In the news this morning, Infosys denies reports that it plans to lay off 5,000 workers, Transocean settles with the Justice Department, Coinstar's CEO plans to retire and earnings and guidance news from Eli Lilly and Mosiac.
IT service provider Infosys (INFY) on Friday denied a newspaper report that it planned to fire up to 5,000 poorly performing workers. The company did say that as part of its routine management it encourages “chronic underperformers” to leave. The Economic Times had said the layoffs were to trim costs, but Infosys denied that report and said that it is no planning a mass layoff and that the number of underperforming employees was considerable less than 5,000.
Transocean (RIG) and the Justice Department reached a $1.4 billion settlement on Thursday in connection with the explosion and sinking of the Deepwater Horizon in the Gulf of Mexico in 2010. The deal resolved civil and criminal investigations into the disaster. Transocean will pay $1 billion in civil penalties and $400 million in criminal penalties. The company will also plead guilty to a misdemeanor charge of violating the Clean Water Act.
Coinstar, which is the parent of Redbox, said Thursday that Paul Davis, the company's CEO will retire on March 31. Scott Di Valerio, the company's CFO, will take over as CEO. Di Valero will also join the company's board. Galen Smith, who currently manages Redbox's finances, will replace Di Valerio as CFO. Coinstar also said that its revenues for the fourth quarter and full year will be within its prior guidance range, while adjusted earnings will be at or above the high end of its previous range due to low expenses and tax benefits.
Drug maker Eli Lilly (LLY) expects 2013 earnings of $3.75 to $3.90 per share on revenues of $22.6 billion to $23.4 billion. Analysts had been expecting revenue of $3.72 per share on revenue of $22.87 billion.
Mosiac reported adjusted EPS of $1.02 for the quarter ended Nov. 30, beating estimates for $.93 per share. The company said it expects to sell between 1.5 million and 1.8 million tones of Potash in the third quarter at prices between $370 and $400 per ton. That compares to $443 per ton in the second quarter.