October 28, 2016 at 7:54 p.m.
Forge parent posts a big loss
Business Roundup
Allegheny Technologies Inc., parent company of Portland Forge, reported a larger than expected loss for the third quarter, and its stock price took a hit as well.
ATI lost $530.8 million, or $4.95 per share, versus a loss of $144.6 million, or $1.35 per share, in the same quarter a year ago. Sales fell 7 percent to $770.5 million.
The results included after-tax charges of $508 million, or $4.74 per share, for indefinitely idling its Rowley, Utah, plant that makes titanium sponge, the material from which finished titanium metal is made, The Pittsburgh Post-Gazette reported.
Apparently Wall Street analysts had expected ATI to report a loss of just 10 cents a share, rather than $4.95 a share, and revenue was expected to be $822 million.
While ATI stock is up for the year, the immediate impact this week was to send stock down as much as 15 percent.
In addition to the Utah plant, ATI also plans to close its Midland, Pennsylvania, stainless steel melt shop and rolling mill and its plant in Bagdad, Pennsylvania.
IPO in spring?
Financier Paul Coulson may initiate Ardagh Group’s long-awaited stock market flotation as soon as March, The Irish Times reported this week.
Initial filings with U.S. authorities are expected to be made next month, the newspaper reported.
Ardagh is the parent company of glass container manufacturing plants in both Dunkirk and Winchester.
Coulson reportedly broke the news in a conference call with financial analysts after the company reported a 38 percent jump in its revenues in the third quarter.
Coulson was quoted as saying he would like to “get on with” the initial public offering in March or April, subject to market conditions.
He owns 36 percent of Ardagh.
“Ardagh told bondholders last month that it intends to float on the New York Stock Exchange in the first half of 2017, planning to sell up to 270 million Euros worth of shares in an initial public offering that would value the global business at 4.5 billion Euros,” The Irish Independent reported.
Third-quarter results showed revenues rising to 2.02 billion Euros.
Earnings before interest, tax, depreciation and amortisation in the period was 379 million Euros.
The Irish Independent said Ardagh’s performance was boosted by the acquisition by Ardagh of assets from Ball Corporation and Rexam on June 30 for $3.4 billion.
On the block
The corporate headquarters of Marsh Supermarkets LLC is on the block again.
The 177,293-square-foot office building at 9800 Crosspoint Boulevard in Fishers has a price tag of $28.6 million with an agreement by Marsh to lease back about 44,000 square feet.
The 25-year-old building dates from the era when the company was led by the Marsh family, but Florida-based Sun Capital Partners acquired the company in 2006 and moved its headquarters out of the building two years later. Marsh moved its offices back into the building in 2011, but only uses a fraction of the total space.
The building is now owned by a private partnership that includes Marsh Supermarkets.
In addition to the space that Marsh plans to continue leasing, the building has 114,000 square feet available for other tenants.
Profits up
Comcast this week reported third-quarter profits were up 12 percent, largely because of Olympics coverage on NBC and gains in video subscribers.
The company said it made $250 million on ad sales for the Olympics, even though ratings were down.
Comcast said revenue rose 14.2 percent to $21.32 billion in the quarter from a year earlier. Analysts on average had forecast $21.16 billion, according to Thomson Reuters I/B/E/S.
Revenue from NBCUniversal, which includes the television network and Universal Studios, increased 28.3 percent to $9.18 billion.
Net income attributable to Comcast rose 12.1 percent to $2.24 billion.
Deal applauded
A decision by Tyson Foods Inc., parent company of Tyson Mexican Original of Portland, to buy a 5 percent stake in a vegan start-up company was greeted by some skepticism. But a prominent vegan activist applauded the deal this week in an article in The Wall Street Journal.
“I want to publicly thank Tyson for being the first major meat company in the U.S. to invest in plant-based proteins. I hope with all my heart that others will follow, creating a seamless shift away from animal meat toward healthier and more humane options,” wrote Bruce Friedrich.
Deadline extended
The merger of Walgreens Boots Alliance Inc. and Rite Aid Corp. has been extended as the two pharmacy chains struggle to figure out how to make the $9.4 billion deal acceptable to federal regulators.
The companies hope to sell between 500 and 1,000 stores by the end of 2016, though any transactions will also require approval from the Federal Trade Commission.
The new deadline for completing the merger is early 2017.
Income up
First Merchants Corporation, parent of First Merchants Bank, reported record third quarter 2016 net income of $21.1 million this week.
That compares to $17.1 million during the third quarter of 2015. Earnings per share for the period totaled a record $.51 per share, an increase of $.06 per share, or 13.3 percent, over the same period in 2015. Year-to-date net income totaled a record $58.8 million, compared to $51.2 million during the same period in 2015.
Earnings per share for the nine months ended Sept. 30 totaled a record $1.43 per share, an increase of $.08 per share or 5.9 percent, over same period in 2015.
“Our results reflect a growing company with a 1.22 percent return on assets and a 55.12 percent efficiency ratio. As we focus on the road ahead, our healthy economic markets should allow for strong organic growth and continued high-performance,” said Michael C. Rechin, president and chief executive officer, in a prepared statement.
Total assets and total loans reached $7 billion and $5 billion, respectively, as of Sept. 30 compared to $6.2 billion and $4.3 billion, as of Sept. 30, 2015.
Net-interest income totaled a record $57.7 million for the quarter.
Approval sought
Indiana Michigan Power this week asked Indiana regulators to approve additional emission controls for its Rockport generating plant.
The utility company, part of American Electric Power, has submitted plans to add selective catalytic reduction emission controls on Unit 2 of its Rockport plant. The Indiana Utility Regulatory Commission has already approved such plans for Unit 1 at Rockportland.
“I&M constantly works to reduce our environmental impact while generating and delivering reliable, affordable power to our customers,” Paul Chodak III, I&M president and chief operating officer, said in a prepared statement. “In the past year, we have built three solar power plants, and a fourth will come online before the end of 2016. We are proud to say about 60 percent of our generation is already emission-free, and our long-term plans include adding more renewable generation.
“Adding new, advanced emission control equipment at Rockport will further cut emissions from our lone coal-fueled power plant in Indiana.”
Gannett loss
Virginia-based Gannett, publisher of The Star Press in Muncie as well as USA Today, posted a third-quarter loss of $24.2 million, or 21 cents per share, compared with a profit of $39.2 million a year ago.
Excluding one-time costs, Gannett said it posted a 6-cent profit on a per-share basis. Revenue rose 10 percent to $772.3 million.
Earlier this week, the company said it is cutting 2 percent of its staff nationally.
Gannett also publishes The Indianapolis Star, Evansville Courier & Press, Palladium-Item (Richmond) and Journal & Courier (Lafayette).
Traffic down
McDonald’s Corp. is facing its fourth straight year of declines in traffic at its U.S. stores, according to Bloomberg.
The drop follows four straight years of growth.
“Today we are making uneven progress,” said an internal email obtained by Bloomberg.Same store sales in the U.S. increased 1.3 percent.
ATI lost $530.8 million, or $4.95 per share, versus a loss of $144.6 million, or $1.35 per share, in the same quarter a year ago. Sales fell 7 percent to $770.5 million.
The results included after-tax charges of $508 million, or $4.74 per share, for indefinitely idling its Rowley, Utah, plant that makes titanium sponge, the material from which finished titanium metal is made, The Pittsburgh Post-Gazette reported.
Apparently Wall Street analysts had expected ATI to report a loss of just 10 cents a share, rather than $4.95 a share, and revenue was expected to be $822 million.
While ATI stock is up for the year, the immediate impact this week was to send stock down as much as 15 percent.
In addition to the Utah plant, ATI also plans to close its Midland, Pennsylvania, stainless steel melt shop and rolling mill and its plant in Bagdad, Pennsylvania.
IPO in spring?
Financier Paul Coulson may initiate Ardagh Group’s long-awaited stock market flotation as soon as March, The Irish Times reported this week.
Initial filings with U.S. authorities are expected to be made next month, the newspaper reported.
Ardagh is the parent company of glass container manufacturing plants in both Dunkirk and Winchester.
Coulson reportedly broke the news in a conference call with financial analysts after the company reported a 38 percent jump in its revenues in the third quarter.
Coulson was quoted as saying he would like to “get on with” the initial public offering in March or April, subject to market conditions.
He owns 36 percent of Ardagh.
“Ardagh told bondholders last month that it intends to float on the New York Stock Exchange in the first half of 2017, planning to sell up to 270 million Euros worth of shares in an initial public offering that would value the global business at 4.5 billion Euros,” The Irish Independent reported.
Third-quarter results showed revenues rising to 2.02 billion Euros.
Earnings before interest, tax, depreciation and amortisation in the period was 379 million Euros.
The Irish Independent said Ardagh’s performance was boosted by the acquisition by Ardagh of assets from Ball Corporation and Rexam on June 30 for $3.4 billion.
On the block
The corporate headquarters of Marsh Supermarkets LLC is on the block again.
The 177,293-square-foot office building at 9800 Crosspoint Boulevard in Fishers has a price tag of $28.6 million with an agreement by Marsh to lease back about 44,000 square feet.
The 25-year-old building dates from the era when the company was led by the Marsh family, but Florida-based Sun Capital Partners acquired the company in 2006 and moved its headquarters out of the building two years later. Marsh moved its offices back into the building in 2011, but only uses a fraction of the total space.
The building is now owned by a private partnership that includes Marsh Supermarkets.
In addition to the space that Marsh plans to continue leasing, the building has 114,000 square feet available for other tenants.
Profits up
Comcast this week reported third-quarter profits were up 12 percent, largely because of Olympics coverage on NBC and gains in video subscribers.
The company said it made $250 million on ad sales for the Olympics, even though ratings were down.
Comcast said revenue rose 14.2 percent to $21.32 billion in the quarter from a year earlier. Analysts on average had forecast $21.16 billion, according to Thomson Reuters I/B/E/S.
Revenue from NBCUniversal, which includes the television network and Universal Studios, increased 28.3 percent to $9.18 billion.
Net income attributable to Comcast rose 12.1 percent to $2.24 billion.
Deal applauded
A decision by Tyson Foods Inc., parent company of Tyson Mexican Original of Portland, to buy a 5 percent stake in a vegan start-up company was greeted by some skepticism. But a prominent vegan activist applauded the deal this week in an article in The Wall Street Journal.
“I want to publicly thank Tyson for being the first major meat company in the U.S. to invest in plant-based proteins. I hope with all my heart that others will follow, creating a seamless shift away from animal meat toward healthier and more humane options,” wrote Bruce Friedrich.
Deadline extended
The merger of Walgreens Boots Alliance Inc. and Rite Aid Corp. has been extended as the two pharmacy chains struggle to figure out how to make the $9.4 billion deal acceptable to federal regulators.
The companies hope to sell between 500 and 1,000 stores by the end of 2016, though any transactions will also require approval from the Federal Trade Commission.
The new deadline for completing the merger is early 2017.
Income up
First Merchants Corporation, parent of First Merchants Bank, reported record third quarter 2016 net income of $21.1 million this week.
That compares to $17.1 million during the third quarter of 2015. Earnings per share for the period totaled a record $.51 per share, an increase of $.06 per share, or 13.3 percent, over the same period in 2015. Year-to-date net income totaled a record $58.8 million, compared to $51.2 million during the same period in 2015.
Earnings per share for the nine months ended Sept. 30 totaled a record $1.43 per share, an increase of $.08 per share or 5.9 percent, over same period in 2015.
“Our results reflect a growing company with a 1.22 percent return on assets and a 55.12 percent efficiency ratio. As we focus on the road ahead, our healthy economic markets should allow for strong organic growth and continued high-performance,” said Michael C. Rechin, president and chief executive officer, in a prepared statement.
Total assets and total loans reached $7 billion and $5 billion, respectively, as of Sept. 30 compared to $6.2 billion and $4.3 billion, as of Sept. 30, 2015.
Net-interest income totaled a record $57.7 million for the quarter.
Approval sought
Indiana Michigan Power this week asked Indiana regulators to approve additional emission controls for its Rockport generating plant.
The utility company, part of American Electric Power, has submitted plans to add selective catalytic reduction emission controls on Unit 2 of its Rockport plant. The Indiana Utility Regulatory Commission has already approved such plans for Unit 1 at Rockportland.
“I&M constantly works to reduce our environmental impact while generating and delivering reliable, affordable power to our customers,” Paul Chodak III, I&M president and chief operating officer, said in a prepared statement. “In the past year, we have built three solar power plants, and a fourth will come online before the end of 2016. We are proud to say about 60 percent of our generation is already emission-free, and our long-term plans include adding more renewable generation.
“Adding new, advanced emission control equipment at Rockport will further cut emissions from our lone coal-fueled power plant in Indiana.”
Gannett loss
Virginia-based Gannett, publisher of The Star Press in Muncie as well as USA Today, posted a third-quarter loss of $24.2 million, or 21 cents per share, compared with a profit of $39.2 million a year ago.
Excluding one-time costs, Gannett said it posted a 6-cent profit on a per-share basis. Revenue rose 10 percent to $772.3 million.
Earlier this week, the company said it is cutting 2 percent of its staff nationally.
Gannett also publishes The Indianapolis Star, Evansville Courier & Press, Palladium-Item (Richmond) and Journal & Courier (Lafayette).
Traffic down
McDonald’s Corp. is facing its fourth straight year of declines in traffic at its U.S. stores, according to Bloomberg.
The drop follows four straight years of growth.
“Today we are making uneven progress,” said an internal email obtained by Bloomberg.Same store sales in the U.S. increased 1.3 percent.
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