Costco rises on plans to return $3.1 billion to shareholders

Costco Wholesale Corp., the warehouse-club chain that’s largely avoided the retail industry’s distress, rose the most in nearly three months after saying it would return $3.1 billion to shareholders through a special dividend.

The $7-a-share distribution will be funded primarily from additional borrowings, the company said on Tuesday. The special dividend will be paid on May 26 along with a raised quarterly dividend. The shares rose as much as 3.2 percent in New York, the biggest intraday gain since Feb. 2.

The investor windfall underscores Costco’s status as a standout in U.S. retail, which is suffering from the acceleration of online shopping and a glut of physical stores. Excluding fuel, the company’s U.S. same-store sales jumped 6 percent in March, topping the 3.1 percent gain that analysts had projected.

On Tuesday, Moody’s cut its forecast for profit growth across the U.S. retail sector, citing subdued consumer spending.

PepsiCo

PURCHASE, N.Y. — Higher prices helped lift PepsiCo’s sales in the first quarter, as the maker of Doritos, Gatorade and Quaker worked on transforming its lineup of products to keep up with changing tastes.

Sales for the North America Beverages and Frito-Lay North America segment both climbed 2 percent in the quarter, as pricing offset a decline in volume. Like other major food and beverage companies including CocaCola and Oreo cookie maker Mondelez, PepsiCo has said it is working on adapting its stable of brands to better reflect the trend toward options that people feel are healthier.

For the period ended March 25, PepsiCo Inc. earned $1.32 billion, or 91 cents per share. A year earlier the food and beverage company earned $931 million, or 64 cents per share. Removing restructuring charges and one-time costs, earnings were 94 cents per share.

Daimler

FRANKFURT, Germany — German automaker Daimler AG says net profit doubled in the first three months of the year as the new version of the company’s Mercedes-Benz E-Class sedan and its SUV lineup boosted sales.

The Stuttgart-based company raised its profit outlook for the year, with CEO Dieter Zetsche saying in a statement Wednesday that earnings and sales would “significantly increase.” The earlier prediction was for a slight increase.

Net profit rose to 2.80 billion euros ($ 3 billion) from 1.40 billion euros in the year- earlier quarter. Revenue rose 11 percent to 38.77 billion euros. The net profit figure beat expectations for 2.4 billion euros as compiled by financial information provider FactSet.

Daimler gave a restrained outlook earlier this year as it reported setting aside more money for investment in research and development of new vehicles as it positions itself for possible changes in the auto industry, including more electric cars, car- sharing and eventually autonomous vehicles. The company is relying on strong profits from its MercedesBenz luxury car business to fund investment into new technology so it can adapt to shifting trends in how people buy and use cars. Revenue Net income Earnings per share

The Columbus-based home builder reported record revenue and home sales in its first quarter. M/I delivered 1,038 homes during the quarter, 18 percent more than a year ago, and signed a record 1,454 contracts during the quarter, up 11 percent. The company also opened 24 subdivisions, another record, bringing its total community count to 184 in the 15 markets it serves, including Columbus and Cincinnati. Revenue Net income Earnings per share

The Columbus-based operator of malls, including Polaris Fashion Place, reported first-quarter results that it said reflect continued progress toward improving the company’s portfolio and performance even as “the death of malls” has become a popular story line amid the closure of many retailers across the country. Guidance for the full 2017 fiscal year was increased to a range of $1.64 to $1.70 per diluted share. Revenue Net income Earnings per share

Source: company reports