Nashville-based Delta Coals has been awarded a $7.8 million contract for black coal deliveries from the Defense Logistics Agency Energy. It is a one-year deal with a completion date of May 31, 2016. Delta will distribute coal to Army and Marine Corps locations in Tennessee and Virginia.
The leaders of Louisiana-Pacific and Ainsworth Lumber have agreed to extend to June 2 today's deadline to obtain regulatory approval of their planned $1.1 billion combination. The companies say their extension is the result of "continued discussions" with the Canadian Competition Bureau and the Antitrust Division of the U.S. Department of Justice. Either company can add another 45 days to the deal's timeline if needed.
Shares of LP (Ticker: LPX) are down about 1 percent this afternoon to $15.25. Investors appear to be expecting not-so-good news about the Ainsworth acquisition and have pushed the stock down nearly 20 percent since the beginning of March.
Analysts at Moody's Investors Service have placed the debt ratings of Noranda Aluminum Holdings under review for downgrade, saying the Franklin-based company "will face challenges in returning to and sustaining more robust metrics without meaningful improvement in its cost position or reduction in debt balances." The low prices of aluminum products on world markets have been a big drag for Noranda, which has launched a second cost-cutting program that aims to save $225 million by 2016.
Word of Moody's move didn't do Noranda shares (Ticker: NOR) a lot of good. They stumbled out of the gate and kept falling into the afternoon until they were off more than 10 percent at $2.31. That put them within shouting distance of their all-time low set in October.
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