Bausch Health Q1 2019 earnings - CNBC

Joseph Papa

Scott Mlyn | CNBC

Shares of Bausch Health, formerly known as Valeant Pharmaceuticals, jumped as much as 3% in premarket trading Monday after the company raised its 2019 outlook.

The drugmaker raised its full-year revenues from between $8.3 billion and $8.50 billion to a range of $8.35 billion and $8.55 billion. It raised its full-year earnings from between $3.35 billion and $3.5 billion to a range of $3.4 billion and $3.55 billion.

It also generated first-quarter revenues of $2.02 billion, up slightly from $2 billion a year ago. It narrowed its loss to $52 million from a loss of $2.58 billion during the same period last year. The company did not provide a number for adjusted earnings, but Wall Street analysts were expecting 86 cents per share.

The company's Bausch & Lomb International business comprised approximately 55% of its revenue in the first quarter, bringing in $1.118 billion compared with $1.103 billion a year ago.

Late last month, Bausch Health said its dermatology business, Ortho Dermatologics, received FDA approval for its DUOBRII lotion to treat plaque psoriasis. The drugmaker conducted two clinical trials, with 36% of patients in the first study and 45% in the second study seeing their skin clear up.

Bausch Health shares are up more than 26% this year. The stock has risen more than 30% over the last 12 months through Friday's close.

For more on investing in health-care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/bausch-health-q1-2019-earnings.html

2019-05-06 12:10:15Z
52780285550739

Kraft Heinz to restate earnings for 2016 and 2017, citing employee misconduct - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017 by $181 million, after a review into its procurement and accounting procedures discovered employee misconduct.

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the Securities and Exchange Commission into its accounting and procurement practices.

The SEC investigation launched an internal review, which caused Kraft Heinz to delay filing its annual report twice. Standard & Poor's also put the company on CreditWatch negative.

According to Monday's filing with the SEC, the miscalculations were due in part to recognizing the benefits of costs and rebates in the wrong time period, which the company said it has since corrected.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

The spokesman, who said the investigation is "now substantially complete," said the findings did not identify misconduct by members of the senior management team. The company has initiated "employee personnel actions" and "improvements to its internal controls" to address the issues, the filing said. After Monday's filing, Kraft Heinz shares lost 1.4% in premarket trading amid a broad sell-off for the market.

Shortly after the filing was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick, "The company has my confidence."

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft. On Saturday, he repeated previously expressed sentiments that both he and 3G under-estimated the strength of retailers like Amazon and Costco. U.S. retailers have reacted to increasing online competition by squeezing brands on margins and turning to private label brands, where the retailers can make higher profit margins. Kraft Foods' portfolio is particularly vulnerable to the shift, with its offering of products like Planters nuts and Maxwell House coffee.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/kraft-heinz-to-restate-earnings-for-2016-and-2017.html

2019-05-06 11:41:34Z
CAIiEPVgp0ViU_ECcZdmIJOXy0EqGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_d7gU

Kraft Heinz to restate earnings for 2016 and 2017, citing employee misconduct - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017 by $181 million, after a review into its procurement and accounting procedures discovered employee misconduct.

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the Securities and Exchange Commission into its accounting and procurement practices.

The SEC investigation launched an internal review, which caused Kraft Heinz to delay filing its annual report twice. Standard & Poor's also put the company on CreditWatch negative.

According to Monday's filing with the SEC, the miscalculations were due in part to recognizing the benefits of costs and rebates in the wrong time period, which the company said it has since corrected.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

The spokesman, who said the investigation is "now substantially complete," said the findings did not identify misconduct by members of the senior management team. The company has initiated "employee personnel actions" and "improvements to its internal controls" to address the issues, the filing said. After Monday's filing, Kraft Heinz shares lost 1.4% in premarket trading amid a broad sell-off for the market.

Shortly after the filing was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick, "The company has my confidence."

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft. On Saturday, he repeated previously expressed sentiments that both he and 3G under-estimated the strength of retailers like Amazon and Costco. U.S. retailers have reacted to increasing online competition by squeezing brands on margins and turning to private label brands, where the retailers can make higher profit margins. Kraft Foods' portfolio is particularly vulnerable to the shift, with its offering of products like Planters nuts and Maxwell House coffee.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/kraft-heinz-to-restate-earnings-for-2016-and-2017.html

2019-05-06 11:37:30Z
CAIiEPVgp0ViU_ECcZdmIJOXy0EqGQgEKhAIACoHCAow2Nb3CjDivdcCMOLg7gU

Kraft Heinz to restate earnings for 2016 and 2017 - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017.

Shortly after the filing with the Securities and Exchange Commission was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick,  "The company has my confidence."

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the SEC into its accounting and procurement practices.

The SEC investigation launched an internal review of Kraft Heinz's procurement accounting and procedures. The review caused Kraft to delay filing its annual report twice and Standard & Poor's to put the company on CreditWatch negative.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

"The findings from the investigation did not identify any misconduct by any member of the senior management team. We are pleased to report that the investigation is now substantially complete," the statement added.

After the filing Monday with the SEC, Kraft Heinz shares lost 2.6% in premarket trading amid a broad sell-off for the market.

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/kraft-heinz-to-restate-earnings-for-2016-and-2017.html

2019-05-06 11:12:55Z
CAIiEPVgp0ViU_ECcZdmIJOXy0EqGQgEKhAIACoHCAow2Nb3CjDivdcCMOLg7gU

Kraft Heinz to restate earnings for 2016 and 2017 - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017.

Shortly after the filing with the Securities and Exchange Commission was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick,  "The company has my confidence."

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the SEC into its accounting and procurement practices.

The SEC investigation launched an internal review of Kraft Heinz's procurement accounting and procedures. The review caused Kraft to delay filing its annual report twice and Standard & Poor's to put the company on CreditWatch negative.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

"The findings from the investigation did not identify any misconduct by any member of the senior management team. We are pleased to report that the investigation is now substantially complete," the statement added.

After the filing Monday with the SEC, Kraft Heinz shares lost 2.6% in premarket trading amid a broad sell-off for the market.

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/kraft-heinz-to-restate-earnings-for-2016-and-2017.html

2019-05-06 10:26:12Z
52780287441984

Kraft Heinz to restate earnings for 2016 and 2017 - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017.

Shortly after the filing with the Securities and Exchange Commission was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick,  "The company has my confidence."

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the SEC into its accounting and procurement practices.

The SEC investigation launched an internal review of Kraft Heinz's procurement accounting and procedures. The review caused Kraft to delay filing its annual report twice and Standard & Poor's to put the company on CreditWatch negative.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

"The findings from the investigation did not identify any misconduct by any member of the senior management team. We are pleased to report that the investigation is now substantially complete," the statement added.

After the filing Monday with the SEC, Kraft Heinz shares lost 2.6% in premarket trading amid a broad sell-off for the market.

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/05/06/kraft-heinz-to-restate-earnings-for-2016-and-2017.html

2019-05-06 10:25:39Z
52780287441984

Stocks fall after Trump threat; Oil drops; Occidental presses - CNN

The move could reignite a trade conflict between the world's two largest economies following months of relative calm in the markets and solid returns for investors.

US stock futures were sharply lower. S&P 500 futures dropped 1.7%, Dow futures were down 1.8% and Nasdaq futures were off 2.2%. Losses for US crude oil futures exceeded 2%.

Trump risked derailing trade talks scheduled for this week by warning on Sunday that he could increase tariffs on $200 billion of Chinese goods to 25% from 10% from Friday.

China's Shanghai Composite plunged 5.6%, while the Shenzhen Composite, which includes many of the country's tech companies, shed 7.4%. The Hang Seng declined 3% in Hong Kong.

European markets opened with losses. In export-driven Germany, the DAX was down 1.6% in early trading. Losses on France's CAC 40 approached 2%.

Kit Juckes, a strategist at Societe Generale, said trade experts were unsure how to interpret Trump's threat.

"Is he trying to apply pressure to get a deal done this week? And if so, will this work, or will it backfire?" Juckes asked. "It's in both US and Chinese interests to get a deal done."

2. Occidental offer: Occidental Petroleum (OXY) has sweetened its offer for Anadarko Petroleum (APC), the latest development in its battle with Chevron (CVX) for prized US shale assets.

The revised offer hikes the amount of cash included in the $76 per share offer to $59.

Occidental was backed last week by Berkshire Hathaway's (BRKA) Warren Buffett, who invested $10 billion in the company to help finance its takeover of Anadarko.

Vicki Hollub, the CEO of Occidental, increased pressure on Anadarko in a letter to its board of directors dated Sunday.

"We remain perplexed at your apparent resistance to obtaining far more value for Anadarko shareholders which has been expressed clearly through our interactions over the last week," she wrote.

The bidding war for Anadarko reflects an intense desire by US oil companies to acquire America's best shale assets. Occidental is already the No. 1 oil producer in the vast Permian Basin.

Occidental reported Monday that its net income in the first quarter was $631 million, a decline of 11% from the final three months of 2018.

3. Global market overview: The Dow closed up 0.8% on Friday after another solid US jobs report. The S&P 500 added 1.0%, while the Nasdaq gained 1.6% to close at a record high.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

4. Earnings and economics: Sysco (SYY) and Tyson Foods (TSN) will release earnings before the opening bell.

Del Taco (TACO) and Hertz Global (HTZ) will follow after the close.

5. Coming this week:
Monday — Sohn Investment Conference; Occidental Petroleum (OXY) earnings
Tuesday — US JOLTS; Anheuser-Busch InBev (BUD) earnings; Papa John's (PZZA) earnings
Wednesday — SALT Conference; GE (GE) annual meeting
Thursday — SALT Conference; China consumer price inflation; US jobless claims and trade data for March, Ford (F) annual meeting
Friday — US consumer price inflation; UK GDP; Marriott (MAR) earnings

Let's block ads! (Why?)

https://www.cnn.com/2019/05/06/investing/premarket-stocks-trading/index.html

2019-05-06 09:32:00Z
52780284415886