Machinists Demand Apology from Boeing (BA) CEO After Comment During Earnings Call Jul 25, 2014 02:04PM

The President of the International Association of Machinists and Aerospace Workers (IAM) is calling on Boeing CEO Jim McNerney to apologize to Boeing’s (NYSE: BA) workforce for offensive remarks made during a quarterly earning call with reporters on July 23, 2014.

“The heart will still be beating, the employees will still be cowering, I’ll be working hard,” said McNerney in response to a reporter’s question about whether he had plans to retire after he turns 65 next month. Boeing’s policy is for executives to retire at age 65.

“Boeing’s CEO would have been far better served to give credit to the workforce that has driven the company’s sales and profits to record levels,” said IAM President Tom Buffenbarger. “Instead, his unfunny and unnecessary remarks serve as reminder that the Jack Welch style of anti-personnel management is still alive and well at Boeing. If he is able to get his foot out of his mouth, the very next thing we hear from Mr. McNerney should be a sincere apology to all employees at Boeing.”


Goldcorp (GG) Announces Gold Production at Cerro Negro Jul 25, 2014 01:17PM

Goldcorp, Inc. (NYSE: GG) announced today that first gold production has been achieved at Cerro Negro, a high grade gold mine located in the Santa Cruz province of Argentina.

"We are very pleased to have first production on schedule and within our current capital cost guidance range from this world class mine," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Very importantly, this achievement was reached safely, with Cerro Negro in the midst of a run of over 4.1 million man hours without a lost time accident. This milestone signals not only the start of Cerro Negro's mine life, but also a period of sustained growth for Goldcorp. The team at Cerro Negro has done an outstanding job amid occasionally challenging circumstances and I congratulate them for this outstanding effort. We look forward to strong contributions from Cerro Negro to Goldcorp's overall performance for many years to come."

On July 25, the initial dore bar weighing approximately 100 kilograms was poured at the mine containing an estimated 317 ounces of gold. Overall, progress at the mine remains on track for declaration of commercial production by the end of the year. Production guidance for 2014 is expected to be between 130,000 and 180,000 ounces of gold. Initial capital costs have been reduced by $100 million and are now expected to be between $1.6 and $1.7 billion.

Goldcorp is one of the world's fastest growing gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.


Destination Maternity (DEST) Does Not Plan to Make Offer for Mothercare, Withdraws Proposal Jul 25, 2014 01:06PM

Destination Maternity Corporation (Nasdaq: DEST) today announces that it does not intend to make an offer for Mothercare plc ("Mothercare" or the "Company") and is withdrawing its proposal for a possible combination with Mothercare.

On 2 July 2014, Destination Maternity made an announcement confirming its interest in a possible combination with Mothercare and confirming its submission of two non-binding written proposals for a possible combination, both of which had been rejected by the Board of Directors of Mothercare. This announcement was required by the UK Takeover Code (the "Code") in light of press speculation at the time regarding Destination Maternity's interest in a possible combination with Mothercare.

Following the announcement on 2 July 2014, Destination Maternity's financial adviser canvassed the views of shareholders who hold a substantial proportion of Mothercare shares. While Destination Maternity believes that its proposal was compelling, it is clear that the shareholders of Mothercare believe that only a very significant increase in the value of such proposal would be acceptable. In light of this and considering Destination Maternity has not been permitted by the Mothercare Board to conduct customary due diligence, Destination Maternity is unwilling to increase the value of its proposal and has therefore decided to withdraw its proposal.

The Mothercare Board and certain Mothercare shareholders presented concerns to Destination Maternity's financial adviser regarding Destination Maternity's ability to finance the combination with Mothercare. Destination Maternity had (subject to due diligence and certain other matters including the negotiation and execution of definitive documentation): (1) negotiated the terms of an in-principle, non-binding, financing package consisting of equity and second-lien debt to be provided by a leading U.S.-based private equity firm; and (2) received in-principle, non-binding, support from Bank of America Merrill Lynch to arrange senior secured debt financing. These financing arrangements, if implemented, would have ensured an appropriate capital structure for the combined business.

Ed Krell, Chief Executive Officer and a Director of Destination Maternity, said:

"We are disappointed that the shareholders of Mothercare have not supported our proposal and that the Board of Mothercare was unwilling to allow us to conduct customary due diligence and engage in discussions with us regarding our proposal.

We believe that there was a strong strategic rationale for the combination of these highly complementary businesses, which would have enhanced the product range of both companies, spanning the pregnancy to toddler life-cycle. We further believe the combination would have created a global leader in maternity, baby and children's apparel and products capable of accelerating the growth and long-term development of both businesses across channels and in markets around the world. In addition, we believe that Destination Maternity's management expertise and strong maternity apparel offering would have provided an attractive enhancement to the Mothercare UK turnaround plan.

Our proposals to Mothercare about a possible combination show our willingness to pursue potential opportunities to help drive shareholder value for Destination Maternity and are consistent with our stated strategic objective to enhance our position as a global leader in maternity apparel, including through international expansion. At the same time, our announcement today that we do not intend to make an offer for Mothercare demonstrates that we will continue to maintain strict financial discipline in evaluating potential initiatives and opportunities.

We will continue to focus on delivering our strategy to drive sales and profit growth, both in the United States and through the continued expansion of our brands internationally."

This announcement is made in accordance with Rule 2.8 of the Code. As a result of this announcement Destination Maternity will, together with any party acting in concert with it, be bound by the restrictions contained in Rule 2.8 of the Code.


Delta Air Lines (DAL) Adds Home Depot (HD) CEO Blake as Director Jul 25, 2014 11:54AM

Delta Air Lines (NYSE: DAL) announced Francis S. "Frank" Blake as its newest member, effective immediately. Blake serves as Chairman and CEO of The Home Depot (NYSE: HD), the world's largest home improvement retailer.

"Frank brings demonstrated success in leading a complex organization focused on improving shareholder returns through excellent customer service," said Daniel A. Carp, Delta's non-executive chairman of the board. "He will enhance the depth and range of Delta's already strong and independent board of directors, and we are delighted to have him."

Blake served as The Home Depot's Vice Chairman from October 2006 to January 2007 and as Executive Vice President – Business Development and Corporate Operations from 2002 through 2006. Previously, Blake served in a variety of executive positions at General Electric Company, including as Senior Vice President, Corporate Business Development in charge of all mergers, acquisitions, and dispositions worldwide. From June 2001 to February 2002, Blake was Deputy Secretary for the U.S. Department of Energy.

Blake also is a member of the Board of Directors of the Georgia Aquarium.

Blake received a bachelor's degree from Harvard University and a J.D. degree from Columbia University Law School.


Freeport-McMoRan (FCX) Indonesian Subsidiary to Resume Exports Jul 25, 2014 10:32AM

Freeport-McMoRan Inc. (NYSE: FCX) announced today that its Indonesian subsidiary PT Freeport Indonesia (PT-FI) received approval from the Government of Indonesia to resume exports of copper concentrates. PT-FI will resume full operations immediately and concentrate exports are expected to commence in August 2014.

PT-FI has entered into a Memorandum of Understanding (MOU) with the Government of Indonesia under which the Government and PT-FI have agreed to negotiate an amended Contract of Work (COW), to be completed over the next six months, to address provisions related to the size of concession area, royalties and taxes, domestic processing and refining, divestment, local content, and continuation of operations post-2021. Effective with the signing of the MOU, PT-FI has agreed to pay export duties set forth in a new regulation issued in July 2014, to provide a $115 million assurance bond to support its commitment for smelter development and to increase royalties to 4.0% for copper and 3.75% for gold from the current rates of 3.5% for copper and 1% for gold.

On July 25, 2014, the Government revised its January 2014 regulations regarding export duties to incorporate reduced rates for copper concentrate exports for companies engaged in smelter development. The revised regulations provide for duties on copper concentrate exports during smelter development initially at 7.5%, declining to 5% when development progress exceeds 7.5% and 0% when development progress exceeds 30%.

Among other items, MOU provisions to be addressed in the negotiation of the Amended COW include provisions for the development of new copper smelting and refining capacity in Indonesia which will take into consideration an equitable sharing of costs between PT-FI (and any partners in the project) and the Government through fiscal incentives, provisions for FCX to divest to the Government and/or Indonesian Nationals up to a 30% interest (an additional 20.64% interest) in PT-FI at fair value, and continuation of operations from 2022-2041. Negotiations will take into consideration PT-FI’s need for assurance of legal and fiscal terms post-2021 for PT-FI to continue with its large scale investment program for the development of its reserves.

PT-FI and the Government will commence immediate negotiations for an amended COW that is expected to be completed within six months. No terms of the COW other than the duties, smelter bond and royalties described above will be changed until the completion of the amended COW.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer of FCX, said: “We are pleased to report the resumption of normal operations and the completion of an MOU to enable continuing benefits of the Grasberg operations for the Government, the local communities in Papua, our large Indonesian workforce and our shareholders. We value our long-term partnership with the Indonesian government and look forward to continuing success of the Grasberg operation.”


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