Re: Asia Warnings
There was a slew of downgrades of mostly high tech stocks today. So many I couldn't post. They are really not "warnings announcements" so I really didn't want to post them all anyway. I mainly stick to companies announcing, not analyst. There is one below (SUNW) that I couldn't find news on yet. I'm sure it's coming.
Some below came in after I posted yesterday. Some new ones I'm sure will come in later tonight. I probably won't post those till tomorrow.
Hope this helps,
MikeM(From Florida)
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Andrew sees lower Q3 results, cites Asia
ORLAND PARK, Ill., June 17 (Reuters) - Andrew Corp., which supplies communications products and systems, said Wednesday it expects results for its fiscal third quarter ended June 30, 1998 will fall short of analysts' expectations. Andrew said it estimates sales and diluted earnings per share for the quarter might be five to ten percent below last year's third quarter sales of $209 million and diluted earnings per share from continuing operations of $0.31, excluding restructuring charges.
According to First Call, analysts' mean estimate of Andrew's third quarter earnings is $0.33 a share. Andrew cited weak markets in the U.S. and Asia for its third quarter shortfall. ''Overall customer spending in the U.S. wireless infrastructure market has continued its slower pace and the economically strained Southeast Asian markets have contributed very little business,'' said Floyd English, chairman, president and chief executive officer, in a news release.
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Stratus sees lower Q2 amid Asian turmoil
MARLBORO, Mass., June 17 (Reuters) - Computer systems maker Stratus Computer Inc. said Wednesday it expected a loss of about $10 million or $0.42 per share for the second quarter due to inventory charges and a decline in business in Asia.
Stratus said in a statement it foresaw revenues being about 20 percent below the $168 million for the same period last year. Stratus said in the statement it would incur charges of about $10 million, primarily for inventory bought specifically for the Asian market, especially Japan. The cancellation of a few projects also contributed to the charges, it said. Stratus blamed the devaluation of the Japanese yen over the last few weeks for its lower earnings forecast.
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IBM, Hewlett dip as Wall St. frets over near-term
NEW YORK, June 18 (Reuters) - Shares of International Business Machines Corp. (IBM - news) and Hewlett-Packard Co. (HWP - news) dipped on Thursday amid growing concern on Wall Street over the near-term prospects for blue-chip technology companies. Goldman Sachs analyst Laura Conigliaro removed IBM from the firm's ''Global Priority'' list of stocks and trimmed earnings estimates for the second and third quarters, citing increased concern over Asia, the weak yen and difficulties in the personal computer market. The concerns echoed those raised by other analysts this week with respect to both IBM and H-P, both of which have significant business interests in Asia.
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Sun sets
Sun Microsystems (SUNW) also lost ground on Asian economic worries, after Chief Operating Officer Ed Zander said the weak yen may have a negative impact on revenue for the year. Sun shares closed down 1 1/2 at 42 1/8.
The renewed concern about Asia only adds to the troubles the industry faces. U.S. computer vendors are embroiled in a price war resulting from their attempts to eliminate excess inventory and make the transition to new products.
While shrinking inventories have renewed investors' confidence in the sector, a resurgence of negative sentiment about Asia could erase recent gains. "I think the impact will continue for several more months and it will be much more difficult to rebound," Acuff said."This time we're wrestling with the economic situation in Asia much more severely."
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