U.S. Indexes Sideways, PF Chang

Arthi Gupta
01 May, 2012
New York City

U.S. indexes traded sideways ahead of the manufacturing data. Mitsubishi and Mitsui agreed to buy minority stake in Australian LNG project for $2 billion. P.F. Chang''s China Bistro agrees to a leverage buyout deal of $1.1 billion.

[R]9:20 AM New York – U.S. indexes traded sideways ahead of the manufacturing data. Mitsubishi and Mitsui agreed to buy minority stake in Australian LNG project for $2 billion. P.F. Chang''s China Bistro agrees to a leverage buyout deal of $1.1 billion.[/R]

U.S. indexes traded sideways ahead of key economic data and News Corp Chief Executive Rupert Murdoch was found to be unfit to run large multinational company by a UK parliament panel.

Many European and Asian markets are closed to celebrate Labor Day. Asian stocks traded mixed.

China''s manufacturing activity improved in April, led by an expansion in production and new export orders, the latest survey by the China Federation of Logistics and Purchasing showed.

The official purchasing managers'' index rose to 53.3 in April from 53.1 in March.

The production index rose to 57.2 in April from 55.2 in March. The new export orders index advanced to 52.2 in April from 51.9 in March.

The Reserve Bank of Australia today slashed the benchmark cash rate by 50 basis points to 3.75% by largest four banks defied the move and did not lower the mortgage and other lending rates.

Mitsubishi, Mitsui Buys Stake in Australian LNG Project

Mitsubishi Corp. and Mitsui & Co. Ltd., the Japanese companies agreed to buy a 14.7% stake in Woodside Petroleum Ltd.''s equity in the proposed Browse LNG Project in Australia for $2 billion.

Japan Australia LNG Pty Ltd, the 50-50 joint venture between Mitsui and Mitsubishi will make the deal as part of its efforts to further enhance its LNG business in that country. The transaction is expected to contribute to reliable supply of energy to Japan and the East Asian region.

P.F. Chang''s China Bistro in $1.1 Billion Deal

P.F. Chang''s China Bistro, Inc. entered into a merger agreement with Centerbridge Partners, L.P., a leading private investment firm, in a transaction valued at approximately $1.1 billion.

Under the terms of the merger agreement, Centerbridge will acquire all of the outstanding shares of P.F. Chang''s common stock for $51.50 per share in cash, representing a premium of approximately 30% over the average closing for the 30 days ended April 30.

Equinix to Acquire Asia Tone


Equinix, Inc., a provider of global data center services agreed to acquire certain assets and operations of Hong Kong-based data center provider Asia Tone in an all cash transaction valued at $230.5 million.

In total, Equinix gains five data centers and one disaster recovery center, in addition to one data center under construction, located across three key markets – Hong Kong, Shanghai and Singapore.

Earnings Review

Automatic Data Processing, Inc. ((ADP)), the payroll processor reported third quarter revenues rose 6.6% to $2.92 billion from $2.74 billion in the prior year quarter. Net earnings in the quarter rose 6.7% to $452.4 million compared to net earnings of $423.8 million in the same quarter last year.

Earnings per share were 92 cents from 85 cents a year ago on fewer shares outstanding.

Cummins Inc. ((CMI)), the diesel engine manufacturer said first quarter net sales grew 16% to $4.47 billion from $3.86 billion in the prior-year quarter. Net profit in the quarter increased 33% to $455 million or $2.38 per diluted share compared to net profit of $343 million or $1.75 per share a year ago.

Icahn Enterprises, L.P. ((IEP)), the diversified holding company reported first quarter revenue fell 13% to $2.68 billion from $3.08 billion a year ago. Net income in the quarter slumped 80% to $49 million or 49 cents per diluted LP unit compared to net income of $240 million or $2.65 per diluted LP unit for the year-ago quarter.

Pfizer Inc. ((PFE)), the biopharmaceutical company reported first quarter revenues fell 7% to $15.4 billion from $16.50 billion in the year-ago quarter. Net income in the quarter dropped 19% to $1.79 billion or 24 cents per diluted share compared to net income of $2.22 billion or 28 cents per share last year.

Thomson Reuters Corporation ((TRI)), the provider of information said first quarter revenues edged higher 1% to $3.35 billion from $3.33 billion in the prior-year quarter. Net earnings in the quarter climbed 25.6% to $314 million or 38 cents per diluted share compared to net earnings of $250 million or 30 cents per share a year before.