By Ben Fox Rubin
Several major consumer foods and media companies are scheduled
to report their quarterly results next week, though much focus in
the equities world will go to McGraw-Hill Cos. (MHP), which was hit
by a handful of lawsuits this week.
Meanwhile, Hostess Brands Inc. is looking to move forward with
its sale of several iconic food brands and new data reports will
help shed light on the economy's strength since the start of
2013.
McGraw-Hill to Report Results Amid Flurry of Lawsuits
McGraw-Hill Cos. (MHP) is scheduled to report its latest
quarterly results Tuesday, after the stock has been hammered amid a
spate of federal and state lawsuits against its unit, Standard
& Poor's Ratings Services.
The Justice Department late Monday sued S&P for the alleged
$5 billion in losses suffered by the federally-backed banks and
credit unions that relied on the firm's high ratings on
mortgage-backed deals that later soured. S&P has called the
suits "meritless."
Moody's Corp. (MCO), another ratings firm, has seen its stock
dragged down, too, as requests to it and Fitch Ratings signal that
they may be drawn into the legal fury.
Raft of Consumer-Foods Companies to Report
Mondelez International Inc. (MDLZ), the latest iteration of
Kraft Foods, is set to report quarterly results Wednesday.
The company, which spun off its slower-growing grocery brands in
North America into a company now called Kraft Foods Group Inc.
(KRFT), broke up to unlock its snack brands' growth potential in
emerging markets. But, in its first quarter since the spinoff,
Mondelez stumbled, stemming largely from missteps in Brazil and
Russia, two of the markets the company is hoping to focus on for
rapid growth.
Wall Street expects the company to post weaker earnings in the
coming report.
Mondelez will be among many consumer goods companies reporting
next week, including Coca-Cola Co. (KO), PepsiCo Inc. (PEP)
WhiteWave Foods Co. (WWAV), Dean Foods Co. (DF), Dr Pepper Snapple
Group Inc. (DPS), Campbell Soup Co. (CPB), J.M. Smucker Co. (SJM)
and Kraft.
Several Media Firms to Release Quarterly Results
Next week will include quarterly reports from a handful for
media companies, including CBS Corp. (CBS, CBSA), Discovery
Communications Inc. (DISCA, DISCB, DISCK) and Comcast Corp. (CMCSA,
CMCSK).
CBS's stock has been moving higher lately after the company said
it would divest its big outdoor-advertising business, looking to
convert its U.S. operations into a real-estate investment trust and
put its European and Asian outdoor businesses up for sale.
CBS Chief Executive Leslie Moonves had hinted at the move,
saying the outdoor business, which operates billboards and ads at
bus and subway stations, wasn't a core part of CBS.
The broadcaster is heavily dependant on advertising dollars, but
has been working to diversify, with Mr. Moonves recently saying CBS
was considering allowing online outlets to stream TV shows
currently on the air as a way to boost its digital revenue.
The company is expected to report higher earnings Thursday.
Movie studio Lions Gate Entertainment Corp. (LGF) and media and
marketing-information firm Nielsen Holdings N.V. (NLSN) also plan
to report.
Equities Grab-bag
Other notable firms set to report next week are General Motors
Co. (GM, GMM.U.T), Orbitz Worldwide Inc. (OWW), Cisco Systems Inc.
(CSCO), Clearwire Corp. (CLWR) and Duke Energy Corp. (DUK).
Data on Retail Sales, Factory Activity
Investors and economy-watchers will have a few January and
February reports to review next week, and economists expect the
numbers to show the U.S. economy started 2013 at a modest pace.
The retail sales report out Wednesday is expected to show
consumers probably didn't shop much last month. The median forecast
calls for total sales to increase just 0.1%. Excluding autos, sales
likely increased only 0.2%.
Similarly, economists don't think the industrial sector
increased activity by much in January. Industrial production,
scheduled for Friday, is projected to post a small 0.2% increase
last month, with capacity utilization edging up to 78.9%.
Twinkies For Sale
Hostess Brands Inc. on Monday will seek bankruptcy-court
approval to put many of its beloved brands on the auction block in
coming weeks, including Twinkies and Ho Ho's.
The White Plains, N.Y., bankruptcy court is set to consider
three auction proposals from the liquidating baker, all of which
have stalking horses lined up to lead off the bidding at auctions
Hostess wants to hold in March.
Private-equity firms Apollo Global Management LLC and
Metropoulos & Co. have teamed up to bid $410 million for most
of Hostess's cakes business, including the Twinkies, Dolly Madison,
Ho Ho's and Ding Dongs brands. The bid also covers five bakeries
and certain equipment.
--Kathleen Madigan and Jacqueline Palank contributed to this
article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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