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Market Update

Berkshire in $37 B Deal with Precision Castparts, Mallinckrodt to Buy Therakos


Author: Mukesh Buch
ticker.com
Last Update: 11:44 AM ET August 10 2015

12:00 PM New York – Berkshire Hathaway agreed to acquire Precision Castparts for $37.2 billion and said profit declined 37% to $4.01 billion. CVR Partners plans to acquire 59.7% stake in Rentech Nitrogen. AES net tumbled 48%. Dean Foods net swung to profit. Sysco profit plunged 71%.

Tollbooth Index increased 69.70 or 0.7% to 10,826.32.

Earnings Review

AES Corporation (AES) rose 6 cents to $12.70 after the electricity producer said total net revenues in the second-quarter ending in June declined 10.4% to $3.86 billion form a year ago period.

Net income in the quarter tumbled 48.1% to $69 million or 10 cents per diluted share compared to $133 million or 18 cents from the same quarter last year.

Berkshire Hathaway Inc ((BRK.A)) slipped 1.2% to $212,800 after the insurance to railroad conglomerate said total revenues in the second-quarter ending in June jumped 4% to $39.65 billion from a year ago period.

Net income in the quarter declined 37.3% to $4.01 billion compared to $6.40 million from the same quarter last year.

Separately, Warren Buffett controlled conglomerate agreed to acquire aerospace parts maker Precision Castparts Corp for $235 a share, 21% premium to Precision’s closing price on Friday or about $37.2 billion in cash, including net debt.

Shares of Precision Castparts Corp soared 19.1% to $230.87.

CVR Partners LP (UAN) dropped 2.3% or 25 cents to $10.44 after the nitrogen fertilizer products maker plans to acquire 59.7% stake in Rentech Nitrogen Partners LP for about $533 million in cash and stock.

Dean Foods Co (DF) tumbled 15.3% or $2.71 to $15.02 after the food and beverage company reported net sales in the second-quarter ending in June plunged 15.9% to $2.01 billion from a year ago period.

Net in the quarter swung to profit $26.5 million or 28 cents per diluted share compared to a loss of $0.65 million or 1 cent from the same quarter last year.

For the third quarter, the company forecasted adjusted diluted earnings per share between 17 cents and 27 cents.

DXP Enterprises Inc (DXPE) plunged 9.3% or $3.34 to $32.49 after the industrial machinery and equipment distributor said sales in the second-quarter ending in June declined 15.2% to $323.7 million form a year ago period.

Net income in the quarter plunged 51.7% to $7.2 million or 47 cents per diluted share compared to $14.9 million or 96 cents from the same quarter last year.

Multi-Color Corporation (LABL) jumped 4.2% or $2.71 to $67.23 after the labeling solutions provider said net revenues in the first-quarter ending in June jumped 7% to $217.9 million form a year ago period.

Net income in the quarter slid 0.4% to $13.25 million or 79 cents per diluted share compared to $13.30 million or 80 cents from the same quarter last year.

Mallinckrodt Plc (MNK) slid 0.07% $100.31 after the Ireland-based specialty pharmaceutical company agreed to acquire Therakos, Inc. a leading immunotherapy company in a transaction valued at approximately $1.33 billion.

PDC Energy Inc (PDCE) soared 9.2% or $4.31 to $51.17 after the exploration company said total revenues in the second-quarter ending in June plummeted 49.7% to $50.96 million from a year ago period.

Net loss in the quarter widened to $46.9 million or $1.17 per diluted share compared to $28.2 million or 79 cents from the same quarter last year.

Sysco Corporation (SYY) gained 1% or 37 cents to $37.30 after the food service provider reported sales in the fourth-quarter ending in June increased 0.9% to $12.4 billion from a year ago period.

Net income in the quarter plunged 71.3% to $73 million or 12 cents per diluted share compared to $254.2 million or 43 cents from the same quarter last year.

The company plan to repurchase additional shares worth as much as $3 billion in the next two-years, including $1.5 billion in fiscal year 2016.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc