Other finance stories in brief
Profits at Exxon Mobil up but lag behind Royal Dutch Shell and BP
Exxon Mobil posted the smallest earnings increase among the world's three largest oil companies, falling short of analysts' estimates as production dropped and profit margins from refining narrowed. Exxon Mobil fell 2.5 per cent to $90.77 in trading before US exchanges opened after the Irving, Texas-based company said first-quarter net income rose to $10.9 billion, or $2.03 a share, from $9.28 billion, or $1.62, a year earlier.
Per-share profit was 10 cents below the average of 17 analyst estimates compiled by Bloomberg. Exxon Mobil's 17 per cent profit increase lagged behind the gains of 25 per cent and 63 per cent reported this week by Royal Dutch Shell and BP and gas production fell 5.6 per cent, leaving chief executive officer Rex Tillerson unable to take full advantage of record crude prices.
DAA in €500m loan deal
The Dublin Airport Authority (DAA) yesterday said it had agreed terms for a €500 million revolving-loan facility to help fund its investment programme at the airport. The new financing is being provided by Bank of Ireland Corporate Banking, Barclays Bank plc and BNP Paribas.
The DAA last year secured a €300m revolving-loan facility. The funds will be used to help finance the authority's €2 billion revamp of the airport complex, which will include a second passenger terminal.
Ray Gray, director of finance at the DAA, said the loan facility demonstrated the DAA's "ability to raise significant new debt finance in volatile market conditions" and reflected its "strong balance sheet and excellent credit profile".
US consumers still spending
The long list of economic headwinds failed to push back US consumers' spending in March as they opened their wallets for higher-priced food and energy and services.
The Commerce Department reported March personal consumption expenditures rose 0.4 per cent, above the 0.1 per cent rise in February. After adjusting for higher prices, real consumer spending was up 0.1 per cent compared with no change in the preceding month.
Personal income rose 0.3 per cent for the month, as expected, and down from the surprisingly high 0.5 per cent increase in February.
But after adjusting for inflation and taxes, real disposable income actually fell slightly - less than one tenth of a percentage point.
Diageo decision on James's Gate brewery expected soon
Diageo Ireland managing director Michael Ioakimides, the man credited with a prime role in returning Guinness to growth after eight years of decline, will will leave the company in September. Diageo said he was moving to a post of international managing director for a global company, but did not name the organisation in question. Diageo is expected soon to conclude a review which will determine whether it will continue brewing at St James's Gate, Dublin, or move to another location.
