Finance - Full Closing Bell for Wednesday, July 15, 1998
3Com Corporation (COMS)
After market close, 3COM CORP named former IBM executive Bruce Claflin to the newly created post of president and chief operating officer. The global networking company said in a statement that Claflin, 46, will start on August 10. He will report to chairman and chief executive, Eric Benhamou, and oversee the worldwide operations of 3Com's $5.4 billion networking business. (Reuters 05:10 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555090506-7ed>
Compaq Computer Corp (CPQ)
Microsoft Corporation (MSFT)
Credit Suisse First Boston analyst Michael Kwatinetz started coverage of MICROSOFT CORP with a rating of strong buy, a spokesman for the bank said. Kwatinetz started coverage of COMPAQ COMPUTER CORP with a rating of buy, the spokesman said. (Reuters 10:15 AM ET 07/15/98)
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Compaq Computer Corp (CPQ)
COMPAQ COMPUTER CORP reported 2Q EPS of $0.02 vs $0.17 on revenues of $5.8 bln vs $5.1 bln last year. Analysts' mean estimates were $0.00, according to First Call. (Reuters 08:36 AM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555084782-a2b> and also full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555084426-5fa>
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Compaq Computer Corp (CPQ)
COMPAQ COMPUTER CORP expects a small 3Q profit, in line with current Wall Street forecasts, as the company makes further progress on integrating its Digital Equipment acquisition, CFO Earl Mason said. In an interview, Mason focused on the company's success in slashing corporate personal computer inventories, improving gross profit margins and finishing the 2Q with $4.6 billion in cash, even after paying for the Digital deal. (Reuters 01:08 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555087778-ede>
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Compaq Computer Corp (CPQ)
COMPAQ COMPUTER CORP will enjoy earnings growth in the second half of 1998, Andreas Barth, senior vice president and general manager of Compaq European, Middle East and Africa, told Reuters. "In the first and second quarter we depleted the channel inventory. We are at a very positive and low level and we can assume we can have better than market growth," he said. "We will have good growth in the 3Q and 4Q for Compaq worldwide and Europe," Barth added. (Reuters 04:17 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555089932-62a>
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Eastman Kodak Co (EK)
EASTMAN KODAK reported diluted 2Q EPS of $1.51 vs. $1.11 last year, on revenues of $3.70 bln. vs. $3.89 bln. in 1997. Analysts' mean estimates were $1.14, according to First Call. NOTE: 2Q 1998 non-operating income benefited from a pre-tax gain of $66 million, or $0.13/shr, from sale of part of equity stake in Gretag Imaging. (Reuters 07:43 AM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555084210-9de>
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Eastman Kodak Co (EK)
EASTMAN KODAK's share of the consumer film market in the United States rose about one percentage point in the 2Q from the 1Q, CFO Harry Kavetas said. "Second quarter versus second quarter last year, we were down very slightly, about one percentage point." While Kodak does not disclose many details about market share, analysts estimate its share of the U.S. film market at around 65% or more. Kavetas said sales volume of film rolls and one-use cameras was up 10% in the 2Q, while dollar sales rose about 3%, although prices were off about 7%. (Reuters 12:23 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555087327-ac2>
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General Electric Company (GE)
The U.S. Justice Department on Tuesday said it reached agreement with GENERAL ELECTRIC CO. in two cases that would promote competition in the $3 bln-a-year medical equipment servicing market. Settling a 1996 lawsuit, GE agreed to remove restrictions it had imposed on software licenses with more than 500 hospitals preventing them from competing with GE to service equipment at other hospitals. In the second case, GE agreed to sell service software made by InnoServ Technologies to resolve concerns raised by GE's proposed acquisition of InnoServ. (Reuters 08:42 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555076707-a93> ***AND*** full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555079647-f23>
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General Electric Company (GE)
Late Tuesday, ELAMEX S A said it formed a joint venture with GENERAL ELECTRIC CO subsidiary GE Mexico S.A. de C. V. to produce plastic molding and stamped metal components in Juarez. In connection with the joint venture, General Electric will receive a 3-year warrant to purchase up to 6.3% of Elamex's common stock exercisable at $7.81 per share subject to anti-dilution provisions and it will have a right to have a representative on Elamex's Board, the company said. The joint venture will be located in Juarez, Mexico and will be engaged in the production of plastic molding and stamped metal components, the company said. (Reuters 09:59 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555077811-ec3>
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General Electric Company (GE)
Financially-troubled Philippine Airlines Inc intends to spin off its major services into different joint ventures within the next six months, a senior airline official said. Several foreign companies have made due diligence inspections of the airline services open for joint ventures, PAL executive vice-president Manolo Aquino said. Aquino said Lufthansa AG and GENERAL ELECTRIC CO were among the interested investors. The two firms have already completed their due diligence inspections on PAL's maintenance and engineering operations. (Reuters 06:54 AM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555083578-c0c>
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IBM (IBM)
IBM and SILICON STORAGE TECHNOLOGY INC announced an agreement in which IBM will license SST's SuperFlash memory technology. This technology will allow IBM to combine logic and memory functions on a single chip, helping electronics manufacturers reduce the size, cost and power consumption of their products. Unlike standard dynamic memory, ''flash'' memory retains information even after losing power. SST SuperFlash technology will enable IBM to build a new level of memory-efficient custom chips at reduced cost. (PRNewswire)
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Intel Corporation (INTC)
Late Tuesday, INTEL CORP reported a 29% decline in 2Q profits and said it expected 3Q revenues to be flat to slightly higher than the quarter ended in June. Revenue in the Americas and Japan was up in the 2Q vs. the 1Q, Asia-Pacific was relatively flat, while Europe was lower. The company said it expected its gross profit margin to be up "a couple of points" from 49% in the 2Q. It said its expectation for its gross margin for the full year was unchanged at 52%, "plus or minus a few points." (Reuters 09:18 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555077213-35f>
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Intel Corporation (INTC)
Late Tuesday, INTEL CORP's 2Q earnings surpassed Wall Street consensus estimates and some analysts were pleasantly surprised by the company's lower manufacturing costs. Analysts said the $0.66 a share includes a write-down of about $0.04 a share for lower costs of current inventory. "It would have been closer to $0.70 (excluding the write-down)," said Rob Chaplinsky, a Hambrecht & Quist analyst. "It's actually an upside (surprise). Intel has made significant progress in reducing expenses in the factory...It's an up quarter with a relatively upbeat outlook. (Reuters 09:36 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555077474-d96>
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Intel Corporation (INTC)
Bear Stearns raised its rating for INTEL CORP to buy from neutral, a spokesman for Bear Stearns said. (Reuters 09:54 AM ET 07/15/98)
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Intel Corporation (INTC)
Salomon Smith Barney cut its rating for INTEL CORP to outperform from buy, a Salomon spokesman said. (Reuters 10:20 AM ET 07/15/98)
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Intel Corporation (INTC)
Gruntal & Co. LLC said it lowered its earnings estimates on INTEL CORP for the 3Q and 4Q of 1998, and for the full year 1998 and 1999. EPS estimates for 3Q lowered to $0.78 from $0.80, 4Q lowered to $0.87 from $0.90, 1998 lowered to $3.03 from $3.11 and 1999 lowered to $3.70 from $3.80. Says lowering reflects current guidance and expectation about industry demand. Maintains hold rating on company. (Reuters 11:33 AM ET 07/15/98)
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Lucent Technologies (LU)
Late Tuesday, LUCENT TECHNOLOGIES said it has acquired SDX Business Systems PLC, a UK provider of business communications systems, for undisclosed terms. Lucent's offer was accepted by holders representing more than 84% of SDX's outstanding shares, the company said in a statement. Lucent, which first announced its plans to buy SDX on June 8, expects to acquire all remaining shares within the next few weeks. The acquisition expands the breadth of its product line in Europe, especially in the fast-growing small and medium-sized call center markets. (Reuters 07:53 PM ET 07/14/98)
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MCI Communications Corporation (MCIC)
Worldcom Inc (WCOM)
The U.S. Justice Department approved WORLDCOM INC's proposed $37-billion purchase of MCI COMMUNICATIONS CORP on condition MCI sells its Internet assets. MCI will sell its wholesale and retail Internet businesses to CABLE AND WIRELESS for $1.75 billion, satisfying U.S. and European regulators' concerns that the merging companies would dominate the Internet, the Justice Department said. The sale of MCI's Internet assets includes all associated traffic, revenue and backbone facilities. MCI's Internet business is projected to have revenue of about $375 million this year, the comapny said. (Reuters 03:30 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555089445-853> and full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555090378-b62>
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Merck And Co. Inc. (MRK)
AURORA BIOSCIENCES announced that it has completed the design and delivery of three screening subsystems to MERCK AND CO. These subsystems are part of the technology package being provided to Merck by Aurora under the collaborative research and license agreement signed by the parties in December 1997. Merck committed over $33 million in research funding, license fees and delivery payments. This amount could exceed $100 million if Merck exercises certain options and if the collaboration is successful in identifying and developing products using technologies developed for Merck by Aurora. (PR Newswire 09:01 AM ET 07/15/98) Full story full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555085143-811>
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Microsoft Corporation (MSFT)
Sun Microsystems Inc. (SUNW)
SUN MICROSYSTEMS INC is making another drive into software, this time with a program that makes it easier to connect and share devices such as printers and disk drives on a computer network, the Wall Street Journal reported. Sun's new software is called Jini and is designed to be included in personal-computer "peripherals," industry parlance for accessory devices that include data-storage units, scanners and printers, the paper reported. Those products today are often linked directly to a single PC, for that user alone, or may be shared only by PCs that use the same operating system. The move is the latest by the Palo Alto, Calif company to challenge MICROSOFT CORP in setting new software standards, the paper said. (Reuters 03:39 AM ET 07/15/98)
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Microsoft Corporation (MSFT)
MICROSOFT CORP, SONY CORP, Softbank Corp and other Japanese firms are expected to make fresh capital investments in NIPPON TELEGRAPH AND TELEPHONE satellite unit, the NTT unit said. With the capital injection, NTT Satellite Communications Inc said, its capital will rise to 3.5 billion yen in August from the current 400 million yen. The satellite unit is now owned 51 percent by NTT and 49 percent by Japan Satellite Systems Inc (JSAT). Those two firms and a total of six new companies are due to inject fresh capital into the NTT unit. (Reuters 05:11 AM ET 07/15/98) For the second part of the story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555083569-15b>
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Pfizer Inc. (PFE)
A U.S House panel late on Tuesday voted to block $100 mln in federal reimbursements to state health care programs for Viagra and shifted the money to children's mental health programs. Citing the recent onslaught of schoolyard homicides by students, Obey said his plan would allocate $100 mln to boost mental health care programs in schools by taking money from federal reimbursements to states' low-income health care programs to pay for PFIZER INC. Viagra impotence drug. (Reuters 07:53 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555076084-197>
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Pfizer Inc. (PFE)
ZONAGEN INC. said that it submitted a New Drug Application to the FDA for Vasomax, a treatment for male erectile dysfunction. Zonagen and SCHERING PLOUGH COR signed a worldwide marketing agreement in November 1997 for Vasomax in this indication, Zonagen said. The drug would compete against the highly publicized Viagra, which is made by PFIZER INC. (Reuters 09:30 AM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555085357-094>
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Pfizer Inc. (PFE)
An Egyptian state pharmaceutical firm plans to register and produce an anti-impotence drug similar to Viagra, which is not available legally in Egypt, the company's chairman said. "We have applied for the registration of our new drug, and I hope the health ministry will respond positively," Misr Medical told Reuters. Misr Medical's announcement this week that it intended to start producing Aphroyagra affected PFIZER INC's Pfizer/Egypt's share, which closed down on Tuesday. (Reuters 10:51 AM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555086219-b2a>
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Philip Morris Companies Inc. (MO)
Attorneys general for all 50 states agreed late Tuesday to continue efforts to reach an agreement with the tobacco industry that could bring their states more than $200 billion over the next quarter century. Spokesmen for the chief legal officers of the states said they wanted to reach an out-of-court settlement with the industry on recouping funds spent to treat smoking-related illnesses. But until one was found, they said they would proceed with their law suits against big tobacco companies. (Reuters 10:27 PM ET 07/14/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555078258-367>
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Travelers Group Inc. (TRV)
IMC MORTGAGE CO said TRAVELERS GROUP INC Casualty and Surety Company and Greenwich Street Capital Partners invested in Greenwich Street, a merchant banking fund in which subsidiaries of Travelers Group are significant investors. Greenwich Street and Travelers Casualty and Surety also said they purchased $50 million of Series A convertible preferred stock in IMC. The Series A preferred stock of IMC is convertible tonon-registered common stock at the average closing price of the common stock for ten trading days prior to closing. (Reuters 12:32 PM ET 07/15/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555087421-4f2>
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Dow Jones 30 Industrials (DJIA)
MARKET NEWS: The Dow ended weaker Wednesday as investors paused to evaluate the record-breaking gains which have left some analysts worried that too few stocks are taking part in the advance. The Dow closed at 9234, off 11 points. The Nasdaq ended up 26 points at 1995, its sixth straight record high close. On the New York Stock Exchange, declining issues led advancers by a slim margin in heavy trading with 727 million shares changing hands. The broad market S&P 500 index also failed to hold early gains and closed off three points at 1175. All three stock indices closed at record highs Tuesday. The benchmark 30-year Treasury bond was up 7/32 to yield 5.71%. For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555090601-440> |
