Citigroup Raises $20.5 Billion, Conseco Offering

123jump.com Staff
17 Dec, 2009
New York City

Citigroup Inc led the decliners in the S&P 500 index with a loss of 7.2% after it completed the largest public offering of $20.5 billion. The offering of 5.4 billion shares at $3.15 each was below the U.S. Treasury purchase price of $3.25 a share. Conseco declined after it completed $214 million offering.

[R]11:30 AM New York – Citigroup Inc led the decliners in the S&P 500 index with a loss of 7.2% after it completed the largest public offering of $20.5 billion. The offering of 5.4 billion shares at $3.15 each was below the U.S. Treasury purchase price of $3.25 a share. Conseco declined after it completed $214 million offering.[/R]

ABM Industries Incorporated fourth quarter net income rises. Herman Miller, Inc says second quarter profit fell 70.6%. Paychex, Inc second quarter net falls 10%. General Mills, Inc posts higher profit. Pier 1 Imports, Inc swings to quarterly profit. Winnebago Industries, Inc loss narrows and says worst may be over.[/R]

Of the stocks in S&P 500 index, 85 increased, 411 declined and 4 were unchanged.

Citigroup Inc led the decliners in the S&P 500 index with a loss of 7.2% followed by losses in Harley Davidson, Inc of 5.9% and in Discover Financial Services of 5.4%, in FedEx Corporation of 3.9% and in American International Group, Inc of 2.6%.

Allegheny Technologies Incorporated led gainers in the S&P 500 index with a rise of 3.9% followed by gains in NVIDIA Corporation 3.1%, in Lincoln National Corporation of 2.5% and in Express Scripts, Inc of 2.2%.

Other Movers

Actuant Corporation ((ATU)) added 0.06% or 1 cent to $17.60 after the manufacturer of industrial products reported first quarter sales fell 18% to $305.2 million from $370.8 million a year ago. Net income in the quarter rose 2.6% to $11.9 million or 17 cents per diluted share compared to net income of $11.6 million or 19 cents per share a year ago.

Allegheny Technologies Incorporated ((ATI)) added 3.2% or $1.22 to $39.31 after the specialty-metals producer expects fourth quarter 2009 earnings per share to be in the range of 20 cents to 25 cents.

ABM Industries Incorporated ((ABM)) decreased 2.7% or 54 cents to $19.44 after the facility services contractor said fourth quarter revenues fell 4.2% to $868.0 million from $905.8 million a year ago. Net income in the quarter rose 29.3% to $15 million or 29 cents per diluted share compared to net income of $11.6 million or 21 cents per share a year ago.

American International Group, Inc ((AIG)) the troubled insurer declined 2.3% or 66 cents to $28.32.

Apogee Enterprises, Inc ((APOG)) added 3.5% or 49 cents to $14.49 after the provider of distinctive value-added glass solutions said third quarter sales fell 25% to $179.8 million from $240.4 million a year ago. Net income in the quarter fell 39% to $10.7 million or 39 cents per diluted share compared to net income of $17.6 million or 63 cents per share a year ago.

Cedar Fair, L.P ((FUN)) surged 23.4% or $2.13 to $11.21 after the operator of the Cedar Point amusement park said that it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo Global Management.

Citigroup Inc ((C)) the bank decreased 7.2% or 25 cents to $3.20 after the bank completed its $20.5 billion offering at a discounted price. Citigroup placed 5.4 billion shares at $3.15 a share, lower than the U.S. Treasury price of $3.25 a share. The bank also sold $3.5 billion of Tangible Equity Units that yields 7.5% and requires the purchase of shares in 2012.

U.S. Treasury is expected to take a loss of $770 million on the 7.7 billion shares that were held by the government before the offering.

Conseco, Inc ((CNO)) declined 1.7% or 9 cents to $5.05 after the insurer said that it has priced an underwritten public offering of 45 million shares of its common stock at a public offering price of $4.75 per share.

EZchip Semiconductor Ltd ((EZCH)) the maker of network processors dropped 7.5% or 88 cents to $10.67.

FedEx Corporation ((FDX)) decreased 3.0% or $2.75 to $87.20 after the package-delivery company reported second quarter revenues fell 10% to $8.6 billion from $9.54 billion a year ago. Net income in the quarter fell 30% to $345 million or $1.10 per diluted share compared to net income of $493 million or $1.58 per share a year ago.

General Mills, Inc ((GIS)) rose 0.6% or 45 cents to $68.74 after the maker of Cheerios cereal, Progresso soup and Yoplait yogurt reported second quarter sales rose 1.7% to $4.08 billion from $4.01 billion a year ago. Net income in the quarter rose 49.5% to $565.5 million or $1.66 per diluted share compared to net income of $378.2 million or $1.09 per share a year ago.

Herman Miller, Inc ((MLHR)) declined 0.06% or 1 cent to $16.78 an office furniture maker said second quarter sales fell 28% to $343.7 million from $476.6 million a year ago. Net income in the quarter fell 70.6% to $9.6 million or 17 cents per diluted share compared to net income of $32.6 million or 60 cents per share a year ago.

Hovnanian Enterprises, Inc ((HOV)) plunged 9.4% or 40 cents to $3.83 after the homebuilder said fourth quarter revenues fell 39.4% to $437.4 million from $721.4 million a year ago. Net loss in the quarter was $250.8 million or $3.21 per diluted share compared to net loss of $450.5 million or $5.79 per share a year ago.

Harley-Davidson, Inc ((HOG)) the motorcycle maker fell 5.2% or $1.40 to $25.49.

Incyte Corporation ((INCY)) the drugmaker climbed 1.7% or 14 cents to $8.10.

Martek Biosciences Corporation ((MATK)) slipped 3.7% or 68 cents to $17.56 after the provider of infant formula and dietary supplements said fourth quarter revenues fell 3% to $87.6 million from $90.4 million a year ago. Net income in the quarter rose 5% to $11.0 million or 33 cents per diluted share compared to net income of $10.5 million or 31 cents per share a year ago.

MetroPCS Communications, Inc ((PCS)) the pay-as-you-go mobile-phone decreased 5.2% or 40 cents to $7.30.

Nordson Corporation ((NDSN)) dropped 4.3% or $2.50 to $55.34 after the maker of equipment to apply adhesives and sealants said fourth quarter sales fell 20% to $237.4 million from $297.7 million a year ago. Net loss in the quarter was $209 million or $6.22 per diluted share compared to net income of $30.7 million or 90 cents per share a year ago.

Paychex, Inc ((PAYX)) increased 3.1% or 99 cents to $32.49 after the payroll and personnel services provider said second quarter revenues fell 5% to $496.6 million from $524.2 million a year ago. Net income in the quarter fell 10% to $125.9 million or 35 cents per diluted share compared to net income of $140.2 million or 39 cents per share a year ago.

Pier 1 Imports, Inc ((PIR)) increased 8% or 40 cents to $5.38 after the home furnishings retailer reported third quarter sales rose 8.7% to $327.1 million from $300.9 million a year ago. Net income in the quarter was $38.8 million or 37 cents per diluted share compared to net loss of $36.9 million or 41 cents per share a year ago.

Rite Aid Corporation ((RAD)) surged 12.7% or 17 cents to $1.50 after the retail drugstore chain reported third quarter revenues fell 2% to $6.35 billion from $6.47 billion a year ago. Net loss in the quarter was $86.1 million or 10 cents per diluted share compared to net loss of $248.7 million or 30 cents per share a year ago.

Winnebago Industries, Inc ((WGO)) rose 1.7% or 19 cents to $10.90 after the manufacturer of motor homes reported first quarter revenues rose 16.7% to $81.0 million from $69.4 million a year ago. Net loss in the quarter was $1.3 million or 5 cents per diluted share compared to net loss of $9.6 million or 33 cents per share a year ago.