Noble International (NOBL) shares were trading higher after-hours Thursday after the company bought Pullman Industries, a maker of tubular and shaped components primarily for the automotive industry. Noble is paying $120 million, including the assumption of debt and deferred consideration.
Pullman is based in Troy, Mich., and operates four manufacturing facilities in the U.S. and two in Mexico. Its product line consists mainly of structural, impact and trim roll-formed components for vehicles. At the same time, Noble increased its bank credit facilities. Noble expects the acquisition of Pullman to add $200 million to $215 million in revenue next year, taking the projected total to $690 million. Earnings for 2007 should be around $22 million, or $1.50 a share.
For this year, Noble forecast revenue of $400 million to $410 million and earnings of $13 million, or around 90 cents to 95 cents a share. Noble doesn't expect Pullman to contribute to this year's profits. Shares of Noble were up 5.5% to $15.30 in late trading Thursday.
Overland Storage (OVRL) said a supply agreement it signed with Dell (DELL - Get Report) has been terminated by the PC maker. Overland expected to supply Dell with two different automated-tape libraries. Shipments hadn't started, but they were expected to begin in the near future. Shares of Overland were sinking 12.7% to $5.79 in extended trading Thursday.Overland said the costs it has recorded for the Dell arrangement have been significant, and it plans to immediately stop spending on the program. Although it's still assessing the impact of Dell's decision, Overland believes that the write-off of tools and equipment used specifically for the contract will be relatively small. Other uses can probably be found for most of the assets, Overland said.