LOCAL BUSINESS
Schulman deal debated
Fairlawn polymer company A. Schulman Inc. may have to pay between $7.50 to $9 a share to buy struggling specialty chemicals company Ferro Corp. in Mayfield Heights, analysts say. Schulman initially offered $6.50 a share in cash and stock, or about $875 million, in its unsolicited bid; Ferro’s board rejected the overture and called it “low ball.”
Rye, N.Y.-based GAMCO Investors Inc., which owns more than 16 percent of Ferro, says it intends for a vote for a dissident slate of three directors at Ferro’s shareholders meeting next month. If that slate is elected, it could pave the way for Schulman to buy Ferro.
Ferro’s management has declined to negotiate with Schulman.
“As previously announced, the Ferro board carefully considered A. Schulman’s unsolicited proposal and unanimously determined that it was inadequate and not in the best interests of Ferro shareholders,” Ferro said in a statement.
Negotiations website up
Goodyear Tire & Rubber Co. has restarted a company website to provide updates on just-started contract negotiations with the United Steelworkers. The current contract expires July 27.
Negotiations opened Monday in Cincinnati between the Akron tire maker and the Pittsburgh-based union. The Steelworkers represent about 8,000 hourly workers at six Goodyear tire factories, including about 300 in Akron who make NASCAR race tires.
Tuesday’s post at the Goodyear website included excerpts from opening comments made Monday by Steve McClellan, president of the North American Tire division.
The website is www.goodyearnegotiations.com.
WALL STREET
Dow ends up 152 points
The Dow Jones industrial average closed up 152.29 points at 14,719.46. The S&P 500 ended 16.28 points higher at 1,578.78. Both indexes are about 1 percent below their record highs.
The Nasdaq composite rose 35.78 points, or 1 percent, to 3,269.33.
EARNINGS
Apple beats estimates
Apple Inc.’s financial results beat the consensus estimate of analysts who follow the company, though it posted its first profit decline in 10 years. Net income was $9.5 billion, or $10.09 per share, down 18 percent from $11.6 billion, or $12.30 per share, in the same period a year ago.
Revenue was $43.6 billion, up 11 percent from last year’s $39.2 billion. Analysts were expecting earnings of $9.97 per share on revenue of $42.3 billion, according to research firm FactSet.
Netflix grows again
Netflix Inc., the leading online video-subscription service, posted a better-than-expected gain in U.S. subscribers for the first quarter, adding more than 2 million new customers. The increase brought the domestic total for the period to 29.2 million.
Analysts had estimated Netflix would end March with 29 million online U.S. users, the average of seven estimates compiled by Bloomberg. First-quarter net income, including an expense for debt retirement, totaled $2.69 million, or 5 cents a share, compared with a loss of $4.6 million, or 8 cents, a year earlier. Sales rose 18 percent to $1.02 billion from $869.8 million a year ago, matching analysts’ estimates of $1.02 billion.
Lockheed sales down
Defense contractor Lockheed, which has a unit based in Akron, reported net income from continuing operations increased 14 percent to $761 million, or $2.33 a share, from $668 million, or $2.03 a share, a year earlier. The average estimate of 20 analysts surveyed by Bloomberg was $2.04 a share. Sales declined 2 percent to $11.1 billion, Lockheed said.
The Bethesda, Md.-based company said the reductions known as sequestration, which began March 1, may trim full-year sales by about $825 million, holding 2013 revenue to the low end of the range from $44.5 billion to $46 billion forecast in January. It maintained its forecast for a profit of $8.80 to $9.10 a share.
TELEVISION
Mobile device programs
CBS Corp. says it has made a minority investment in Syncbak, a technology company that allows mobile device users to pick up signals from their local TV stations over the Internet.
Founded in Marion, Iowa, in 2009, Syncbak allows people who download the app to watch local programming, even over a cellphone connection.
Compiled from staff and wire reports