Stocks to watch Tuesday: Nordson, Georgia Gulf
WASHINGTON (MarketWatch) -- Among the stocks that could see active trade in Tuesday's session are
Retailers again account for lion's share of companies reporting quarterly financial results, with
Standard & Poor's said it's selected
Along with reporting results for the second quarter ended April 30, Nordson (NDSN) issued an optimistic update on prospects for the third quarter late Monday, citing "encouraging" order rates that are running ahead of levels seen during the first half of the fiscal year. The Westlake, Ohio-based company projected third-quarter earnings would be 96 cents to $1.04 a share, reflecting expectations for generating sales growth of 8% to 12% from a year earlier, to a range of $337 million to $349 million. The outlook doesn't include any impact associated with Nordson's deal, announced earlier Monday, to acquire Wisconsin-based EDI Holdings Inc. for $200 million. Order rates for the 12-week period ended May 13, on a constant-currency basis, increased by 9% over the same period a year ago, according to Nordson.
The board of Georgia Gulf (GGC) voted to reinstate payment of quarterly dividends for the first time in four years, a reflection of the company's efforts to pay down debt and generate "substantial free cash flow," said Paul Carrico, president and chief executive. "Our financial position allows us to restore the cash dividend per share to the same level paid before it was suspended in 2008," he said in a statement. The 8-cent-a-share dividend's payable July 10 to stockholders of record on June 28, according to Atlanta-based Georgia Gulf.
Shaw Group (SHAW) agreed to sell most of its business serving the energy and chemicals industries to France's Technip SA for about $300 million cash. The divestiture, encompassing much of Shaw's Stone & Webster process technologies, is targeted for completion by the end of August. To reflect a net gain on the disposal, the Baton Rouge, La.-based company said it's increasing its profit estimate for the August fiscal year to a range of $2.20 to $2.30 a share, up from an adjusted range of $2.05 to $2.15 a share forecast as the company reported second-quarter results in March. Shaw and Technip also agreed to work toward developing business relationships involving Shaw's core business units in engineering, construction, technology, fabrication, remediation and support services. Technip said it will add 1,200 engineers, researchers and project teams as a result of the acquisition.
Underwriters fully exercised their option to purchase additional shares of