Apache, Kraft Foods, Kellogg Rise; Activision Falls

Mukesh Buch
03 Aug, 2012
New York City

AIG second quarter net surged 27% and renamed its advisory services business. Apache second quarter net plunged 73% and Activision net declined 45%. Kraft Foods net rose 5.4% to $1.03 billion and set October 1 as the spin-off date.

[R]10:45 AM New York – AIG second quarter net surged 27% and renamed its advisory services business. Apache second quarter net plunged 73% and Activision net declined 45%. Kraft Foods net rose 5.4% to $1.03 billion and set October 1 as the spin-off date.[/R]

American International Group, Inc. ((AIG)) rose 19 cents to $31.04 after the insurance company reported net premiums written in the second quarter ending in June slid 0.8% to $9.09 billion compared to $9.17 billion in the same period of last year. Net income in the quarter surged 27% to $2.34 billion or $1.33 per diluted share compared to $1.84 billion or $1 per share a year ago earlier.

AIG said auction of Maiden Lane III is nearly completed and received $6.1 billion in July and expects to receive $1.9 billion in mid-August.

AIG renamed the SunAmerica Financial Group segment and now will be as AIG Life and Retirement, as stated in the statement released today.

Apache Corporation ((APA)) increased 1.4% or $1.09 to $83.69 after the oil and gas explorer reported total revenues in the second quarter ending in June dropped 9% to $3.97 billion compared to $4.34 billion in the same period of last year. Net income in the quarter plunged 73% to $337 million or 86 cents per diluted share compared to $1.24 billion or $3.17 per share a year ago period.

Apache said volatility of commodity markets during the second quarter marked by worldwide, Apache received an average of $97.66 per barrel of oil declined from $106.31 per barrel in the year ago period.

Activision, Inc. ((ATVI)) slipped 4.2% or 50 cents to $11.26 after the electronic game publisher reported total revenues in the second quarter ending in June slipped 6% to $1.08 billion compared to $1.15 billion in the same period of last year. Net income in the quarter declined 45% to $185 million or 16 cents per diluted share compared to $335 million or 29 cents per share a year ago quarter.

Revenues from digital channels were $343 million, representing 32% of total revenues. Activision raised its calendar year net revenue to be $4.33 billion compared to previous guidance of $4.20 billion and earnings per share of 69 cents compared to 65 cents a year ago. For the third quarter, the company estimated net revenues of $740 million and earnings per share of 6 cents.

Agrium Inc. ((AGU)) rose 74 cents to $94.93 after the Canada based nutrients products maker reported total revenues in the second quarter ending in June grew 10% to $6.83 billion compared to $6.20 billion in the same period of last year. Net earnings in the quarter soared 20% to $860 million or $5.44 per diluted share compared to $718 million or $4.54 per share a year ago period.

Retail sales increased by 12% due to higher sales volumes but wholesale sales were essentially unchanged from 2011.

Agrium said it will repurchase C$900 million of outstanding common shares.

Enbridge Inc. ((ENB)) rose 31 cents to $39.95 after the Canada based energy transporter reported total revenues in the second quarter ending in June declined 18% to $5.72 billion compared to $6.94 billion in the same period of last year. Net earnings in the quarter tumbled 96% to $11 million or 1 cent per diluted share compared to $302 million or 40 cents per share a year ago period.

Enbridge guided full year adjusted earnings per share in the range of $1.58 to $1.74.

Kraft Foods Inc. ((KFT)) advanced 4.3% or $1.69 to $40.63 after the packaged food company reported total revenues in the second quarter ending in June slid 4.3% to $13.29 billion compared to $13.88 billion in the same period of last year. Net earnings in the quarter rose 5.4% to $1.03 billion or 58 cents per diluted share compared to $976 million or 55 cents per share a year ago period.

Kraft said Europe drove strong underlying growth in difficult macroeconomic environment on its power brands and operating income grew on favorable pricing. Kraft expects net revenue growth of about 5% and operating earnings per share growth of at least 9%.

The company intends to spin-off its North American grocery business Kraft Foods Group, Inc. The spin-off is expected to occur on October 1 and on next day will begin to trade on The NASDAQ Global Select Market under the ticker symbol KRFT.

Kraft Foods Inc. will change its name to Mondelez International, Inc. and change its ticker symbol to MDLZ and the current ticker symbol KFT will be retired.

The Kraft said at the time of spin-off each shareholder entitled to receive shares of Kraft Foods Group will receive one share for every three shares of Kraft Foods Inc. Although the record date is not yet finalized but expected to be in mid September.

Kellogg Company ((K)) increased 1.5% or 76 cents to $50.20 after the ready-to-eat cereal maker reported net sales in the second quarter ending in June rose 2.6% to $3.48 billion compared to $3.39 billion in the same period of last year. Net earnings in the quarter slumped 10.6% to $301 million or 84 cents per diluted share compared to $343 million or 94 cents per share a year ago period.

The company reaffirmed full year internal net sales growth of between 2% and 3% and earnings per share in a range between $3.18 and $3.30.