Do capital expenditures influence earnings performance: Evidence from loss‐making firms

2020 ◽  
Author(s):  
Sungsoo Kim ◽  
Amitav Saha ◽  
Sudipta Bose
Keyword(s):  
Capital Expenditures ◽  
Earnings Performance

Bleaching optimization at WestRock mill in Covington, Virginia

TAPPI Journal ◽  
2016 ◽  
Vol 15 (9) ◽  
pp. 581-586 ◽  
Author(s):  
RICARDO B. SANTOS ◽  
PETER W. HART ◽  
DOUGLAS C. PRYKE ◽  
JOHN VANDERHEIDE
Keyword(s):  
Hydrogen Peroxide ◽  
Sodium Hydroxide ◽  
Chlorine Dioxide ◽  
Capital Expenditures ◽  
Equipment Repair ◽  
Optimization Program ◽  
Hardwood Pulp ◽  
Improved Performance

The WestRock mill in Covington, VA, USA, initiated a long term diagnostic and optimization program for all three of its bleaching lines. Benchmarking studies were used to help identify optimization opportunities. Capital expenditures for mixing improvement, filtrate changes, equipment repair, other equipment changes, and species changes were outside the scope of this work. This focus of this paper is the B line, producing southern hardwood pulp in a D(EP)DD sequence at 88% GE brightness. The benchmarking study and optimization work identified the following opportunities for improved performance: nonoptimal addition of caustic and hydrogen peroxide to the (EP) stage, carryover of D0 filtrate to the (EP) stage, and carryover of (EP) filtrate to the D1 stage. As a result of actions the mill undertook to address these opportunities, D0 kappa factor decreased about 5%, sodium hydroxide consumption in the (EP) stage decreased about 35%, chlorine dioxide consumption in the D1 stage decreased about 25%, and overall bleaching cost decreased about 15%.

Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

2020 ◽  
Vol 19 (6) ◽  
pp. 1101-1120
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Cash Flow ◽  
Oil And Gas ◽  
Cash Flows ◽  
Annual Reports ◽  
Capital Expenditures ◽  
Publicly Traded ◽  
The Public ◽  
Statement Of Cash Flows ◽  
Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

Earnings Shortfalls and Strategic Profit Allocations in Segment Reporting

2019 ◽  
Vol 33 (4) ◽  
pp. 37-58 ◽  
Author(s):  
Timothy D. Haight
Keyword(s):  
Firm Value ◽  
Data Availability ◽  
Segment Reporting ◽  
Market Responses ◽  
Earnings Components ◽  
The Future ◽  
Earnings Performance ◽  
Profit Rates

SYNOPSIS I examine whether firms strategically classify earnings components when reporting bad earnings news. Specifically, I examine whether firms reporting small earnings shortfalls allocate profits across their business segments in a manner that understates the future implications and within-firm drivers of disappointing earnings performance. I find that firms reporting small earnings shortfalls transfer profits toward segments in which profit rates are more informative for firm value and away from segments that operate in industries with higher frequencies of bad earnings news. In addition, I find that shortfall shifting initially tempers negative market responses to shortfall news, but pricing effects reverse in the months following shortfall announcements. My findings suggest that firms strategically classify earnings components when reporting small earnings shortfalls and that strategic classifications temporarily affect the pricing of shortfall news. Data Availability: Data are available from public sources identified in this paper.

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