Apollo Offers $3.3 B for Verallia, Sears Sales Plunge 25%

Mukesh Buch
08 Jun, 2015
New York City

Apollo Global offered $3.3 billion for Saint-Gobain''s Verallia. McDonald''s U.S. comparable stores sales in May declined 2.2%. Argan profit doubled after revenues soared 67%. Sears net loss narrowed as sales plunge. Vail Resorts net soared 13%.

[R]11:40 AM New York – Apollo Global offered $3.3 billion for Saint-Gobain''s Verallia. McDonald''s U.S. comparable stores sales in May declined 2.2%. Argan profit doubled after revenues soared 67%. Sears net loss narrowed as sales plunge. Vail Resorts net soared 13%.[/R]

Tollbooth Index fell 0.5% or 48.26 to 10,685.32.

Earnings Review

Apollo Global Management, LLC ((APO)) slipped 1.2% or 28 cents to $22.14 after the investment manager approached France-based Saint-Gobain''s glass-bottle maker Verallia,with an offer of $3.27 billion or €2.95 billion.

The glass maker operates 47 plants in 13 countries.

Argan, Inc ((AGX)) jumped 2.7% or $1 to $38.07 after the communications infrastructure services provider said revenues in the first-quarter ending in April soared 66.7% from a year ago quarter to $85 million.

Net income in the quarter doubled to $7.5 million or 50 cents per diluted share compared to $3.5 million or 24 cents from the same quarter last year.

Innospec Inc ((IOSP)) rose 15 cents to $43.75 after the personal care and fragrance maker agreed to sell its aroma chemical business Innospec Widnes Ltd for about $40.5 million to Emerald Kalama Chemical of Emerald Performance Materials LLC.

The transaction is expected to close by the end of July.

McDonald''s Corporation ((MCD)) increased 13 cents to $95.67 after the quick service restaurants operator said U.S. comparable stores sales in May declined 2.2% and system-wide sales fell 1.3% while comparable store sales in Europe jumped 2.3% but system-wide sales for the month plunged 13.4%.

Comparable sales in Asia/Pacific, Middle East and Africa regions dropped 3.2% and system-wide sales in the region tumbled 8.7%.

Sears Holdings Corp ((SHLD)) fell 16 cents to $40.58 after the department stores operator reported revenues in the second-quarter ending in April plunged 25.4% to $5.88 billion from a year ago period.

Domestic comparable store sales in the quarter declined 10.9%, 7% decline at Kmart stores and 14.5% plunge at Sears domestic stores.

Net loss in the quarter narrowed to $303 million or $2.85 per diluted share compared to $402 million or $3.79 from the same quarter last year.

Summit Hotel Properties Inc ((INN)) slipped 1.1% or 14 cents to $12.88 after the hotel investment company sign multiple purchase and sale agreements with affiliates of American Realty Capital Hospitality Trust, Inc. for the sale of 26 hotels at a total price of about $351.4 million.

The transaction is expected to close in three separate parts in September, October 2015 and January 2016.

Vail Resorts, Inc ((MTN)) dropped 2.4% or $2.53 to $103.75 after the sports and ski resorts operator said total revenues in the third-quarter ending in April climbed 6.7% to $579.3 million from a year ago period.

Net income in the quarter soared 13.1% to $133.4 million or $3.56 cents per diluted share compared to $117.9 million or $3.18 from the same quarter last year.