Replies to post #7852 on The Rising Influence of Rising Affluence

[DewDiligence]

DE—Bill Gates’ investment company, Cascade, bought 500K shares ($44.3M worth) on 12/16/13 at prices of $88-89:

http://www.sec.gov/Archives/edgar/data/315189/000110465913090968/a13-26030_4ex99d1.htm

Cascade now owns 30M shares of DE (worth $2.7B), an 8.1% stake in the company (http://www.sec.gov/Archives/edgar/data/315189/000110465913090968/a13-26030_4sc13da.htm ).

[DewDiligence]

(DE, MMM)—Rising long-term interest rates are good for companies with defined-benefit pension plans because they enable actuaries to use a higher discount rate when calculating the present value of pension obligations. This, in turn, reduces the current contributions companies have to make to their pension plans; DE and MMM are among the companies who stand to benefit the most from this effect:

http://www.bloomberg.com/news/2014-01-03/deere-3m-see-76-billion-pension-burden-easing-on-fed.html

Deere, the world’s largest maker of agricultural equipment, has projected pension expenses to be $150 million lower in 2014. 3M…is forecasting costs as low as $100 million, down from $534 million in 2012.

[DewDiligence]

HES’s EVP of marketing & refining has retired:

http://www.sec.gov/Archives/edgar/data/4447/000089882214000017/body.htm

This makes perfect sense insofar as HES has exited the refining business and is planning to sell its remaining marketing operations (i.e. the retail service stations and convenience stores) as soon as a suitable deal can be struck.

[DewDiligence]

ABT’s JPM slides:

http://jpmorgan.metameetings.com/confbook/healthcare14/stash/slides/13717/confbook_slideshow.php?webfeed=2

[DewDiligence]

CLB +3% AH on record 4Q13 results and positive 1Q14 outlook:

http://www.sec.gov/Archives/edgar/data/1000229/000100022914000012/exhibit99-1_pressreleaseq4.htm

In the fourth quarter of 2013, Core Laboratories N.V. posted the most profitable quarter in Company history. The record results were driven primarily by the introduction of new technology and related services, especially by the Company’s Production Enhancement operations. This marked the fifth consecutive quarter in which Core has posted all-time quarterly records for earnings per diluted share, net income, and revenue. The Company's fourth quarter 2013 EPS increased 22% year-over-year to $1.43, the largest percentage increase in six quarters, excluding items referenced in the non-GAAP reconciliations… Revenue for the fourth quarter of 2013 increased 9% to $276,279,000 from the fourth quarter of 2012. Year-over-year quarterly operating margins increased more than 220 basis points to a fourth quarter record 32%, while quarterly year-over-year incremental margins reached 58%, ex-items.

… Core Lab anticipates that first quarter 2014 North American activity levels will ramp up slightly from fourth quarter 2013 levels, while international activity will continue to experience moderate increases. Therefore, Core expects first quarter 2014 revenue to range between $280,000,000 and $286,000,000. Using the midpoint of revenue guidance and applying year-over-year quarterly incremental margins of 40% to 45%, first quarter 2014 EPS guidance would range from $1.43 to $1.45.

CC Thursday at 8:30am ET.

[DewDiligence]

3M authorizes new $12B buyback to go along with increased dividend:

http://finance.yahoo.com/news/3m-authorizes-12-billion-share-232600845.html

Last week (in conjunction with the reporting of 4Q13 earnings), 3M raised the dividend by 35% to an annualized payout of $3.42.

Here’s an impressive factoid from the above press release:

Over the past ten years, the company has returned $37 billion to shareholders through a combination of dividends and gross share repurchases, or 97 percent of reported net income.

That must be near of the highest percentage for any S&P 500 company.