Stocks in the news: Archer Daniels Midland, UBS, PepsiCo
Archer Daniels Midland (ADM) declined 7.7 percent in pre-market trading after the agricultural conglomerate reported that fiscal fourth-quarter profit tumbled 83 percent as its results were pressured by higher corn costs, lower average selling prices and softer demand. The company earned 10 cents per share, compared with 45 cents per share analysts had expected. Revenue fell 24 percent but beat Wall Street's estimate.
UBS (UBS) shares dropped over 8 percent ahead of the bell after the Swiss bank reported its seventh loss in eight quarters. UBS took $2.17 billion in one-off restructuring charges, but its problems really stemmed from wealthy clients continuing to take their cash elsewhere. Although, there were signs of improvement in its best underlying performance in two years.
Toyota Motor (TM) reported a smaller-than-expected 77.82 billion yen ($819 million) quarterly loss and "cautiously" trimmed its loss expectation for the full year even as the world's top automaker battles plunging sales and a strong yen. Shares declined over 1 percent in pre-market trading.
D.R. Horton (DHI) reported a narrower fiscal third-quarter loss that didn't beat analyst expectations. Still, the company's results provided another sign the battered housing market is struggling its way out of its slump and DHI shares gained about 1 percent ahead of the bell.
Apple (AAPL) and Google's (GOOG) Schmidt may have parted ways, but the U.S. Federal Trade Commission said it will continue to investigate the relationship between the boards of the two tech giants.
PepsiCo (PEP) agreed to purchase its two largest bottling companies for a combined value of $7.8 billion in stock and cash, up from the initial $6 billion, in a move aimed at making itself more nimble in the marketplace. PepsiCo will buy Pepsi Bottling Group (PBG) for $36.50 a share and PepsiAmericas (PAS) for $28.50 a share. PEP shares traded 1.5 percent higher at last check, PBG 6.3 percent higher and PAS 7 percent higher.
CVS Caremark (CVS) posted a bigger-than-expected jump in quarterly profit Tuesday, aided by new stores and increased demand as consumers bought Easter treats and products to combat the H1N1 flu. CVS beat estimates by a penny. Shares were up about 4 percent in pre-market trade.
Kraft Foods (KFT) is also due to report quarterly results today among other companies.
American International Group (AIG) said late Monday former MetLife Inc. (MET) CEO Robert Benmosche will become president and chief executive of the troubled insurance giant, replacing Edward Liddy on Aug. 10. Shares fell 1.4 percent.
Chesapeake Energy Corp. (CHK) reported second-quarter adjusted second-quarter net income was $377 million, or 62 cents a share, beating analyst estimates for earnings of 53 cents a share. The top line missed. Shares fell 3.4 percent ahead of the bell.