Markets & Finance

Corn Products Shucked after Profit Warning


Corn Products (CPO) shares moved sharply lower Thursday after the company cut its $1.34 to $1.44 2005 earnings per share forecast to $1.16 to $1.22. The company cited lower operational profits coming from U.S. operations and an increase in its estimated effective tax rate.

Sprint Nextel (S) raised its net present value of expected merger synergies to $14.5 billion, 20% above the projected synergy value provided when the merger of Sprint and Nextel was announced on Dec. 15, 2004.

Scholastic (SCHL) posted a 52 cents first quarter loss vs. a $1.28 loss on a 54% revenue rise. The publisher affirms its outlook for fiscal year 2006 revenues of $2.3 billion to $2.4 billion, and $2.30 to $2.50 earnings per share.

KB Home (KBH) posted $2.55 vs. $1.42 third quarter earnings per share on a 44% revenue rise. The company raised its $9.00 2005 earnings per share forecast to $9.30.

Cognos (COGN) posted lower-than-expected 31 cents vs. 30 cents second quarter earnings per share on a 14% revenue rise. The company sees 36 cents to 39 cents third quarter earnings per share on revenue of $230 million and $237 million, and $1.52 to $1.58 fiscal year 2006 earnings per share on revenue of $915 million to $930 million. Jefferies reportedly cut the stock to hold from buy.

Bed Bath & Beyond (BBBY) posted 47 cents vs. 39 cents second quarter earnings per share on 4.5% higher same-store sales and 12% higher total sales.

DRS Technologies (DRS) said it agrees to acquire Engineered Support Systems(EASI) for $43 cash/stock per share and expects the acquisition to be accretive in the first full fiscal year of operation, ending 3/31/07, contributing about 20 cents to earnings per share and $1.23 billion to revenue.

Viacell (VIAC) said the Food and Drug Administration placed a clinical hold on the company's Phase I trial evaluating CB001 investigational cord blood stem cell product for hematopoietic stem cell transplantation in patients affected by variety of cancers.

Boston Scientific (BSX) agreed to pay $750 million to Israel's Medinol Ltd. to settle a contract dispute.

General Mills (GIS) posted 64 cents vs. 45 cents first quarter earnings per share on a 3% sales rise. The company continues to target low single-digit net sales growth and mid single-digit operating profit growth for fiscal year 2006.

Swift Transportation (SWFT) said no action will be taken against the company in connection with the Securities and Exchange Commission's formal investigation into stock trades by insiders. Says the CEO Jerry Moyes has agreed, without admitting or denying claims, to settle matters raised by the SEC.

Corn Products (CPO) cut its $1.34 to $1.44 2005 earnings per share forecast to $1.16 to $1.22. The company cited lower operational profits coming from US operations and an increase in its estimated effective tax rate.

Wachovia (WB) is to acquire the international correspondent banking business of Unionbancal for $245 million in cash.

CCC Information Services (CCCG) agreed to be acquired by an affiliate of Investcorp for $26.50 per share in cash.

Engineered Support Systems (EASI) agreed to be acquired by DRS Technologies (DRS) for $43 in cash and DRS stock per share.

Texas Industries (TXI) posted a $2.25 first quarter loss from continuing operations vs. $1.62 earnings per share as higher costs, including debt retirement costs and other expenses related to the spin-off of its steel operations, offset a 16% sales rise.

Duratek (DRTK) said it sees $280 million to $286 million 2005 revenue, due to a lower than anticipated level of new commercial work required to offset projects completed during the year, a lengthening of the sales cycle in Federal business, and no international work awarded to date.

Terex (TEX) said it requires additional time to complete the filing of its financial statements for the year ended December 31, 2004 and prior periods.

ENSCO International (ESV) said it is in a drilling contract with a consortium of three independent oil companies to provide a new ultra-deepwater semisubmersible drilling rig. The company sees $385 million in aggregate revenue paid during its four-year primary term.

Intervoice (INTV) posted 12 cents (including favorable tax adjustments) vs. 13 cents second quarter earnings per share on a 2.2% revenue drop. The company sees $40 million to $45 million.

7-Eleven (SE) said that a special committee of the company's board unanimously determined that Seven-Eleven Japan's tender offer of $32.50 per 7-Eleven share is inadequate, and not in the best interests of 7-Eleven shareholders.

Catapult Communications(CATT) was selected by China Mobile (CHL) to provide simulation and load testing technology for China Mobile's expanding Multimedia Messaging Service and Wireless Application Protocol offerings.

Cintas (CTAS) posted 47 cents vs. 42 cents first quarter earnings per share on a 10% revenue rise. The company sees $1.95 to $2.05 fiscal year 2006 earnings per share on revenue of $3.35 billion to $3.45 billion.

Vical (VICL) was awarded funding for a one-year, $500 million project for the Defense Advanced Research Projects Agency of the US Department of Defense. The deal will fund feasibility studies of a new approach for rapidly manufacturing large quantities of DNA vaccines.

TASER International (TASR) said its preliminary results from a respiratory study indicate that subjects were able to breathe during a 15-second exposure to Taser X26.

Fording Canadian Coal Trust (FDG) set a Canadian $1.80 third quarter cash distribution and said it is revising its expectations for 2005 coal sales volumes to reflect a decrease in Elk Valley Coal's estimate of 2005 coal sales volumes.

Standard Microsystems (SMSC)posted 25 cents vs. 6 cents second quarter earnings per share (non-Generally Accepted Accounting Principles) on a 58% revenue rise. The company posted breakeven second quarter Generally Accepted Accounting Principle results and said it sees 31 cents to 37 cents third quarter non-Generally Accepted Accounting Principles earnings per share on revenue of $81 million to $86 million.


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