U.S. Movers: Dole Food, FedEx, Schiff Nutrition, Tyco, Walgreen

Mukesh Buch
18 Sep, 2012
New York City

Dole Food agreed to sell businesses in Asia to the Japanese trading company Itochu for $1.7 billion. Deckers Outdoor declined on weak sales. FedEx first quarter net slid and lowered its outlooks and plans to increase shipping rates. Schiff Nutrition lifts fiscal forecast.

[R]10:50 AM New York – Dole Food agreed to sell businesses in Asia to the Japanese trading company Itochu for $1.7 billion. Deckers Outdoor declined on weak sales. FedEx first quarter net slid and lowered its outlooks and plans to increase shipping rates. Schiff Nutrition lifts fiscal forecast.[/R]

Advanced Micro Devices, Inc ((AMD)) dropped 7.7% or 31 cents to $3.70 on departure of Thomas Seifert as chief financial officer after 3 years and the chipmaker appointed Devinder Kumar as interim chief financial officer.

Dole Food Company, Inc. ((DOLE)) gained 1% or 15 cents to $13.85 after the packaged fruit products producer signed an agreement with Japan based Itochu Corporation to sale its worldwide packaged foods and fresh produce businesses in Asia for $1.69 billion in cash.

Combined revenue of these businesses in 2011 totaled $2.5 billion. The Itochu will have rights of trademark DOLE on packaged food products worldwide and on fresh produce in Asia, Australia and New Zealand.

The transaction is expected to be completed in the fourth quarter of this year.

Deckers Outdoor Corp. ((DECK)) declined 6.1% or $2.96 to $45.01 after the specialty retailer reported weak sales.

FedEx Corporation ((FDX)) slipped 1.6% or $1.51 to $87.77 after the parcel delivery service provider reported revenues in the first quarter ending in August increased 3% to $10.79 billion from $10.52 billion in the same period of last year. Net income in the quarter slid 1% to $459 million or $1.45 per diluted share compared to $464 million or $1.46 per share a year ago.

The air courier said it will increase shipping rates effective from January 7, 2013 by net average of 3.9% for U.S. domestic, U.S. export and U.S. import services and added ground and smart-post prices also will be increased.

Revenue from FedEx express segment up 1% to $6.63 billion and from freight segment revenue increased 5% to $1.40 billion.

The company lowered second quarter earnings per diluted share in the range of $1.30 to $1.45 compared to $1.57 per diluted share in second quarter of last year and for the fiscal between $6.20 and $6.60 from previous forecast of $6.90 to $7.40 a share.

Nuance Communications Inc. ((NUAN)) gained 15 cents to $25.34 after the voice and language solution provider said it agreed to acquire Ditech Networks Inc. for $1.45 a share in cash or for $22.5 million, a premium of 81% over closing price of 80 cents a share on Tuesday.

Schiff Nutrition International, Inc. ((SHF)) surged 10% or $2.09 to $22.99 after the nutrition supplement maker reported net sales in the first quarter ending in August climbed 46% to $85.1 million from $58.2 million in the same period of last year. Net income in the quarter jumped 28% to $6.30 million or 20 cents per diluted share compared to $4.70 million or 16 cents per share a year ago earlier.

Branded sales in the first quarter climbed 49.3% to $74.8 million and gross profit margin was 47.1% negatively impacted by a $1.6 million.

The company lifted fiscal 2013 guidance and said expected growth of net sales in the range of 40% to 43% and gross profit margin may between 48% and 50%.

Tyco International Ltd ((TYC)) slid 15 cents to $54.75 after the Switzerland-based holding company said shareholders approved the spin-offs of its North American ADT business.

The company expects to complete the distributions of equity interests in The ADT Corporation and Tyco Flow Control International Ltd., the wholly-owned subsidiaries formed to hold the North American residential and small business security and flow control businesses on September 28.

Walgreen Co ((WAG)) slipped 11 cents to $35.59 after the drugstore chain acquired regional drugstore chain of 144 stores from Stephen L. LaFrance Holdings, Inc. and members of the LaFrance family.

The acquisition includes corporate offices, a distribution centers and wholesale and private brand business valued about $438 million.