UBS AG (UBS) is up 1.07 to 21.67 after Dow Jones wires report says that UBS is higher on market talk that HSBC could bid up to $80 billion to take over the Swiss bank. Separately, UBS announces today that it has signed an agreement with VermogensGroep, an independent Dutch Wealth Manager, to acquire VermogensGroep. VermogensGroep manages client assets of approximately €4 billion and an additional €10 billion assets under administration. Terms of the deal were not disclosed.
United Parcel Service (UPS) cuts $0.97-$1.04 second quarter EPS guidance to $0.83-$0.88. It cites slow U.S. economic growth and an "unprecedented" increase in the cost of fuel. Baird downgrades to neutral from outperform.
Eastman Kodak (EK) sets $1 billion stock buyback. Also, announces it has received a tax refund from U.S. Internal Revenue Service of $581 million related to the audit of certain claims filed for tax years 1993-1998, and is composed of a refund of past federal income taxes paid of $306 million and $275 million of interest earned on the refund.
ComScore (SCOR) shares tumble 14% on reports that Google (GOOG) will offer advertisers a free media planning tool to help them locate target audiences on the Web, which could pose a challenge to existing Web measurement firms.
ConAgra Foods (CAG) expects fourth quarter EPS will be higher than its original EPS estimate of $0.30-$0.35, excluding items impacting comparability. Cites higher-than-planned EPS primarily reflects very strong Trading & Merchandising profits, which are now classified within discontinued operations.
Kroger (KR) posts $0.58, vs. $0.47, first quarter EPS on 12% higher total sales, 9.2% higher identical supermarket sales with fuel, 5.8% higher without fuel. Based on strength of first quarter results, raises fiscal year 2009 sales and EPS guidance: now expects identical sales growth of 4%-5.5%, excluding fuel, EPS of $1.85-$1.90.
Reliance Steel & Aluminum (RS) expects EPS to be in the range of $2.00-$2.10 per share, up approximately 30% from the co.'s prior guidance. Cites increase in carbon steel products, profit margins. S&P maintains hold.
Cooper Tire & Rubber (CTB) announces that it has reduced production in its North American facilities during the second quarter to counter decreased tire demand and projected shortages of certain raw materials. These second quarter production curtailments will cost about $12-$14 million. S&P cuts estimates and target; reiterates hold.
Caterpillar (CAT) agrees to buy MGE Equipamentos & Servicos Ferroviarios Ltda., based in Brazil, and is a maker and reconditioner of traction motors, main and auxiliary generators, equipment for locomotives and transit cars. MGE will become part of CAT's Progress Rail Services division.
Eli Lilly (LLY) and Daiichi Sankyo Co. Ltd. say FDA has extended by three months the review period for prasugrel new drug application (NDA) based on supplemental information provided during review period. New FDA action date for prasugrel is 9/26/08. Proposed indication for prasugrel is for treatment of patients with acute coronary syndromes (ACS) being managed with an artery-opening procedure known as percutaneous coronary intervention (PCI).
Dow Chemical (DOW) says it will raise the price of its products by as much as an additional 25% in July in an effort to offset the continuing relentless rise in cost of energy and hydrocarbon feedstocks. In addition, says it will implement a freight surcharge of $300 per shipment by truck and $600 per shipment by rail, effective Aug. 1. Also, to move ahead with plans to temporarily idle or reduce production at a number of manufacturing plants.
NYSE Euronext (NYX) inks a partnership deal with State of Qatar. NYX to acquire 25% of Doha securities market for $250 million.
Blackstone Group (BX) announces that it filed a registration statement with the SEC to register 818 million common units potentially issuable to employees and selected other persons upon exchange of the same number of Blackstone Holdings partnership units issued in Blackstone's reorganization at the time of its IPO in June 2007.
CenturyTel (CTL) declares one-time dividend of $0.6325. Raises annual cash dividend rate to $2.80. Also expects to meet or exceed its previously announced second quarter operating revenues and EPS guidance, excluding nonrecurring items, of $647-$657 million and $0.78-$0.82, respectively.
Symmetry Medical (SMA) posts $0.11 (including items), vs. $0.05, first quarter EPS on 57% revenue rise. Street was looking for $0.14. Raises $350-$360 million 2008 revenue forecast to $395-$405 million. Sees $0.75-$0.77 2008 EPS.
Advanced Medical Optics (EYE) enters into a patent cross-licensing deal with Alcon (ACL) relating to lubricious coatings for intraocular lens (IOL) inserters, one-piece IOL haptic designs. ACL will make payment to EYE of $31 million, AMO will make payment to EYE of $10 million; all other terms are confidential. EYE expects to receive net cash proceeds of $21 million in the second quarter 2008.