Consumer shares are generally higher in pre-bell trading. J.C.
) shares are up about 2% pre-bell after William Ackman, founder of
hedge fund Pershing Square, said he was stepping down from the
Ackman has been pushing for the retailer to replace CEO Mike
Ullman. The board on Tuesday threw its support behind Ullman, who
also has the backing of investor George Soros. J.C. Penney stock is
trading close to the bottom of its 52-week range of $2.34 -
And, in acquisition news, Whirlpool (
) will become a majority shareholder (51%) in Hefei Rongshida Sanyo
Electric Co., a home appliances manufacturer based in Hefei,
Through this transaction, a Whirlpool Corporation subsidiary
will acquire all shares currently owned by Sanyo Electric Co. Ltd.
and Sanyo Electric Co., and purchase new Hefei Sanyo shares via a
private placement. Whirlpool will acquire a majority stake in Hefei
Sanyo for approximately $552 million cash. The transaction is
expected to close by the end of 2014. WHR shares are flat at
$135.06 per share.
And, Roadrunner Transportation Systems (
) said Monday that it will offer 3.5 million shares of common
stock, of which 1.5 million shares are being offered by the company
and 2 million shares are being offered by selling stockholders. The
selling stockholders will grant the underwriters in the offering an
option to purchase up to 525,000 additional shares of common stock
at the same price per share to cover any over-allotments.
RRTS expects to use the net proceeds from the offering to repay
a portion of the outstanding indebtedness under its revolving line
of credit and for other general corporate purposes. Shares closed
at $29.71 with a 52-week range of $15.00 - $30.98.
In consumer earnings, Flowers Foods, Inc. (
) shares are up 2% at $24.00 after it reported Q2 2013 adjusted net
income of $50.1 million, or $0.24 per diluted share, on sales of
$898.2 million. Analysts expected EPS of $0.23 and revenues of $860
million. In the same period last year, adjusted net income was
$29.8 million, or $0.14 per diluted share, on sales of $681.6
The company expects 2013 sales of $3.793 billion to $3.824
billion and EPS of $0.92 to $0.98. The Street view is $3.70 billion
in sales and earnings of $0.97. FLO shares are close to the top of
their 52-week range of $24.50.
Finally, Cache (
) says Q2 sales were $60.1 million, above the Thomson Reuters mean
for $59.63 million. Adjusted net loss was $0.12 per share, meeting
estimates. CACH is flat at $4.16.