(Updated from 9:33 a.m. ET)
warned that second-quarter earnings would come in between $1.10 and $1.14 a share, which is below Wall Street's consensus forecast and the year-ago bottom line.
Thomson Financial/First Call
, analysts expect 3M to earn $1.19 a share in the quarter. The company earned $1.18 in the year-ago period. Currency effects will lower earnings by 7 cents a share, as the strong dollar continues to sap profitability.
The company said that the economic slowdown was chewing into its income, with the notable exception of the company's health care unit. If the economy stays at its current level, 3M estimated that 2001 earnings would come in at the low end of a range between $4.50 and $4.75, lower than the guidance of $4.75 to $5 a share the company had earlier.
For more on what to expect from the market, including a longer look at the week ahead in equities and how the Fourth of July holiday will affect trading, please read
The Coming Week: Wall Street Anticipates Quiet, Positive Week."
Earnings Reports & Warnings:
said it will beat expectations for its second quarter and fiscal 2001 and promised that some "significant, accretive" acquisitions could be made in the next month or so. Anaysts, on average, expect the company to make 36 cents a share in the second quarter and $1.82 a share for 2001.
Mergers & Acquisitions:
ongoing struggle to protect its merger with
continued over the weekend, with First Union sending out more than 700,000 proxy kits to shareholders of both companies. The kits were distributed to sway support in favor of First Union's $14.3 billion bid, which was agreed to by Wachovia, but which has come under fire from
, which countered with an unsolicited $14.8 billion bid.
planned incorporation of their information services units was approved by the
. The blue-chip tech company and the Italian carmaker can now fuse their information services operations, including
, the sinful foods company best known for its delectable cheesecake, announced that it would buy
, the second-largest U.S. bakery, for $40.25 a share in cash. This makes the deal worth $1.7 billion in cash, or $2.8 billion if assumed debt is factored in. The deal values Earthgrains at a 55% premium, based on Friday's closing price of $26.
, the parent company of online job-listing site
, agreed on Friday to acquire rival
in a stock deal valued at $460 million, fusing the two largest players in the online job-search space. According to the terms of the deal, TMP will swap 0.2195 shares for each share of HotJobs. TMP said it will run HotJobs as a stand-alone site. After gaining shareholder and government approval, expects the deal to close in the fourth quarter.
, the parent company of
, will be scrapping plans to buy
because of regulatory hurdles and a declining economic climate,
The Wall Street Journal
reported. Apparently, United informed US Airways that it would like to talk about terminating the deal before Aug. 1. The deal was first announced in May 2000 and sent the airline industry into a consolidation craze, with
, the parent of
, buying up
and several other major carriers considering mergers.
On the Analyst Front:
was downgraded to hold from buy at
because its shares are fully valued, the competition will stay fierce and few, if any, new reasons to buy its stock are on the horizon. Pru cut its price target to $34 from $36 and reduced its fiscal 2001 and 2002 EPS estimates. Disney reports third-quarter results during the week of Aug. 1.
Federated Department Stores
was downgraded to hold from buy at Prudential, which also trimmed its fiscal 2001 and 2002 EPS targets, because the department store chain's second-quarter sales weakness could be more than just a one-time thing. The brokerage put in "worse-case scenario" estimates, telling investors that the sliding sales could be part of a continuing trend.
Procter & Gamble
said it was considering the sale of its Comet band cleaner, saying that it didn't fit with the company's strategy. The consumer products giant said it hired
to help find a buyer.
There are no major earnings releases scheduled for today.
In Overnight Activity
Nasdaq Stock Market scrapped its after-hours session Friday, but kept the day session open until 5 p.m., resulting in a condensed hour of action that was quite lively. The Nasdaq canceled the rest of the session, which would have run until 8 p.m., because of the technology glitches that stopped trading during the day session for an hour.
For an extended take on late-night action, be sure to take a gander at
The Night Watch.
Sources & Definitions:
All analyst EPS estimates are from Thomson Financial/First Call, unless otherwise noted. All economic forecasts are from
, unless otherwise noted. All times are Eastern. After-hours quotes courtesy of Instinet, unless otherwise noted.