U.S. Movers: Rock-Tenn, Smurfit-Stone Container, Halliburton

Mukesh Buch
24 Jan, 2011
New York City

U.S. stocks traded higher ahead of the two-day Fed meeting. Sara Lee Corp rose 2% as leverage buyout funds compete to acquire the food maker. Rock-Tenn Co agreed to acquire Smurfit-Stone Container Corp. General Electric agreed to sell its Asia unit to Standard Chartered Bank.

[R]10:30 AM New York – U.S. stocks traded higher ahead of the two-day Fed meeting. Sara Lee Corp rose 2% as leverage buyout funds compete to acquire the food maker. Rock-Tenn Co agreed to be acquire Smurfit-Stone Container Corp. General Electric agreed to sell its Asia unit to Standard Chartered Bank.[/R]

Of 30 the stocks in the Dow, 21 increased and 8 decreased and 1 unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Intel Corporation led the gainers with a rise of 1.78% followed by increase in Cisco Systems, Inc. of 0.80%, in General Electric Company of 0.61%, in Alcoa Inc. of 0.57%, in International Business Machines Corp. of 0.53%.

McDonald’s Corporation led the decliners with a fall of 0.95%, followed by decline in Hewlett-Packard Company of 0.93%, in Bank of America Corporation of 0.49%, in Wal-Mart Stores, Inc. of 0.48%, in Johnson & Johnson of 0.29%.

Other Movers

Airgas, Inc. ((ARG)) fell 0.3% or 25 cents to $63.60 after the industrial gas distributor reported third quarter net sales grew 9.5% to $1.03 billion from $944.76 million in the same quarter last year. Net earnings in the quarter increased 19% to $55.83 million or 65 cents per diluted share compared to net earnings of $46.87 million or 56 cents per share in the previous year.

Bank of Hawaii Corporation ((BOH)) increased 1.3% or 63 cents to $48.25 after the bank holding company stated fourth quarter net income grew 0.1% to $40.58 million from $40.52 million in the year-ago period. On a per share basis, earnings were $0.84, same as last year. Net interest income, on a taxable equivalent basis, declined 7% to $96.6 million from $103.8 million in the prior-year period.

First Horizon National Corporation ((FHN)) fell 0.6% or 8 cents to $11.71 after the financial services provider reported fourth quarter total revenue declined 10% to $393.19 million from $436.09 million in the same period last year. Net loss in the quarter narrowed 31% to $48.69 million or 20 cents per diluted share compared to net loss of $70.56 million or 30 cents per share in the year-ago period.

Koninklijke Philips Electronics NV ((PHG)) tumbled 6.1% or $2.04 to $31.40 after the consumer electronics company reported fourth quarter sales grew 2% to €7.4 billion from €7.26 billion in the prior-year quarter. Net income in the quarter increased 84.4% to €463 million from €251 million last year. Earnings per share rose to 0.49 euro from 0.27 euro in the same quarter last year.

Halliburton Company ((HAL)) decreased 1.4% or 58 cents to $38.61 after the oilfield services provider reported fourth quarter total revenue grew 40% to $5.16 billion from $3.69 billion in the comparable period last year. Net income in the quarter surged 149% to $605 million or 66 cents per diluted share compared to net income of $243 million or 27 cents per share in the same quarter last year.

Prosperity Bancshares, Inc. ((PRSP)) increased 1.1% or 46 cents to $41.23 after the holding company for Prosperity Bank reported fourth quarter net income rose 7.3% to $32.80 million or 70 cents per diluted share from $30.57 million or 65 cents per share reported last year. Net interest income slipped 0.7% to $79.51 million from $80.09 million in the prior year, primarily due to lower yields on investment securities.

Full-year net income advanced to $127.71 million or $2.73 per share from $111.88 million or $2.41 per share in the prior year. Net interest income in the year climbed to $318.15 million from $307.10 million.

Rock-Tenn Company ((RKT)) surged 7.1% or $4.07 to $61.25 after the packaging material manufacturer announced that the Boards of Directors agree to acquired Smurfit-Stone Container Corp. with aggregate consisting of 50% cash and 50% RockTenn stock in total of approximately $3.5 billion. The aggregate consideration is $35 per Smurfit-Stone common share.

Rock-Tenn reported first quarter of fiscal 2011 net sales increased 10.2% to $761.1 million compared to $690.8 million first quarter of fiscal 2010. Net income generated in the quarter was $50.3 million or $1.27 per diluted share compared to $56.3 million or $1.43 per share in the prior year quarter.

Smurfit-Stone Container Corporation ((SSCC)) soared 29% or $7.99 to $35.51 after the integrated manufacturer of paperboard and paper-based packaging reported fourth quarter net sales rose 18% to $1.63 billion compared with sales of $1.38 billion in the year-ago quarter. Net income generated in the quarter was $49 million or 49 cents per diluted share compared with a net loss of $6 million or 2 cents per share in the prior year quarter.

Steel Dynamics, Inc. ((STLD)) rose 0.06% or 1 cent to $17.73 after the steel producer and metals recycler said fourth quarter net sales increased 30% to $1.53 billion from $1.18 billion last year. Net income in the quarter plunged 71% to $7.79 million or 4 cents per diluted share compared to net income of $26.65 million or 12 cents per share prior year.

Twin Disc, Inc ((TWIN)) gained 2% or 59 cents to $29.00 after the power transmission equipment maker reported second quarter sales increased $75.16 million compared to $55.19 million in the year-ago quarter. Net earnings in the quarter ware $4.0 million or 35 cents per diluted share compared with a net loss of $0.5 million or 4 cents per share in the prior year quarter.

Verizon Communications Inc. ((VZ)) fell 0.03% or 1 cent to $34.94 after the telecom services provider said that it will incur a pre-tax charge of $600 million in fiscal year 2010 as the company adopted a new policy that changes its method of accounting for pensions and other post-employment benefits.

Wintrust Financial Corporation ((WTFC)) rose 0.1% or 6 cent to $33.28 after the financial holding company reported fourth quarter net revenue declined to $157.1 million from $172.0 million from a year ago. Net income in the quarter plunged to $14.2 million or loss of 6 cents per diluted share compared to net income of $28.1 million or 96 cents per share in the same quarter last year.