U.S. Movers: Genesee, GenCorp, Eaton, Halliburton, McDonald

Mukesh Buch
23 Jul, 2012
New York City

Cnooc agreed to buy Nexen for $15 billion. Genesee agreed to acquire RailAmerica for $1.39 billion. Halliburton second quarter net slid. McDonald

[R]10:50 AM New York – Cnooc agreed to buy Nexen for $15 billion. Genesee agreed to acquire RailAmerica for $1.39 billion. Halliburton second quarter net slid. McDonald’s second quarter net fell and expects third quarter comparable sales may weaken.[/R]

Bank of Hawaii Corporation ((BOH)) fell 14 cents to $46.19 after the regional bank said total revenue in the second quarter ending in June rose 2.2% to $95.4 million compared to $97.5 million in the same period of last year. Net income in the quarter surged 16% to $40.7 million or 90 cents per diluted share compared to $35.1 million or 74 cents per share a year ago earlier.

Loan and lease balances rose 1.3% to $5.7 billion in the second quarter from gained of 6% in the same quarter of last year and deposit growth continued to increasing $11.5 billion at the end of quarter on June 30.

Cnooc Limited declined 4% or $8.20 to $194.55 after the Hong Kong based investment holding company agreed to buy Canada based Nexen Inc. $27.50 per share or total of $15 billion in cash. The purchase price consist premium of 61% to closing price of Nexen’s common shares on July 20. The transaction expected to close in the fourth quarter of this year.

Cnooc Limited plan to list its common shares on the TSX. Through the acquisition Cnooc will be able to expand its overseas businesses in Canada, Nigeria and the Gulf of Mexico.

DreamWorks Animation SKG, Inc. ((DWA)) slid 10 cents to $19.06 after the animated films maker agreed to acquire Classic Media owner of family entertainment company for $155 million in cash from Boomerang Media Holdings I LLC of a private equity firm GTCR and expects transaction is expected to complete during the quarter ended September 30.

Eaton Corporation ((ETN)) gained 3.4% or $1.35 to $40.41 after the electrical components provider reported revenues in the second quarter ending in June nearly flat to $4.07 billion compared to same period of last year. Net income in the quarter soared 13.7% to $382 million or $1.12 per diluted share compared to $336 million or 97 cents per share a year ago earlier.

Eaton expected acquisition of Cooper Plc will be to close in second half of 2012 and expect 2012 to be record sales of above 4% but narrowing full year guidance range and slightly adjusting the midpoint.

Genesee & Wyoming Inc. ((GWR)) rose 19 cents to $56.17 after the regional railroad operator agreed to acquire RailAmerica Inc. ((RA)) for $27.50 per share or total transaction valued for $1.39 billion in cash represents a premium of 10.6% over the closing stock price as of July 20.

GenCorp Inc ((GY)) soared 8.3% or 56 cents to $7.31 after the aerospace and defense products maker agreed to acquire Pratt & Whitney Rocketdyne ((PWR)) from United Technologies Corporation ((UTX)) for $550 million. The acquisition is expected to close in first half of 2013 and expected to be accretive to earnings in the first year.

Halliburton Company ((HAL)) slid 3 cents to $30.74 after the oilfield service provider reported revenue in the second quarter ending in June soared 23% to $7.23 billion compared to $5.93 billion in the same period of last year. Net income in the quarter edged lowered to $737 million or 79 cents per diluted share compared to $739 million or 80 cents per share a year ago.

Annual spring break-up in Canada rig count dropped 70% sequentially and natural gas directed rigs finished the quarter declined 12-year low. Lowered income is impacted by escalating costs associated processes.

Hasbro, Inc. ((HAS)) increased 3.4% or $1.15 to $34.99 after the toy maker reported total revenue in the second quarter ending on July 1 slumped 11% to $811.5 million compared to $908.5 million in the same period of last year. Net earnings in the quarter declined 25.1% to $43.4 million or 33 cents per diluted share compared to $58.0 million or 42 cents per share a year ago period.

U.S. and Canada segment net revenues declined 19% to $406.6 million from $505.0 million and in the entertainment and licensing segment revenues surged 59% to $43.2 million from $27.2 million in the same period of 2011.

The toy maker expect revenues to occur in the second half of the year between 2% and 4% more and the company expect fourth quarter to be stronger than third quarter in revenue and earnings per share,

McDonald’s Corporation ((MCD)) slipped 2.7% or $2.55 to $89.03 after the restaurants operator reported revenue in the second quarter ending in June essentially flat to $6.91 billion compared to in the same period of last year. Net income in the quarter slid 4% to $1.35 billion or $1.32 per diluted share compared to $1.41 billion or $1.35 per share a year ago.

Global comparable sales increased 3.7% in U.S. comparable sales increased 3.6% in Europe it is 3.8% while Asia/Pacific, Middle East and Africa posted modest comparable sales of 0.9% for the quarter.

McDonald’s added that the third quarter global comparable sales for July and expected to be positive but less than second quarter.

RPM International Inc. ((RPM)) decreased 2.3% or 64 cents to $26.60 after the chemical product maker reported revenue in the fourth quarter ending in May increased 12.2% to $1.1 billion compared to $981.8 million in the same period last year. Net income in the quarter surged 17.7% to $82.6 million or 63 cents per diluted share compared to $70.2 million or 54 cents per share a year ago.