Cohu To Divest PTG Business To Sweden’s Mycronic In $125 Mln Cash Deal

Semiconductor equipment company Cohu, Inc. (COHU) announced Monday its agreement to divest Printed Circuit Board Test Group or PTG business in $125 million cash deal.

The company entered into a definitive agreement, under which Mycronic AB, a Swedish high-tech company engaged in production equipment, will acquire atg Luther & Maelzer GmbH and other affiliated entities and assets related to Cohu’s PTG business.

The purchase price will be paid in cash at close, subject to adjustment for certain closing accounts.

Cohu intends to use the expected net cash proceeds of approximately $95 to $100 million, after estimated transaction costs and taxes, to repay outstanding principal on its term loan facility. No regulatory approvals are expected to be required.

The transaction is expected to be completed by the end of June 2021, subject to customary closing conditions.

For the last twelve months to March 27, the PTG business reported sales of $52.9 million. PTG has been a part of Cohu since joining with the Xcerra acquisition in 2018.

Cohu said it does not expect to update its guidance for the second quarter.

Luis Mller, Cohu’s President and Chief Executive Officer, said, “Combining forces with Mycronic creates additional scale in the PCB market segment and greater opportunities for PTG’s success in the future, while enabling Cohu to focus on semiconductor equipment and services businesses.”

Dignity Plc 13-week Underlying Revenue Up 14%

Dignity plc (DTY.L) reported underlying revenue of £94.7 million for the 13-week period ended March 26, 2021, up 14% compared to £83.1 million last year.

Underlying operating profit for the period increased 35% to £26.1 million from £19.4 million reported in the prior year period.

Further, the company reported that operating performance in the first quarter was above the Board’s expectations as a result of the significantly higher than expected number of deaths. Funeral market share and average revenue were below the Board’s expectations.

Treasury yields start the week higher

• Yields continued to rebound from two-month lows on Friday, following a far-weaker-than-expected jobs report.
• Auctions are due to be held Monday for 13-week and 26-week bills.

U.S. Treasury yields started the week higher, with the focus on inflation data due out later in the week.

The yield on the benchmark 10-year Treasury note rose to 1.595% at 4 a.m. ET. The yield on the 30-year Treasury bond climbed to 2.30%. Yields move inversely to prices.

Treasurys

Yields continued to rebound from two-month lows on Friday, following a far-weaker-than-expected jobs report. U.S. employers added 266,000 net payrolls in April, well below the 1 million additions forecast from economists polled by Dow Jones.

There are no major economic data releases scheduled on Monday, though investor focus this week will likely be turning to March job openings data out tomorrow and inflation data, due out on Wednesday.

Auctions are due to be held Monday for 13-week and 26-week bills. The amount for the auctions isn't immediately available.

New USA TODAY High School Sports Awards program will crown the best student athletes in the country this summer

The GEO Group Inc. Q1 adjusted earnings Beat Estimates

The GEO Group Inc. (GEO) revealed earnings for its first quarter that advanced from the same period last year.

The company’s bottom line came in at $50.48 million, or $0.41 per share. This compares with $25.12 million, or $0.21 per share, in last year’s first quarter.

Excluding items, The GEO Group Inc. reported adjusted earnings of $34.08 million or $0.28 per share for the period.

Analysts had expected the company to earn $0.19 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 4.8% to $576.37 million from $605.17 million last year.

The GEO Group Inc. earnings at a glance:

-Earnings (Q1): $34.08 Mln. vs. $28.81 Mln. last year.
-EPS (Q1): $0.28 vs. $0.24 last year.
-Analysts Estimate: $0.19
-Revenue (Q1): $576.37 Mln vs. $605.17 Mln last year.

-Guidance:
Full year EPS guidance: $2.23-$2.31
Full year revenue guidance: $2.23 – $2.25 Bln

Air Products Q2 Adj. EPS Misses View; Sees Q3 Earnings Above Market, Higher Earnings In FY21

Air Products And Chemicals Inc. (APD) on Monday reported that its second-quarter net income attributable to the company declined to $473.1 million or $2.13 per share from last year’s $477.8 million or $2.15 per share.

Adjusted attributable net income was $463.2 million or $2.08 per share, compared to $453.0 million or $2.04 per share a year ago.

Sales for the quarter increased 13 percent to $2.50 billion from prior year’s $2.22 billion.

On average, analysts polled by Thomson Reuters expected earnings of $2.12 per share on sales of $2.34 billion. Analysts’ estimates typically exclude special items.

Looking ahead, Air Products expects third-quarter adjusted earnings per share between $2.30 and $2.40, up 14 to 19 percent from the prior year’s $2.01 per share.

For fiscal 2021, Air Products expects full-year adjusted earnings per share of $8.95 to $9.10, up 7 to 7 percent from prior year’s $8.38 per share.

The company said the guidance does not include the Jazan transaction or the expected restart of the Lu’An facility.

Analysts expect earnings of $2.29 per share for the third quarter and $9.04 per share for the year.