Business Briefs: Kalouche named president of TMS International
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TMS International, the parent of steel industry services supplier Tube City, named Raymond Kalouche president and CEO. Mr. Kalouche, 50, joined the Glassport-based company in 1989. He succeeds Joseph Curtin, 66, who has been president and CEO since 2009. Mr. Curtin remains executive chairman.
PVH Corp., the owner of the Tommy Hilfiger brand, agreed to buy Warnaco Group Inc. in a $2.9 billion transaction, bringing all Calvin Klein-branded apparel under one roof in the largest clothing-industry deal announced in 2012. PVH will pay $51.75 in cash and 0.1822 of a PVH share for each Warnaco share, the New York-based companies said in a statement Wednesday. The offer is worth $68.43 per Warnaco share, 34 percent higher than the last closing price of $50.88. Warnaco had licensed Calvin Klein's jeans from PVH, which bought Calvin Klein's company from the designer in 2003.
• RTI International Metals said third quarter profits doubled from year-ago levels, citing strong demand from customers in the aerospace, medical device and energy industries. Sales jumped 32 percent. The Moon titanium producer reported net income of $5.6 million, or 19 cents per share, on sales of $189.1 million vs. earnings of $2.1 million, or 7 cents per share, and sales of $143.7 million in the year ago quarter. Earnings were in line with analyst forecasts.
• Ampco-Pittsburgh Corp. reported third quarter net income of $1.5 million, or 15 cents per share vs. earnings of $2.8 million, or 26 cents per share, in the year-ago quarter. The industrial equipment provider said sales fell 3 percent to $72.2 million.
• Eaton Corp. said third-quarter net income dropped by 5 percent to $345 million, or $1.02 per share. Sales fell to $3.95 billion from $4.12 billion in the year-ago quarter. Eaton, which makes industrial parts and technology systems, said the sluggish global economy impacted demand for its products.
Excluding one-time charges related to acquisitions, the company had adjusted income of $1.07 per share, below analysts' estimates of $1.09 to $1.10 per share.
The Cleveland-based company's electrical sector for the Americas is based in Moon. Eaton expects to acquire Cooper Industries of Ireland by the end of the year.
• General Motors' shares surged Wednesday after the company announced big job cuts in Europe and reported third-quarter earnings that were far better than Wall Street expected.
The Detroit company's net income fell 14 percent to $1.48 billion, or 89 cents per share for the quarter. That's down from $1.73 billion, or $1.03 per share, a year earlier. Excluding one-time items, the company made 93 cents per share, beating analysts' estimates by 33 cents.
But investors looked past the decline because GM's revenue rose to $37.6 billion from $36.7 billion last year, far exceeding expectations. GM's stock rose $2.22, or 9.54 percent, to $25.50 in trading.
• GlaxoSmithKline, citing falling sales in both the U.S. and Europe, reported third quarter net profit was $1.80 billion, down from $2.22 billion for the same period a year ago. Revenue was down 8 percent to $10.49 billion.
U.S. sales fell 6 percent to $3.45 billion after posting sales of $3.75 billion last year. The pharmaceutical company's diluted earnings per share was 35.7 cents.
In a recorded interview, CFO Simon Dingemans said he expects to see growth in the fourth quarter and that for 2012 "we will deliver sales broadly in line with those we reported last year" but the Associated Press quoted analyst Keith Bowman at Hargreaves Lansdown Stockbrokers as saying "The group's results have again failed to inspire."
Shares for Glaxo, which employs about 450 workers locally, closed down 45 cents to $44.90 on Wednesday.
• MasterCard's net income rose strongly in the third quarter as its overseas business thrived, the company said Wednesday. The Purchase, N.Y., company processed 8.7 billion transactions, an increase of 24 percent over last year.
Mastercard net income rose to $772 million, or $6.17 per share, from $717 million, or $5.63 per share in the same period a year earlier. Revenue rose 5 percent, to $1.92 billion, in the three months ended Sept. 30 from $1.82 billion a year ago.
• Visa Inc. reported net income for the three months ended Sept. 30 climbed 89 percent to $1.66 billion, or $2.47 a share, from $880 million, or $1.27, a year earlier. The Foster City, Calif.-based company said Wednesday that adjusted profit per share, which excludes one-time items, was $1.54, beating the $1.50 average estimate of 34 analysts surveyed by Bloomberg.
It was Visa's last full period under the stewardship of CEO Joseph W. Saunders, 66, who stepped down Wednesday and handed control to Charles Scharf, the former head of retail banking at JPMorgan Chase & Co.
First Published November 1, 2012 12:00 am