Arcelor Slumps Despite Strong Quarter; Nordstrom, Penney Drop on Industry Woes

Mukesh Buch
12 May, 2017
New York City

ArcelorMittal plunged despite shipments jumped 5.1% and net swung to profit. AdvanSix revenues soared. J C Penney net loss widened on weak comparable sales. Nordstrom reaffirmed fiscal outlook but missed comparable sales estimate.

[R]12:50 PM New York – ArcelorMittal plunged despite shipments jumped 5.1% and net swung to profit. AdvanSix revenues soared. J C Penney net loss widened on weak comparable sales. Nordstrom reaffirmed fiscal outlook but missed comparable sales estimate.[/R]

Tollbooth Index dropped 42.54 or 0.4% to 12,100.03.

Earnings Review

ArcelorMittal SA ((MT)) plunged 6.7% or 52 cents to $7.25 after the Luxembourg-based steel producer reported sales in the first-quarter ending in March soared 20.1% from a year ago to $16.1 billion.

Net in the quarter swung to profit $1 billion or 33 cents per diluted share from a loss of $416 million or 23 cents in the same quarter last year.

“Our mining segment benefited from an increase in iron- ore shipped at market prices as well as the higher raw material price environment” and steel shipments increase by 5.1% said chairman and chief executive officer Lakshmi Mittal.

AdvanSix Inc ((ASIX)) soared 8.9% or $2.60 to $31.57 after the Nylon 6 resin maker said sales in the first-quarter ending in March surged 26% from a year ago to $376.7 million.

Net income in the quarter fell 0.4% to $27.3 million or 88 cents per diluted share from $27.4 million or 90 cents in the same quarter last year.

Darling Ingredients Inc ((DAR)) slid 2 cents to $15.43 after the edible and inedible ingredients maker stated revenues in the first-quarter ending in March jumped 12.9% from a year ago to $880.1 million.

Net income in the quarter surged to $5.8 million or 4 cents per diluted share from $1.1 million or 1 cent in the same quarter last year.

The ingredients maker said net income in the quarter surged on higher finished product pricing for fats and proteins.

J C Penney Company Inc ((JCP)) declined 9.3% or 49 cents to $4.80 after the department stores operator said total sales in the first-quarter ending in April dropped 3.6% from a year ago to $2.7 billion.

Comparable store sales in the quarter declined 3.5%

Net loss in the quarter widened to $180 million or 58 cents per diluted share from $68 million or 22 cents in the same quarter last year.

In the quarter, the retailer booked $220 million or 71 cents per share of restructuring charges associated with store closing announcement.

Nordstrom, Inc ((JWN)) plummeted 9.7% or $4.49 to $41.72 after the specialty fashion retailer reported total sales in the first-quarter ending in April jumped 2.7% from a year ago to $3.3 billion.

Comparable store sales in the quarter fell 0.8%.

Net income in the quarter surged 36.9% to $63 million or 37 cents per diluted share from $46 million or 26 cents in the same quarter last year.

The retailer reaffirmed fiscal 2017 diluted earnings per share between $2.75 and $3.00 and net sales to increase between 3% and 4% and flat comparable sales.