U.S. Movers: ConAgra, Hillenbrand, Ralcorp, ADT Corp., Thor

Mukesh Buch
27 Nov, 2012
New York City

ConAgra agreed to buy Ralcorp for $5 billion in cash. Hillenbrand fourth quarter net climbed 6% and Ralcorp fourth quarter net loss narrowed. ADT Corp. quarterly net increased 1% to $94 million. Thor first quarter net surged 38%.

[R]9:55 AM New York – ConAgra agreed to buy Ralcorp for $5 billion in cash. Hillenbrand fourth quarter net climbed 6% and Ralcorp fourth quarter net loss narrowed. ADT Corp. quarterly net increased 1% to $94 million. Thor first quarter net surged 38%.[/R]

ConAgra Foods, Inc. ((CAG)) climbed 3.9% or $1.11 to $29.40 after the food processing company agreed to acquire Ralcorp Holdings, Inc. ((RAH)) for $90 a share in cash or $5.1 billion, representing 28.2% premium to the closing price of on November 26. The transaction is valued $6.8 billion including the assumption of debt.

The company said the deal creates one of the largest packaged food companies in North America, with sales of about $18 billion annually. ConAgra will be the largest private label packaged food business in North America with combined sales of nearly $4.5 billion.

The transaction is expected to close by the end of March and the management expects modest benefit in fiscal 2013 financial results.

Ralcorp surged 26.4% or $18.57 to $88.80.

Hillenbrand, Inc. ((HI)) gained 13 cents to $19.99 after the holding company said revenue in the fourth quarter ending in September jumped 10% to $253.5 million from $231.2 million in the same period of last year. Net income in the quarter climbed 6% to $24.8 million or 40 cents a diluted share compared to $23.5 million or 38 cents a share a year ago earlier.

The Hillenbrand said order backlog in the quarter declined to $121 million, a sequential decline from $140 million in the third quarter and consistent with prior year of $119 million.

Ralcorp Holdings, Inc. ((RAH)) surged 26.4% or $18.54 to $88.77 after the food products maker reported net sales in the fourth quarter ending in September climbed 8% to $1.07 billion from $990.4 million in the same period of last year. Net loss in the quarter narrowed to $44.2 million or 80 cents a diluted share compared to $424.1 million or $7.54 a share a year ago.

The company added net sales of cereal products segment dropped 11% in the quarter while net sales of snacks, sauces & spreads grew 5% and net sales of frozen bakery products jumped 37%.

The ADT Corporation ((ADT)) jumped 3% or $1.33 to $44.43 after the electronic security provider reported revenue in the fourth quarter ending on September 28 grew 2% to $812 million from $794 million in the same period of last year. Net income in the quarter increased 1% to $94 million or 40 cents a diluted share compared to $93 million or 39 cents a share a year ago period.

The company added recurring revenue in the quarter increased 5.2% to $742 million but other revenue plunged 21.3% to $70 million and now the electronic security provider expects recurring revenue in fiscal 2013 to increase between 4.9% and 5.2%.

Thor Industries, Inc. ((THO)) declined 8.4% or $3.70 to $39.90 after the recreation vehicles maker stated sales in the first quarter ending in October soared 30% to $875.6 million from $673 million in the same period of last year. Net income in the quarter surged 38% to $31 million or 58 cents a diluted share compared to $22.4 million or 41 cents a share a year ago earlier.

Thor added total recreation vehicles sales for the first quarter jumped 36% to $761.4 million and motorized recreation vehicles sales climbed 95% to $122.2 million.