Stocks to Watch: Best Buy Names New CEO, Kodak Backs Guidance
Updated from 9:56 a.m. EST
Williams Communications
(WCG) - Get WellCare Health Plans, Inc. Report
is considering filing for Chapter 11 bankruptcy as part of an effort to restructure its balance sheet. The company said it has been holding talks with its banks, and several options have been discussed. In addition, Williams has authorized its legal and financial advisers to discuss restructuring options with certain noteholders. The options now being considered could potentially result in "substantial shareholder dilution," the company said. The company plans to lower its cost structure, including by means of workforce reductions, with any restructuring plan it formulates.
Earnings Reports & Outlooks
Dover Downs Entertainment
(DVD) - Get Dover Motorsports, Inc. Report
lost $175,000 in the fourth quarter ended Dec. 31, breaking even on a per share basis. Excluding the effect of an amendment to a casino management agreement, the company earned 4 cents, matching estimates. Revenue for the fourth quarter increased 5.9% to $47.9 million from $45.2 million.
Eastman Kodak
( EK) reiterated its earnings forecast for the first quarter and full year. For the quarter, the company still expects earnings of 5 cents to 15 cents a share, and for the year, Kodak projected a profit of $2 to $2.60 a share.
Revlon
(REV) - Get Revlon Inc. Report
posted fourth-quarter net sales $332.5 million, up from $313.6 million in the same period a year ago. Sales in the 2000 quarter include the results from the Colorama business, which Revlon shed last July. The fourth-quarter loss before an extraordinary item was $6.5 million, or 12 cents a share, while analysts were expecting a loss of 6 cents.
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Mergers, Acquisitions & Joint Ventures
Helmerich & Payne
(HP) - Get Helmerich & Payne Inc. Report
will spin off its oil and gas division to its shareholders. The business will then merge with
Key Production
(KP)
, and the new company will be called Cimarex Energy. Cimarex will be a publicly traded exploration and production company.
Whirlpool
(WHR) - Get Whirlpool Corporation Report
reached an agreement in principle to acquire
Vitro S.A.'s
stake in
Vitromatic S.A. de C.V.
, an appliance manufacturing and distribution joint venture in Mexico. Whirlpool, which holds a 49% interest in the venture, plans to acquire Vitro's remaining 51% interest. Whirlpool hopes to close the deal in the second quarter. Financial terms will be disclosed after the transaction is completed.
Offerings
Digital Insight
( DGIN) filed a registration statement with the Securities and Exchange Commission to offer 4 million common shares. There are no selling stockholders, and the company will receive all of the net proceeds from the offering. Digital plans to use the proceeds for general corporate purposes.
Dynegy
(DYN)
filed a registration statement with the
Securities and Exchange Commission
for a proposed initial public offering of 8.75 million common units of Dynegy Energy Partners LP. The partnership was recently formed to own and operate a portion of Dynegy's natural gas liquids business. Lehman Brothers will be the lead manager of the offering.
Miscellaneous News
Best Buy's
(BBY) - Get Best Buy Co. Inc. Report
founder, Richard M. Schulze, will turn over his responsibilities as chief executive to Bradbury H. Anderson on June 30. The company also named Allen U. Lenzmeier president and chief operating officer and appointed Michael P. Keskey president of Best Buy Stores, effective on March 3. Anderson has been serving as vice chairman, president and chief operating officer.
QLogic
(QLGC)
named Frank A. Calderoni vice president and chief financial officer, effective March 4. He replaces Thomas R. Anderson, whose retirement had been announced in July 2001.
