Honeywell in $5.1 B Deal with Melrose; Du Pont, Ecolab, Merck, Pfizer Net Drop

Mukesh Buch
28 Jul, 2015
New York City

Honeywell agreed to acquire the Elster unit of Melrose Ind for $5.1 billion. Ford net surged 44%. Du Pont sales and net declined. Ecolab net fell. Ingersoll-Rand net tumbled 74%. Merck net plummeted 66%. Pfizer profit plunged 10%. United Parcel Service net soared 171%.

[R]12:30 PM New York – Honeywell agreed to acquire the Elster unit of Melrose Ind for $5.1 billion. Ford net surged 44%. Du Pont sales and net declined. Ecolab net fell. Ingersoll-Rand net tumbled 74%. Merck net plummeted 66%. Pfizer profit plunged 10%. United Parcel Service net soared 171%.[/R]

Tollbooth Index gained 69.21 or 0.7% to 10,733.14.

Earnings Review

Ford Motor Company ((F)) rose 12 cents to $14.70 after the auto maker reported revenues in the second-quarter ending in June slid 0.1% to $37.1 billion form a year ago period.

Net income in the quarter surged 44% to $1.9 billion or 47 per diluted share compared to $574 million or 15 cents from the same quarter last year.

E I Du Pont De Nemours And Co ((DD)) fell 41 cents to $56.32 after the industrial conglomerates said sales in the second-quarter ending in June plunged 11% to $8.59 billion from a year ago period.

Net income in the quarter declined 12.1% to $940 million or $1.03 per diluted share compared to $1.07 billion or $1.15 from the same quarter last year.

Ecolab Inc ((ECL)) soared 4.4% or $4.71 to $113.10 after the water, hygiene and energy technology services provider said net sales in the second-quarter ending in June dropped 5% to $3.39 billion from a year ago period.

Net income in the quarter fell 3% to $302 million or $1 per diluted share compared to $311.4 million or $1.02 from the same quarter last year.

Ecolab''s forecasted adjusted earnings per share for the full-year remains between $4.45 and $4.60 represented a 6% to 10% increase from the prior year.

Honeywell International Inc ((HON)) increased 1.9% or $1.97 to $103.61 after the aerospace products maker agreed to acquire the Elster unit of U.K.-based engineering company Melrose Industries plc for about $5.1 billion or £3.3 billion in cash.

The transaction is expected to close in first-quarter of 2016.

Honeywell forecasted revenues for the year in the range of $39 billion to $39.6 billion and earnings per share between $6.05 and $6.15.

Ingersoll-Rand Plc ((IR)) plunged 5.8% or $3.75 to $61.25 after the Ireland-based diversified industrial products maker revenues in the second-quarter ending in June increased 2% to $3.60 billion from a year ago period.

Net income in the quarter tumbled 74.2% to $78.9 million or 29 cents per diluted share compared to $306 million or $1.12 from the same quarter last year.

Merck & Co., Inc ((MRK)) rose 15 cents to $57.14 after the health care company reported sales in the second-quarter ending in June declined 11% to $9.78 billion from a year ago period.

Net income in the quarter plummeted 65.6% to $687 million or 24 cents per diluted share compared to $2 billion or 68 cents from the same quarter last year.

Pfizer Inc ((PFE)) gained 1.6% or 55 cents to $34.89 after the biopharmaceutical company revenues in the second-quarter ending in June dropped 7% to $11.85 billion from a year ago period.

Net income in the quarter plunged 10% to $2.63 billion or 42 cents per diluted share compared to $2.91 billion or 45 cents from the same quarter last year.

Pfizer forecasted revenues for the year between $45 billion and $46 billion and diluted earnings per share in the range of $1.38 to $1.47.

United Parcel Service, Inc ((UPS)) jumped 4.6% or $4.42 to $99.54 after the package delivery company said revenues in the second-quarter ending in June fell 1.2% to $14.10 billion from a year ago period.

Net income in the quarter soared 170.9% to $1.23 billion or $1.35 per diluted share compared to $454 million or 49 cents from the same quarter last year.

As of June 30, UPS generated $3.3 billion in free cash flow and repurchased 13.5 million shares for approximately $1.4 billion and paid dividends of $1.3 billion, an increase of 9% per share over the prior year.

The company''s guidance for the year diluted earnings per share in the range of $5.05 to $5.30, a 6% to 12% increase from a year ago period.