Markets & Finance

PG&E Sees a $6.9 Billion Charge


In an 8K filed Friday, PG&E Corp. (PCG) says without a solution that doesn't provide for the recovery of wholesale power costs, Q4 results will include a $6.9B charge. Stockholders' equity could fall below zero.

Smithfield Foods (SFD) is seen lower on speculation the company may revive its takeover bid for IBP after the IBP-Tyson merger fell through.

Sealed Air (SEE) sees $0.35-$0.40 Q1 EPS as food-packaging sales are hurt by a disruption in Europe's meat supply because of foot-and-mouth disease. S&P maintains hold.

Wit SoundView reiterated its strong buy on Veritas Software (VRTS).

Cablevision Systems (CVC) says its Rainbow Media Group tracking stock began trading Friday on NYSE. Banc of America downgraded to buy from strong buy.

Penn Treaty (PTA) says as a result of its current statutory surplus position, the firm's auditors have advised Penn that its 2000 report will contain "ongoing concern" qualification.

ITT Education (ESI) is commenting on two legal actions described in its 10K, and says it believes any settlement or judgement would have a material adverse affect on its financial condition.

Raymond James notes unconfirmed reports that RealNetworks (RNWK) is negotiating with three of five major record label companies to launch an online music subscription service.

Cirrus Logic (CRUS) sees $0.04-$0.08 Q4 EPS (pro forma), $0.70-$0.74 fiscal 2001, citing an impact from a shift in product mix toward its lower-margin magnetic storage business and an inventory charge. S&P maintains hold.

Core Inc. (CORE) agreed to be acquired by Fortis Inc. for $4.92 per share cash.

IBP Inc. (IBP) and Tyson Foods (TSN) discontinued their merger plan.

Wireless Facilities (WFII) says Q1 revenues and EPS will be below previous guidance. The firm says it's unable to reaffirm prior 2001 revenue and EPS estimates. CS First Boston downgraded to buy from strong buy.

Micron Technology (MU) posted a Q2 loss of $0.01 (continuing operations) vs. a year ago's $0.30, beating analysts' consensus of $0.03. Revenue dropped to $1.07B from $1.16B.

Warnaco (ticker symbol="WAC" channel="pi"/>) posted a $0.71 loss vs. last year's one-cent gain, disappointing the Street's anticipated $0.15 loss. Revenue fell to $546.34M from $603.20M.

SMTC Corp. (SMTX) sees a $0.08-$0.10 Q1 loss vs. consensus $0.05 EPS on about $200M revenues.

Plexus Corp. (PLXS) cut its Q2 guidance to $0.26-$0.28 EPS on sales of $278M-$282M, and cut the Q3 outlook to $0.20-40.24 EPS on sales of $235M-$250M. Robertson Stephens downgraded to buy. S&P maintains hold.

Ryder System (R) expects Q1 EPS of $0.13-$0.17. Ryder cites soft used-truck market, and volume slowdown and contract delays with key customers. S&P maintains hold.

Genesis Microchip (GNSS) sees a $0.15-$0.17 Q4 loss, due to higher costs related to restructuring and other charges. The firm expects to return to profitability next quarter.

Nanometrics (NANO) revised its Q4 results from previously reported (2/15) $0.22 EPS on $16.4 million revenues to $0.28 on $17.2 million revenues, and sees a greater-than-expected 25% Q1 revenue decline, citing a slowdown in semiconductor orders.

Pharmaceutical Research (PRX) says its Par Pharmaceutical Inc. unit received approval from the FDA for abbreviated an new drug application to market buspirone hydrochloride 7.5mg tablets. Par is entitled to 180 days of exclusivity on this dosage form.

Sicor Inc. (SCRI) says its Gensia Sicor Pharmaceuticals Inc. unit received FDA approval of Abbreviated New Drug Application for Levocarnitine Injection.

APW Ltd. (APW) is reducing its manufacturing overhead, sales, administration and engineering payrolls by 10%. APW sees about $5M in savings per quarter.

East West Banc (EWBC) set a $7M stock buyback.


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