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Tuesday, Sept. 9
Lehman to report expected results Wednesday 7:30 am ET(7:00 pm ET)
SAN FRANCISCO (MarketWatch) -- Lehman Brothers Holdings Inc. (LEH: news, chart, profile) said late Tuesday it will report its expected third-quarter results a week earlier than originally scheduled after shares of the firm fell about 45% in one day. Lehman said it will report at 7:30 am ET Wednesday and announce "key strategic initiatives."
Fedex raises first-quarter earnings view to $1.23 a share (4:43 pm ET)
SAN FRANCISCO (MarketWatch) -- FedEx Corp. (FDX: news, chart, profile) said late Tuesday it is raising its first-quarter earnings outlook to $1.23 a share, compared with 80 cents to $1 a share previously announced. "First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management," said Alan Graf, executive vice president and chief financial officer of Fedex, in a statement. It reaffirmed its fiscal 2009 earnings view of $4.75 to $5.25 a share, noting weaker economic conditions offset better-than-expected first quarter results. It also scaled back its capital investment plans for 2009 by $400 million to $2.6 billion as slower economic growth in the U.S. is spreading to other parts of the world. Analysts polled by FactSet Research forecast the company to earn 98 cents a share in the first quarter and $5.09 a share in 2009.
VeriFone third-quarter net loss narrows to 9 cents a share (4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- VeriFone Holdings (PAY: news, chart, profile) late Tuesday reported its third-quarter net loss narrowed to $7.2 million, or 9 cents a share, from a loss of $42.4 million, or 51 cents a share, a year earlier. On an adjusted basis, the company earned 32 cents a share. Revenue increased to $258.7 million from $231.7 million a year ago, said the maker of point-of-sales payment equipment. Analysts surveyed by FactSet Research had forecast the company to report earnings of 32 cents a share on revenue of $256.8 million. The company expects to report adjusted earnings of 33 cents to 36 cents a share on revenue in the range of $260 million to $268 million in the fourth quarter. Analysts are projecting the company to report fourth-quarter earnings of 35 cents a share on revenue of $263.9 million. VeriFone sees fiscal 2009 adjusted earnings of $1.23 to $1.43 a share and net revenue growth of 10% to 15%.
Lehman shares slump more than 30% (11:10 am ET)
SAN FRANCISCO (MarketWatch) -- Lehman Brothers (LEH: news, chart, profile) shares slumped more than 30% during morning trading on Tuesday. South Korean regulators said talks between government-owned Korea Development Bank and Lehman have ended, Dow Jones Newswires reported. Korea Development, known as KDB, has discussed a possible investment in Lehman in recent months. Lehman shares dropped 28% to $10.14 during late morning action. The stock was off by roughly a third earlier in the day.
Pending home sales index falls 3.2% in July(10:00 am ET)
WASHINGTON (MarketWatch) -- In a sign that the U.S. housing market may weaken in coming months, an index of sales contracts on previously owned U.S. homes fell 3.2% in July from the prior month, the National Association of Realtors reported Tuesday. The index, which is considered a leading indicator of existing home sales, was down 6.8% from the prior year. Pending home sales in July were mixed regionally, with a decline of 10.6% in the West, and 7.5% in the Northeast. In the South, there was no growth. And in the Midwest, there was a gain of 2.8%. The June pending home sales index was revised to a gain of 5.8% from a prior estimate of a 5.3% increase.
Natural gas shares lead losses in energy sector(9:37 am ET)
NEW YORK (MarketWatch) -- Natural gas shares led losses in the energy sector on Tuesday, as Hurricane Ike rages over Cuba and oil prices fell. The Amex Natural Gas Index (XNG: news, chart, profile) fell 2.4% to 538. The Amex Oil Index (XOI: news, chart, profile) subtracted 1.7% to 1,199. Crude fell $1.94 to $104.40. Natural gas futures dipped 35 cents to $7.18.
Pizer Inc. to conduct new Phase 3 trial for dalbavancin(8:41 am ET)
NEW YORK (MarketWatch) -- Pfizer Inc. (PFE: news, chart, profile) announced Tuesday the withdrawal of marketing applications for dalbavancin in order to conduct a new Phase 3 trial of the drug for patients with complicated skin and skin structure infections. Dalbavancin was acquired by Pfizer in 2005 as part of its acquisition of Vicuron Pharmaceuticals.
McDonald's U.S. comparable store sales rise 4.5% in August (8:06 am ET)
NEW YORK (MarketWatch) -- McDonald's Corp. (MCD: news, chart, profile) said Tuesday U.S. comparable sales rose 4.5% in August. Global comparable sales at the Oak Brook, Ill. fast food giant increased 8.5% in August, while systemwide sales for McDonald's worldwide restaurants rose 14.1%.
Reynolds American to cut staff, take restructuring charge(7:46 am ET)
NEW YORK (MarketWatch) -- Reynolds American Inc. (RAI: news, chart, profile) said Tuesday that it will take a pretax restructuring charge of about $90 million in the third quarter, related to severance, benefits and related costs. The tobacco company said it will cut about 570 full-time jobs, most of them before the end of 2009, resulting in expected savings of about $100 million by year-end 2010. In addition, the company is changing its designation of the Kool brand to a support brand from a growth brand and focusing more on building the premium menthol category with its Camel brand. Shares of Reynolds American closed Monday at $51.57.
K12 swings to profit on tax benefit; revenue up 59%(4:22 am ET)
TEL AVIV (MarketWatch) -- K12 Inc., (LRN: news, chart, profile) the Herndon, Va., provider of curriculum and education services for online delivery, swung to a fiscal fourth-quarter profit from a year-earlier loss, largely because of a tax benefit. Revenue rose 59%. For the quarter ended June 30, K12 earned $17.1 million, or 59 cents a share, compared with a net loss of $11.8 million, or $5.89 a share, in the year-earlier period. Shares outstanding jumped to 29.1 million from 2 million, as the company went public Dec. 18, 2007. Excluding the $17.3 million tax benefit, the adjusted loss for the latest period was 1 cent a share. Revenue reached $56.5 million from $35.6 million. In a statement on Monday, K12 estimated that fiscal 2009 revenue would exceed $300 million, compared with fiscal 2008's $226.2 million. Revenue per pupil in fiscal 2009 should grow "slightly," K12 said. Its profit margins should widen 1 or 2 percentage points as the company spends "aggressively on marketing to take advantage of rapidly expanding market opportunities," K12 said.
Redrow swings to loss, calls on U.K. government to do more(2:41 am ET)
LONDON (MarketWatch) -- U.K. home builder Redrow (UK:RDW: news, chart, profile) said Tuesday that it swung to a net loss of 139.9 million pounds ($245.2 million) in the fiscal year to June 30, from a profit of 84.4 million pounds a year earlier. Revenue for the year fell 22% to 650.1 million pounds. The group said legal completions in the year fell 19% to 3,925 and margin dropped to 13% from 16.4% as it was forced to introduce discounts and incentives to generate sales. The group has also secured a new 450 million pound 3-year debt facility until 2011. Redrow said there may be no meaningful increase in the availability of mortgage finance before 2010 and called on the government to do more to help improve the availability of mortgages.
Peerless Mfg. parent posts 4th-period loss; adjusted net up(2:16 am ET)
TEL AVIV (MarketWatch) - PMFG Inc., (PMFG: news, chart, profile) the Dallas holding company for the filtration- and environmental-systems producer Peerless Manufacturing Co., swung to a fiscal fourth-quarter loss from a year-earlier profit on 56% higher revenue. Adjusted earnings rose 14%. The loss was $1.4 million, or 11 cents a share, against net income of $4 million, or 31 cents, in the year-earlier period. Adjusted profit was 15 cents a share against 13 cents. Revenue rose to $40.9 million from $26.2 million. The latest results reflect the April 30 acquisition of Nitram Energy Inc. Demand continues strong, particularly for for natural-gas-transmission and -power generation products and services, Chief Executive Peter J. Burlage said in a statement on Monday.
Avery Dennison July-Aug net 15c-20c short of its estimates(1:23 am ET)
TEL AVIV (MarketWatch) -- Avery Dennison Corp., (AVY: news, chart, profile) the Pasadena, Calif., provider of label, retail tags, branding systems, and office supplies, said that net income for July and August 2008 came up 15 cents to 20 cents a share short of its internal forecasts. In a statement on Tuesday, the company attributed the shortfall to "further economic weakness" in its markets. Avery Dennison said it wasn't affirming or updating the estimates it provided July 22. That day, Avery Dennison said it was reducing its 2008 earnings estimates because of higher inflation expectations plus greater economic weakness. The company then estimated 2008 net at $3.35 to $3.55 a share, or an adjusted $3.75 to $3.95. And it said then that 2008 organic revenue -- revenue excluding acquisitions -- would be level with to slightly down from the year earlier. AVY on Tuesday said it would report third-quarter earnings on Oct. 21.
Monday, Sept. 8
Energy stocks rise with broad market, oil (9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks rose with the broad market in early action on Monday, as oil price rose on the approach of Hurricane Ike to the Gulf of Mexico. Oil futures rose $1.84 to $108.07. The Amex Oil Index (XOI: news, chart, profile) rose 2% to 1,246. The Amex Natural Gas Index (XNG: news, chart, profile) rose 1.5% to 570. ConocoPhillips (COP: news, chart, profile) rose 1.9% to $76.88 after it said it would pay up to $8 billion for a half-share in the coal seam gas assets of Australia's Origin Energy Ltd.
Huntsman, Hexion go to court over scuttled merger(9:35 am ET)
NEW YORK (MarketWatch) -- Huntsman (HUN: news, chart, profile) shares fell 13 cents to $12.89 as a legal fight over its scuttled merger with Hexion Chemical moved to a Delaware court. Hexion said Monday that neither a $500 million of financing reflected in a prior proposal, nor the $416 million in a fresh financing proposal on Monday "is remotely sufficient to result in the combined company being solvent." Hexion's board said it will continue to study the proposal.
Swiss Re to focus on margins in tough insurance market(2:45 am ET)
LONDON (MarketWatch) -- Reinsurance company Swiss Re (CH:001233237: news, chart, profile) cautioned Monday that the insurance industry is facing a worsening business environment and said it will focus on disciplined underwriting. The group said a combination of soft insurance markets, stock market turbulence and an active hurricane season are all having an impact on insurers. Ahead of the January 2009 renewals period Swiss Re said it will focus on preserving margins, even if it means doing less business. It added high inflation poses an additional risk to the sector. If inflation remains elevated for an extended period it could generate additional losses, reducing the industry's capital base, the firm said.
Air France-KLM August traffic rises(2:26 am ET)
LONDON (MarketWatch) -- Air France-KLM (FR:003112: news, chart, profile) said Monday that the total number of passengers carried in August rose 1% to 6.77 million, while its load factor -- a measure of passengers against available seats -- fell 1.6 percentage points to 83.7%. Traffic measured in revenue per kilometer rose 2.8% compared to a year earlier. The group said the strongest growth was in the Americas and Asia, while the Caribbean and Indian Ocean network saw traffic decline.