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Caterpillar, Hershey, Nymex, Wendy’s, Sears, more

By MarketWatch

Last Update: 11:46 AM ET Jan 28, 2008

SAN FRANCISCO (MarketWatch) — Shares of the following companies were among those
making notable moves in the U.S. stock market Monday.

Advancers

Alberto-Culver Co. (ACV) shares gained 8.2%. It swung to a fiscal first-quarter
profit of $30.9 million, or 31 cents a share, from a year-earlier loss of $5.9
million, or 6 cents. In addition, the company increased its quarterly cash
dividend by 18% to 6.5 cents. Adjusted earnings from continuing operations
increased to 32 cents a share from 21 cents.

Allegheny Energy Inc. (AYE) shares were higher. The company and Merrill Lynch &
Co. (MER) have resolved litigation regarding Allegheny’s purchase of Merrill’s
Global Energy Market trading business in 2001.

Caterpillar (CAT) shares rose. It was upgraded to outperform from peer perform at
Bear Stearns, citing hopes for an economic rebound in 2009. “Lower expected
interest rates are likely to be supportive of economic activity going into 2009.
Additionally, our proprietary analysis suggests that construction equipment sales
have historically declined for two years during a recession and if history
repeats itself then equipment sales should begin to recover in 2009,” the broker
said.

Chiquita Brands International Inc. (CQB) shares moved up. It estimates
fourth-quarter sales increased 6% to $1.2 billion. The Cincinnati marketer,
producer and distributor of bananas, fresh fruit and vegetables expects adjusted
operating profit for the quarter of $6 million to $16 million and earnings before
interest, taxes, depreciation and amortization of $28 million to $38 million.

Corning Inc.’s (GLW) shares gained 3.2%. Fourth-quarter net income rose to $717
million, or 45 cents a share, from $646 million, or 41 cents, a year earlier.
Excluding items, the latest earnings were 40 cents a share. The Corning, N.Y.,
supplier of high-technology components said revenue grew 16% to $1.58 billion
from $1.37 billion.

Shares of Kellogg (K) and General Mills (GIS) were higher. They were upgraded to
buy from hold at Citigroup, as the broker said there’s little correlation with
U.S. food consumption and GDP growth. In fact, a recession may help these firms,
as it will drive consumers out of restaurants and back into the supermarket, the
broker said.

Delphi Corp. (DPHIQ) shares gained 3.1%. It said a federal bankruptcy judge
confirmed its amended reorganization plan. The auto-parts supplier said it plans
to emerge from bankruptcy proceedings after it syndicates and closes about $6.1
billion of financing.

FPL Group (FPL) shares edged higher. Fourth-quarter net income fell to $224
million, or 56 cents a share, from $268 million, or 67 cents, in the year-ago
period. Items in the latest period included an after-tax loss of $58 million for
hedges. Adjusted earnings rose to 71 cents a share from 63 cents a share. Revenue
totaled $3.7 billion, up from $3.6 billion.

Halliburton Co.’s (HAL) shares gained. Fourth-quarter net income rose 4.9% to
$690 million, or 75 cents a share, from $658 million, or 64 cents a share, a year
earlier. The Houston energy and engineering services company said earnings from
continuing operations were 74 cents against 61 cents. Revenue climbed 19% to
$4.18 billion. Analysts polled by Thomson Financial expected 69 cents a share on
revenue of $4.06 billion.

Hershey Co. (HSY) shares climbed 3.1%. It increased wholesale prices on roughly
one-third of its domestic confectionery line. The changes approximate a 3% price
increase over the entire domestic product line and will help offset increases in
costs of raw materials, fuel, utilities, transportation and more. The 2008
outlook isn’t changed by the price increase. Earlier this montyh, the company
predicted 2008 earnings of $1.43 to $1.53 a share.

Landry’s Restaurants Inc. (LNY) shares surged 23%. It said that Tilman Fertitta,
chairman and chief executive officer, proposed to buy the Houston company for
$23.50 a share in cash. The stock closed Friday at $16.67, indicating a premium
of 41%. The board has established a committee to review the proposal and any
alternatives that may be received.

Matria Healthcare Inc. (MATR) shares gained 5.9%. Inverness Medical Innovations
Inc. agreed to acquire the Marietta, Ga., health-services firm for $6.50 a share
in cash plus $32.50 a share in convertible preferred shares. The deal is valued
at $900 million for Matria’s shares and Inverness (IMA) will assume about $280
million of Matria’s debt. The preferred shares are convertible at $69.32 each,
Inverness said. Inverness, a Waltham, Mass., medical device company, and
investors are also exploring a potential 50-50 joint venture for its
health-management business.

Merck & Co. (MRK) shares rose. It received a not-approvable letter from the Food
and Drug Administration in response to its application to market over-the-counter
Mevacor 20 milligrams. The FDA indicated in its letter that it would require a
revised label and additional data from Merck to grant marketing clearance. Merck
was upgraded to buy from neutral at UBS, which said fears over the impact of a
trial on Vytorin/Zetia are too great.

NBTY Inc.’s (NTY) shares moved up. Fiscal first-quarter net income fell 9.9% to
$45.8 million, or 67 cents a share, from $50.9 million, or 73 cents a share, a
year earlier. The Bohemia, N.Y., maker of nutritional supplements said sales for
the quarter ended Dec. 31 were $510.9 million, up from $506.2 million. Analysts
polled by Thomson Financial expected earnings of 70 cents a share on revenue of
$511 million. Same-store retail sales for North America rose 6% during the
quarter, while European same-store sales declined 4% in local currency.

Nymex Holdings Inc. (NMX) shares jumped 7.9%. CME Group is in preliminary talks
to acquire Nymex. Under the potential pact, Nymex holders would receive $36 and
0.1323 CME (CME) share for each of their shares. CME Group expects to maintain
trading floors in the New York City metro area. The deal also contemplates that
Nymex will repurchase the 816 New York Mercantile Exchange memberships for a
maximum $500 million. The parties have agreed to a 30-day exclusive negotiating
period.

Rohm & Haas (ROH) shares added 4.8%. Earnings from continuing operations rose 8%
to $180 million, or 91 cents a share, from $167 million, or 76 cents a share in
the year-ago period. Excluding restructuring and asset impairment charges,
earnings increased to 91 cents a share from 82 cents a share. Revenue rose 16% to
$2.34 billion.

SLM Corp. (SLM) shares gained. It settled litigation over a failed buyout. The
deal refinances a $30 billion credit line and enables buyout firm J.C. Flowers &
Co. not to pay a breakup fee. Under the settlement, J.P. Morgan Chase & Co.,
(JPM) Bank of America Corp. (BAC) and a group of other lenders agreed to
refinance Sallie Mae’s credit line.

Stanley Works’ (SWK) shares gained 4.2%. Fourth-quarter net income rose to $92.3
million, or $1.11 a share, from $86.6 million, or $1.03 a share, a year earlier.
A Thomson Financial survey of analysts predicted $1.10 a share. The New Britain,
Conn., consumer-products company’s sales increased 15% to $1.17 billion. The
company backed its 2008 earnings view of $4.20 to $4.40 a share and organic-sales
growth, excluding currency effects, of level with a year earlier to 1% higher.

Sysco Corp.’s (SYY) shares moved up. Fiscal second-quarter earnings rose to
$264.1 million, or 43 cents a share, from $246.5 million, or 39 cents a share, a
year earlier. A Thomson Financial survey of analysts predicted 43 cents a share.
The Houston food-service company’s sales for the quarter ended Dec. 29 rose 7.8%
to $9.24 billion.

Tyson Foods Inc. (TSN) shares rose. Fiscal first-quarter net income fell 40% to
$34 million, or 10 cents a share, from $57 million, or 16 cents, a year earlier.
Results for the latest quarter included an $18 million gain on an investment sale
and $6 million in severance charges. Tyson has said it will cease beef-slaughter
operations at its Emporia, Kan., plant in the next few weeks, eliminating 1,500
of 2,400 jobs. Sales for the quarter ended Dec. 29 grew 3.2% to $6.77 billion
from $6.56 billion.

Wellcare Health Plans Inc. (WCG) shares jumped 11%. It named Charles Berg
executive chairman and Heath Schiesser president and chief executive officer
after three executives resigned. The managed-care services provider said the
shakeup is in its best long-term interest.

Decliners

Alliance Data Systems Corp. (ADS) shares slumped 35%. The company said it
received a notice from Blackstone Group (BX) stating that Blackstone doesn’t
expect the Office of the Comptroller of the Currency to clear its planned
acquisition of Alliance. Blackstone said the comptroller demands “extraordinary
measures” that “represent operational and financial burdens” on Alliance Data.
Alliance Data said it “strongly disagrees” with Blackstone’s assertions and said
Blackstone can meet the comptroller’s conditions.

Bank of Hawaii (BOH) shares fell 3.1%. Fourth-quarter net income fell to $40.9
million, or 83 cents, from $50.9 million, or $1.01 a share, a year earlier.
Analysts had been expecting the firm to report earnings of 94 cents a share. The
firm said that results were reduced by 7 cents a share from litigation
liabilities.

Baxter International (BAX) shares were lower. It issued an urgent recall of
batches of its heparin blood thinner due to reports they have caused severe
allergic reactions. In particular, Baxter is recalling injectable formulations of
heparin sodium in 1000 units/mL and 30mL multi-vial doses.

Black & Decker Corp. (BDK) shares fell. Fourth-quarter net income nearly doubled
to $187 million, or $2.94 a share. Excluding a one-time tax benefit and various
charges, the company earned $1.06 in the latest period. Sales climbed 3% to $1.7
billion. The average forecast in a survey by Thomson Financial was earnings of
$1.03 a share on sales of $1.6 billion. Sales decreased in North America,
reflecting “weak market conditions.”

BlueLinx Holdings Inc. (BXC) shares fell 4.5%. It expects to report a
fourth-quarter loss of $1.07 to $1.15 a share on revenue of $778 million. The
Atlanta distributor of building products said the results will include a charge
of about 23 cents a share related to the consolidation of its headquarters and
sales center. The company also will post an after-tax charge of about 11 cents a
share for severance and outplacement costs.

Shares of Ceragon Networks Ltd., (CRNT) the Tel Aviv producer of solutions to
enable wireless-service providers to deliver voice and premium data services,
tumbled 18%. It swung to a fourth-quarter profit from a year-earlier net loss on
40% higher revenue. Earnings were $4.4 million, or 12 cents a share, compared
with a loss of $8.1 million, or 30 cents, in the year-earlier period. Adjusted
earnings were 14 cents against 9 cents. Shares outstanding rose 32% to 35.9
million. Revenue reached $46.1 million from $32.9 million.

Countrywide Financial (CFC) shares were lower. Chairman and CEO Angelo Mozilo
said he’s giving up $37.5 million in severance payments, post-closing consulting
fees and continued perquisites in connection with the lender’s takeover by Bank
of America. (BAC) Mozilo will not receive any cash payments in the merger or if
his employment is terminated, other than amounts he has already earned in full,
such as retirement benefits and deferred compensation.

Duncan Energy Partners (DEP) shares fell. Fourth-quarter net income dropped to
$6.3 million from $15.1 million in the year-earlier period. In the latest period,
it earned 30 cents a share. Analysts had been expecting 24 cents, according to
Thomson Financial. The company completed an initial public offering on Feb. 5,
2007. Revenue rose to $205.7 million from $184.4 million.

Shares of McDonald’s Corp., (MCD) the Oak Brook, Ill., restaurant giant, fell
5.2%. It reported fourth-quarter net income rose 2.6% on 5.7% higher sales and
6.7% higher comparable sales. Earnings reached $1.27 billion, or $1.06 a share,
from $1.24 billion, or $1, in the year-earlier period. Earnings from continuing
operations were $1.06 against 61 cents. A survey of analysts by Thomson Financial
produced a consensus estimate of 71 cents for the latest quarter.

News Corp. (NWS) shares were slightly lower. David Li, a former Dow Jones board
member, has reached a tentative settlement to pay more than $8 million to the
U.S. Securities and Exchange Commission over allegations of insider trading, the
Financial Times reported Monday. Li won’t admit or deny wrongdoing, according to
the report. Since the allegations first arose, News Corp. has purchased Dow
Jones, the publisher of The Wall Street Journal and MarketWatch.

Package-delivery companies: NBTY Inc.’s (NTY) shares moved up. Fiscal
first-quarter net income fell 9.9% to $45.8 million, or 67 cents a share, from
$50.9 million, or 73 cents a share, a year earlier. The Bohemia, N.Y., maker of
nutritional supplements said sales for the quarter ended Dec. 31 were $510.9
million, up from $506.2 million. Analysts polled by Thomson Financial expected
earnings of 70 cents a share on revenue of $511 million. Same-store retail sales
for North America rose 6% during the quarter, while European same-store sales
declined 4% in local currency.

Shares of FedEx (FDX) were slightly lower. It reportedly is in talks to buy all
or part of Deutsche Post’s (DPSTF) DHL delivery business in the U.S. in a deal
that would help it challenge larger rival UPS. (UPS) Seeking to cut losses in the
hyper-competitive fast-delivery business, Deutsche Post may move to trim, but not
abandon, its DHL business in the U.S., according to published reports on Friday.
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