Johnson & Johnson is the first major U.S. drugmaker to report earnings since the coronavirus outbreak, which has shuttered businesses and disrupted supply chains around the world. The company said the crisis hit sales in its medical devices unit as hospitals delayed elective surgeries and procedures but lifted revenue in its consumer division as customers stockpiled essential medications. Johnson & Johnson, which operates medical device and consumer health businesses along with its sizeable pharmaceuticals unit, now expects 2020 adjusted earnings per share of $7.50 to $7.90, compared with its prior estimate of $8.95 to $9.10....
Exxon Mobil (XOM), the US’s largest oil producer, has now raised $9.5 billion in new debt by selling five different bonds with durations of five years to 31 years. In a sign of strong investor demand, XOM raised $9.5 billion instead of the $9 billion originally intended.Moreover, the company paid a lower price to borrow than it did in the $8.5 billion March deal. For instance, it now priced a 10.5-year bond worth $2 billion at a 185 basis-point premium to U.S. Treasuries with a 2.61% yield, whereas in March, Exxon sold $2 billion in debt with a 10-year duration where the premium to U.S. Treasuries was 240 basis points with a 3.482% yield.However, this is still significantly higher than the company paid in August last year due to the current economic uncertainty.Overall analysts are recommending investors stay on the sidelines when it comes to Exxon. The company has a Hold...
(Bloomberg) -- Norwegian Air Shuttle ASA is fighting for survival, with a last-ditch plan to convert debt to equity driving its share price down as much as 63% during the first frantic moments of trading on Tuesday.Norwegian Air’s proposal will dilute shareholders already counting their losses after Covid-19 ruined the company’s efforts to return to profitability. The plan calls for creditors, including aircraft lessors and suppliers, to convert as much as 44.5 billion kroner ($4.3 billion) in debt in order to meet government terms for the carrier to access a state aid package, and for a private placement.In the first trading in Oslo since the plan was announced last week, the shares suffered their biggest drop and fell to the lowest level since Norwegian Air’s listing in 2003. The decline was 37% by 10:56 a.m. local time. The company was placed under special observation, a move used when a security’s valuation...
