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Tuesday, June 3
Hovnanian reports quarterly net loss of $340.7 million(7:02 pm ET)
SAN FRANCISCO (MarketWatch) -- Hovnanian Enterprises Inc. (HOV: news, chart, profile) late Tuesday reported a fiscal second-quarter net loss of $340.7 million, or $5.29 a share, as the homebuilder struggles in the face of the mortgage-fueled credit crunch. The result compares to a net loss of $28 million, or 49 cents a share, a year earlier, the company reported. Revenue was $776.4 million in the latest period, down from $1.1 billion a year ago. The company took $251 million in pre-tax charges in its fiscal second quarter, mostly from land impairments. Still, Hovnanian said it generated $56.1 million in cash during the quarter. "We now believe that we have ample liquidity to weather the current downturn," Ara Hovnanian, chief executive of the homebuilder, said.
E.W. Scripps sees newspaper rev down 8%-10% second half(5:03 pm ET)
SAN FRANCISCO (MarketWatch) -- The E. W. Scripps Co. (SSP: news, chart, profile) , slated to separate into two publicly traded companies on July 1, released financial forecasts for the respective businesses late Tuesday. After the split, E. W. Scripps expects its newspaper revenues to fall 8% to 10% in the second quarter compared to a year-earlier while television station revenues are likely to rise 16% to 18%, primarily due to increases in political advertising. Revenues at Scripps Networks Interactive, the new company that will be created from the separation, is forecast to increase by a mid- to high-single digit percentage in the second half. Revenue for 2008 is likely to reach the upper end of the company's previously issued guidance of 8% to 10% growth.
State Street shares rise after new revenue target(3:07 pm ET)
BOSTON (MarketWatch) -- State Street Corp. (STT: news, chart, profile) shares were up more than 1% Tuesday afternoon after the company raised its revenue-growth estimate for fiscal 2008, according to a filing with the Securities and Exchange Commission. The financial-services giant said it now expects revenue growth at the "higher end" of the 14% to 17% range. In mid-April, State Street had forecast revenue growth in the "middle" of the range. Additionally, State Street reiterated its outlook for operating earnings per share growth in the middle of the 10% to 15% range, and operating return on equity in the middle of the 14% to 17% range. On Monday, State Street said it had started to offer about $2.5 billion in common shares.
Sherwin-Williams cuts profit forecast(9:28 am ET)
NEW YORK (MarketWatch) -- Sherwin-Williams Co. (SHW: news, chart, profile) on Tuesday lowered its second-quarter and full-year earnings forecast, citing lower domestic sales, the ongoing downturn in the U.S. housing market and continued increases in raw-material costs. The Cleveland-based paint maker said it expects to report second-quarter earnings of $1.40 to $1.50 a share, compared to its previous guidance of $1.45 to $1.60 a share. The company also revised its full-year profit outlook to $3.60 to $4.10 a share, vs. the previous forecast for $4.70 to $4.85 a share. On average, analysts surveyed by FactSet Research were expecting a per-share profit of $1.54 for the second quarter and $4.72 for the year.
CSX sees 18%-21% annual growth in earnings per share to 2010(8:45 am ET)
NEW YORK (MarketWatch) -- CSX Corp. (CSX: news, chart, profile) said Tuesday it is "confident" it will see 18% to 21% annual growth in earnings per share, before stock repurchases, between now and the end of 2010. The company's Chairman and CEO Michael Ward announced the forecast in a letter to shareholders meant to promote the board's current directors in an upcoming vote against a slate proposed by dissident shareholder TCI Group. The letter defended the company's recent performance and denounced TCI's plans, saying the dissident slate would, among other things, saddle CSX with junk-rated debt.
General Motors to announce plant closures: report(7:43 am ET)
NEW YORK (MarketWatch) -- General Motors Corp. (GM: news, chart, profile) is expected to announce plant closures in North America on Tuesday morning, according to a report in The Wall Street Journal's online edition, which cited unnamed people familiar with the plan. The closures may include a truck plant in Oshawa, Ont., Canada, the article reported. The Canadian Auto Workers will hold a press conference later this morning. Shares of GM closed Monday at $17.44.
Tyco still sees third-quarter sales growth at 15%-17%(7:37 am ET)
NEW YORK (MarketWatch) -- Tyco Electronics Ltd. (TEL: news, chart, profile) said Tuesday it is maintaining its forecast for third-quater sales growth of 15% to 17% on year. It also said it sees earnings per share from continuing operations during the quarter to come in between 63 cents and 65 cents, including restructuring costs of approximately 3 cents per share.
Toll Brothers swings to loss on 30% lower revenue(5:23 am ET)
TEL AVIV (MarketWatch) -- Toll Brothers Inc., (TOL: news, chart, profile) the Horsham, Pa., luxury-home builder, swung to a fiscal second-quarter loss from a year-earlier profit on 30% lower revenue, and its chief executive reiterated a call on Congress to enact tax incentives to encourage people to buy homes. For the quarter ended April 30, the net loss was $93.7 million, or 59 cents a share, compared with net income of $36.7 million, or 22 cents, in the year-earlier period. Excluding write-downs, Toll earned 49 cents a share in the latest period and 66 cents a year earlier. Revenue fell to $818.8 million from $1.17 billion. The backlog at second-quarter's end was $2.08 billion, down 50% from the year-earlier $4.15 billion and 13% from $2.4 billion at the end of the fiscal first quarter. Net contracts -- after cancellations -- totaled 929 homes, down 44% from 1,647. The value of those net contracts was $496.5 million, down 58% from $1.17 billion. Contract cancellations in the second quarter totaled 308 versus 384 a year earlier. The average price on the canceled contracts was $760,000. "Demand continues to be weak in most markets as our clients worry about selling their existing homes or entering the market before prices stabilize," Robert I. Toll, chairman and chief executive officer, said in a statement.
Infineon targets triple-digit million euros of savings(4:20 am ET)
LONDON (MarketWatch) -- German chipmaker Infineon Technologies (IFX: news, chart, profile) (DE:623100: news, chart, profile) said at an investor presentation that it sees triple-digit million euros in savings in fiscal 2009 from its recently announced "IFX 10-Plus" plan. Infineon said it's going to manufacture in-house only what it can differentiate and is aiming for 10% or below ratio of capital spending to sales.
Lehman expects to post loss, mulls raising capital: Journal(2:11 am ET)
TEL AVIV (MarketWatch) -- Lehman Brothers Holdings Inc., (LEH: news, chart, profile) the New York investment bank, is set to report its first quarterly loss since it went public and is mulling a plan to raise capital, The Wall Street Journal reported. The Journal said that analysts and Wall Street executives estimate that Lehman would raise $3 billion to $4 billion to strengthen its balance sheet. The figures indicate that Lehman might report a loss wider than than the $300 million that some analysts expect, the Journal reported.
Monday, June 2
Japan automakers expect 8% fall in North American shipments(9:32 pm ET)
HONG KONG (MarketWatch) -- Japan's 12 leading automakers estimate exports to North America will slump 8% in the fiscal year through March 2009, although global exports will exceed the previous annual record set in 1985, bolstered by rising demand in the Middle East, Central and South America, the Nikkei newspaper reported Tuesday. Japanese automakers estimate total exports of around 7 million units in the fiscal year ending March 31, 2009, up more than 200,000 units from last year and topping the previous export record by Japanese automakers of 6.85 million vehicles in 1985. Exports to the Middle East accounted for 13% of total Japanese exports last fiscal year, up from 5% in 1985. Shipments to Central and South America topped 9% in fiscal 2007, compared to 4% in 1985, while North American exports made up 37% last fiscal year, down from 52% in 1985.
Thornburg Mortgage delays reporting quarterly results(4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Thornburg Mortgage (TMA: news, chart, profile) said late Monday that it needs more time before reporting quarterly results and filing its quarterly report with regulators. The mortgage finance company said last month that it planned to report by June 2, but the firm is now planning to do so by June 12. The delay will impact other pending transactions the company is involved in, Thornburg explained. The company is also planning a reverse stock split to comply with New York Stock Exchange listing requirements. Thornburg shares fell 12% to 75 cents during after-hours trading on Monday.
Intrepid Potash net quintuples on 75% higher sales(6:18 am ET)
TEL AVIV (MarketWatch) -- Intrepid Potash Inc. (IPI: news, chart, profile) of Denver reported that first-quarter net income quintupled, with pricing and demand pushing the quarter's earnings higher than profit for all of 2007. "The potash industry is in the midst of an unprecedented demand driven-market, fueled by numerous drivers, including an ever-increasing demand for a more nutritious diet, especially for more protein, resulting from rising populations and growing GDP in developing countries," Chief Executive Officer Bob Jornayvaz said in a statement on Monday. Earnings reached $33.1 million from $6.4 million in the year-earlier period. Pro-forma per-share earnings were 27 cents against 5 cents. Sales rose 75% to $84.4 million from $48.2 million, the company, which is the successor entity to Intrepid Mining LLC, said. Intrepid Potash went public in April at $32 a share. The stock closed on Friday at $49.16.
Sunstone to buy up to 11% of stock, sells a hotel(2:01 am ET)
TEL AVIV (MarketWatch) -- Sunstone Hotel Investors Inc., (SHO: news, chart, profile) the San Clemente, Calif., hotel operator, said on Monday that it would buy back as much as 11% of its stock and sold a hotel at a 19% return on investment. Sunstone plans a modified Dutch auction tender offer for as many as 6.2 million of its shares at $18.65 to $21.15 apiece. The shares closed Friday at $19.25. The offer starts Monday and ends at midnight Eastern Time June 27. The company said it sold the 726-room Hyatt Regency Century Plaza to the Los Angeles real estate investor Next Century Associates LLC for $366.5 million. And Sunstone estimates adjusted funds from operations available to common-stock holders of 84 cents to 88 cents a share for the second quarter and $2.90 to $3.13 a share for the year.