American Home Products Issues Second-Quarter, Full-Year Warnings

American Home Products (AHP) shares were as low as 52 in late composite trading from a New York close of 56 15/16 following a second-quarter earnings warning from the company. AHP expects quarter earnings to fall about 7 cents below the 25-analyst First Call outlook of 41 cents a share and full-year 1999 earnings to fall about 11 cents below the 27-analyst view of $1.89 a share. AHP earned 39 cents in the year-ago second quarter and $1.78 in 1998. The company, which blamed a slump in world grain and livestock prices for the warning, also said it was considering strategic alternatives for its agricultural product and livestock units.

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In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

AMR's (AMR) American Airlines unit said its May load factor dropped 0.5 percentage points to 69.5%.

Cherry (CHERA) said it sees first-quarter earnings coming in around 15 cents a share below the year-ago 50 cents due to higher marketing and engineering costs. The single-analyst estimate called for a profit of 48 cents.

Comverse Technology (CMVT) posted first-quarter earnings of 48 cents a share, 3 cents higher than the 10-analyst view and above the year-ago 34 cents.

Intimate Brands (IBI) reported its May same-store sales jumped 11%. Meanwhile, Limited (LTD) said its May same-store sales rose 10%.

Maxwell Technologies (MXWL) recorded third-quarter earnings of 34 cents a share, a penny above the two-analyst forecast and higher than the year-ago 19 cents.

Newbridge Networks (NN) posted a fourth-quarter net loss of 11 cents a share vs. the year-ago profit of 12 cents. Excluding charges and gains, the company earned 12 cents. The 18-analyst estimate called for earnings of 13 cents, but Reuters reported that analysts were calling for a profit of 21 cents "excluding extraordinaries."

Mergers, acquisitions and joint ventures

Corporate Express (CEXP) said it reached an agreement to sell its cleaning and service supply unit to U.S. Foodservice (UFS). Financial terms of the deal were not disclosed.

Offerings and stock actions

Telecommunications company Orius (ORS:NYSE) filed for a $150 million IPO.

Miscellany

Genesis Energy (GEL) named A. Richard Janiak, a managing director at Salomon Smith Barney, chairman. He replaces Thomas W. Jasper.

Hasbro (HAS) said it expects its stock to move to the New York Stock Exchange from the American Stock Exchange June 23. The company said it seeks to gain more international exposure to investors.

Network Equipment Technologies (NWK) named Hubert Whyte president and CEO.

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