Archer Daniels, Kellogg Increase; AIG, CVS, Sempra Decline

Mukesh Buch
04 Aug, 2015
New York City

3M acquired Capital Safety from KKR for $2.5 billion. AIG net tumbled 42%. Archer Daniels profit declined 28% on 20% drop in revenues. CVS Health rose 2%. HCP net plummeted 25%. Health Net net plunged 52%. Kellogg profit declined 24%. Parker-Hannifin net tumbled 40%.

[R]12:30 PM New York – 3M acquired Capital Safety from KKR for $2.5 billion. AIG net tumbled 42%. Archer Daniels profit declined 28% on 20% drop in revenues. CVS Health rose 2%. HCP net plummeted 25%. Health Net net plunged 52%. Kellogg profit declined 24%. Parker-Hannifin net tumbled 40%.[/R]

Tollbooth Index edged up 13.43 to 10,815.78.

Earnings Review

3M Co ((MMM)) rose 89 cents to $151.01 after the diversified technology company announced today that it had completed the acquisition of Capital Safety from KKR for a total enterprise value of $2.5 billion, including the assumption of $0.7 billion of debt.

American International Group Inc ((AIG)) declined 5.1% or $3.27 to $60.88 after the insurance company reported total revenues in the second-quarter ending in June slumped 2.7% to $15.70 billion form a year ago period.

Net income in the quarter tumbled 41.9% to $1.80 billion or $1.32 per diluted share compared to $3.07 billion or $2.10 from the same quarter last year.

Separately, AIG plans to buyback an additional $5 billion of its common stock.

Archer Daniels Midland Company ((ADM)) jumped 2.5% or $1.18 to $48.88 after the food processing company reported total revenues in the second-quarter ending in June plunged 20% to $17.19 billion form a year ago period.

Net income in the quarter declined 27.6% to $386 million or 62 cents per diluted share compared to $533 million or 81 cents from the same quarter last year.

The food processing company said revenues in agricultural services business tumbled 24% to $7.01 billion and revenues in corn processing segment plunged 19.9% to $2.58 billion while revenues in oilseeds processing business slumped 21.4% to $6.82 billion.

CVS Health Corp ((CVS)) slumped 3.1% or $3.44 to $109.38 after the pharmacy company reported net revenues in the second-quarter ending in June climbed 7.4% to $37.17 billion form a year ago period.

Net income in the quarter rose 1.6% to $1.27 billion or $1.12 per diluted share compared to $1.25 billion or $1.06 from the same quarter last year.

Revenues in the pharmacy services segment soared 11.9% to $24.4 billion and revenues in retail pharmacy segment increased 2.2% to $17.2 billion.

For the third-quarter, CVS estimated earnings per share between $1.13 and $1.16 and for the year the company lowered its earnings per share forecast in the range of $4.64 to $4.71 from the earlier estimated range between $4.80 and $4.91.

HCP, Inc ((HCP)) increased 22 cents to $39.08 after the real estate investment trust said total revenues sales in the second-quarter ending in June climbed 13.3% to $607.5 million form a year ago period.

Net income in the quarter plummeted 24.7% to $164.5 million or 36 cents per diluted share compared to $218.4 million or 48 cents from the same quarter last year.

Health Net, Inc ((HNT)) rose 55 cents to $68.50 after the health care services provider said total revenues in the second-quarter ending in June soared 21.6% to $4.16 billion form a year ago period.

Net income in the quarter plunged 51.7% to $58.4 million or 75 cents per diluted share compared to $120.9 million or $1.49 from the same quarter last year.

Kellogg Company ((K)) gained 1.9% or $1.25 to $67.32 after the ready-to-eat cereal and convenience foods maker reported net sales in the second-quarter ending on July 4 declined 5.1% to $3.50 billion form a year ago period.

Net income in the quarter declined 24.6% to $223 million or 63 cents per diluted share compared to $295 million or 82 cents from the same quarter last year.

Net sales in North America dropped 2.8% to $2.3 billion while net sales in Europe plummeted 15.3%. Net sales in Asia Pacific slumped by 5.2% but sales in Latin America increased 2.5%.

Parker-Hannifin Corporation ((PH)) fell $1.04 to $111.40 after the industrial machinery and equipment maker stated sales in the second-quarter ending in June dropped 11% to $3.14 billion form a year ago period.

Net income in the quarter tumbled 40.4% to $179.6 million or $1.27 per diluted share compared to $301.2 million or $1.98 from the same quarter last year.

Sempra Energy ((SRE)) slipped 1.6% or $1.62 to $101.13 after the energy services provider reported total revenues in the second-quarter ending in June declined 11.6% to $2.37 billion form a year ago period.

Net income in the quarter climbed 9.7% to $295 million or $1.17 per diluted share compared to $269 million or $1.08 from the same quarter last year.

Sempra Energy reaffirmed the previous earnings per share guidance in the range of $4.60 to $5.