Newspaper article St Louis Post-Dispatch (MO)

Business Digest

Newspaper article St Louis Post-Dispatch (MO)

Business Digest

Article excerpt

Post sells stock, debt * Post Holdings Inc. is selling 5.87 million shares at a price of $60 per share in a secondary offering, giving the company gross proceeds of $351 million. This is more than the $275 million that the Brentwood-based maker of cereals and other foods said when it announced the offering this week. The shares will be delivered around Aug. 18, the company said in a regulatory filing Thursday. In the filing, the company also said it has offered an additional 875,000 shares to underwriters who have a 30-day option to buy the stock. Post shares rose 69 cents to close Thursday at $62.37. The company also reported that it is selling at par $800 million in senior notes due in 2024 that have a coupon of 7.75 percent and $400 million in senior notes due in 2025 that have a coupon of 8 percent. Both notes are unsecured.

Costs hurt World Point * World Point Terminals has reported a 5 percent decline in second-quarter profits as higher costs offset increased revenue. The company reported a net income of $8.57 million, compared $9.05 million a year earlier. Revenue grew 9 percent, but operating expenses grew 31 percent, primarily due to the acquisition of three terminals. World Point, based in Clayton, is a limited partnership in the business of storing fuel and crude oil at 17 terminals in the Midwest and on the east and Gulf coasts.

GM recalls Cobalt * General Motors is recalling 73,424 Chevrolet Cobalt small cars globally because improper wiring could prevent the roof-mounted driver's side air bag from deploying after a crash. The recall affects Cobalts from the 2010 model year. There are 59,474 in the U.S. and 13,950 in Canada. GM said Thursday improper routing of a sensor wire in the driver's side front door could prevent the air bag from deploying. The company is aware of one crash with an injury that may be related to the issue. GM will notify owners. Dealers will inspect the wiring and replace faulty wiring for free. The recall is unrelated to last year's recall of millions of Cobalts for defective ignition switches.

Motorola Mobility cuts workforce * Motorola Mobility has announced it is cutting 500 jobs at its Chicago headquarters, about a quarter of its workforce of about 2,000. Motorola Mobility spokesman William Moss says the layoffs got underway Thursday and will continue for the next few weeks. Moss says the maker of mobile devices is streamlining at all levels. He said Chicago will remain Motorola Mobility's headquarters and "the hub of our global R&D and design efforts." The dismissals are part of a restructuring at Lenovo, Motorola's parent company. Lenovo reported a slowdown in computer sales in the most recent quarter, when Motorola also saw a 31 percent drop in phone shipments from a year ago. In announcing its restructuring, Lenovo said the Beijing-based company will be relying more heavily on Motorola "to design, develop and manufacture smartphone products. …

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