Latest news with #Q12024
Yahoo
26-05-2025
- Business
- Yahoo
JP Morgan Maintains Neutral Rating on Republic Services (RSG), Lifts PT
On May 23, JP Morgan raised the price target on Republic Services, Inc. (NYSE:RSG) from $229 to $275 and maintained a Neutral rating on the stock. The firm updated the price target after it resumed its coverage of the waste services sector. Republic Services, Inc. (NYSE:RSG) has soared more than 26% on a year-to-date basis and is currently trading close to its 52-week high of $253.76. The noted that the company's risk-reward situation appears balanced. A fleet of trucks carrying recyclable materials, highlighting the company's transfer services. Earlier, on April 24, Republic Services, Inc. (NYSE:RSG) reported its Q1 2024 results. The company posted better-than-expected EPS of $1.58 surpassing market expectations by $0.05. Revenue for the quarter grew 3.81% year-over-year, however, missed the consensus by $36.48 million. Management noted the topline was affected by sluggish cyclical volumes and challenging winter weather, however, the company grew its EBITDA by high single-digit despite the volatility. While we acknowledge the potential of RSG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RSG and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None Error 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
CNA
22-05-2025
- Business
- CNA
CNA938 Rewind - Frontloading is behind what we have just seen in the economy, but we can't expect it to continue long-term
CNA938 Rewind Singapore's economy grew slightly faster than expected in the first quarter by 3.9 percent on-year. Still, this is a slowdown from the 5 percent growth seen in Q4 2024, with the Trade and Industry Ministry warning that the global economic outlook remains clouded by significant uncertainty. Lance Alexander and Daniel Martin speak more with Selena Ling, Chief Economist, OCBC.
CNA
22-05-2025
- Business
- CNA
CNA938 Rewind - Singapore's economy grows slightly faster, amid global uncertainties
CNA938 Rewind Play Singapore's economy grew slightly faster than expected in the first quarter by 3.9 percent on-year. Still, this is a slowdown from the 5 percent growth seen in Q4 2024, with the Trade and Industry Ministry warning that the global economic outlook remains clouded by significant uncertainty. Lance Alexander and Daniel Martin speak more with Selena Ling, Chief Economist, OCBC.
National Post
14-05-2025
- Business
- National Post
Largo Reports Q1 2025 Financial Results with Continued Focus on Production Stability and Cost Reduction Efforts
Article content All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated. Article content Revenues of $28.2 million in Q1 2025 vs. 42.2 million in Q1 2024; Revenues per pound sold 1 of $6.04 in Q1 2025 vs. $6.91 in Q1 2024; Lower revenues are a result of continued downward pressure in vanadium prices and lower sales volumes Operating costs of $42.5 million in Q1 2025, 15% below Q1 2024 Adjusted cash operating costs excluding royalties per pound 1 of $3.88 in Q1 2025, 27% below Q1 2024, despite mining lower ore grades and decreased production rates Net loss of $9.2 million in Q1 2025, which included $7.0 million in non-recurring items vs. a net loss of $13.0 million in Q1 2024, which included $4.4 million in non-recurring items Basic loss per share of $0.14 in Q1 2025 vs. basic loss per share of $0.20 in Q1 2024 V 2 O 5 equivalent sales of 2,046 tonnes (inclusive of 158 tonnes of purchased material) in Q1 2025 vs. 2,765 equivalent tonnes sold (inclusive of 156 tonnes of purchased material) in Q1 2024 V 2 O 5 production of 1,297 tonnes (2.8 million lbs 2) in Q1 2025 vs. 1,729 tonnes produced in Q1 2024; Lower production in Q1 2025 was primarily due to impacts from mining lower-grade ore zones required as part the Company's open pit mine sequencing, reduced equipment availability on an expanded mine contractor fleet, and operational adjustments related to the kiln refractory replacement completed in Q4 2024, which required additional adjustments in early 2025 The Company produced 6,162 tonnes of ilmenite concentrate in Q1 2025 vs. 9,563 tonnes in Q1 2024, and sold 8,647 tonnes vs. 513 tonnes in Q1 2024 The Company maintains its revised 2025 production, sales and cost guidance and expects a return to more normalized production levels over the remainder of the year as throughput increases and operational turnaround initiatives progress Article content Vanadium Market Update Article content Vanadium markets in Europe and China remain weak, pressured by low steel and infrastructure demand and oversupply from Chinese and Russian producers, though aerospace demand is expected to pick up in the second half of 2025 U.S. ferrovanadium ('FeV') prices are holding at levels approximately 9% higher than at the start of 2025, supported by increased buying interest amid geopolitical tensions and policy shifts that have tightened supply dynamics The average benchmark price per pound of V 2 O 5 in Europe was $5.26 in Q1 2025, a 18% decrease from the average of $6.44 seen in Q1 2024; The average benchmark price per kg of FeV in Europe was $24.26 in Q1 2025, a 13% decrease from the average of $27.96 seen in Q1 2024 As of May 8, 2025, the average benchmark FeV price per pound of V was $15.25 in the U.S. (or approximately $33.62 per kg FeV), and as of May 9, 2025, the average benchmark price per pound of V₂O₅ was $5.20 in Europe Article content TORONTO — Largo Inc. (' Largo ' or the ' Company ') (TSX: LGO) (NASDAQ: LGO) today released financial results for the three months ended March 31, 2025. The Company reported quarterly vanadium pentoxide (' V 2 O 5 ') equivalent sales of 2,046 tonnes at an adjusted cash operating cost excluding royalties per pound 1 sold of $3.88. Article content Daniel Tellechea, Interim CEO and Director of Largo, stated: 'Our first quarter results reflect the impact of lower production levels, which constrained sales volumes, combined with continued pricing pressure in the vanadium market, all of which significantly affected our revenues and added pressure to our cash position. Despite this environment, Largo achieved a 15% reduction in overall operating costs compared to Q1 2024 as well as a 27% reduction in our adjusted cash operating costs excluding royalties 1, reflecting a continued focus on cost-control initiatives and operational efficiency improvements. We continue to actively advance our operational turnaround plan, implementing targeted initiatives aimed at further reducing costs and improving productivity at our Maracás Menchen Mine.' Article content He continued: 'Following the completion of our Storion Energy joint venture transaction, Largo is better positioned to allocate resources and focus on strengthening core mining operations in Brazil, while maintaining a long-term view on the potential of long duration energy storage solutions in the U.S. Looking ahead, securing near-term financing solutions remains a priority as we work to support our liquidity needs and ensure Largo is positioned to navigate ongoing market uncertainty.' Article content Key Highlights Article content During Q1 2025, the Company recognized revenues of $27.5 million (Q1 2024 – $42.2 million) from the sales of 2,046 tonnes of V 2 O 5 equivalent (Q1 2024 – 2,765 tonnes) as well as revenues from ilmenite sales of $0.7 million (Q1 2024 – $0.07 million). The Company recorded a net loss of $9.2 million in Q1 2025 compared with a net loss of $13.0 million in Q1 2024. The improvement was primarily due to the gain on disposal of interest in subsidiary of $5.2 million and a 15% decrease in operating costs. The Company's operating costs decreased by 15% to $42.5 million in Q1 2025 compared to 49.7 million in Q1 2024. The decrease in operating costs in Q1 2025 was largely driven by a 48% decrease in direct mine and production costs, reflecting a 25% decrease in vanadium sold in 2024, as well as the impact of the Company's previously announced initiatives to reduce production costs and improve productivity and the impact of inventory write-downs in the current and prior periods. The inventory write-down in Q1 2025 includes a write-down of produced vanadium finished products of $11.2 million and a write-down reversal of warehouse materials of $0.1 million. Cash operating costs excluding royalties per pound 1 were $6.54 per lb in Q1 2025, compared with $6.12 for Q1 2024. The increase seen in Q1 2025 compared with Q1 2024 is largely due lower sales volumes of in Q1 2025 and increased inventory write-downs. Mining in lower grade ore zones also impacted the financial performance. Additionally, lower ore mined resulted in stoppages at the kiln and plant which also contributed to increased costs in Q1 2025. The Company continues to make progress with a number of initiatives as part of its operational turnaround plan with the goal of reducing production costs and improving productivity ( see press release dated March 28, 2025). Adjusted cash operating costs excluding royalties per pound 1, which excludes the impact of inventory write-downs was $3.88 per lb sold in Q1 2025, compared with $5.33 for Q1 2024. Professional, consulting and management fees, other general and administrative expenses, and technology start-up costs in Q1 2025 decreased by 18%, 37%, and 82%, respectively, compared to Q1 2024, primarily due to reduced headcount and activity at LCE. On January 31, 2025 (the ' Closing Date '), the Company and affiliates of Stryten Energy LLC closed the previously disclosed transaction to establish Storion Energy LLC (' Storion '). Storion has commenced operations and is working to qualify their electrolyte product with potential customers. In addition, 13 employees of Largo Clean Energy Corp. (' LCE ') moved to Storion on the Closing Date, resulting in a reduced headcount at LCE at the end of Q1 2025. Subsequent to Q1 2025, production and sales in were 481 tonnes and 608 tonnes of V 2 O 5 equivalent, respectively, in April 2025, with 1,833 tonnes of ilmenite concentrate being produced during this period and 1,914 dry tonnes of ilmenite being sold. Article content The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2025 and 2024 and its management's discussion and analysis for the three months ended March 31, 2025 which are available on our website at or on the Company's respective profiles at and Article content Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers. Article content Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S. Article content Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol 'LGO'. For more information on the Company, please visit Article content This press release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; and the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products. Article content The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company's ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company's mine plan at the Maracás Menchen Mine; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner. Article content Forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved', although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on and available on from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&A which also apply. Article content Trademarks are owned by Largo Inc. Article content The Company uses certain non-GAAP measures in its press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-IFRS financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Article content Revenues Per Pound Article content These measures, along with cash operating costs, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. Article content The following table provides a reconciliation of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 23 as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content The Company's press release refers to cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency. Article content Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs. Article content Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Article content Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products. Article content Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Article content Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS. Article content The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content Three months ended March 31, 2025 March 31, 2024 Operating costs i $ 42,477 $ 49,707 Professional, consulting and management fees ii 535 462 Other general and administrative expenses iii 179 279 Less: ilmenite costs and write-down i (2,220 ) (47 ) Less: conversion costs i (2,991 ) (2,023 ) Less: product acquisition costs i (2,357 ) (2,050 ) Less: distribution costs i (1,577 ) (1,818 ) Less: inventory write-down iv 1 446 Less: depreciation and amortization expense i (5,462 ) (8,077 ) Cash operating costs $ 28,585 $ 36,879 Less: royalties 1 (1,072 ) (1,673 ) Cash operating costs excluding royalties $ 27,513 $ 35,206 Less: vanadium inventory write-down v (11,206 ) (4,526 ) Adjusted cash operating costs excluding royalties 16,307 30,680 Produced V 2 O 5 sold (000s lb) 4,206 5,753 Cash operating costs per pound ($/lb) $ 6.80 $ 6.41 Cash operating costs excluding royalties per pound ($/lb) $ 6.54 $ 6.12 Adjusted cash operating costs excluding royalties per pound ($/lb) $ 3.88 $ 5.33 Article content As per note 20 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements less the increase in legal provisions of $347 (for Q1 2025) as noted in the 'other general and administrative expenses' section on page 6 of the Company's Q1 2025 MD&A. As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $10 for the three months ended March 31, 2025 ($nil in the same prior year period). As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for vanadium finished products, excluding amounts in note 4 above for vanadium purchased products. Article content The Company's press release refers to earnings before interest, tax, depreciation and amortization, or 'EBITDA', and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Article content Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities. Article content EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. Article content Three months ended March 31, 2025 March 31, 2024 Net loss $ (9,205 ) $ (13,006 ) Foreign exchange gain (loss) (5,791 ) 911 Share-based payments 110 290 Finance costs 2,151 1,812 Interest income (121 ) (306 ) Income tax expense 50 22 Deferred income tax recovery (2,666 ) (5,329 ) Depreciation i 5,683 8,724 EBITDA $ (9,789 ) $ (6,882 ) Inventory write-down ii 11,580 4,080 Write-down of vanadium assets 267 (114 ) Movement in legal provisions iii 347 491 Gain on disposal of interest in subsidiary (5,179 ) — Adjusted EBITDA $ (2,774 ) $ (2,425 ) Less: Clean Energy Adjusted EBITDA 1,778 2,484 Less: LPV Adjusted EBITDA 299 191 Mining Operations Adjusted EBITDA $ (697 ) $ 250 Article content As per the consolidated statements of cash flows in the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements. As per then 'non-recurring items' section on page 7 of the Company's Q1 2025 MD&A. Article content Article content Article content Article content Article content Contacts Article content For further information, please contact: Article content Article content
Yahoo
09-05-2025
- Business
- Yahoo
Owens & Minor Inc (OMI) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Tariff ...
Revenue: $2.6 billion, up just under 1% as reported, and up 2.3% on a same-day basis compared to the prior year. Patient Direct Revenue: $674 million, grew by 6% compared to Q1 2024; 7.3% growth on a same-day basis. Products and Healthcare Services Revenue: $1.96 billion, declined by 0.8% as reported, but grew 0.7% on a same-day basis. Gross Profit: $526 million or 20% of net revenue. Gross Margin: Expanded by 40 basis points in Patient Direct; consolidated gross margin rate down by about 50 basis points. Distribution, Selling and Administrative Expenses: $462 million or 17.6% of revenue, down from $478 million or 18.3% of revenue in Q1 2024. Adjusted Operating Income: $61 million, an improvement of about 7% versus Q1 2024. Interest Expense: Just under $34 million, down $1.7 million compared to Q1 2024. Adjusted Effective Tax Rate: 31.9%, up from 29.2% in Q1 2024. Adjusted Net Income: $18 million or $0.23 per share, up from $15 million or $0.19 per share last year. Adjusted EBITDA: $122 million, up 5% from $116 million in Q1 2024. Warning! GuruFocus has detected 2 Warning Sign with HAE. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Owens & Minor Inc (NYSE:OMI) reported a 31% increase in operating income for the Patient Direct segment, driven by strategic investments and operational improvements. The company achieved high single-digit revenue growth in sleep supplies and double-digit growth in wound supplies, ostomy, and urology categories. Owens & Minor Inc (NYSE:OMI) successfully opened new state-of-the-art distribution centers in Morgantown, West Virginia, and Sioux Falls, South Dakota, enhancing their distribution network. The company reported a record collection rate in its Byram division, with plans to extend these improvements to the Apria division. Owens & Minor Inc (NYSE:OMI) reaffirmed its guidance for the year, expecting at least 70% of earnings and cash flow to be generated in the second half of 2025. The company faces significant tariff exposure, estimated between $100 million to $150 million, primarily affecting the Products and Healthcare Services segment. Owens & Minor Inc (NYSE:OMI) experienced a decline in gross margin due to rising commodity input costs and adverse foreign currency rates. The potential sale of the Products and Healthcare Services segment creates distractions and uncertainties in day-to-day operations. Interest expenses remain a concern, with the Rotech acquisition financing expected to accrue interest before the deal closes. The company anticipates a challenging cash flow quarter due to increased inventory and strategic initiative costs, impacting working capital. Q: Can you discuss the impact of tariffs on your business and how you are addressing this with your customers? A: Edward Pesicka, President and CEO, explained that the tariff exposure is estimated between $100 million to $150 million, primarily affecting products sourced from China and Thailand. Owens & Minor is working with customers to adjust prices and identify alternative products to mitigate the impact. The company has increased inventory to manage the transition but cannot absorb the full cost of tariffs due to low profit margins. Q: How is foreign exchange volatility affecting your financial outlook for the year? A: Jonathan Leon, CFO, noted that while there was significant volatility in March, particularly in Asian currencies, the situation has stabilized. The company is comfortable with its current guidance, assuming no further significant fluctuations. Q: What is the expected impact of the Rotech acquisition on your financials, and how are you managing the associated debt? A: Jonathan Leon, CFO, stated that the Rotech acquisition is expected to be neutral in the first year and accretive in the second year. The financing is in place, and interest will begin accruing once the deal closes. The company will update guidance upon closing. Q: How are you managing the potential impact of tariffs on your Products and Healthcare Services (P&HS) segment? A: Edward Pesicka, President and CEO, clarified that the tariff exposure is primarily within the P&HS segment. The company is implementing price increases specific to affected products and leveraging its diverse manufacturing footprint to offer alternatives. Q: Can you provide more details on your cash flow expectations for the year, considering recent inventory changes? A: Jonathan Leon, CFO, confirmed that the outlook for cash flow remains unchanged, with expectations for strong free cash flow to be used for debt reduction. The company anticipates improvements in cash flow as the year progresses, despite higher-than-expected costs related to strategic initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
