In the news: Lululemon gets a new chairman and CEO, PVH reports earnings, Thompson Creek Metals could suspend mining if Molybdenum prices continue to fall, General Motors sheds its government ownership and McDonalds is selling euro-denominated bonds.
Yoga-pants retailer Lululemon Athletica (LULU) announced Tuesday that Chip Wilson, the company's founder, will step down as its chairman. Michael Casey, who is currently the lead director on the company's board, will take over as chairman. The company also named Laurent Potdevin and CEO, replacing Christine Day, who announced plans to leave the company in June.
Apparel maker PVH Corp. (PVH) reported fiscal third-quarter earnings of $2.37 per share, or $2.30 per share on an adjusted basis. Revenue was $2.26 billion. Analysts had anticipated earnings of $2.25 per share on revenue of $2.21 billion. Looking forward, the company said it expects to earn $7 per share for the full year on revenue of $8.24 billion. Analysts had expected $7.97 per share on $8.25 billion in revenue.
Thompson Creek Metals
Miner Thompson Creek Metals (TC) said it could halt production at a pair of molybdenum mines is the price of molybdenum oxide, which is used to strengthen steel, continues to fall. CEO Jacques Perron told Bloomberg that a price of around $9.50 or $9.00 per share would prompt the company to close the mines. He said the company will try to reduce costs, but it will become difficult to be profitable at all at $9 per point.
The U.S. Treasury sold its final shares of automaker General Motors (GM) on Monday, ending a five-year investment that kept the company from collapsing at the depths of the financial crisis. The Bush administration initially provided loans to the company before the Obama administration took an equity position that eventually reached 60%, and shepherded it through bankruptcy.
Fast-food chain McDonalds (MCD) is selling euro-denominated bonds for the second time this year as a number of U.S. companies are opting to sell euro bonds as the exchange rate is at a five-year low at 11.3 basis points below the euro interbank offered rate. The McDonald's 12-year notes will yield about 65 basis points above the benchmark rate. The company expects to sell 350 million euros or about $481 million of the notes.