S&P announces some changes to its indices: United Natural Foods (UNFI) will replace Amerigroup (AGP) in the S&P MidCap 400, and Ixia (XXIA) will replace United Natural Foods in the S&P SmallCap 600. Wellpoint (WLP) is acquiring AGP in a deal expected to be completed soon. Abiomed (ABMD) is also to be added to the S&P 600, replacing Cascade (CASC) as of the December 21st close of trading. Toyota Industries is acquiring Cascade, which also should be completed soon.
Japanese transportation equipment company Toyota Industries agrees to acquire Cascade (CASC), a provider of parts for the lift trucks industry, for $759M. Toyota's offer of $65/share represents a premium of 18% to Cascade's closing price on Friday. Cascade is now +17.9% to $64.94. (PR)
Cascade (CASC -1%) slips after its Q2 missed on both counts late yesterday. Net earnings fell 8.8% as currency fluctuations mostly offset sales growth and its effective tax rate rose. Gross margin fell to 30.8% from 31.9%. Total shipments fell 2% on a 19% decline in shipments to China. However, shipments improved elsewhere: Asia-Pacific +14%, Americas +2% and Europe +4%.
Cascade (CASC -0.4%) outperforms the general market after being initiated with a Buy at Global Hunter. The firm says it's the largest manufacturer of attachments for use on industrial lift trucks as well as construction, agricultural and mining related vehicles, and a leading player in the global market for materials handling equipment.
Shares of Cascade Corp. (CASC +12.6%) jump after its Q3 tops estimates, as the company's efforts to streamline its operations begin to pay off. Earnings more than doubled on a 29% Y/Y jump in sales, as the forklift-parts company racked up better shipment volumes due to improving economic conditions and a strong global lift truck market.