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Market Update

IMF Lowers Global Growth Outlook, Indexes Decline

Author: Arthi Gupta
Last Update: 11:41 AM ET October 09 2012

11:30 AM New York U.S. indexes declined after the IMF lowered global growth outlook. Principal Financial agreed to acquire Chile-based pension company Cuprum for $1.5 billion. Spectrum Brands agreed to acquire Stanley Black & Decker unit for $1.4 billion.

U.S. indexes declined after the IMF lowered global growth outlook and European Central Bank president Mario Draghi issued cautious outlook for the region.

European indexes traded sideways and finance ministers launched the European Stability Mechanism after a meeting in Luxembourg.

The International Monetary Fund revised global growth estimate for 2012 and 2013 on increased risk and deterioration in prospects.

The IMF lowered global growth outlook to 3.3% this year and 3.6% in 2013.

In the United States, growth is estimated to average 2.2% this year and then ease to 2.1% in 2013 and the Washington based fund urged lawmakers to resolve the upcoming fiscal cliff after the election to avoid the weakening growth.

Spectrum Brands to Acquire Stanley Black & Decker Unit

Spectrum Brands Holdings, Inc. agreed to acquire the Hardware & Home Improvement Group of Stanley Black & Decker, Inc. for $1.4 billion in cash.

The company expects the acquisition to increase its top-line growth and margins, and to be immediately accretive to earnings per share.

HHI generated net sales of approximately $985 million and adjusted EBITDA of $188 million for the 12 months ended June 30.

Principal Financial to Buy Cuprum

Principal Financial Group, Inc. the global investment management firm agreed to acquire Chile-based pension company AFP Cuprum S.A for $1.5 billion.

Apollo CEO Purchases Phaidon

Leon Black, the founder and CEO of Apollo Global Management LLC, the private equity firm has bought London-based art-book publishing house Phaidon Press Ltd. Financial terms of the deal were not disclosed.

Earnings Review

AngioDynamics, Inc. (ANGO), the medical device maker reported first quarter net sales surged 53% to $83.4 million. Net loss in the quarter swung to $721,000 or 2 cents per diluted share compared to net income of $1.4 million or 5 cents per share, a year ago.

Intersil Corp. (ISIL), the analog and mixed-signal integrated circuits manufacturer reported third quarter revenue declined 19% to $151 million, from the third quarter of 2011.

Owens Corning (OC), the building materials firm lowered its 2012 earnings outlook. For the full year, the company estimates adjusted earnings before interest and taxes adjusted earnings before interest and taxes to be in the range of $280 million to $310 million.

Tuesday Morning Corporation (TUES), the housewares and accessories retailer said first quarter net sales rose 1.3% to $172.8 million compared with last year. Comparable store sales for the quarter increased 1.7%.

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