JDfn Daily Digest - December 8, 2008
President-elect Barack Obama wants to make something very clear: The economy is not going to immediately recover when he takes his oath of office, but he has a plan to get the country moving. Obama introduced a recovery plan "equal to the task" that would be the largest public works spending program since the interstate highway system was build a half-century ago.
Congressional Democrats and the White House reportedly agree on the broad outlines of a deal to rescue the failing U.S. auto industry, as lawmakers and officials weighed in on the plan over the weekend. Congressional leaders will work through the weekend with the Bush administration to try to reach a final accord to provide emergency financial relief to the Big Three car makers.
Dow Chemical (DOW) expects to take a $700 million charge in the fourth quarter for restructuring, including severance packages for the elimination of 5,000 full-time jobs. The company said the charge consists about $350 million for dismissed workers and $350 million for asset-related, non-cash charges.
3M Co. (MMM), a member of the Dow Jones 30 Industrial Index, slashed its full-year forecast on Monday following a sharp sales decline, and reduced its workforce by nearly 2%.The maker of office, display graphics and industrial products, said it dismissed nearly 1,800 workers as its organic volume in the current quarter fell 10%.
UBS (UBS) may announce as many as 4,500 more job cuts in coming weeks. Since the summer of 2007, UBS has already slashed about 9,000 jobs, or 11% of its workforce.
There’s trouble at the some of the nation’s major newspapers -
The New York Times Company (NYT) plans to borrow up to $225 million against its mid-Manhattan headquarters building to ease a potential cash flow squeeze. The report cited "tighter credit and shrinking profits.”
Tribune Co., owner of the Los Angeles Times and Chicago Tribune, other newspapers and the Chicago Cubs and Wrigley Field, has hired financial advisers ahead of a possible filing for bankruptcy-court protection.
McClatchy Co. (MNI) is said to be exploring a sale of the Miami Herald, one of the chain's largest and best-known newspapers. The company is looking for a buyer for the Herald, as it deals with losses in advertising revenue and growing debt.
Merrill Lynch (MER) Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the company's compensation committee is resisting his request.
The Walt Disney Company (DIS) announced one of its units will buy outstanding shares of Jetix Europe NV, a European children's media company. Disney plans to buy outstanding shares for $14 per share. The deal is expected to be complete by the end of the year.
Scheduled U.S. Economic Reports (Tuesday)
Pending Home Sales (Oct)
In Earnings News
McDonald's (MCD) says sales at established locations jumped 7.7 percent worldwide in November with even recession-wary consumers in the U.S. buying more of the chain's burgers, fries and breakfast biscuits. McDonald's reported same-store sales or sales at stores open at least a year, rose 4.5 percent in the U.S.
Blyth Inc (BTH) reported a loss of 93 cents a share for the third quarter ended Oct. 31st from a 17-cent profit a year earlier. Adjusted earnings were 20 cents against 24 cents. Sales fell 12% to $250.8 million.
MetLife Inc. (MET) said ahead of an investor's conference that its fourth-quarter and 2009 operating results will fall short of analysts' expectations because of a sharp decline in variable investment income and continued weakening of the equity markets.
Comtech Telecommunications Corp. (CMTL) reported fiscal first-quarter results that blew away Wall Street's expectations. For the three months ended Oct. 31, Comtech's profit rose 52 percent to $22.4 million, or 80 cents per share. Analysts were looking for a much more modest 54 cents per share.
Johnson Outdoors Inc. (JOUT) said that due to a large loss in its fourth quarter it cut jobs and plans to slash spending. It posted a loss of $74.6 million, or $8.18 per share, in the three months ended Oct. 3rd. Revenue fell 6 percent, to $81.8 million from $87.3 million.
Scheduled Earnings Reports (Tuesday)
Cooper Companies, Kroger Company, AutoZone, ADC Telecommunications, Pall Corp, Rex Stores, Pep Boys, Vail Resorts
Stocks in the News
FedEx (FDX) will lift rates for FedEx Freight and FedEx National 5.7% on Jan. 5th.
Boeing’s (BA) engineers union at its Wichita, Kansas plant said the company recessed contract talks and didn't say when they'd resume.
Unisys Corp’s (UIS) board approved a reverse stock split to regain compliance with New York Stock Exchange listing rules.
Motorola’s (MOT) long-term corporate-credit rating was cut to BB+, or junk status, from BBB, by Standard & Poor's.
Legg Mason (LM) is planning to cut 200, or about 8%, of its jobs to cut costs.
Thomas & Betts (TNB) boosted its plan to buy back stock to 5 million shares from 3 million. The buyback authorization expires in October 2010.
Alvarion Ltd (ALVR) said it would cut 110, or 11%, of its jobs, cut management salaries and reduce other expenses.
Congressional Democrats and the White House reportedly agree on the broad outlines of a deal to rescue the failing U.S. auto industry, as lawmakers and officials weighed in on the plan over the weekend. Congressional leaders will work through the weekend with the Bush administration to try to reach a final accord to provide emergency financial relief to the Big Three car makers.
Dow Chemical (DOW) expects to take a $700 million charge in the fourth quarter for restructuring, including severance packages for the elimination of 5,000 full-time jobs. The company said the charge consists about $350 million for dismissed workers and $350 million for asset-related, non-cash charges.
3M Co. (MMM), a member of the Dow Jones 30 Industrial Index, slashed its full-year forecast on Monday following a sharp sales decline, and reduced its workforce by nearly 2%.The maker of office, display graphics and industrial products, said it dismissed nearly 1,800 workers as its organic volume in the current quarter fell 10%.
UBS (UBS) may announce as many as 4,500 more job cuts in coming weeks. Since the summer of 2007, UBS has already slashed about 9,000 jobs, or 11% of its workforce.
There’s trouble at the some of the nation’s major newspapers -
The New York Times Company (NYT) plans to borrow up to $225 million against its mid-Manhattan headquarters building to ease a potential cash flow squeeze. The report cited "tighter credit and shrinking profits.”
Tribune Co., owner of the Los Angeles Times and Chicago Tribune, other newspapers and the Chicago Cubs and Wrigley Field, has hired financial advisers ahead of a possible filing for bankruptcy-court protection.
McClatchy Co. (MNI) is said to be exploring a sale of the Miami Herald, one of the chain's largest and best-known newspapers. The company is looking for a buyer for the Herald, as it deals with losses in advertising revenue and growing debt.
Merrill Lynch (MER) Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the company's compensation committee is resisting his request.
The Walt Disney Company (DIS) announced one of its units will buy outstanding shares of Jetix Europe NV, a European children's media company. Disney plans to buy outstanding shares for $14 per share. The deal is expected to be complete by the end of the year.
Scheduled U.S. Economic Reports (Tuesday)
Pending Home Sales (Oct)
In Earnings News
McDonald's (MCD) says sales at established locations jumped 7.7 percent worldwide in November with even recession-wary consumers in the U.S. buying more of the chain's burgers, fries and breakfast biscuits. McDonald's reported same-store sales or sales at stores open at least a year, rose 4.5 percent in the U.S.
Blyth Inc (BTH) reported a loss of 93 cents a share for the third quarter ended Oct. 31st from a 17-cent profit a year earlier. Adjusted earnings were 20 cents against 24 cents. Sales fell 12% to $250.8 million.
MetLife Inc. (MET) said ahead of an investor's conference that its fourth-quarter and 2009 operating results will fall short of analysts' expectations because of a sharp decline in variable investment income and continued weakening of the equity markets.
Comtech Telecommunications Corp. (CMTL) reported fiscal first-quarter results that blew away Wall Street's expectations. For the three months ended Oct. 31, Comtech's profit rose 52 percent to $22.4 million, or 80 cents per share. Analysts were looking for a much more modest 54 cents per share.
Johnson Outdoors Inc. (JOUT) said that due to a large loss in its fourth quarter it cut jobs and plans to slash spending. It posted a loss of $74.6 million, or $8.18 per share, in the three months ended Oct. 3rd. Revenue fell 6 percent, to $81.8 million from $87.3 million.
Scheduled Earnings Reports (Tuesday)
Cooper Companies, Kroger Company, AutoZone, ADC Telecommunications, Pall Corp, Rex Stores, Pep Boys, Vail Resorts
Stocks in the News
FedEx (FDX) will lift rates for FedEx Freight and FedEx National 5.7% on Jan. 5th.
Boeing’s (BA) engineers union at its Wichita, Kansas plant said the company recessed contract talks and didn't say when they'd resume.
Unisys Corp’s (UIS) board approved a reverse stock split to regain compliance with New York Stock Exchange listing rules.
Motorola’s (MOT) long-term corporate-credit rating was cut to BB+, or junk status, from BBB, by Standard & Poor's.
Legg Mason (LM) is planning to cut 200, or about 8%, of its jobs to cut costs.
Thomas & Betts (TNB) boosted its plan to buy back stock to 5 million shares from 3 million. The buyback authorization expires in October 2010.
Alvarion Ltd (ALVR) said it would cut 110, or 11%, of its jobs, cut management salaries and reduce other expenses.
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