Nike Posts Earnings Yet Sheds Jobs in Asia

Author:: Heather Moore
Publish date:: Sep 17, 1998 8:19 PM EDT

Nike

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 Report

and

S&P Midcap 400

member

Health Care & Retirement

(HCR) - Get Report

, 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 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 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 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 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.