ArcelorMittal, MBIA Drop; Agrium Gains

Mayank Mehta
05 Nov, 2008
New York City

Agrium Inc rose after third quarter revenues and earnings surged. ArcelorMittal plunged after it increased its cuts in production target for the fourth quarter. Blue Nile sales fell 3%. The Boston Beer Company and Kenneth Cole Productions reported quarterly losses.

[R]2:15 p.m. New York – ArcelorMittal drop after production cuts. Blue Nile declines on weak sales.[/R]

Agrium Inc ((AGU)) gained 7.6% or $3.23 to $43.45 after the producer agriculture products reported third quarter revenues rose 205% to $3.18 billion from $1.04 billion a year ago. Net income in the quarter rose 620% to $367 million or $2.31 per diluted share compared to net income of $51 million or 38 cents per share, a year ago.

ArcelorMittal ((MT)) lost 14.4% or $4.59 to $27.11 after the global steel producer reported third quarter revenues rose 38% to $35.2 billion from $25.5 billion a year ago. Net income in the quarter rose 29% to $3.8 billion or $2.79 per diluted share compared to net income of $2.96 billion or $2.10 per share a year ago.

ArcelorMittal said fourth quarter steel production will fall by 9 million tons from 28 million tons to 19 million tons. Flat carbon steel production in the U.S. and Asia, Africa and CIS regions decline by 35% and in Europe fall by 30%.

The company hopes lower net debt by $10 billion and free cash flow in the third quarter declined to $0.8 billion from $3 billion.

Blue Nile, Inc ((NILE)) fell 12.5% or $3.55 to $24.70 after the online retailer of diamonds and jewelry said third quarter sales fell 3% to $65.4 million from $67.4 million a year ago. Net income in the quarter fell 23% to $2.3 million or 15 cents per diluted share compared to net income of $3 million or 18 cents per share, a year ago.

Bill Barrett Corporation ((BBG)) added 10.1% or $2.12 to $23.16 after the development and production of natural gas and crude oil reported third quarter revenues rose 100% to $164.4 million from $82.3 million a year ago. Net income in the quarter was $36.1 million or 80 cents per diluted share compared to net income of $0.2 million or 1 cent per share, a year ago.

The Boston Beer Company, Inc ((SAM)) dropped 11.9% or $4.37 to $32.22 after the craft beer brewer said third quarter revenues rose 20% to $101.1 million from $84.1 million a year ago. Net loss in the quarter was $0.3 million or 2 cents per diluted share compared to net income of $3.2 million or 21 cents per share, a year ago.

Douglas Emmett Inc ((DEI)) added 7.1% or $1.06 to $15.88 after the real estate investment trust said third quarter revenues rose 15.7% to $153.2 million from $132.5 million a year ago. Net loss in the quarter was $9.7 million or 8 cents per diluted share compared to net loss of $2.8 million or 3 cents per share, a year ago.

Great Wolf Resorts, Inc ((WOLF)) slid 4.4% or 9 cents after the indoor water park resorts operator reported third quarter revenues rose 36% to $69.4 million from $50.9 million a year ago. Net income in the quarter rose 22% to $2.2 million or 7 cents per diluted share compared to net income of $1.8 million or 6 cents per share, a year ago.

Kenneth Cole Productions, Inc ((KCP)) declined 9.4% or $1.18 to $11.25 after the shoe and handbag maker said third quarter revenues rose 1.4% to $132.1 million from $130.3 million a year ago. Net loss in the quarter was $1.6 million or 9 cents per diluted share compared to net income of $3.4 million or 17 cents per share, a year ago.

Kendle International Inc ((KNDL)) climbed 12.4% or $2.66 to $24.00 after the global clinical research organization said third quarter revenues rose 25% to $124.8 million from $100.1 million a year ago. Net income in the quarter rose 189% to $11.0 million or 73 cents per diluted share compared to net income of $3.8 million or 25 cents per share, a year ago.

K-Swiss Inc ((KSWS)) added 4.7% or 67 cents to $14.68 after the athletic footwear maker reported third quarter revenues fell 11% to $95.8 million from $107.2 million a year ago. Net loss in the quarter was $100,000 or breakeven per diluted share compared to net income of $12.8 million or 36 cents per share a year ago.

MBIA Inc ((MBI)) plunged 19.6% or $2.05 to $8.41 after the bond insurer reported third quarter revenues fell 24% to $319.8 million from $431.2 million a year ago. Net loss in the quarter was $806.5 million or $3.48 per diluted share compared to net loss of $36.6 million or 30 cents per share a year ago.

MetroPCS Communications, Inc ((PCS)) fell 3.7% or 55 cents to $14.09 after the low-cost mobile phone service provider reported third quarter revenues rose 23% to $686.7 million from $556.7 million a year ago. Net income in the quarter fell 15% to $44.9 million or 13 cents per diluted share compared to net income of $53.1 million or 15 cents per share, a year ago.

Nautilus, Inc ((NLS)) decreased 6.4% or 16 cents to $2.31 after the fitness equipment maker said third quarter revenues fell 18.7% to $93.7 million from $115.3 million a year ago. Net loss in the quarter was $34.1 million or $1.11 per diluted share compared to net loss of $13.4 million or 43 cents per share, a year ago.

Weight Watchers International, Inc ((WTW)) lost 5.7% or $1.84 to $30.12 after the provider of weight management services said third quarter revenues rose 5% to $352.6 million from $337.5 million a year ago. Net income in the quarter rose 6% to $52.7 million or 67 cents per diluted share compared to net income of $49.5 million or 62 cents per share a year ago.