U.S. Movers: Brady, Broadcom, Colfax, McGraw-Hill, W.W. Grainger

Mukesh Buch
12 Sep, 2011
New York City

Brady fourth quarter net income soared 37% to $29.6 million. Broadcom agreed to acquire NetLogic for $3.7 billion in cash and Colfax agreed to buy Charter International Plc. for $2.4 billion. McGraw-Hill split up into two public companies. W.W. Grainger August sales grew 10%.

[R]11:30 AM New York – Brady fourth quarter net income soared 37% to $29.6 million. Broadcom agreed to acquire NetLogic for $3.7 billion in cash and Colfax agreed to buy Charter International Plc. for $2.4 billion. McGraw-Hill split up into two public companies. W.W. Grainger August sales grew 10%.[/R]

Of 30 the stocks in the Dow, 8 increased and 22 decreased.

Of the stocks in the Dow Jones Industrial Average, Intel Corporation led the gainers with a rise of 1.5% followed by increase in 3M Company of 0.6%, in McDonald’s Corporation of 0.5%, in General Electric Company of 0.5%, in Bank of America Corporation of 0.3%.

The Boeing Company led the decliners with a fall of 1.5%, followed by decline in Johnson & Johnson of 1.4%, in Hewlett-Packard Company of 1.3%, in Pfizer Inc. of 1.2%, in Merck & Co., Inc. of 1.2%.

Other Movers

Brady Corporation ((BRC)) increased 1.9% or 50 cents to $26.31 after the security systems and service provider reported fourth quarter sales increased 6.3% to $343.1 million from $322.9 million in the same quarter last year. Net income in the quarter soared 37% to $29.6 million or 55 cents per diluted share compared to $21.6 million or 41 cents per share a year ago.

Broadcom Corporation ((BRCM)) decreased 2.8% or 95 cents to $32.49 after the communication equipment provider agreed to acquire NetLogic Microsystems, Inc. ((NETL)) in $3.7 billion net of cash assumed. Shareholders of NetLogic will receive $50 per share. The transaction is expected to close in first half of 2012.

Broadcom today also reiterated its outlook for third quarter of 2011 and expects revenue around the middle of the previous range of $1.9 billion and $2.0 billion.

Colfax Corporation ((CFX)) slumped 11.4% or $2.64 to $20.40 after the fluid handling products supplier agreed to buy Charter International Plc. The transaction values for 1.53 billion pounds or for $2.4 billion.

Coca-Cola Enterprises Inc. ((CCE)) fell 0.4% or 11 cents to $25.23 after the beverages maker estimated full-year 2011 earnings a share in a range of $2.10 to $2.15, including a positive currency impact of about $0.15 per share.

The company''s board approved a new $1 billion share repurchase program which is to begin when the current $1 billion share repurchase program announced in October 2010 is completed.

Global Industries, Ltd. ((GLBL)) soared 51.2% or $2.64 to $7.79 after the oil well services provider said France based Technip SA to acquire 100% of Global Industries, Ltd. for $8 per share in cash that valued the company at $1,073 million. The transaction is expected to close in early 2012.

Lululemon Athletica inc. ((LULU)) decreased 1.9% or $1.12 to $53.94 after the athletic apparel maker reported second quarter net revenue improved 39.5% to $212.32 million from $152.21 million a year ago. Net income in the quarter surged 76% to $38.38 million or 26 cents per diluted share compared to net income of $21.79 million or 15 cents per share in 2010.

The McGraw-Hill Companies, Inc. ((MHP)) increased 1.3% or 54 cents to $39.26 after the publisher said its board approved to split up into two public companies. McGraw-Hill Markets primarily focused on capital and commodities markets and McGraw-Hill Education focused on education services and digital learning.

The Company expects to complete the transaction by the end of 2012 through tax free spin-off of the education business.

W.W. Grainger, Inc. ((GWW)) rose 7 cents to $149.29 after the industrial supply company said daily August sales grew 10% from the previous year, including a 1 percentage point positive contribution from foreign exchange.