After a solid gain in the stock market last week, investors weren't able to carry the positive momentum through to the new week. Most of the declines in the major market benchmarks on Monday were minimal, but several stocks posted much more dramatic losses. Diebold (NYSE:DBD), Navios Maritime Partners (NYSE: NMM), and U.S. Steel (NYSE:X) were among the poorer-performing stocks in the market on the day.
Diebold fell 7% after the company announced an agreement to buy automated teller machine competitor Wincor Nixdorf. Diebold boosted the stock portion of the cash-and-stock deal compared to previously suggested terms, reflecting the fat that Diebold shares had appreciated in value since last month's initial discussions of a merger. For its part, Diebold is excited about the prospects for the combined company, with a total network of nearly 1 million ATMs and complementary capabilities to provide service for both companies. Even though some skeptics note that Diebold will still have a relatively small presence in the Asia-Pacific market after the merger, the deal will definitely boost its market share in Europe.
Navios Maritime Partners dropped 9% following the release of its parent company's third-quarter financial results. Navios Maritime Holdings (NYSE: NM), which fell 6%, said that revenue fell 14%, extending the company's adjusted losses to $0.23 per share. Navios Holdings also said it would suspend its dividend going forward, with CEO Angeliki Frangou citing "an extended period of weakness that is virtually unprecedented in our history, with the [Baltic Dry Index] average this year lower than at any time since 1986." Navios said that Navios Maritime Partners did pay its third-quarter distribution of $3.6 million to its parent company, and so unitholders in Navios Maritime Partners won't necessarily see their distributions disappear. Nevertheless, poor conditions in the industry don't bode well for either entity looking forward.
Finally, U.S. Steel declined 8% on the day. The company said after the market closed that it would idle its steelmaking and finishing operations plant in Granite City, Illinois. The facility is the primary supplier of flat-roll metal for the oil and gas industry, and so it's easy to understand why U.S. Steel chose the Illinois plant in light of the weakness in energy prices that investors have seen lately. U.S. Steel said it would continue to operate other plants in Indiana, Michigan, and Pennsylvania, as well as some of its finishing operations in Alabama. Yet with steel prices remaining at multiyear lows amid relatively high production and weak demand, it's hard to foresee a near-term turnaround for U.S. Steel or any of its industry peers.