Markets & Finance

Delta Air, Northwest Airlines File for Chapter 11


After the close of trading Wednesday, Delta Air Lines(DAL) and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

After the close of trading Wednesday, Northwest Airlines (NWAC) and certain of its subsidiaries filed voluntary petitions for reorganization Wednesday under Chapter 11 of the U.S. Bankruptcy Code.

Google (GOOG) offered 14.159 million shares of Cl. A stock at $295.00 per share. S&P reiterated its hold opinion on the stock.

Bear Stearns (BSC) posted $2.69 vs. $2.09 third quarter earnings per share on 65% higher investment banking net revenue.

Charles Schwab (SCH) said it is eliminating account service fees on all U.S. individual brokerage accounts effective Oct. 1; the action impacts about 650,000 accounts with less than $25,000.

Progressive (PGR) plans to release its August results on September 16 rather than on September 15 as previously announced, due to additional time needed for analysis regarding the effect of Hurricane Katrina on its monthly results.

Imclone Systems (IMCL) and Bristol-Myers Squibb Canada received approval from Health Canada's Biologics and Genetic Therapies Directorate for Erbitux injection as a treatment for metastatic colorectal cancer.

Pier 1 Imports (PIR) posted a 12 cents second quarter loss vs. 12 cents earnings per share on 7.7% lower sales at stores that had been open longer than a year, and 3.0% lower total sales.

Foxhollow Technologies(FOXH) and Merck (MRK) signed an agreement to collaborate on a medical research project. Merck will make initial cash payments of $9 million to Foxhollow; if Merck elects to continue the collaboration, it will pay additional payments of up to $31 million.

California Micro Devices (CAMD) raised its $16 million to $17 million second quarter revenue forecast to between $16.5 million and $17.5 million, and its 4 cents to 5 cents earnings per share forecast to between 5 cents and 6 cents earnings per share, due to stronger-than-expected demand from mobile handset customers.

Glaxosmithkline (GSK) The Food and Drug Administration's Oncologic Drugs Advisory Committee recommends accelerated approval of Arranon Injection, a chemotherapy agent.

Clarcor (CLC) posted 40 cents (including settlement benefits) vs. 31 cents third quarter earnings per share on a 5% rise in revenue. The company ups its $1.32 to $1.38 fourth quarter earnings per share guidance to between $1.38 and $1.42, excluding any impact from Katrina.

Docucorp (DOCC) posted 1 cent vs. 14 cents fourth quarter earnings per share as lower margin in the company's ASP business, increased software amortization, and other factors offset its 4.4% revenue rise.

Sun Communities(SUI) The Securities and Exchange Commission issued a Wells Notice to CEO Gary Shiffman.

Red Robin Gourmet (RRGB) said it sees 33 cents to 35 cents third quarter earnings per share, and $1.69 to $1.72 2005 earnings per share. The company noted forecasts include a 5 cents per share, after-tax gain related to certain expenses which the company's former CEO reimbursed to it, as well as a non-cash pre-tax charge of 11 cents.

Zonagen (ZONA) presented study data suggesting the improved potential for use of its lead product Proellex in the treatment of uterine fibroids and endometriosis.

Gibraltar Industries (ROCK) will acquire Alabama Metal Industries, a manufacturer of a diverse line of products for industrial and building products markets, for $240 million from CGW Southeast Partners.

Time Warner (TWX) is in advanced discussions to sell a stake in America Online to Microsoft, according to the NY Post.

Firstenergy (FE)'s FirstEnergy Nuclear Operating Company is to pay a $5.45 million fine proposed in April by the Nuclear Regulatory Commission related to a reactor head issue at Davis-Besse Nuclear Power Station.

Transatlantic Holdings (TRH) estimated that its pre-tax cost, net of reinsurance, from Hurricane Katrina is at $270 million, or $176 million after tax, for 2005. The company sees pre-tax losses from other third quarter catastrophes to date at $30 million, or $20 million after tax, for 2005.

Seagate Technology (STX) acquired Mirra Inc., a provider of networked digital content protection products for home small business markets, for an undisclosed sum.

American Retirement (ACR) agreed to buy eight senior living communities in seven states for about $138 million from an affiliate of Epoch Senior Living Inc. The company noted that these eight communities generated annualized total revenues of about $29 million in the six months ended June 30, 2005.

Inergy (NRGY) priced a public offering of 6.5 million common units at $28.90 per unit, with proceeds to be used to repay indebtedness incurred to finance its previously announced Stagecoach natural gas storage facility acquisition.

Dana (DCN) cut its 2005 earnings per share guidance to between 60 cents and 70 cents (excluding gains, losses on divestitures, asset sales, and other items). The company cited higher costs for steel, materials, and energy. It is also assessing its ability to comply with certain covenants.

Illinois Tool Works (ITW) reported 9% higher operating revenue for the three months ended August 31. The company continues to forecast $1.33 to $1.39 third quarter, and $5.02 to $5.14 2005 earnings per share.

Duke Realty (DRE) is to sell a 14.4 million square foot portfolio located in eight of its existing markets for $1.01 billion. The company expects to pay a special dividend of 90 cents to $1.20 in the fourth quarter vs. previous expectations of 50 cents to $1.00.

Fifth Third Banc (FITB) said in its third quarter mid-quarterly update that it sees a double-basis point contraction of its net interest margin. S&P cut its estimates on the stock, but keeps a hold opinion. Prudential and CSFB downgraded the shares.

Able Energy (ABLE) said it plans to acquire all issued shares of the owners of oil refinery in Somerset, KY, for about $19.5 million, including the assumption of about $10.5 million of debt.

UICI (UCI)'s board approved an agreement by which a group of private equity firms led by Blackstone Group would acquire UCI in a cash merger of $37 per share.


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