Roundup: Chesapeake posts $2B loss; Exxon profit falls to $9.6B; more
II-VI acquires ceramics producer for $71.4M
II-VI Inc., a high-tech optics manufacturer based in Saxonburg, said on Thursday it acquired a Connecticut-based developer of advanced ceramic materials for at least $71.4 million in cash. M Cubed Technologies Inc. is a privately held company based in Newton, Conn., that also develops precision motion control products. It had $52 million in revenue in the year ended June 30. M Cubed's 200 workers are expected to join II-VI, which employs 6,030 people, including 450 in Saxonburg. The acquired company's employees will remain based at their plant in Monroe, Conn., administrative office in Newtown, Conn., and plant in Newark, Del., said Craig Creaturo, chief financial officer of II-VI. As a result of the deal, which closed Thursday, II-VI said it expected revenue in the year ending June 30 to range between $585 million and $595 million, up from the previous $550 million to $560 million. Annual earnings are now expected to range between $1.01 and $1.09, up from the previous $1.00 to $1.06.
Chesapeake loss biggest in 3 years
Chesapeake Energy Corp., the second-largest natural gas producer, posted its biggest net loss in more than three years after a plunge in gas prices prompted a $2 billion writedown in the value of gas fields. Chesapeake reported a net loss of $2.01 billion, or $3.19 a share, compared with profit of $922 million, or $1.23, a year earlier, the Oklahoma City-based company said. Excluding one-time items such as the writedown, Chesapeake earned 10 cents a share, a penny more than the average of 34 analysts' estimates compiled by Bloomberg.
GNC Holdings profit, revenue up
GNC Holdings Inc., which sells vitamins, herbal supplements and other health products, said Thursday that net income rose 28 percent in the third quarter on a 16 percent rise in revenue. GNC's results were slightly better than Wall Street expected, and the company made modest increases to its full-year guidance. The company said its net income rose to $62.2 million, or 60 cents per share, from $48.7 million, or 45 cents per share. Its adjusted earnings came to 61 cents per share. Analysts surveyed by FactSet expected 58 cents per share. Revenue increased to $621.6 million from $538 million. Analysts expected $618.6 million in revenue.
Exxon's 3Q profit drops to $9.6B
Exxon Mobil says its profit fell 7 percent in the third quarter as it produced less oil and gas and fetched lower prices. The nation's biggest oil company says that net income totaled $9.57 billion, down from $10.33 billion a year earlier. That works out to $2.09 per share. Analysts expected $1.95 per share, according to FactSet. Revenue fell 8 percent, to $115.71 billion, still better than the $112.40 billion that analysts had forecast. The weak global economy has lowered demand for everything from gasoline to jet fuel.
L.B. Foster profit falls 15.6%
L.B. Foster Co., Green Tree, said quarterly net income dropped 15.6 percent to about $8.2 million, or 81 cents a share, compared with more than $9.7 million, or 95 cents a share, a year earlier. The rail supply and servicing company's sales increased 7.6 percent to more than $170 million from $158 million. Results include a $3 million warranty charge related to expected costs of settling claims for defective railroad ties made in Nebraska from 1998 to 2011.
• TMS International Corp., the parent of Tube City IMS Corp. in Glassport, said quarterly earnings jumped 51 percent to about $9.8 million, or 25 cents a share, compared with $6.5 million, or 17 cents a share, a year earlier. Total revenue fell 19 percent to $573 million from $709 million. The company provides scrap steel and other industrial services to steel mills.
• Allegheny Valley Bancorp Inc., Lawrenceville, said net income decreased 26 percent to $562,000, or 58 cents a share, compared with $760,000, or 80 cents a share, a year earlier. Total assets stood at $409 million as of Sept. 30. Allegheny Valley Bank has nine branches in the Pittsburgh area.
Other business news
• Employees at the Dunkirk Specialty Steel LLC unit of Universal Stainless & Alloy Product Inc. are continuing to work after their contract expired. The Bridgeville-based company said hourly workers in Dunkirk, N.Y., are represented by United Steelworkers Local 2693 and had a contract that ran out Wednesday. The extension is to expire at midnight on Nov. 11. The specialty steelmaker's other plants in Bridgeville and Titusville are covered under separate contracts and aren't affected.
• Sisterson & Co. LLP said Bradley P. Lusk will become its managing partner as of Jan. 1. He will succeed William E. Troup, who has served in that position with the Downtown certified public accounting and consulting firm since 1997. Troup announced his retirement and will continue until then as assurance services partner.
• PNC Foundation said Thursday that it will donate more than $300,000 for relief for victims of Hurricane Sandy. Half the money will go to the American Red Cross, and the other half will go to the Salvation Army. In addition, the foundation said it will match PNC Financial Services Group contributions to those groups and to Americorps up to a total of $150,000.
— Staff and wire reports
Excela Health's insurance costs fell by $3.7 million in the fiscal year ended June 30, compared with the previous year, because of a reduction in medical malpractice and workers' compensation claims. A story on Thursday's Business page about Excela's financial performance incorrectly stated the reasons for the decline in insurance expenses.