Strong Demand Drive Auto Sales, Toll Brothers Revenues Soars 48%

Arthi Gupta
04 Dec, 2012
New York City

U.S. indexes struggled and the dollar inched lower as European markets resumed the advance. November auto sales were ahead of expectations and annual sales are likely to reach record high in the last five years. Atlas Pipeline agreed to acquire Cardinal Midstream for $600 million.

[R]10:35 AM New York – U.S. indexes struggled and the dollar inched lower as European markets resumed the advance. November auto sales were ahead of expectations and annual sales are likely to reach record high in the last five years. Atlas Pipeline agreed to acquire Cardinal Midstream for $600 million.[/R]

Markets were choppy in New York trading in the first hour of trading as investors looked at the gains in Europe and stalled budget negotiations moved forward after Republicans proposed $2.2 trillion of budget cuts and closing of deductions for rich tax payers.

Auto sales in November were ahead of expectations and reached annual rate of 15 million vehicles, according to the latest industry estimates.

GM sales in the month increased 3.4%, Chrysler sales surged 14% and Ford sales rose 6.4%. Toyota sales surged 17% and Honda led the industry with the gain of 39% as the two Japanese automakers rebuild supply chains after devastating natural disasters in Japan and Thailand a year ago.

The European indexes edged higher and banks led the gainers and Baxter International agreed to acquire privately held Swedish dialysis products maker.

The euro area finance ministers agreed to release €39.5-billion to Spain to recapitalize its banks.

Te benchmark index in Tokyo decreased 0.3% but indexes in Hog Kong and Mumbai gained 0.1% and 0.2% respectively.

Baxter Acquires Gambro

Baxter International Inc. agreed to acquire Gambro AB, a privately held dialysis product company based in Sweden, for SEK 26.5 billion or approximately $4 billion.

The acquisition gives Baxter a comprehensive dialysis product portfolio, complements Baxter''s global home dialysis offerings, and positions the company to better meet the evolving needs of the large and growing dialysis market.

Atlas Pipeline to Acquire Cardinal Midstream

Atlas Pipeline Partners, L.P. agreed to acquire all equity interests representing all of the operating assets of Cardinal Midstream, LLC, a privately owned midstream operator, for $600 million in cash. The transaction is expected to close by the end of 2012.

Hillenbrand Completes Coperion Acquisition

Hillenbrand, Inc., the U.S.-based diversified industrial company completed its previously announced acquisition of privately held Coperion Capital GmbH for approximately €419 million or $545 million, which includes the assumption of approximately €87 million of net debt and an estimated €100 million of pension liabilities.

Earnings Review

AutoZone Inc. ((AZ))), the auto-parts retailer reported first quarter net sales rose 3.5% to $2 billion from the prior-year period. Domestic same store sales or sales for stores open at least one year, increased 0.2% for the quarter.

Net income for the quarter rose 6.4% to $203.5 million or $5.41 per share from $191.1 million or $4.68 per share in the year-ago period.

Big Lots, Inc. ((BIG)), the closeout retailer reported third quarter net sales fell to $1.13 billion from $1.14 billion in the same quarter last year. Net loss in the quarter swung to $5.99 million or 10 cents per diluted share compared to net profit of $4.19 million or 6 cents per share in the prior-year quarter.

Darden Restaurants, Inc. ((DRI)), the restaurant operator estimates diluted net earnings per share from continuing operations of approximately 25 to 26 cents for the second quarter.

The Pep Boys — Manny, Moe & Jack ((PBY)), the auto parts retailer reported third quarter sales declined 2.4% to $509.6 million from last year. Comparable sales decreased 2.7% consisting of a 0.2% comparable service revenue increase and a 3.5% comparable merchandise sales decrease.

Net loss for the quarter swung to $6.8 million or 13 cents per diluted share compared to net earnings of $7 million or 13 cents per share last year.

Toll Brothers Inc. ((TOL)), the luxury homebuilder reported fourth quarter revenues surged 48% to $632.83 million compared to last year. Net income in the quarter increased to $411.42 million or $2.35 per share from $15.04 million or $0.09 per share last year.

Vail Resorts, Inc. ((MTN)), the ski resorts operator reported first quarter total net revenues were $116.35 million, flat with $116.37 million in the same quarter last year. Net loss in the quarter widened to $60.58 million or $1.70 per diluted share from $55.71 million or $1.54 per share in the prior year.