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Tuesday, July 1
Weekly chain-store sales rise slightly: survey(7:59 am ET)
NEW YORK (MarketWatch) -- Chain-store sales for the week ended June 28 rose 2.2% from the year-ago period, according to a survey released Tuesday by the International Council of Shopping Centers. On a week-over-week basis, sales rose 0.1%. "There is little driving consumer spending other than staples and basic," said Michael Niemira, ICSC's chief economist. "A shift to staying close to home during the summer, however, may lift spending a tad as consumers redirect some of that summer travel spending to home activities." For June, ICSC expects same-store sales, or sales at stores open at least one year, to rose 2% to 2.5%.
Constellation profit and sales rise(7:58 am ET)
NEW YORK (MarketWatch) -- Constellation Brands Inc. (STZ: news, chart, profile) on Tuesday said fiscal first-quarter net income rose to $44.6 million, or 20 cents a share on class A shares and 19 cents a share on class B shares. In the year-ago period it earned $29.8 million, or 13 cents per class A share and 12 cents per class B share. On a "comparable" basis, which excludes acquisition-related integration costs, restructuring charges and unusual items, the wine, spirits and beer company earned 34 cents a share vs. 21 cents a share in the prior year. Sales rose to $1.21 billion from $1.18 billion. Analysts, on average, expected it to earn 32 cents a share on sales of $895.9 million, according to FactSet Research. For fiscal 2009, Constellation expects to earn $1.38 to $1.46 on a reported basis, and $1.68 to $1.76 on a comparable basis.
MSC Industrial Direct posts rise in third-quarter profit(7:56 am ET)
NEW YORK (MarketWatch) -- MSC Industrial Direct Co. (MSM: news, chart, profile) said Tuesday that its fiscal third-quarter net income rose to $51.4 million, or 81 cents a share, from $45.8 million, or 69 cents a share, in the year-earlier period. The year-ago quarterly profit included pretax charges totaling $1.5 million. The Melville, N.Y., maintenance-supplies company said revenue for the period ended May 31 rose to $457.2 million from $431.1 million. On average, analysts polled by FactSet Research expected earnings of 78 cents a share. For the fourth quarter, MSC expects earnings of 74 cents to 76 cents a share on revenue of $443 million to $449 million.
Schnitzer Steel quarterly profit up 46% to $2.14 per share(7:44 am ET)
NEW YORK (MarketWatch) -- Schnitzer Steel Industries, Inc. (SCHN: news, chart, profile) said Tuesday its third-quarter profit totaled $62 million, or $2.14 per share, from $44 million, or $1.47 per share, in the same quarter a year before. On average, analysts had expected profit of $1.86 per share, according to a FactSet Research survey. The Portland, Ore., steel recycler said revenue for the recent quarter was $972 million, up from $709 million in the year-ago period. "Global demand for recycled metals remained robust, driven by economic growth in developing countries," said CEO John Carter.
Dollar Thrifty Automotive warns on profit(6:14 am ET)
LONDON (MarketWatch) -- Car rental company Dollar Thrifty Automotive Group (DTG: news, chart, profile) warned Tuesday that it expects to miss its previous profit forecast for the year due to lower revenue per day and vehicle depreciation costs in the second quarter and a "less robust" outlook for the rest of the year. The group said it now expects adjusted earnings before interest, taxes, depreciation and amortization of a minimum of $50 million. It's previous forecast had been a range of $97 million to $115 million.
HMV profit jumps after Japanese disposal(2:30 am ET)
LONDON (MarketWatch) -- U.K. CD and DVD retailer HMV Group (UK:HMV: news, chart, profile) said Tuesday that its net profit for the year ended April 26 jumped to 89 million pounds ($177 million) from 16.1 million pounds as total sales for the year rose 2.2% to 1.94 billion pounds. Excluding gains from the sale of its Japanese business and one-time costs a year ago, profit rose 16% to 40.7 million pounds. The group said it's ahead of where it expected to be in its restructuring plans, which began in March 2007. Growth was driven by its HMV-branded stores in the U.K. and Ireland. The group said the new financial year has started in line with its expectations and it's confident of achieving its medium-term target for a return on sales of 4.5% to 5%.
Chocolate major Callebaut's sales up; local U.S. line is set(1:47 am ET)
TEL AVIV (MarketWatch) -- Barry Callebaut AG, (CH:000900296: news, chart, profile) the Zurich cocoa- and chocolate-producing major, reported fiscal nine-month revenue rose 19% and said that because the dollar and British pound had weakened against the euro and Swiss franc, it would introduce locally produced gourmet chocolate in the U.S. and Asia. For the nine months ended May 31, revenue reached 3.61 billion Swiss francs ($3.55 billion) from 3.04 billion in the year-earlier period. Sales volume rose 10% to almost 873,000 metric tons from 794,000. With the help of cost cuts companywide, Chief Executive Patrick De Maeseneire said in a statement, Barry Callebaut is "confident we will reach our ... financial targets" for fiscal 2008 through fiscal 2011. The targets average to annual growth of 13% to 16% in net income and 9% to 11% in revenue. The new locally produced chocolate lines stem from the fact that "unfavorable exchange-rate developments have started to weigh on exports of gourmet chocolate from Continental Europe to the U.S., the U.K. and Asia," the company said.
Monday, June 30
Fortune sees second-quarter EPS down as much as mid-20%(4:52 pm ET)
SAN FRANCISCO (MarketWatch) -- Fortune Brands Inc. (FO: news, chart, profile) late Monday lowered its second-quarter earnings outlook due to weaker consumer sentiment in the U.S. The spirits company now expects earnings per share before charges and gains to fall by high 10% to mid-20% range from $1.51 a share in the year-earlier period. Fortune had earlier projected earnings per share to fall at a high single digit to mid-10% rate. For 2008, the company is forecasting earnings before charges and gains will be down by a high single-digit to high-10% range from $5.06 a share in 2007. Its previous target was flat to single-digit percentage drop. Wall Street is projecting the company will report earnings of $1.37 a share in the second quarter and $4.84 a share in 2008.
Sirius says merger with XM would boost financial health(9:27 am ET)
WASHINGTON (MarketWatch) - Sirius Satellite Radio said Monday that the company could achieve positive adjusted earnings and generate free cash flow for the very first time in 2009 if its acquisition of rival XM Satellite Radio Holdings Inc. is approved. Sirius (SIRI: news, chart, profile) predicted that synergies, or savings, of a combined company could total about $400 million in 2009. Adjusted earnings before interest, taxes, depreciation and amortization could reach $300 million, Sirius said. And the merged company would be expected to generate free cash flow, Sirius said. "To date, neither SIRIUS nor XM has reported positive adjusted EBITDA or achieved free cash flow for a full year," the company noted. Sirius and XM (XMSR: news, chart, profile) are waiting for approval from the Federal Communications Commission, which is reviewing the merger. The U.S. Justice Department has already approved the deal. To win FCC permission, the two companies have offered a number of significant concessions, including a freeze on prices. The forecast by Sirius represents the latest push by the company to drum up support for the merger.
Diebold to file 2007, 1st-half 2008 financials in 4-6 weeks(9:13 am ET)
NEW YORK (MarketWatch) -- Diebold, Inc. (DBD: news, chart, profile) said Monday it expects to release preliminary financial results for 2007 and the first and second quarters of 2008 in four to six weeks. Diebold also said it will then file fully restated financial statements "as soon as is practical" after the preliminary results are released. It added that "previously disclosed investigations by the Securities and Exchange Commission and U.S. Department of Justice remain ongoing and there can be no assurance that the results of these investigations will not impact previously reported financial statements."
E-Trade cuts debt, says credit markets still tough(9:00 am ET)
BOSTON (MarketWatch) -- E-Trade Financial Corp. (ETFC: news, chart, profile) on Monday said it reduced debt by about $95.8 million in the second quarter, for a total year-to-date reduction of $155.8 million. The company in statement said it "continued to experience strong performance in its retail franchise during the second quarter, generating positive trends in net new customer accounts and asset flows." Although the overall credit environment is still "highly challenging, the strength and stability of the company's retail business continues to generate earnings in the bank to absorb credit losses in excess of management's current three-year forecast." E-Trade affirmed it continues to expect excess risk-based capital at the bank to approach $1 billion by year-end.
H&R Block swings to fourth-quarter profit, sales up 11%(6:15 am ET)
LONDON (MarketWatch) -- H&R Block, Inc. (HRB: news, chart, profile) on Monday said it swung to fourth-quarter consolidated net earnings of $543.6 million, or $1.66 a share, compared to a net loss of $85.6 million, or 26 cents a share, reported in the year-earlier period. Revenue rose 11% to $2.6 billion. The company said it expects fiscal 2009 earnings from continuing operations in the range of $1.60 to $1.70 a share. It forecast an increase in marketing expenditure and said it is planning other investments to continue driving market share growth in core retail tax services and to enhance it market share online. It sees pre-tax margins rising 12%.
Drax expects to beat earnings forecasts(2:30 am ET)
LONDON (MarketWatch) -- U.K. coal-fired power station operator Drax Group (UK:DRX: news, chart, profile) said Monday that it expects earnings before interest, taxes depreciation and amortization for its fiscal year to be "modestly higher" than the market consensus of around 400 million pounds ($797 million). The group said the current commodity prices make it profitable to generate additional power and it therefore expects generation levels to be modestly higher than in previous years.