Consumer Biz Recap: AMR Surges 50%, General Motors Volt Response
Sara Lee (NYSE:SLE) and its Norwegian partner Kaffehuset Friele sign an agreement with ISS A/S to acquire its House of Coffee business. ISS A/S is a leading foodservice provider specializing in beverage solutions to offices and institutions in Norway and Denmark.
General Motors (NYSE:GM) response to its safety flareup with its electric Chevrolet Volt is to offer to swap vehicles pending the government’s safety investigation, which stands in stark contrast to Toyota’s (NYSE:TM) ineffective response to its own PR disaster back in 2009 over acceleration issues with models. Only a handful of Volt owners have taken up the carmaker’s offer.
AMR’ (NYSE:AMR) s 50% surge today is odd given the stock soon will be worthless. The only case of an airline using old stock when coming out of bankruptcy appears to be Hawaiian Holdings (NASDAQ:HA). However, Hawaiian was profitable and had equity; AMR hasn’t turned a profit in years. Even if US Airways (NYSE:LCC) buys AMR, as is speculated, AMR likely would first issue new stock.
United Natural Foods (NASDAQ:UNFI) jumps after FQ1 earnings beat estimates. The beat is in spite of restructuring charges due to the implementation of new warehouse management systems. Margins declined slightly, but the company continues to post double-digit sales growth as it wins new business from competitors.