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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
TRANSPORTATION
We continue to advise caution on extending out duration and instead prefer the IDSLN28s. We've seen broad-based decompression the last two sessions and it leaves a lot of these bottom rung IG names with weaker fundamentals looking rich vs. firm HY names.
- Very in-line earnings for Q2 - numbers below. Reminder it has strong seasonality on EBIT and FCF to the 4Q.
- It has left FY guidance unch for EBIT between €80-110m (midpoint would leave it unch yoy) and FCF between €0-40m (vs. €52m last year). Nothing to celebrate over for new 31s but also may save it from any ration action for now.
- The Mail making €1m of EBIT from €648m in revenue it partly (continues) to blame on the Universal Service Obligations which forces next day deliver guarantees on certain mail and drags on operational efficiency. Mail YTD volumes are -7.2% and in range vs. its projection for FY of -7 to -9%.
- It says parcel growth (domestic +0.3%, total +5.3% driven by international) is "trending towards FY projections" (domestic +2-4%, total +7-10%) but notes weather impacted e-commerce particularly fashion volumes. Weather has been the universal excuse for anyone reporting weak results this quarter in Europe.
- New €300m 31s was all net supply and therefore dragged gross/net debt on BS up to €1.3/€0.5b. Cash on hand a healthy €0.8m. Interim dividend at €0.03/share or €15m.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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