CLF Earnings: Cleveland-Cliffs Stock Rallies on Strong Q2 Beats
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Cleveland-Cliffs reported revenue of $4.93 billion in Q2 2025, compared to analysts' estimate of $4.68 billion. Despite the beat, the company's revenue slipped 1.62% year-over-year from $5.09 billion. The company reported $323 million in non-recurring charges this quarter that were tied to its footprint optimization initiatives.
CLF stock was up 4.54% in pre-market trading on Monday, following a 0.96% rally on Friday. The shares have also risen 0.85% year-to-date but were down 37.67% over the past 12 months.
Cleveland-Cliffs Guidance
Cleveland-Cliffs provided guidance for the full year of 2025 in its latest earnings report. The company expects the following:
Capital expenditures of $600 million, compared to its previous outlook of $625 million.
Selling, general, and administrative expenses of $575 million, compared to its prior guidance of $600 million.
Steel unit cost reductions of $50 per net ton compared to 2024.
Depreciation, depletion, and amortization of approximately $1.2 billion, compared to its previous guidance of $1.1 billion.
Cash Pension and OPEB payments and contributions of $150 million.
Lourenco Goncalves, Chairman, President and CEO, said, 'Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result.'
Is Cleveland-Cliffs Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Cleveland-Cliffs is Hold, based on two Buy, five Hold, and a single Sell rating over the past three months. With that comes an average CLF stock price target of $8.27, representing a potential 12.76% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today's earnings.
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Yahoo
2 minutes ago
- Yahoo
Parker Reports Fiscal 2025 Fourth Quarter and Full Year Results
Outstanding Q4 Contributes to Record Year; Forecasting Growth in FY26 CLEVELAND, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter and fiscal year ended June 30, 2025, that included the following highlights (compared with the prior year period):Sales were a record $5.2 billion; organic sales growth was 2% Net income was $923 million, an increase of 18%, or $992 million adjusted, an increase of 12% EPS were $7.15, an increase of 19%, or a record $7.69 adjusted, an increase of 14% Segment operating margin was 23.9%, an increase of 170 bps, or 26.9% adjusted, an increase of 160 bps Repurchased $851 million of shares Announced agreement to acquire Curtis Instruments, Inc., expanding electrification offeringSales were $19.9 billion; organic sales growth was 1% Net income was $3.5 billion, an increase of 24%, or $3.6 billion adjusted, an increase of 7% EPS were $27.12, an increase of 24%, or a record $27.33 adjusted, an increase of 7% EBITDA margin was 27.3%, an increase of 210 bps, or 26.4% adjusted, an increase of 80 bps Segment operating margin was 23.0%, an increase of 150 bps, or a record 26.1% adjusted, an increase of 120 bps Cash flow from operations increased 12% to $3.8 billion, or 19.0% of sales Repurchased $1.6 billion of shares 'Our outstanding performance contributed to a record year for safety, engagement, earnings per share, margins and cash flow,' said Jenny Parmentier, Chairman and Chief Executive Officer. 'Delivering strong margin expansion and earnings growth in a dynamic macro environment is a testament to the resilience of our portfolio and the power of our business system, The Win Strategy™. We generated full year cash flow of $3.8 billion and through balanced capital deployment, increased our quarterly cash dividend by 10 percent, repurchased $1.6 billion of shares, and announced an agreement to acquire Curtis Instruments to expand our electrification offering. Thanks to our global team for another record year and the continued transformation of Parker. 'Looking ahead to fiscal year 2026, we expect Aerospace to remain our fastest growing business and see a return to positive organic growth in our Industrial businesses. We remain committed to being great generators and deployers of cash to drive shareholder value and look forward to another excellent year powered by our people and our business system.' This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release. Outlook Parker issued guidance for the fiscal year ending June 30, 2026. The company expects: Sales growth in fiscal 2026 of 2% to 5%, with organic sales growth of approximately 3% at the midpoint; previously completed divestitures of 1% and favorable currency of 1.5% Total segment operating margin of 23.3% to 23.7%, or 26.3% to 26.7% on an adjusted basis EPS of $24.68 to $25.68, or $28.40 to $29.40 on an adjusted basis Segment Results Diversified Industrial Segment North America Businesses $ in mm FY25 Q4 FY24 Q4 Change Organic Growth Sales $ 2,075 $ 2,229 -6.9 % -1.4 % Segment Operating Income $ 513 $ 505 1.6 % Segment Operating Margin 24.7 % 22.7 % 200 bps Adjusted Segment Operating Income $ 555 $ 558 -0.5 % Adjusted Segment Operating Margin 26.7 % 25.0 % 170 bps Achieved record adjusted segment operating margin Gradual broad-based improvement across market verticals Order rates positive for third consecutive quarter International Businesses $ in mm FY25 Q4 FY24 Q4 Change Organic Growth Sales $ 1,492 $ 1,430 4.3 % 0.6 % Segment Operating Income $ 334 $ 312 7.1 % Segment Operating Margin 22.4 % 21.8 % 60 bps Adjusted Segment Operating Income $ 369 $ 342 7.9 % Adjusted Segment Operating Margin 24.7 % 23.9 % 80 bps Achieved record adjusted segment operating margin Organic growth turned positive in the quarter with 6% APAC; (3%) EMEA; 4% LA Order rates flat on tougher prior year comparison Fiscal 2025 third quarter included large long-cycle orders Aerospace Systems Segment $ in mm FY25 Q4 FY24 Q4 Change Organic Growth Sales $ 1,676 $ 1,528 9.7 % 8.6 % Segment Operating Income $ 407 $ 332 22.6 % Segment Operating Margin 24.3 % 21.7 % 260 bps Adjusted Segment Operating Income $ 486 $ 415 17.1 % Adjusted Segment Operating Margin 29.0 % 27.1 % 190 bps Achieved record sales on continued aftermarket strength Delivered record adjusted segment operating margin Aerospace backlog increased to a record $7.4 billion Order Rates FY25 Q4 Parker +5 % Diversified Industrial Segment - North America Businesses +2 % Diversified Industrial Segment - International Businesses 0 % Aerospace Systems Segment +12 % Parker order rates remain strong at 5% reflecting our transformed portfolio Industrial Segment order rates remain positive in a dynamic environment Aerospace order rates up 12% driven by continued strength in both commercial and defense About Parker HannifinParker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at or @parkerhannifin. Contacts: Media: Financial Analysts: Aidan Gormley Jeff Miller 216-896-3258 216-896-2708 Notice of Webcast Parker Hannifin's conference call and slide presentation to discuss its fiscal 2025 fourth quarter and full year results are available to all interested parties via live webcast today at 11:00 a.m. ET, at A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit Note on Orders The company reported orders for the quarter ending June 30, 2025, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations. Note on Non-GAAP Financial MeasuresThis press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; (e) organic sales growth; (f) EBITDA margin and (g) adjusted EBITDA margin. The adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although adjusted net income, adjusted earnings per share, adjusted segment operating margin, adjusted segment operating income, organic sales growth, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release. Forward-Looking StatementsForward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as 'anticipates,' 'believes,' 'may,' 'should,' 'could,' 'expects,' 'targets,' 'is likely,' 'will,' or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance. Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the acquisition of Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and other periodic filings made with the SEC. CONSOLIDATED STATEMENT OF INCOME Three Months Ended Twelve Months Ended (Unaudited) June 30, June 30, (In millions, except per share amounts) 2025 2024 2025 2024 Net sales $ 5,243 $ 5,187 $ 19,850 $ 19,930 Cost of sales 3,285 3,323 12,535 12,802 Selling, general and administrative expenses 839 818 3,255 3,315 Interest expense 99 119 409 506 Other income, net (51 ) (59 ) (456 ) (288 ) Income before income taxes 1,071 986 4,107 3,595 Income taxes 148 201 575 750 Net income 923 785 3,532 2,845 Less: Noncontrolling interests — — 1 1 Net income attributable to common shareholders $ 923 $ 785 $ 3,531 $ 2,844 Earnings per share attributable to common shareholders: Basic $ 7.25 $ 6.10 $ 27.52 $ 22.13 Diluted $ 7.15 $ 6.01 $ 27.12 $ 21.84 Weighted average shares outstanding: Basic 127.2 128.6 128.3 128.5 Diluted 129.0 130.6 130.2 130.2 Cash dividends per common share $ 1.80 $ 1.63 $ 6.69 $ 6.07 BUSINESS SEGMENT INFORMATION Three Months Ended Twelve Months Ended (Unaudited) June 30, June 30, (Dollars in millions) 2025 2024 2025 2024 Net sales Diversified Industrial $ 3,567 $ 3,659 $ 13,665 $ 14,458 Aerospace Systems 1,676 1,528 6,185 5,472 Total net sales $ 5,243 $ 5,187 $ 19,850 $ 19,930 Segment operating income Diversified Industrial $ 847 $ 817 $ 3,120 $ 3,176 Aerospace Systems 407 332 1,441 1,111 Total segment operating income 1,254 1,149 4,561 4,287 Corporate general and administrative expenses 65 56 214 218 Income before interest expense and other expense (income), net 1,189 1,093 4,347 4,069 Interest expense 99 119 409 506 Other expense (income), net 19 (12 ) (169 ) (32 ) Income before income taxes $ 1,071 $ 986 $ 4,107 $ 3,595 SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Diversified Industrial Segment Aerospace Systems Segment Diversified Industrial Segment Aerospace Systems Segment (Unaudited)(Dollars in millions) North America Int'l Total Total North America Int'l Total Total Net sales $ 2,075 $ 1,492 $ 3,567 $ 1,676 $ 5,243 $ 2,229 $ 1,430 $ 3,659 $ 1,528 $ 5,187 Segment operating income $ 513 $ 334 $ 847 $ 407 $ 1,254 $ 505 $ 312 $ 817 $ 332 $ 1,149 Adjustments: Amortization of acquired intangibles 41 23 64 75 139 42 22 64 75 139 Business realignment charges 2 12 14 — 14 10 8 18 — 18 Integration costs to achieve (1 ) — (1 ) 4 3 1 — 1 8 9 Adjusted segment operating income $ 555 $ 369 $ 924 $ 486 $ 1,410 $ 558 $ 342 $ 900 $ 415 $ 1,315 Segment operating margin 24.7 % 22.4 % 23.7 % 24.3 % 23.9 % 22.7 % 21.8 % 22.3 % 21.7 % 22.2 % Adjusted segment operating margin 26.7 % 24.7 % 25.9 % 29.0 % 26.9 % 25.0 % 23.9 % 24.6 % 27.1 % 25.3 % Reported sales growth (6.9 )% 4.3 % (2.5 )% 9.7 % 1.1 % Currency (0.3 )% 3.7 % 1.3 % 1.1 % 1.2 % Divestitures (5.2 )% — % (3.1 )% — % (2.2 )% Organic sales growth (1.4 )% 0.6 % (0.7 )% 8.6 % 2.1 % Twelve Months Ended June 30, 2025 Twelve Months Ended June 30, 2024 Diversified Industrial Segment Aerospace Systems Segment Diversified Industrial Segment Aerospace Systems Segment (Unaudited)(Dollars in millions) North America Int'l Total Total North America Int'l Total Total Net sales $ 8,134 $ 5,531 $ 13,665 $ 6,185 $ 19,850 $ 8,801 $ 5,657 $ 14,458 $ 5,472 $ 19,930 Segment operating income $ 1,891 $ 1,229 $ 3,120 $ 1,441 $ 4,561 $ 1,963 $ 1,213 $ 3,176 $ 1,111 $ 4,287 Adjustments: Amortization of acquired intangibles 165 88 253 300 553 176 90 266 312 578 Business realignment charges 15 38 53 — 53 19 32 51 — 51 Integration costs to achieve 2 1 3 19 22 3 1 4 34 38 Adjusted segment operating income $ 2,073 $ 1,356 $ 3,429 $ 1,760 $ 5,189 $ 2,161 $ 1,336 $ 3,497 $ 1,457 $ 4,954 Segment operating margin 23.2 % 22.2 % 22.8 % 23.3 % 23.0 % 22.3 % 21.4 % 22.0 % 20.3 % 21.5 % Adjusted segment operating margin 25.5 % 24.5 % 25.1 % 28.5 % 26.1 % 24.6 % 23.6 % 24.2 % 26.6 % 24.9 % Reported sales growth (7.6 )% (2.2 )% (5.5 )% 13.0 % (0.4 )% Currency (0.5 )% (0.3 )% (0.5 )% 0.4 % (0.2 )% Divestitures (3.4 )% — % (2.0 )% — % (1.5 )% Organic sales growth (3.7 )% (1.9 )% (3.0 )% 12.6 % 1.3 % DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT Three Months Ended June 30, 2025 Twelve Months Ended June 30, 2025 (Unaudited) Europe Asia Pacific Latin America Total Europe Asia Pacific Latin America Total Reported sales growth 3.0 % 6.9 % — % 4.3 % (5.3 )% 2.3 % (2.2 )% (2.2 )% Currency 6.2 % 1.3 % (3.8 )% 3.7 % 1.3 % (1.1 )% (11.5 )% (0.3 )% Organic sales growth (3.2 )% 5.6 % 3.8 % 0.6 % (6.6 )% 3.4 % 9.3 % (1.9 )%ADJUSTED NET INCOME1AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION Three Months Ended June 30, Twelve Months Ended June 30, (Unaudited) 2025 2024 2025 2024 (Dollars in millions, except per share amounts) Net Income1 Diluted EPS Net Income1 Diluted EPS Net Income1 Diluted EPS Net Income1 Diluted EPS As reported $ 923 $ 7.15 $ 785 $ 6.01 $ 3,531 $ 27.12 $ 2,844 $ 21.84 Adjustments: Amortization of acquired intangibles 139 1.08 139 1.07 553 4.25 578 4.43 Business realignment charges 16 0.12 18 0.13 56 0.43 54 0.40 Integration costs to achieve 3 0.03 9 0.07 22 0.17 38 0.30 Gain on sale of buildings (14 ) (0.10 ) — — (24 ) (0.18 ) — — Gain on divestitures (2 ) (0.02 ) — — (252 ) (1.94 ) (26 ) (0.20 ) Saegertown incident — — — — 8 0.06 — — Tax effect of adjustments2 (38 ) (0.30 ) (40 ) (0.30 ) (120 ) (0.93 ) (148 ) (1.12 ) Discrete tax benefits3 (35 ) (0.27 ) (27 ) (0.21 ) (215 ) (1.65 ) (27 ) (0.21 ) As adjusted $ 992 $ 7.69 $ 884 $ 6.77 $ 3,559 $ 27.33 $ 3,313 $ 25.44 1Represents net income attributable to common shareholders. 2This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. 3Fiscal year 2025 relates to a deferred tax adjustment and release of a tax valuation allowance. Fiscal year 2024 reflects a Swiss tax law change which resulted in the recording of a deferred tax EBITDA RECONCILIATION (Unaudited) Three Months Ended June 30, Twelve Months Ended June 30, (Dollars in millions) 2025 2024 2025 2024 Net sales $ 5,243 $ 5,187 $ 19,850 $ 19,930 Net income $ 923 $ 785 $ 3,532 $ 2,845 Income taxes 148 201 575 750 Depreciation 91 91 354 349 Amortization 139 139 553 578 Interest expense 99 119 409 506 EBITDA 1,400 1,335 5,423 5,028 Adjustments: Business realignment charges 16 18 56 54 Integration costs to achieve 3 9 22 38 Gain on sale of buildings (14 ) — (24 ) — Gain on divestitures (2 ) — (252 ) (26 ) Saegertown incident — — 8 — Adjusted EBITDA $ 1,403 $ 1,362 $ 5,233 $ 5,094 EBITDA margin 26.7 % 25.8 % 27.3 % 25.2 % Adjusted EBITDA margin 26.8 % 26.3 % 26.4 % 25.6 %CONSOLIDATED BALANCE SHEET (Unaudited) June 30, June 30, (Dollars in millions) 2025 2024 Assets Current assets: Cash and cash equivalents $ 467 $ 422 Trade accounts receivable, net 2,910 2,866 Non-trade and notes receivable 318 331 Inventories 2,839 2,787 Prepaid expenses 263 253 Other current assets 153 140 Total current assets 6,950 6,799 Property, plant and equipment, net 2,937 2,876 Deferred income taxes 270 93 Other assets 1,269 1,207 Intangible assets, net 7,374 7,816 Goodwill 10,694 10,507 Total assets $ 29,494 $ 29,298 Liabilities and equity Current liabilities: Notes payable and long-term debt payable within one year $ 1,791 $ 3,403 Accounts payable, trade 2,126 1,992 Accrued payrolls and other compensation 587 581 Accrued domestic and foreign taxes 382 355 Other accrued liabilities 933 982 Total current liabilities 5,819 7,313 Long-term debt 7,494 7,157 Pensions and other postretirement benefits 267 437 Deferred income taxes 1,490 1,584 Other liabilities 733 726 Shareholders' equity 13,682 12,072 Noncontrolling interests 9 9 Total liabilities and equity $ 29,494 $ 29,298 CONSOLIDATED STATEMENT OF CASH FLOWS Twelve Months Ended (Unaudited) June 30, (Dollars in millions) 2025 2024 Cash flows from operating activities: Net income $ 3,532 $ 2,845 Depreciation and amortization 907 927 Stock incentive plan compensation 159 155 Gain on sale of businesses (253 ) (24 ) (Gain) loss on property, plant and equipment and intangible assets (20 ) 12 Net change in receivables, inventories and trade payables 31 (28 ) Net change in other assets and liabilities (336 ) (517 ) Other, net (244 ) 14 Net cash provided by operating activities 3,776 3,384 Cash flows from investing activities: Capital expenditures (435 ) (400 ) Proceeds from property, plant and equipment 32 9 Proceeds from sale of businesses 623 78 Other, net 4 15 Net cash provided by (used in) investing activities 224 (298 ) Cash flows from financing activities: Net payments for common stock activity (1,762 ) (328 ) Acquisition of noncontrolling interests — (3 ) Net payments for debt (1,354 ) (2,002 ) Dividends paid (861 ) (782 ) Net cash used in financing activities (3,977 ) (3,115 ) Effect of exchange rate changes on cash 22 (24 ) Net increase (decrease) in cash and cash equivalents 45 (53 ) Cash and cash equivalents at beginning of year 422 475 Cash and cash equivalents at end of period $ 467 $ 422 RECONCILIATION OF FORECASTED SALES GROWTH TO ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2026 Forecasted net sales 2.0% to 5.0% Adjustments: Currency ~(1.5)% Divestitures ~1.0% Adjusted forecasted net sales 1.5% to 4.5% RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN (Unaudited) (Amounts in percentages) Fiscal Year 2026 Forecasted segment operating margin 23.3% to 23.7% Adjustments: Business realignment charges ~0.3% Amortization of acquired intangibles ~2.7% Adjusted forecasted segment operating margin 26.3% to 26.7% RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) (Amounts in dollars) Fiscal Year 2026 Forecasted earnings per diluted share $24.68 to $25.68 Adjustments: Business realignment charges 0.54 Amortization of acquired intangibles 4.26 Tax effect of adjustments1 (1.08) Adjusted forecasted earnings per diluted share $28.40 to $29.40 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. Note: Totals may not foot due to roundingError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
3 minutes ago
- Los Angeles Times
Trump's broad tariffs go into effect, just as economic pain is surfacing
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Despite the uncertainty, the Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy. Now that companies understand the direction the U.S. is headed, the Republican administration believes they can ramp up new investments and jump-start hiring in ways that can rebalance the U.S. economy as a manufacturing power. But so far, there are signs of self-inflicted wounds to America as companies and consumers alike brace for the impact of new taxes. What the data has shown is a U.S. economy that changed in April with Trump's initial rollout of tariffs, an event that led to market drama, a negotiating period and Trump's ultimate decision to start his universal tariffs on Thursday. Economic reports show that hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after April, said John Silvia, CEO of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Silvia said in an analysis note. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Even then, the ultimate transformations of the tariffs are unknown and could play out over months, if not years. Many economists say the risk is that the American economy is steadily eroded rather than collapsing instantly. 'We all want it to be made for television where it's this explosion — it's not like that,' said Brad Jensen, a professor at Georgetown University. 'It's going to be fine sand in the gears and slow things down.' Trump has promoted the tariffs as a way to reduce the persistent trade deficit. But importers sought to avoid the taxes by importing more goods before the taxes went into effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. 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Trump on Wednesday announced additional 25% tariffs to be imposed on India for its buying of Russian oil, bringing its total import taxes to 50%. A top body of Indian exporters said Thursday the latest U.S. tariffs will impact nearly 55% of the country's outbound shipments to America and force exporters to lose their long-standing clients. 'Absorbing this sudden cost escalation is simply not viable. Margins are already thin,' S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. The Swiss executive branch, the Federal Council, was expected to hold an extraordinary meeting Thursday after President Karin Keller-Sutter and other top Swiss officials returned from a hastily arranged trip to Washington in a failed bid to avert steep 39% U.S. tariffs on Swiss goods. Import taxes are still coming on pharmaceutical drugs, and Trump announced 100% tariffs on computer chips. 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Trump is aware of the risk that courts could overturn his tariffs, prompting him to say on his Truth Social platform: 'THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!' The stock market has been solid during the recent tariff drama, with the S&P 500 index climbing more than 25% from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measures signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. Global financial markets took Thursday's tariff adjustments in stride, with Asian and European shares and U.S. futures mostly higher. Brzeski warned: 'While financial markets seem to have grown numb to tariff announcements, let's not forget that their adverse effects on economies will gradually unfold over time.' 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NBC News
4 minutes ago
- NBC News
Tariffs on dozens on countries take effect and Kremlin confirms Trump-Putin meeting: Morning Rundown
Sweeping tariffs on dozens of countries have taken effect. A doctor fears that a rift with UnitedHealthcare could bankrupt her clinic. And a conservative community fights to keep a beloved teacher from being deported. Here's what to know today. Trump's tariffs take effect, affecting everything from food to cars from around the world After months of threats, delays and extensions, President Donald Trump's sweeping tariffs took effect overnight, raising the overall average tariff rate to more than 17%, its highest since the Great Depression. Everything from European Union appliances and Japanese cars to food, furniture and toys from China TVs from South Korea will be hit. However, selected oil and gas imports, along with some smartphones and goods covered by a pre-existing trade agreement with Canada and Mexico, are not affected. Trump has indicated his trade offensive won't stop. The president said he still plans to impose import taxes on pharmaceutical products and semiconductors. Amid that pressure, Apple said it plans to invest $600 billion in the U.S. over the next four years amid pressure from Trump to shift its supply chain to American soil. Meanwhile, Trump hiked the tariff rate for India to 50% because of the nation's purchases of Russian oil, and he said he could raise the European Union's tariff level to 35% from 15% if it reneges on an investment commitment. The Trump administration has already insisted tariffs are working, pointing to billions raised in new monthly revenues for the federal government. While the White House says nations have pledged hundreds of billions of dollars in investments, it hasn't released details of how that money will be spent. While the full effect of the tariffs is yet to be felt, the U.S. economy appears to be on much shakier ground than at the start of the year. Price growth has continued to pick up, employment growth in manufacturing has flatlined and other non-manufacturing sectors are feeling the pinch. The Kremlin said Thursday that a meeting between presidents Donald Trump and Vladimir Putin has been agreed in principle and will happen in the 'coming days,' teeing up their first in-person encounter of Trump's second term. At the same time, Moscow all but dismissed Trump's proposal for a three-way summit involving Putin and Ukrainian President Volodymyr Zelenskyy, continuing the Kremlin's longstanding resistance to such a sit-down. Trump's efforts are part of his campaign promise to resolve Russia's war in Ukraine, and his wider 'America First' pledge to end involvement in foreign conflicts altogether. 'At the suggestion of the American side, an agreement in principle was made to hold a bilateral meeting at the highest level in the coming days,' Putin's longtime foreign policy aide, Yury Ushakov, said in an audio idea of a Trump-Putin-Zelenskyy meeting 'for some reason was mentioned by Washington yesterday' but 'not specifically discussed,' Ushakov said. The Russian side had 'left this option completely, completely without comment.' The Trump administration is currently still set to impose secondary sanctions on Russia this week, despite a meeting yesterday between U.S. special envoy Steve Witkoff and Putin. An administration official said secondary sanctions 'are still expected to be implemented on Friday.' Zelenskyy said he spoke to Trump after Witkoff's meeting and reiterated the country's insistence on defending its independence. Putin's longtime foreign policy aide, Yury Ushakov, said the talks were 'very useful and constructive,' adding that Russia has 'forwarded some signals ... on the Ukrainian issue.' Read the full story here. More politics news: As the fight in Texas over redistricting plays out, take a look at who draws congressional maps and how they do it. Also, review how nearly a decade of Supreme Court rulings have given states more redistricting power. National Intelligence Director Tulsi Gabbard declassified a document on Russia's 2016 election interference with relatively minimal redactions despite objections from CIA officials. Trump said he's considering a federal takeover of Washington, D.C.'s local police force. The Trump administration is scaling back the State Department's annual Human Rights Report, which is widely read around the world. A Republican running to succeed Mitch McConnell is leaning into the same anti-establishment sentiment that sent JD Vance from the private sector to the vice presidency. Texas surgeon fears insurance dispute may force her into bankruptcy Dr. Elisabeth Potter said she was midway through performing a breast reconstruction surgery when she got a call from a UnitedHealthcare representative who wanted to talk about the patient on the table. During the call, Potter said the representative wanted more information on why the patient needed an overnight hospital stay, even though the surgery had been approved. 'If they can ring me in the operating room, not for something urgent, just for that, and to ask me to justify her staying overnight ... we have lost our way,' Potter said in a TikTok video that has racked up nearly 6 million views. Potter said UnitedHealthcare denied coverage for the hospital stay. An insurance spokesperson said the stay was approved but there was an error with a separate request. Now, Potter believes UnitedHealthcare is retaliating against her because of her social media posts but not allowing her clinic in Austin, Texas, to join their in-network list of providers. Without being able to accept UnitedHealthcare patients in network — the second biggest player in the market, according to the Texas Department of Insurance — Potter said she likely won't be able to stay in business. Experts say the dispute is one example of ongoing tension between insurers and health care providers. Potter's dispute, in particular, comes as UnitedHealth Group comes under intense scrutiny. A new CDC report is the first to provide estimates about how much ultra-processed foods make up Americans' diets. It's more than half. A federal prison camp in Texas where Ghislaine Maxwell was transferred has increased security measures in response to her arrival. And while there, Maxwell will be barred from participating in a puppy training program. The Trump administration has suspended $584 million in federal grants for UCLA, the first public university whose funding has been targeted over allegations of civil rights violations. Scientists want to stop AI from turning evil. Their solution? Teaching the models some bad behavior. I am endlessly fascinated by the stories of people dealing with the effects of major political decisions, such as the overhaul to America's immigration policy. I was especially interested in this incredible story from Daniela Pierre-Bravo about a Haitian immigrant who has become a beloved fixture in his Ohio community, where 83% of voters backed Trump last year. Science teacher Marc Rocher saw serious violence in Haiti. After a close friend was kidnapped and killed was the final straw, he left for the U.S., finding his way to Putnam County under temporary protective status. While it may be a reliably Republican corner of the state, Putnam County's church-goers, students and community members realized that losing Rocher to the country's immigration policies, which they helped put in motion as Trump voters, would mean losing a pillar of the community. Now, the pastor of a conservative church is standing up for Rocher. High school students are sending letters pleading with DHS Secretary Kristi Noem to let him stay. And a family with adopted Haitian children say Rocher has helped their sons heal from the trauma inflicted in their home country. To them, Rocher puts a human face on a polarizing political issue. — Michelle Garcia, NBC BLK editorial director NBC Select: Online Shopping, Simplified NBC Select has been testing fitness trackers for years now, and these are their favorites from Apple, Oura, Garmin and Fitbit. Plus, the brand On has a wide range of sneakers, but which are the right ones for you? We created a handy guide compiled our favorite On sneakers and apparel. here.
