Tag - Codi

Shares of Compass Diversified Holdings (Nasdaq:CODI) were up 7% this morning, after the investment firm posted second-quarter earnings before the opening bell this morning that went way above analystsʼ expectations.

For the three months ended June 30, Compass Diversified recorded earnings of $72.6 million compared with $2.5 million in the previous year quarter. The huge increase was attributable to the sale of two subsidiaries during the quarter that resulted in a net gain of about $72.3 million.

Analysts polled by Thomson First Call had on average expected earnings per share of $0.37.

At 10:26 AM, Compass Diversified is trading at $13.10, up $0.87 from Fridayʼs close. The stock has traded between $9.51 and $17.39 in the past year.

For detailed price information and recent news stories about Compass, click CODI.

Compass Diversified Trust (Nasdaq: CODI) inched upward this morning on unusually heavy volume after the firm announced the pricing of a follow-on public offering of 8 million shares at $16 a share.

Compass Group Investments Inc., through a wholly owned subsidiary, has agreed to purchase 1.875 million shares in a separate private placement transaction at a per share price equal to the follow-on public offering price for a total of $30 million.

The transaction is expected to close in conjunction with the closing of the public offering.

Westport, Conn.-based Compass Diversified was formed to acquire and manage middle market businesses that are headquartered in the United States. The firm plans to use the net proceeds from the offering to repay debt under its revolving credit facility and any remaining amounts for general corporate purposes.

Small-cap stocks are trading close to the flat line shortly after the opening this morning, as news of a stronger-than-expected rise in U.S. productivity was offset by a steep profit drop at General Motors Corp.

At 9:54 a.m. ET the Russell 2000 had lost 1.66 points, or 0.20 percent, to 826.80. The Dow Jones Industrial Average was up 4.30 points, or 0.03 percent, to 13,216.18.
The productivity of American workers grew more than expected in the first quarter of 2007, the Labor Department said before the opening bell.  The annualized growth rate of 1.7% was just above economists’ expectations of a 1.6% rise.  Productivity grew 2.1% in the fourth quarter of 2006.

On the other hand, labor costs grew 0.6%, significantly below the rise of 6.2% posted in the last three months of 2006.

In business news, auto giant General Motors Corp. (NYSE: GM) reported a sharp decline in quarterly profit before the opening.  Net income was $62 million, or $0.11 per share, compared with $602 million, or $1.06 per share the first quarter of 2006.  First quarter earnings without items were $94 million, or $0.17 per share, below analysts’ expected earnings of $0.87 per share.