Nike Posts Earnings Yet Sheds Jobs in Asia
Nike
(NKE) - Get NIKE, Inc. Class B Report
posted first-quarter earnings of 56 cents per share, beating the 15-analyst
First Call
forecast for 48 cents but falling below the year-ago 85 cents. The shoe retailer also announced plans to eliminate 15% -- or 300 jobs -- of its workforce at its Asian operations. Revenue in the region fell 46% for the first quarter, and CEO Philip Knight said Asian economic prospects look dim. Nike said it repurchased 1.8 million shares of its stock since Aug. 31.
HCR Manor Care
, the company to be formed by the merger of
S&P 500
component
Manor Care
(MNR) - Get Monmouth Real Estate Investment Corporation Class A Report
and
S&P Midcap 400
member
Health Care & Retirement
(HCR) - Get Hi-Crush Inc Report
TheStreet Recommends
, will replace Manor Care in the S&P 500 after the close Sept. 24. The combined company will trade under the symbol HCR.
Citrix Systems
(CTXS) - Get Citrix Systems, Inc. Report
will replace Health Care & Retirement in the midcap index.
Elsewhere,
Allied Waste Industries
(AWIN)
will substitute
Fingerhut
(FHT)
-- which is spinning off the remaining 83% of
Metris
(MTRS)
shares it owns -- on the midcap index, also after Sept. 24's closing bell.
Ciena
(CIEN) - Get Ciena Corporation Report
repriced its employee stock options to an exercise price of $12.375 per share. Earlier this week, the company's planned $4.7 billion merger with
Tellabs
(TLAB)
fell apart.
In other post-close news (earnings estimates from First Call):
Earnings/revenue reports and previews
First Data
(FDC) - Get First Data Corporation Class A Report
announced it adjusted its earnings outlook because of declining rates of growth in consumer spending. The company now expects 1998 earnings to come in between $1.55 and $1.60 per share. It also said it approved a buyback program of $500 million worth of stock. The 16-analyst prediction calls for annual earnings of $1.59 compared with 1997's $1.51.
BE Aerospace
(BEAV)
reported second-quarter earnings of 50 cents per share, in line with the eight-analyst estimate and above the year-ago 34 cents.
Citing reduced demand,
Cytec Industries
(CYT)
said it expects third- and fourth-quarter earnings to fall 15% to 20% below estimates and 1999 full-year earnings to fall 10% to 15% below estimates. A seven-analyst estimate called for third-quarter earnings of 72 cents per share, vs. the year-ago 60 cents, a six-analyst estimate called for fourth-quarter earnings of 73 cents, vs. the year-ago 62 cents, and a seven-analyst estimate called for 1999 earnings of $3.28.
Morgan Stanley Dean Witter
raised the stock to strong buy from outperform on
Sept. 9.
Adaptec
(ADPT) - Get Adaptive Biotechnologies Corp. Report
said it expects to record a second-quarter restructuring charge of 20 cents to 25 cents per share and that it expects quarter earnings to come in toward the low end of analysts' estimates. The eight-analyst consensus calls for a breakeven quarter compared with the year-ago profit of 53 cents.
Inacom
(ICO)
said it expects to report third-quarter earnings between 60 cents and 62 cents per share. The nine-analyst estimate calls for 61 cents vs. the year-ago 55 cents.
Valmont Industries
(VALM)
said it sees third- and fourth-quarter earnings missing estimates because of adverse market conditions. The company expects third-quarter earnings between 18 cents and 20 cents per share and fourth-quarter earnings between 30 cents and 32 cents per share. The two-analyst forecast called for third-quarter results of 28 cents, repeating the year-ago figure, and fourth-quarter results of 41 cents, vs. the year-ago 38 cents.
Mergers, acquisitions and joint ventures
Coca-Cola
(KO) - Get Coca-Cola Company Report
said it's not sure whether it will keep its $840 million bid to buy
Orangina
from
Pernod Ricard
alive after the French government vetoed its proposed acquisition.
ABC Rail Products
(ABCR)
and privately held
NACO
agreed to merge for an undisclosed amount.
Wilshire Real Estate Investment Trust
(WREI)
said it made an unsolicited $390 million stock bid for
Imperial Credit Commercial Mortgage Investment
(ICMI)
.
Offerings and stock actions
Sovran Self Storage
(SSS)
raised its quarterly dividend to 56 cents per share from 54 cents.
Independent Bank
(IBCP) - Get Independent Bank Corporation Report
set a one-time 5% stock dividend.
Miscellany
Quanex
(NX) - Get Quanex Building Products Corporation Report
said it will close its automotive-air-bag and products machining-and-warehousing center in Park City, Utah, and will cut 150 jobs to reduce costs.
American Electric Power
(AEP) - Get American Electric Power Company, Inc. Report
said a unit at its Cook nuclear plant will return to service by the end of the first quarter of 1999, which is later than previously expected.
