Farm-equipment maker Agco ( AG) was among the biggest losers on the NYSE Monday, with shares sliding 13% after the company's second-quarter results came in well below Wall Street's expectations. Agco's second-quarter profit dropped to $40.9 million, or 45 cents a share, from $46.1 million, or 47 cents a share, a year earlier. Adjusted earnings per share, which exclude restructuring charges, fell to 45 cents from 61 cents. Analysts polled by Thomson First Call expected earnings of 56 cents a share. Sales declined to $1.45 billion from $1.57 billion, missing Wall Street's target of $1.49 billion. "Second-quarter sales and operating margins were pressured by our actions to strengthen our balance sheet, particularly in North America, where our efforts to reduce dealer inventories resulted in lower sales," Agco said. "In addition, our results were impacted by weaker market conditions in the South America and Asia/Pacific regions." Agco said that industry demand for farm equipment in 2006 is expected to decline from 2005 levels. The company predicts its sales for the full year will "slightly below" a year earlier, though Agco expects earnings per share to rise 10% amid improved gross margins. Shares recently were trading down $3.46 to $22.24. Shares of Playtex Products ( PYX) jumped 8% after the consumer-products maker posted better-than-anticipated second-quarter results and backed its full-year sales guidance. The company's second-quarter profit rose to $10.3 million, or 16 cents a share, from $6.2 million, or 10 cents a share, a year earlier. Excluding charges, earnings rose to $11 million, or 17 cents a share, from $8.9 million, or 14 cents a share, last year. Analysts, on average, predicted earnings of 15 cents a share. Playtex posted revenue of $180.3 million, up from $164 million a year earlier and topping analysts' forecast of $170.8 million. For the full year, Playtex expects sales to be up in the mid-single-digit percentage from last year, excluding sales of brands sold in 2005. On a reported basis, the company expects sales to be down in the low-single digits from 2005 due to the $48.6 million of divested brands. In 2005, total sales were $643.8 million. Playtex expects 2006 operating income to be between $103 million and $108 million, compared with $107 million in 2005. Shares were trading up 83 cents to $10.98.
Shares of Tyson Foods ( TSN) fell 3% after the meat producer posted a wider-than-expected third-quarter loss and again cut its forecast for the year. For the quarter ended July 1, Tyson reported a loss of $52 million, or 15 cents a share, on sales of $6.38 billion. The results included charges of 8 cents a share. Analysts, on average, forecast a loss of 3 cents a share, before items, with sales of $6.63 billion. In the year-ago third quarter, Tyson earned $131 million, or 36 cents a share, on sales of $6.71 billion. "Despite improvements, the third quarter remained challenging with losses in the Chicken and Beef segments," Tyson said. "The oversupply of chicken and forward sales of leg quarters led to lower average sales prices in the third quarter as compared to the same quarter last year. In our Beef segment, May and June were positive, but not enough to offset a very difficult April." For the full fiscal year, Tyson projected a loss of 41 cents to 51 cents a share, compared with an earlier forecast for results ranging from a loss of 25 cents a share to earnings of 10 cents a share. Analysts predict a loss of 4 cents a share. Tyson's stock was down 50 cents to $14.07. Avon Products ( AVP) shares sank 9% after the cosmetics company posted a big drop in second-quarter earnings as it continues to restructure. The company's earnings declined to $150.9 million, or 33 cents a share, from $328.6 million, or 69 cents a share, a year earlier. The latest quarter's EPS included a 7-cent restructuring charge and a gain of less than a penny a share on unusual tax items. The year-ago quarter included a 20-cent-per-share benefit primarily from settlements of tax audits. Revenue rose to $2.08 billion from $1.98 billion. Analysts, on average, expected earnings of 35 cents a share and revenue of $2.04 billion. Shares were down $3 to $29.81.
Genlyte ( GLYT) shares moved higher after the maker of lighting fixtures and controls reported second-quarter results that beat expectations. Genlyte's profit rose to $35.9 million, or $1.24 a share, from $21.5 million, or 76 cents a share, a year earlier. Excluding a foreign-exchange-related gain, earnings were $1.09 a share. Analysts expected earnings of 93 cents a share. Sales rose to $366.1 million from $316.2 million, above analysts' estimate of $350.2 million. Genlyte shares recently were up $3.43, or 5.1%, to $70.96. Shares of Scottish Re ( SCT) plunged 71% after the reinsurer projected a big loss for the second quarter, announced the resignation of its CEO and said it is exploring strategic alternatives. The company estimated a second-quarter operating loss of $130 million, mainly due to a valuation allowance on deferred tax assets of $112 million. In addition, Scottish Re said it was hurt by a reduction in estimated premium accruals, increased costs, and a writedown of deferred acquisition costs. Scottish Re also expects third- and fourth-quarter results to be below its prior estimates, and the company suspended its dividend. Scottish Re said it hired Goldman Sachs and Bear Stearns to help evaluate strategic alternatives and potential sources of capital. In addition, the company said that Scott Willkomm resigned as president and CEO. The company named Paul Goldean, currently general counsel, as interim CEO. Shares were trading down $11.34 to $4.66. The top volume movers on the NYSE were Pfizer ( PFE), down 5 cents to $26.06; Scottish Re; Ford ( F), down 15 cents to $6.69; Bristol-Myers ( BMY), down 30 cents to $24.17; Advanced Micro Devices ( AMD), up 30 cents to $19.40; Citigroup ( C), up 12 cents to $48.45; Exxon Mobil ( XOM), up 16 cents to $67.16; AT&T ( T), down 19 cents to $29.87; Motorola ( MOT), up 32 cents to $22.81; and Time Warner ( TWX), up 5 cents to $16.38. The most heavily traded stocks on the Nasdaq included Cisco Systems ( CSCO), up 6 cents to $18.14; Sirius Satellite Radio ( SIRI), up 18 cents to $4.32; Apple Computer ( AAPL), up $2.43 to $68.02; Intel ( INTC), down 14 cents to $18.04; Microsoft ( MSFT), down 7 cents to $24.18; Sun Microsystems ( SUNW), up 3 cents to $4.36; Oracle ( ORCL), down 23 cents to $14.84, M-Systems ( FLSH), up $4.03 to $35.82; and Conexant ( CNXT), up 10 cents to $1.83.