributing to price volatility and an exponential price chart for metals [7] - The current market is experiencing a cooling in Chinese industrial production demand for copper, which has historically been a major driver of prices [9] Group 4: Tariff Implications - Tariff uncertainties are affecting the copper market, with the spread between COMEX and LME prices reflecting these concerns [8][10] - High inventories in the U.S. are noted, with expectations that tariff finalizations will impact future trading strategies [9]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $47.6 million, a 4% year-over-year increase, driven by a 31% increase in fire services products [4][21] - Adjusted EBITDA, excluding FX, was $200,000, a decrease of $4.5 million, or 95%, compared to $4.7 million for the same period last year [5][24] - Adjusted gross profit as a percentage of net sales decreased to 31.3% from 41.7% in the comparable year-ago period [5][23] - The net loss for the quarter was $16 million, or $1.64 per share, compared to a net income of $100,000, or $0.01 per share, for Q3 2025 [21][22] Business Line Data and Key Metrics Changes - Fire services revenue increased by $6 million year-over-year, driven by $3.4 million in sales from the Veridian acquisition and organic growth of $3 million [22][27] - Adjusted gross profit for the fire services segment decreased due to lower sales, higher product costs, and tariffs [23][25] - Industrial demand softened across several channels, with distributors reducing inventory and certain customers deferring purchases [17][18] Market Data and Key Metrics Changes - Domestic sales were $19.2 million, representing 40% of total revenues, while international sales were $28.4 million, accounting for 60% of total revenues [22] - Sales in Latin America decreased from $5 million to $4.2 million due to political uncertainty affecting purchase decisions [28] - Sales in Asia decreased 19% year-over-year from $3.6 million to $2.9 million [28] Company Strategy and Development Direction - The company is focused on expanding its market share in the fragmented $2 billion fire protection sector and growing its industrial products business [4][7] - Strategic acquisitions of California PPE and Arizona PPE are expected to enhance the North American service segment of the global fire services market [7][8] - The company plans to navigate macroeconomic challenges while expanding top-line revenue in fire services and industrial verticals [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariff uncertainty, inflation, and supply chain costs on revenue and gross margin [9][12] - The company remains optimistic about long-term demand signals and expects headwinds to ease as it moves into calendar year 2026 [12][35] - Management has withdrawn formal guidance and is shifting to a more disciplined operating model focused on measurable execution and cash generation [11][13] Other Important Information - The company completed a $6.1 million sale and partial leaseback of its Decatur, Alabama warehouse, resulting in a gain of $4.3 million [8] - Inventory at the end of Q3 was $87.9 million, down from $90.2 million at the end of Q2 [10][31] - The company has suspended its quarterly cash dividend to reinvest profits into growth opportunities [31] Q&A Session Summary Question: What makes the $38 million fire service tenders high probability? - The company believes these tenders are high probability due to existing relationships with fire departments, competitor struggles, and being written into specifications [37] Question: What is the status of certification delays? - Certification delays are due to a backlog at certification agencies, affecting all manufacturers, with no further delays expected [44] Question: How is the company addressing pricing opportunities? - The company is implementing annual pricing increases strategically across fire and industrial segments while managing competitive pressures [46][48]

Tariff uncertainty continues to add pressure to the rupee, but analysts say further downside may be limited. Read for free with your email on what could move markets today https://t.co/sj9w0sjyS2 ...

Core Insights - Mondelez International, Inc. (MDLZ) reported a strong third quarter for 2025 with better-than-expected revenues and earnings, but management adopted a cautious outlook for the near term due to specific headwinds encountered during the quarter [1][6] Revenue and Earnings Guidance - MDLZ now anticipates 2025 organic net revenue growth of 4% or higher, down from the previously mentioned 5% [2] - Adjusted EPS is expected to decline by 15% on a constant-currency basis, a steeper drop than the earlier estimate of 10% [2] Challenges Faced - The company experienced sharper-than-expected inventory reductions from U.S. retailers, leading to a temporary decline in shipments and more volatile near-term comparisons [3] - Unusually hot weather and increased price sensitivity in Europe negatively impacted chocolate volumes [3] - Tariff uncertainties have added costs and affected consumer sentiment in certain markets, contributing to the cautious guidance [4] Strategic Responses - Mondelez is focusing on targeted pricing actions, enhancing retail partnerships, and increasing efforts in value and club channels [5] - The company remains well-positioned in cocoa supply, providing flexibility as commodity markets change [5] Market Performance - MDLZ shares have decreased by 6.6% over the past three months, underperforming the industry decline of 7.5% and the broader Consumer Staples sector's drop of 4.3% [7] Valuation Metrics - Mondelez currently trades at a forward 12-month P/E ratio of 18.18, which is above the industry average of 14.72, raising concerns about justifying this elevated multiple in light of near-term pressures [10]