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Wm. Wrigley Jr. Co. posted a strong second quarter Monday, beating Wall Street forecasts in a performance buoyed by surging international sales.
The Chicago-based gum giant posted net earnings of $193.8 million, or 70 cents per share, up 15 percent from the same period last year. Excluding one-time charges, its earnings of 74 cents per share topped by 6 cents the average estimate of analysts polled by Thomson Financial.
Wrigley's sales of $1.57 billion, up 14 percent, topped analysts' estimates of $1.53 billion. "It's more of the same, which is very good numbers," said Matt Arnold, a stock analyst at Edward Jones.
In an overseas region that principally includes Europe, revenue totaled $783 million, up 17 percent over 2007's second quarter. In the United States, sales stood at $474 million, up 5 percent. Still, U.S. sales volume fell about 5 percent, reflecting price increases that began last year.
Wrigley announced in April that it would be bought by Mars Inc. for $23 billion, or $80 per share, a deal partly financed by billionaire investor Warren Buffett. Wrigley's stock closed Monday at $79.10, up 11 cents.
Alberto-Culver Co.: The Melrose Park-based maker of personal-care products reported better-than-expected fiscal third-quarter results and expanded its share-buyback program, sending its shares sharply higher.
For the quarter ended June 30, Alberto's net income declined 16 percent, to $21.1 million, or 21 cents a diluted share, from $25.1 million, or 25 cents a share, a year earlier.
Revenue rose 12 percent, to $364.9 million from $325.0 million.
Alberto-Culver's latest quarter included an $8.6 million loss from discontinued operations--primarily associated with the recent divestiture of its Cederroth subsidiary--while the year-ago period had earnings from those operations of $1.9 million.
Excluding those factors, earnings at the maker of products such as Alberto VO5 and TRESemme were 29 cents per share, topping analyst forecasts of 26 cents.
The firm also said Monday that it had repurchased 3.8 million of its common shares during the quarter, of a 5 million-share authorization, and said that directors had approved the repurchase of up to 5 million additional shares.
The firm's shares surged $2.22, or 9.3 percent, to $26.22.
CNA Financial Corp.: The Chicago-based insurance provider, pinched by "competitive market conditions," lower investment income and weather-related damage claims, said net income fell 17 percent in the second quarter.
The firm, which is majority owned by Loews Corp., said net income declined to $181 million, or 67 cents a diluted share, from last year's $217 million, or 80 cents a share.
Operating income, which includes earnings from investments such as dividends but excludes gains or losses from investment sales, tumbled 21 percent, to $250 million, or 93 cents a share, from last year's operating income from continuing operations of $318 million, or $1.17 a share. Those results met analysts' expectations.
Operating profit was down because of a $95 million decline in investment income, CNA Financial said, blaming decreased results from the company's trading portfolio and limited partnerships. In addition, the company's insurance operations are under pressure from higher catastrophe losses and from competitive conditions.
CNA shares fell 61 cents, or 2.4 percent, to $24.36.
mhughlett@tribune.com
jpmiller@tribune.com
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