CBRE at Barclays Conference Notes

Jim Groch – CFO and Head, Corporate Development

It’s been a long cycle but don’t see anything that would suggest a recession coming

“Sure, well I guess first I think it’s perfectly rational that the sales cycle relates to business cycle, the last four cycles have been seven to 10 years, the last recession started in beginning of ’08, we’re a couple of months from beginning at 2018. So, it feels like we’ve been out there for a long time…the data they weren’t used to see, none of it really indicates is that a recession is coming in the foreseeable future. So how long that could go, it’s impossible to know, the people who will be better in predicting it from my own perspective being in the business through a number of cycles can easily run for three to four years. And that seems counter intuitive given how long the cycle has been. And we are running our balance sheet with the mindset that if a recession could hit tomorrow, so we’ll be prepared to invest into a downturn.”

I don’t think there’s a real estate cycle

“First thing is I always like to say there is no such thing as a real estate cycle. I think it’s just a business cycle and real estate can have more or less data to the business cycle depending on kind of supply and demand dynamics. So, I think for me personally there is a disconnect between stock market that shows no sign whatsoever of us being or no big sign that were late cycle and the anxiety around kind of the real estate cycle and that just. And then on the supply demand side, I think it’s in reasonable balance couple of the metrics that we provided on that.”

Spreads are wide, assets reasonably priced

“The same thing on the valuations. If you’ve been in real estate for a few decades, just go back 10, 15 years ago cap rates were sort of just 9% for office cap rates and then for a long time, at least sort of suburban office just didn’t have much connection in the interest rates. Clearly that’s not been the case for the last 15 years or so. And the fact that spreads are as wide as they are, I think is an indicator to me at least that assets are priced to perfection, I think they’re reasonably price…I’m afraid that people who are not controlling about the real estate business look at an absolute cap rate of 4.5 or [indiscernible] office building or whatever the number, it’s five and they think on my god that’s terrible, but they kind of forget that investment — required investment in terms of any other asset comes down followed by the same amount.”

CBRE 1Q17 Earnings Call Notes

Robert Sulentic – President and Chief Executive Officer

James Groch

Market moved away from reasonable EBITDA multiple for acquisitions

“Since late 2015, we have repeatedly noted that M&A and recruiting had become pricey and less disciplined just as the industry was beginning to experience lower market transaction volumes. The market had moved away from our long stated five to six times EBITDA multiple for infill M&A.”

Starting to see hopeful signs of greater discipline

“I should note that we are now beginning to see early hopeful signs of greater discipline around M&A in the market. With regard to recruiting and retention, our disciplined approach is working. Top professionals are continuing to elect to join CBRE and remain with us because our operating platform scale brand and ability to deliver integrated solutions enabled them to do more for their clients.”

Slow but longer cycle

“capital rising has been very, very strong for us and I would say continues to be on a fairly consistent basis. We are seeing maybe as that investor just being careful and thinking about where they’re investing in aware of the fact that were we’ve been in a slow but longer economic recovery than prior cycles that this cycle feels a bit different, but the flows of capital into our investment management business you know have continued quite strong. I think we’ve mentioned we’ve raised $8.4 billion of equity in the last you know trailing 12 months which is pretty consistent with what we’ve been doing on average for the last few years.”

UK is making a nice comeback

“Well, industrial is strong Brandon, and in general the UK is making a nice comeback. I mean we are seeing good activity there. I think we had a recent survey of clients that showed that London once again was the favored destination for international capital among all major markets around the world. So I would say positive trends and nothing about what’s going on with the Brexit situation are giving us major concerns now, and if I were to spike out a property type, it would be industrial for particularly good news.”

CBRE 4Q16 Earnings Call Notes

Bob Sulenic

No material impact from higher interest rates

“Yes. David, it may have had a slight impact on the appetite in the pricing, but not a material impact. We still see a lot of capital that wants to go into real estate. If you look at last year, there was various press written about lower volumes, but it’s worth keeping in mind that, that’s relative to 2015, which was the strongest year in a decade and last year was still very, very good by comparison to the previous decade other than 2015. We are going into this year with the assumption that interest rates will go up modestly and that capital flows into real estate and trading velocity will be similar to last year.”

Generally expecting a good year in 2017

“we saw choppiness earlier in the year, but the fourth quarter was strong and the year as a whole looks strong and we expect that to be a similar circumstance in 2017. We expect to see volumes similar to what we saw in ‘16. We are hoping and expecting to take a little market share as we have over the past few years. And as I commented earlier, with regard to the interest rates, they will probably tick up a bit. That may put a little pressure on sales. But also, there is a circumstance out there where in general, institutions are under-allocated to commercial real estate by about 100 basis points relative to where they want to be. So that could be a positive impact. So in general, we are expecting a good year and we are expecting to perform well and take some more market share.”

CBRE 3Q16 Earnings Call Notes

CBRE Group’s (CBG) CEO Bob Sulentic on Q3 2016 Results

There’s activity but compared to last year it’s muted

“I would say around the world, it’s kind of what I said earlier, Brandon. There is significant activity, but against the backdrop from last year where we and the market grew dramatically. It seems fairly muted. We expect there to continue to be solid activity. We expect there to be job growth, kind of like the job growth we had so far this year. But there is uncertainty in the marketplace which is putting pressure on the results relative to what they were a year ago.”

Jim Groch

Still seeing bids but seen number decline on largest deals

“Yes, Jade, this is Jim. We are seeing in our system where we track number of folks that are signing nondisclosure agreements per deal, that’s remained pretty steady and at a high number, kind of in the upper 50s per deal of people that have seen it, reviewed the teaser, and come in and signed a full nondisclosure agreement, so with a real interest. That’s held pretty steady. We have seen days on the market increase a bit, let’s say, maybe 10% or so. So we have seen a little more caution as the years played out…Still pretty strong in general, but on the largest deals you’re seeing the number decline, on very large transactions.

Our own capital raising has been very strong, but there has been some pressure for the industry

“Our own capital raising was a very, very strong quarter; a very strong trailing 12 months for our own business. But capital raising overall with the industry has been under some pressure. It still feels like there’s a fair amount of liquidity there on the market.”

UK team believes that activity could pick up now

“Yes, we think that our leaders in the UK tell us that they believe that there is a reasonable chance that activity will pick up now. Obviously, there is real uncertainty there over this issue of hard Brexit and will that happen or won’t it and what will the implications of that be. But we have some hope that there will be a pickup between now and the end of the year.”

CBRE 2Q16 Earnings Call Notes

Bob Sulentic

Global property sales volumes have pulled back

“CBRE posted another quarter of strong growth on the top and bottom lines, with a 24% increase in adjusted EPS. This growth came amid an uncertain macro environment, and notably, a time when global property sales volumes market wide have pulled back from a robust 2015. The diversity of CBRE’s service offering is especially important in the current market environment. ”

Hesitancy in UK may only be temporary

“CBRE expects continued near-term hesitancy among occupiers about space decisions in the UK, particularly London. We expect a modest increase in property yields reflecting the higher perceived risk of holding UK property. However, this increase may be temporary, especially for top-tier assets, due to the inherent attractiveness of the UK market. In addition, the decline in the value of sterling against the U.S. dollar should provide some incremental support for foreign investment into the UK over time. We also anticipate a delay in some office development activity, which should provide longer term support for property prices as well as rents, particularly in central London, where availability stands at just 3%. We are monitoring Brexit-related developments closely. There is a long road ahead, but the swift resolution of the political leadership in Britain is an encouraging sign.”

Fundamentals in CRE remain in good shape but lowering our guidance

” It is important to note that market fundamentals in commercial real estate remain in good shape, with the impact of Brexit largely limited to property transactions activity in the UK and we anticipate solid earnings growth for the year. Looking ahead, we are adjusting our outlook for the remainder of the year. This is due principally to the impact of Brexit on UK property transaction volumes and less visibility around the timing of the realization of certain incentives in our Global Investment Management business and Development Services business. These factors have caused us to reduce our earnings guidance by 3% at the top end of our range and by 5% at the bottom end. ”

The one place that we are seeing things meaningfully different is in the UK

“We expect to end up the year in the ranges that we gave at the beginning of the year. And the one place that we are seeing things meaningfully different is no big shocker. It’s the UK, which is a sizable market with London. But we’ve worked hard to get a handle on what our people around the world are working on, and we have done that again recently and feel pretty good about the ranges that we gave at the beginning of the year. So we are not changing anything in that regard.

Europe had been clawing back momentum after Brexit but then everyone went on vacation

“I talked to Martin Samworth, the CEO of EMEA for our business, two days ago, and I asked him that question. And he said that in fact, there was a distinct clawing back of the momentum that had been lost due to Brexit up until about a week ago when, as he put it, everybody in Europe started going on vacation. And he thinks that legitimately, that there has been a turnaround, but the whole vacation season there is causing that turnaround to slow for a while. But he’s encouraged that when September comes around that we’ll see things, the momentum reemerge.”

Jim Groch

M&A pipeline active but pulled back as pricing increased

Mitch, that’s a good question. Our M&A pipeline is quite active. But we did start to pull back on infill last year when we saw pricing in the marketplace increasing. So we’re, as always, we’re very active in the market. We are looking for great companies, a great cultural fit, companies that are going to truly add capabilities to what we offer. But we will, pricing matters. It does. And we will pull back from time to time and get back in when we see things be more in line with where we think they should be.”

CBRE 1Q16 Earnings Call Notes

CBRE Group’s (CBG) CEO Bob Sulentic on Q1 2016 Results

There’s a lot of capital looking to invest in real estate. Here’s a little pressure on trophy assets though

“. As it relates to capital markets, our outlook for the year really hasn’t changed. As I said, we saw that choppiness at the beginning of the first quarter. It abated as the quarter went on. There’s a lot of capital around the world that wants to go into real estate. There’s a little pressure on trophy assets, but we think that the year will play out as we had suggested at our year-end release three months ago.”

Hiring slowed down a lot in the first quarter

“I would say it definitively did slowdown in the first quarter. Now, we’re comparing it against three very, very strong years, in fact, we think probably the three strongest years in the history of our company. Because of all of the acquisitions we’ve made over the years, we don’t have perfect data going back. We were at about half the pace in the first quarter that we’ve been the last couple of years, still a lot of net hiring.”

Tightened underwriting standards because of where we are in the cycle

“We’ve tightened down our underwriting standards because of where we’re at, the seven years of growth. We’ve also seen some what we consider to be uneconomic and unsustainable deals made in the market and we just won’t play in that game. We’re staying very clear of that. And we really think it’s important for investors to understand how companies treat these incentives and signing bonuses that a broker is given.”

Trophy office assets are the most vulnerable. People are looking more like they did at the end of last year than in the first quarter right now though

“Look, we’re seeing less bidders in some case, but for the most part, we’re not seeing much of a change in pricing on assets, either industrial or trophy office. But particularly with regard to trophy office, we’re not seeing as many bidders in some cases. Again, I’m going to go back to something both Jim and I commented on earlier and that is that a little bit of the nervousness and choppiness that we saw the first couple months of the year, we saw start to abate a bit at the end of the quarter. And in general, we think the news — things in the capital markets have slowed down and the prospects are looking more now for the rest of the year like they did at the end of last year rather than as we got into the beginning of the first quarter. But we’re not seeing much impact on pricing. If we were going to circle some assets and say these are the ones that might be vulnerable, it clearly would be the trophy office assets.”

CB Richard Ellis 4Q15 Earnings Call Notes

CB Richard Ellis Group’s (CBG) CEO Bob Sulentic on Q4 2015

Fundamentals in our sector remain on solid footing

“While we are mindful of concerns about China’s slowing growth and the effect of lower oil prices, fundamentals in our sector remain on solid footing. We are positioned for another strong year in 2016, but are maintaining flexibility in case the economy weakens. Our outlook is based on economist consensus view that the global economy will maintain its modest rate of growth in 2016.”

It’s an active market place for what we do, you can’t draw conclusions from January

“outside of what the economists are talking about, what we are seeing with our clients is what you see in the guidance we gave by line of business. It’s an active market place for what we do. We are a month in to the year and it’s the slowest month of the year, so you can’t draw any conclusions. We’ve reflected what we believe kind of the collective view of our people and our people on the streets so to speak and our research people and our economist think and that’s all wound up in the guidance we gave by line of business.”

Jim Groch

Our business is a lot different than it was the last time we went into recession

“I think the business is just a different business than existed at that time. And the other comment I would make is our balance sheet is dramatically different balance sheet than existed at that time. We have enormous liquidity; we have very, very small amounts of maturities coming out for the next several years. So we are nicely poised to take advantage of opportunities. There are parts of our business that will be impacted if we go in to a recession, but overall I think we’ll see tremendous opportunities to take advantage of as well.”

Fairly optimistic about the strength of the sector

“we believe real estate offers compelling value today relative to other asset classes and capital flows in to real estate from enormously varied range of investment types and vehicles. And just the strength of the fundamentals in the sector and the value that’s embedded in that asset class and what we’ve seen in the market and performance in Q4 leaves us feeling fairly optimistic about the strength of the sector.”

Only comment is we expect Asia to be softer

“I think the only comment we make on a regional basis is that we expect Asia Pacific region to be softer, although let’s say in the rage of plus or minus flat, relative to the Americas and Europe where we expect it to be stronger.”

Miscellaneous Earnings Call Notes 10.29.15

E*TRADE Financial (ETFC) Paul Thomas Idzik on Q3 2015 Results

There’s a big penalty for a bank when it crosses $50B in assets in the form of greater regulatory spending

“as I said many times in previous calls when this topic comes up, none of our owners are going to reward us by tiptoeing over $50 billion and incurring all the costs and distraction. If we go over $50 billion, it will be when Mr. Pizzi and I and the rest of the team are confident that it’s going to make sense for our owners.”


Volvo’s (VOLVY) CEO Martin Lundstedt on Q3 2015 Results

We see a strong year for trucks in North America

“Trucks North America, we can say that North America – when we start with the macroeconomic view on North America, I think we see the same thing as many other people see. It is a solid growth also for next year, so we don’t see any kind of other things in North America compared to what most, I would say, macroeconomic people see.”

Brazil is probably not coming back for two years

“I think that also one should recognize that Brazil is most probably not going to come back into some kind of high growth or anything like that for – I would say don’t anticipate that for the next coming two years at least because Brazil has to go through quite a lot of things. We don’t see the boom in terms of raw material prices. And not only prices, also the demand is actually coming down and that was very much what fueled the economy in Brazil.”


Whirlpool’s (WHR) CEO Jeff Fettig on Q3 2015 Results

Currencies have experienced a global reset

“Given the significant economic shocks this year, we believe that currencies have experienced a global reset, and we are prepared to operate this changed environment going forward.”

Europe is a split market

“On Europe, again it’s a split market, if you want to say. But Eastern European market demand continues to be very slow and very much down, which is driven by Russia and Ukraine…The western side, on the other side, I would say its stronger than anticipated. The most markets are in a very healthy and robust phase.”

China -4% right now

“China has been slower in terms of market events than we expected, kind of coming into the year. Its at around minus 4% right now, and for that market, it’s a big decline, although in general terms its not and we don’t think that it should have a significant impact on our business”


State Street (STT) Joseph L. Hooley on Q3 2015 Results

It’s certainly a positive that markets have rebounded month to date

” it’s certainly a positive that markets have rebounded month-to-date here in October. I would point out just for completeness that emerging markets now are pretty close on a month-to-date basis back to the third quarter average. They had really dipped in late September, and what’s particularly important to us is the average over the whole quarter. So I would – I’d hesitate to try to claim any kind of victory based on the first three weeks of October, and obviously we’ve got another couple months to go. But I would agree with you that it’s certainly been helpful to see the equity market positive news on the first three weeks of the month.”


Royal Caribbean Cruises’ (RCL) CEO Richard Fain on Q3 2015 Results

Bookings are strong even in China

“The Caribbean and China which makes up approximately two thirds of capacity are significantly more booked than last year at higher rates. The strength of these two products is more than offsetting continued pressure in Latin America.”

Our feelings are good about China

” our feelings are good about how we see China. We think the opportunity is still very, very strong. So that’s kind of our perspective on China.”


Bank of Hawaii’s (BOH) CEO Peter Ho on Q3 2015 Results

CRE has been the headliner for loan growth but we are pretty mature in the cycle, and our core relationships will probably begin to pull back

“all of our lending categories are performing very well right now. So CRE has been the headliner for a good amount of time. It continues to be through the third quarter and we think we still have some space left in this cycle for continued growth. Having said that, we are pretty mature in both the commercial and in particular the commercial real estate cycle and really what you are likely to see is as our core relationships begin to pull back in light of pricing in the marketplace, you will likely see us doing the same.”

Consumer lending strong

“on the other consumer side, home-equity and indirect and installment and credit card, those portfolios are growing very nicely for us. And really, I think a reflection of what’s happening with the economy here in town.”


Comcast’s (CMCSA) CEO Brian Roberts on Q3 2015 Results

Comcast venturing into wireless service

“we believe that wireless obviously is an important area for consumers and how they are in the future. And today, we have incredible success with our Wi-Fi network, which is the largest in-home Wi-Fi network, as well as a terrific out of home Wi-Fi, we’re seeing a majority of bits travel over the Wi-Fi network. But it takes about six months to activate the MVNO. We’ve had told everybody that before, we were going to trial some things and test some things after we activate and we’ll update people as that progresses.”


Ford Motor’s (F) CEO Mark Fields on Q3 2015 Results

We are seeing stabilization in China

“just a couple comments on the China industry, we are seeing stabilization and as Bob mentioned we do expect to lift from the stimulus package. And as he mentioned we are seeing showroom traffic improve, we are seeing closing ratios improve and unquestionably we see this as a really good opportunity, because 70% of our sales have the engines that are eligible for the stimulus.”

Expect stronger for longer in the US

“We would characterize the U.S. industry as healthy and borrowing any type of shock whether it would be economic or policy related. We do see industry sales staying well supported at the current levels through the next few years or in other words we expected to be stronger for longer.”

The industry is going to have to do a lot of work to increase fuel efficiency by the end of the decade

“if you look 2019 and 2020 I mean I think there’s a lot of work the whole industry is got to do at that point in time in response to your compliance particularly around the machines and fuel economy, but I think we feel good about where we are up until 2019, but then there is a sort of a step level increase and we are all going to have to continue to work on particularly with more electrification that’s going to be required in that timeframe.”


Coach (COH) Victor Luis on Q1 2016 Results

We’re bucking the trend of a weak environment in China

“In terms of China, as you mentioned, we’re really pleased to be bucking the trends that many of our traditional competitors are reporting…our team is managing our brand incredibly well in what is of course a very turbulent environment, not only with the exchange rate fluctuations and the impact on traffic into Hong Kong and Macau, but also the domestic stock market gyrations which are now very well-publicized.”


PACCAR’s (PCAR) CEO Ron Armstrong on Q3 2015 Results

European outlook continues to improve

“The European economic and truck market outlook continues to improve. GDP growth expectations for this year are 2.6% in the UK, which is PACCAR’s strongest market in the region, GDP growth is also accelerating on the continent…We expect the strong market conditions to extend into next year.”


Simon Property Group’s (SPG) CEO David Simon on Q3 2015 Results

Bankruptcies in 2015 but better comps than expected

“We are obviously had a lot more bankruptcies in ’15 than we did in ’14 and the other impact we’ve had on the negative side is that we’ve lost certain amount of percentage rent from the outlet business because of the fact that the strong dollar has also heard tourism shopping and we’ve seen that impacted more in the outlet business, the outlet tourists centers then we had in the mall business. The mall comp sales have been a better than our expectations and our leading portfolio in terms of that.”


Applied Industrial Technologies (AIT) Neil A. Schrimsher on Q1 2016 Results

October declined from September

“I mean we had a weakness in July, some expected. That continued through August. And off of that lower base, September probably came in modestly positive. As we look month-to-date through October, I’d say sequentially, it’s around 2% decline that we would see off that period”


CBRE Group’s (CBG) CEO Bob Sulentic on Q3 2015 Results

Our strongest growth is in Europe

“we are not seeing a lot of pressure. I would tell you where we are seen the strongest growth is in Europe. You saw the results this quarter, we expect that continue, but we saw good growth in places where people did not necessarily expected. In Greater China, we had nice growth. In Australia, we did, so we have not felt a lot of meaningful pressure at this point and the backlogs of business we have suggest that year should finish out nicely for us.”

Not seeing any deals die because of lack of capital

“From what we have seen, there is sufficient capital from other sources to step in. As I mentioned earlier, we have been anticipating that the rate of growth in sales will come down to a more sustainable level and we still believe that that is likely to be the case, but we are not seeing deals die basically because of a lack of capital”


Mondelez International (MDLZ) Irene B. Rosenfeld on Q3 2015 Results

13 percentage point currency headwind

” Based on current spot rates, we estimate currency to have a negative 13 percentage point impact for the year, a little more than our previous estimate of a 12-point impact”

The European retail environment is challenging

“the European retail environment is challenging. And I think we have been able to hold our own quite well. They’re interested in some of the very same things that our retailers around the world are interested in: what’s happening in health and wellness, what’s happening on the innovation front. And as long as we continue to drive traffic to their stores, we’re an important partner.”


AGCO (AGCO) Martin H. Richenhagen on Q3 2015 Results

Another robust harvest putting pressure on farm economics

“Another year of robust global harvest is putting pressure on commodity prices, and more challenging farm economics has reduced demand for agricultural machinery, especially for larger models.”

Argentina has increased import allowances

“the biggest export market outside of Brazil, or the market that we ship the equipment from Brazil to, is Argentina. And as you’re aware, the last few years they’ve had import restrictions that has really reduced sales in that market. This year, though, there has been some increase to those import and import allowances.”


Walgreens Boots Alliance (WBA) Stefano Pessina on Q4 2015 Results

Global healthcare markets are ready for change through scale

“The global healthcare markets, and perhaps the U.S. market more than any, are ready for change, and open to new ideas and new approaches that throughout provide scale. As the leading global healthcare company, we have the potential to play a defining role in this evolution.”

We’re not doing the RAD deal to increase our negotiating power with the payer and PBM

“Well, we have not done this to increase our negotiating power with payer and PBM. We have done this because we believe that we can extract a lot of synergies, rationalizing the combined company for, I would say, from internal sources and the harmonization of prices”

This deal will not reduce competition because we’re in an environment with lots of competition

“at the end of the day we are in an environment where the margins are decreasing. So it was decreasing. We are in an environment where there is a lot of competition. And the fact that we put together two companies will not reduce the competition – not just the competition among pharmacies.”


Macerich’s (MAC) Management on Q3 2015 Results

Apparel sales are struggling with lack of a distinct fashion trend

“On the negative side, apparel sales are only showing modest sales per square foot gains, if they struggle with a lack of a distinct fashion trend increasing competition from large format retailers and sluggish consumer settlement”

We anticipate bankruptcies will likely be comparable or higher than in previous years

“Looking towards the end of the year, we are anticipating that bankruptcies are likely to be comparable or higher than in previous years. Many of these retailers are public companies and based on their current stock prices the markets are pricing in a significant risk of bankruptcy. Contrary to the previous year, we are expecting less store closing as part of the bankruptcies as many of the retailers are prime candidates for restructuring with a smaller store base. Again, we believe the lower quality centers will be disproportionately impacted.”

Chains will use bankruptcy to their advantage to reduce store count

‘these chains will use bankruptcy potentially to reduce their store count.Outside of bankruptcy it’s more difficult, because the landlords will typically require some buyout or compensation and many of the companies have not – there’s been very few examples where companies have been successful doing that.”


Manitowoc (MTW) Kenneth W. Krueger on Q3 2015 Results

Deteriorating demand for tower cranes

“our third quarter results were disappointing, as deteriorating demand for tower cranes in the Middle East and Asia coupled with lower than anticipated all-terrain and crawler crane shipments, all contributed to the shortfall in revenues. The current global economic environment affecting customer demand is unlike any cycle we’ve seen in the recent past. Uncertainty among our customers is mounting due to emerging market peers, ongoing question over Chinese growth outlook, persistent depressed oil prices and slowing domestic growth. ”

The third quarter was one of the most difficult operating environments in recent memory

“The third quarter proved to be one of the most volatile and difficult operating environments in recent memory. Manitowoc has weathered many economic cycles and our team has proven its ability to manage the business without compromising our competitive position in the marketplace. This cycle should be no different.”


Delphi Automotive Plc (DLPH) Q3 2015 Results

China was significantly weaker than expected, but we are now starting to see a pickup in orders

“we’re real optimistic. We’re still optimistic about China. For the third quarter, it was significantly weaker than what we originally estimated. If you recall, our outlook was China up about 3.5% or 4% in the third quarter; ended up actually being down 9%. So it was very fluid. For the fourth quarter, our original outlook was China volume up roughly 5%. Current outlook is basically down a point. However, when we look at sequentially third to fourth quarter, we are starting to see a pickup in orders, a strengthening in the market, sequential growth in vehicle production”


The New York Times (NYT) Mark J. T. Thompson on Q3 2015

NYT exploring ways to deal with ad blockers

“Now ad blockers have been much in the news perhaps this is a good moment to give our perspective on that topic. As you know the Times’ digital subscription revenue stream means that we are significantly less expose the most publishers to the impact of ad blockers. Nonetheless, let me make it clear that we oppose ad blocking. The creation of quality news content is expensive and digital advertising is an important way in which we and other high-quality news providers fund news gathering operations. We are exploring a number of options including but not limited to technical solutions to mitigate the impact of ad blockers should the threat increase.”

Strength in luxury, technology advertising

“We’ve seen in Q3, and I think this will continue in Q4 real briskness in the luxury business. We saw real briskness in Q3 in the technology business. I think that will continue. And then there are other categories like retail where we just have less visibility and where there tends to be more volatility.”

We are a journalism play

“we are a journalism play. We are a news and features and opinion provider with multiple platforms, and we’re very interested in the synergies between the platforms. ”


BorgWarner’s (BWA) CEO James Verrier on Q3 2015 Results

Lowering sales guidance thanks to weakness in China and global commercial vehicle markets

“Our reported sales growth is now expected to be between minus 6% at the low end and minus 5% at the high end. This is compared with minus 5.5% to minus 2.5% previously. The change in our sales growth guidance is primarily related to two things. The impact of weaker than expected market conditions in China on our business and weak commercial vehicle markets around the world.”