Wachovia (WB) posts $0.20 first quarter loss per share, vs. $1.20 EPS a year ago, on 4.5% revenue drop. Notes higher credit costs and the continued disruption in the capital markets. Cuts dividend 41%. Commences concurrent offerings of common stock, Non-Cumulative Perpetual Convertible Class A preferred stock, Series L, for aggregate of $7 billion. Says its provision for credit losses of $2.8 billion exceeds net charge-offs by $2.1 billion. S&P maintains hold.
Circuit City Stores (CC) says Blockbuster (BB) has offered to acquire co. for at least $6 per share in cash, subject to due diligence.
Scotts Miracle-Gro (SMG) expects adjusted EPS in the second quarter of $1.14-$1.18 due to a late launch to the lawn and garden season. Says its outlook for the full-year is unchanged, as consumer activity over the first two weeks of April has been strong.
Eaton Corp. (ETN) reported first quarter operating EPS of $1.70, vs. $1.62 one year earlier, on a 12% sales rise. The company sees second quarter operating EPS of $1.90-$2.00; and raised its full-year 2008 operating EPS forecast to $7.80-$8.30.
Delta Air Lines (DAL) and Northwest Airlines (NWA) are readying a merger announcement, perhaps as early as Tuesday, according to a Wall Street Journal report.
AirTran Holdings (AAI) updated financial information in response to market volatility, saying, among other things, that it is in full compliance with terms of its credit card agreements, has no holdbacks with any of its major credit card processors; its liquidity position has strengthened from year-end.
WSJ reports that Delta Air Lines (DAL) and Northwest Airlines (NWA) are readying a merger announcement, perhaps as early as Tuesday. The article stated that moving ahead with a deal risks a clash with the airlines' pilots. DAL and its 6,000 unionized pilots remained in talks on a post-merger contract that wouldn't cover NWA's pilots.
Clayton Holdings (CLAY) agrees to be acquired by an affiliate of a fund managed by Greenfield Partners, LLC for approximately $134 million plus repayment of $23.8 million in debt. Terms: $6.00 per each CLAY share.
Manitowoc (MTW) inks a $2.1 billion deal to acquire Enodis, including the assumption of Enodis' net debt. Assuming a transaction close in the fourth quarter of 2008, the acquisition is expected to be EPS accretive in 2009. For 2008, MTW reaffirms its previous EPS guidance of $3.20-$3.40 for the standalone business.
W.W. Grainger (GWW) posts $1.43, vs. $1.17 a year ago, first quarter EPS on 7% sales rise. Raises 2008 EPS guidance to $5.80-$6.10, vs. previous $5.65-$6.00 range, cites aggressive stock repurchase efforts.
Airtran Holdings (AAI) updates financial information in response to market volatility: says it's in full compliance with terms of its credit card agreements, has no holdbacks with any of its major credit card processors; its liquidity position has strengthened from year-end; it has 6 consecutive years of profitability; it has the youngest, most fuel-efficient all-Boeing (BA) fleet in North America; it has the lowest non-fuel operating costs in the industry, with 45%+ of its fuel needs hedged for rest of 2008; it has an experienced and stable management team.
Federated Investors (FII) posts lower-than-expected $0.55, vs. $0.50 a year ago, first quarter EPS (preliminary) on 16% revenue rise. S&P cuts estimates, reiterates buy.
GSI Group (GSIG) says in response to softness in semiconductor markets, reduction in the number of facilities in North America, cuts workforce by 10%. To take about $1.5 million restructure charge for severance and lease impairment costs related to these actions. Sees $0.02-$0.06 first quarter EPS (including restructure charges) on $66-$72 million revenue.