Shares of Diebold (DBD - Get Report) 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 - Get Report) 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 - Get Report), 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.