U.S. Stocks Fall on Short Trading Day

Arthi Gupta
24 Dec, 2012
New York City

U.S. indexes fell on fiscal cliff concerns. United Technologies agreed to divest its UTC Power fuel cells unit to ClearEdge. Walt Disney completed its acquisition of Lucasfilm.

[R]10:40 AM New York – U.S. indexes fell on fiscal cliff concerns. United Technologies agreed to divest its UTC Power fuel cells unit to ClearEdge. Walt Disney completed its acquisition of Lucasfilm.[/R]

U.S. indexes dropped in light trading in shortened Christmas Eve trading on the ongoing political worries that lawmakers may not finalize budget negotiations.

European markets edged lower in thin trading volume and markets in Hong Kong gained 0.2% and in India added 0.1%. Markets in Japan were closed to celebrate Emperor’s birthday.

General Dynamics Acquires Applied Physical Sciences

General Dynamics Corp. acquired Applied Physical Sciences Corp., the applied research and development services provider in a cash deal for an undisclosed price.

United Technologies to divest Power Unit

United Technologies Corp. agreed to divest its UTC Power fuel cells unit to ClearEdge Power, based in Hillsboro, Oregon. Terms of the agreement were not disclosed.

The deal is expected to close early in 2013.

Walt Disney Completes Lucasfilm Acquisition

The Walt Disney Company completed its acquisition of Lucasfilm Ltd. LLC.

Under the terms of the merger agreement, at closing Disney issued 37.1 million shares and made cash payment of $2.21 billion. Based upon the closing price of Disney shares on December 21, at $50, the transaction has a total value of approximately $4.06 billion.

Earnings Review

Ennis, Inc. ((EBF)), the business forms printer reported third quarter consolidated net sales rose 5.9% to $129 million compared to the third quarter last year. Net earnings in the quarter decreased to $6.2 million or 24 cents per diluted share compared with $6.9 million or 27 cents per share in the year ago quarter.

Piedmont Natural Gas Company, Inc. ((PNY)), the energy services provider reported full-year operating revenues declined 22% to $1.12 billion from last year. Net profit for the year rose 6% to $119.85 million or $1.66 per diluted share from $113.57 million or $1.57 per share in the same period last year.

Robbins & Myers Inc. ((RBN)), the industrial equipment maker reported first quarter consolidated sales rose to $257 million compared with $237 million in the first quarter last year. Net income in the quarter fell to $32 million or 76 cents per diluted share compared with $35 million or 77 cents per share a year ago.