American Airlines (AMR) has canceled 850 flights today, due to continued inspections of the wiring in its MD-80 aircraft. According to the Associated Press, a spokesman for American said an FAA inspector checked several MD-80s Monday and found that some of the wiring work performed two weeks ago didn't meet FAA standards.
Boeing (BA) says the first flight of its 787 Dreamliner airplane will move into the fourth quarter of 2008 rather than the end of the second quarter, and the first delivery is now planned for the third quarter of 2009 rather than first quarter of 2009. It says R&D costs will likely increase as a result of 787 schedule change, but expects no change to 2008 EPS guidance, continues to expect strong EPS growth in 2009. Says its revised schedule is built upon an "achievable, high-confidence plan."
Citigroup (C) is close to a deal to unload about $12 billion of leveraged loans and bonds to a group of private-equity firms, a big step toward reducing its holdings of troubled corporate debt: WSJ.
United Parcel Service (UPS) cuts $0.94-to-0.98 first quarter EPS guidance to $0.86-$0.87. Cites weak economy, increased fuel costs.
Circuit City Stores (CC) posts $0.03 fourth quarterEPS from continuing operations vs. $0.04 loss as lower SG&A expenses offset 10% lower same-store sales, 7.7% lower total sales. Says net sales for the international segment increased 17% year-over-year, driven by favorable forex, same-store sales rise of 8.6% in local currency.
Sealy (ZZ) posts better-than-expected $0.17, vs. $0.26, first quarter EPS on 5% revenue drop. Suspends quarterly dividend. S&P raises estimate, target; maintains hold.
Pantry (PTRY) sees $0.23-$0.30 second quarter loss per share. It says comp-store merchandise sales and retail gasoline gallons sold for the second quarter were down 3.4%. Says reflecting shortfall in gas margins for the first half, higher credit card fees, continued uncertainty in level of crude oil pricing, now expects its retail gasoline margin for fiscal year 2008 to be between $0.10 and $0.12 per gallon, vs. previous expectation of $0.11 to $0.13.
Standard & Poor's Ratings Services has lowered its ratings on Radian Group (RDN) to 'BBB' from 'A-' and on the company's mortgage insurance subsidiary, Radian Guaranty, to 'A' from 'AA-.' RDN says it is in discussions regarding the amendment of certain covenants contained in its credit facility, including the covenant related to its ratings.
Shaw Group (SGR) posts lower-than-expected $0.44 second quarter EPS vs. $0.93 loss (both excluding Westinghouse segment) on 37% revenue rise.
International Speedway (ISCA) posts $0.80, vs. $0.70, first quarter non-GAAP EPS on 4.9% revenue rise. Reaffirms 2008 forecast of $3.05-$3.15 EPS on $805-$825 million revenue.
Honeywell International (HON) says it has been chosen to supply the latest generation of its HTF7000 turbofan propulsion system family for EMBRAER's new MSJ and MLJ business aircraft. Contract is valued at more than $23 billion including aftermarket over life of the agreement.
Arctic Cat (ACAT) revises fourth quarter sales guidance to $167-$169 million, vs. $172.6 million last year, sees breakeven-to-$0.08 loss per share for the fourth quarter. It sees 2008 loss of $0.20-$0.28 vs. $1.15 EPS. Cites lower-than-anticipated all-terrain vehicles sales, which it attributes to continued weak retail sales; reduction of a planned, large retail customer order; parts supply issue.
American Commercial Lines (ACLI ) sees first quarter EPS in low single-digit cents per share, cites fuel-price inflation, weather-related delays on the waterway, at shipyard. Also notes weak US$ led to reduced commodity imports, as result, there is increased hauling capacity in the gulf, barge price compression. Jerry R. Linzey resigns as COO.