Stocks in Motion: Diebold
Shares of Diebold (DBD) traded lower after the company announced that it will realign manufacturing operations in North America and close its plant in Danville, Va. Production at the plant will be phased out by the end of the third quarter. The company said the closure is part of the company's ongoing plan to maximize utilization of its facilities and become more cost competitive.
Closing the plant will affect 110 employees and result in a charge of 2 cents a share in the second quarter, and a charge of a penny a share in the third quarter. Diebold forecasts full-year restructuring charges of about 12 cents a share, compared with its previously disclosed full-year restructuring charges of 9 cents to 12 cents a share. The stock was down 33 cents, or 0.7%, to $49.96.
Shares of the fashion company Polo Ralph Lauren (RL) rose 5.6% after the company reported earnings of $23.4 million, or 22 cents to a share, for the fourth quarter ended April 2, vs. $76.4 million, or 75 cents a share, a year ago. Revenue for the fourth quarter increased 10% to $902.2 million. Excluding charges, the company earned $85.1 million, or 81 cents a share. Analysts expected 80 cents a share, according to Thomson First Call. For the first quarter, the company said it expects revenue growth of more than 20% over last year's period. Polo still expects 2006 earnings to be $2.75 to $2.85 a share, in line with Wall Street's forecast. The stock was up $2.24 to $42.80.
Superior Industries International (SUP), which supplies aluminum wheels and other automotive components, cut its earnings guidance for the second quarter ended June 30. The company said it expects earnings of 15 cents to 17 cents a share, compared with Wall Street's forecast of 22 cents a share. Superior said customer orders have continued to decline for the quarter, reducing plant utilization, work schedules, and gross margin by more than previously anticipated. The stock was down 43 cents, or 1.83%, to $23.03.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV