Finance - Full Closing Bell for Friday, July 17, 1998
3Com Corporation (COMS)
Cisco Systems Inc. (CSCO)
Lucent Technologies (LU)
Motorola Inc. (MOT)
Credit Suisse First Boston said it initiated coverage of several technology companies. Analyst Jim Parmalee started ASCEND COMM INC with a strong buy; ADC TELECOMM. with a buy; LUCENT TECHNOLOGIES with a strong buy. Analyst Mark Cabi started coverage of ERICSSON LM TELE. with a strong buy; NOKIA CORP with a strong buy. (Reuters 10:28 AM ET 07/17/98) For the other coverages, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555117348-82c>
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Citicorp (CCI)
CITICORP said that it would redeem its outstanding 7-1/2 percent noncumulative preferred stock, Series 17, on Sept. 1. The redemption price will be $25 per depositary share, plus accrued dividends to the date of redemption, Citicorp said. Currently, $350 million of this preferred stock is outstanding, Citicorp said. (Reuters 08:49 AM ET 07/17/98)
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Compaq Computer Corp (CPQ)
The Japanese unit of COMPAQ COMPUTER said it began accepting orders in Japan for a fingerprint identification system designed mainly for corporate users. Compaq Computer K.K. said it was selling the system, a fingerprint identification reader and application software, for about 19,000 yen. A company spokeswoman said that shipments would start in late August for the English-language version and in late November for the Japanese-language version. The system utilises a person's fingerprint, rather than a password, to log-on to a computer in the workplace. (Reuters 03:36 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555112649-292>
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Compaq Computer Corp (CPQ)
COMPAQ COMPUTER CORP, after the acquisition of Digital Equipment Corp, is lowering sales targets in economically troubled Asia, a senior executive said. But Paul Chan, managing director for Asia Pacific, also said the region expects to stay profitable through cost cutting and efficient supply-chain management. "Sales targets have to be adjusted based on the potential of the market place," Chan, who is also vice president for Asia Pacific operations, told reporters at an event to introduce Compaq's new management team in Asia. (Reuters 04:02 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555112869-7c6>
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Dell Computer Corp (DELL)
DELL COMPUTER CORP chairman Michael Dell said that the company's sales through the Internet had risen to $6 million a day. He also said he expected overall sales outside the United States to rise to $6 billion this year. "A year ago our sales on the Internet were about $1 million a day. We are now selling about $6 million a day on the Internet," Dell said at the annual shareholders meeting here. "And this is not just a U.S. phenomenon. Our business in Europe is selling about $1 million a day," he said. Dell also said the company continued to grow its overall overseas business and was expanding into new areas, such as China and South America. (Reuters 11:39 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555117391-1ea>
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Dell Computer Corp (DELL)
DELL COMPUTER CORP will continue to use big portions of its cash flow to buy back shares at an aggressive pace, said Tom Meredith, the company's chief executive officer. Dell has repurchased 160 million shares in the last two years and has shareholder approval to buy more, he said. "We have another 40 million we can purchase under various equity instruments over the next six quarters and we will continue to be aggressive in the share repurchase program," Meredith told Reuters after the company's annual shareholders' meeting. (Reuters 02:55 PM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555119533-88f>
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General Electric Company (GE)
Executives at NBC and USA NETWORKS INC held exploratory talks earlier this month about a possible merger, but the talks fell through, several executives close to the companies said late Thursday. The executives said a possible merger between NBC, which is owned by GENERAL ELECTRIC CO, and USA Networks, which is partly owned by Seagram Co Ltd., never got as far as full-fledged negotiations. They said the talks failed in part because the deal was opposed by Seagram and another USA Networks shareholder, Liberty Media, a company controlled by TELE COMMUNICATIONS INC, the newspaper reported. (Reuters 05:26 AM ET 07/17/98)
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General Electric Company (GE)
Lockheed Martin Corp's decision to abandon its agreed takeover of NORTHROP GRUMMAN CORP could be an opportunity for European companies to court U.S. defence electronics and aerostructures firm Northrop. Share prices in Europe's most acquisitive companies in the sector, GENERAL ELECTRIC CO and British Aerospace Plc initially jumped on a view that one or other might now be able to do a deal with Northrop. (Reuters 01:46 PM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555118841-0a3>
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General Electric Company (GE)
GENERAL ELECTRIC CO is not likely to sell its NBC Inc. television operations, but it could be looking to expand its cable TV properties, analysts and bankers said. Both GE and NBC had no comment on reports that the broadcaster has been in merger talks with USA NETWORKS INC, and that the discussions fell apart. Wall Street insiders were wary. "(GE Chairman) Jack Welch doesn't sell businesses that often," said one media investment banker. "He doesn't do mergers. NBC is going to use its asset strength to get bigger. They have a desire to broaden, but it doesn't mean they have to sell it." (Reuters 05:16 PM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555120916-70a>
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Lucent Technologies (LU)
Late yesterday, LUCENT TECHNOLOGIES has won a $100 million contract to upgrade the network of Telcel, Venezuela's leading wireless telecommunications company, from analog to digital technology, Telcel said. Under the contract, Telcel will convert its network to the cdmaOne digital standard. Upgrading to the CDMA technology will allow Telcel to boost its network capacity by about 300 percent, Telcel Operations Group President Enrique Garcia Viamonte said. "This is a more robust transmission system with less interference and better quality," Garcia said. (Reuters 08:29 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555107646-deb>
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Microsoft Corporation (MSFT)
Powerful growth in the information technology sector is allowing the Turkish subsidiary of MICROSOFT CORP to expand despite operating in a country where more than 80% of software is pirated, a senior company official said late Thursday. "The whole IT (information technology) sector in Turkey is growing at around 30%. Every year we are certainly seeing that number," Baris Cetinok, product marketing manager of the fully-owned subsidiary Microsoft Bilgisayar Yazilim Hizmetleri Ltd, told Reuters in an interview. (Reuters 06:51 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555106607-e32>
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Microsoft Corporation (MSFT)
Late yesterday, MICROSOFT CORP CFO Greg Maffei forecast operating earnings in the current quarter would decline "perhaps a penny" from the $0.50 a share reported for the just-ended 4Q. Maffei said in a conference call with analysts that the decline would be offset by a onetime gain of $0.06 per share from the sale of the company's Softimage unit, which he expects to be completed in the current 1Q. Maffei said 1Q revenues would be up strongly on a year-over-year basis but about $200 million below the $3.99 billion reported in the 4Q, "mostly due to seasonal factors and the absence of the Windows 98 retail launch." (Reuters 06:59 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555106728-9a4>
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Microsoft Corporation (MSFT)
After market close, attorneys general from 20 states narrowed their antitrust case against MICROSOFT CORP by dropping claims related to the company's Office suite of software. The amended complaint was filed in federal court here, and continues to allege that Microsoft engaged in a variety of anticompetitive practices to maintain its Windows operating system monopoly. New York Attorney General Dennis Vacco said that the claims relating to the Office software were dropped due to time and witness limitations set by the court. The Justice Department has filed a similar antitrust suit. A trial is scheduled to begin Sept. 8. (BusinessWire)
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Pfizer Inc. (PFE)
A New York man became the first user of Viagra to sue manufacturers PFIZER INC, claiming the anti-impotency drug caused him to suffer a heart attack. In a $85 mln lawsuit, Diego Padro said he had the heart attack May 26 after taking the highly popular blue pills about four times over five days. Pfizer said in a statement that it had not received the complaint and could not comment on the allegations but would "defend this lawsuit completely." (Reuters 03:18 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555112432-d05>
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Pfizer Inc. (PFE)
The Irish unit of PFIZER INC, the manufacturers of the controversial anti-impotence drug Viagra, said it was planning a 200 mln Irish pound ($281.3 mln) extension to its southern Ireland-based plant in Ringaskiddy, Cork. The new project would create around 100 permanent jobs in the plant where 320 people are currently employed. Although the exceptionally popular anti-impotence drug is still not for sale in Ireland or Europe, demand for the drug elsewhere is deemed to have boosted Irish exports significantly in the last few months. (Reuters 08:09 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555115234-057>
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Philip Morris Companies Inc. (MO)
PHILIP MORRIS COS INC. late on Thursday said a New York appeals court had rejected class certification in the New York state class-action legal cases against the major cigarette manufacturers. The court said the proposed classes of New York smokers would be "unmanageable because of the individual issues" that would need to be resolved in the cases, the company said. Also, the appeals court said the underlying legal claims of fraud and deceit were legally flawed because the U.S. Supreme Court's Cipollone decision states that such claims are preempted by federal cigarette labeling laws, the company said. (Reuters 07:39 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555107078-9a1>
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Philip Morris Companies Inc. (MO)
A class-action lawsuit filed late Thursday against PHILIP MORRIS alleges that the cigarette manufacturer engaged in deceptive and unlawful conduct with regards to its Marlboro Lights. The suit was filed in the Court of Common Pleas, Montgomery County, Pa. It is the second of such class-action lawsuits. The lawsuit alleges, among other things, that defendants engaged in deceptive and unlawful conduct in connection with the manufacture, distribution, advertising, promotion and sale of Marlboro Lights cigarettes. It also alleges that Philip Morris falsely claimed that the product contained lowered tar and nicotine in comparison to regular cigarettes. (Reuters 11:17 PM ET 07/16/98) Full story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555109838-a29>
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Philip Morris Companies Inc. (MO)
The White House all but conceded defeat late Thursday on the prospect of getting comprehensive anti-smoking legislation passed this year by the Republican-led Congress. White House spokesman Mike McCurry said that while there is "good, strong support" on Capitol Hill for tobacco legislation, "I think everyone recognizes that that issue is stuck, for the moment, and we're looking at ways to see if we can get it unstuck." "We haven't downgraded our desire for it," he added, but, "The prospects, you would have to factually say, have been downgraded, sure." (Reuters 11:39 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555110086-209>
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Procter And Gamble Co (PG)
Toothpaste giants COLGATE PALMOLIVE and PROCTER AND GAMBLE are seen reporting higher quarterly earnings as they brush up on their operations and widen profit margins. The makers of Total and Crest are likely to come out with earnings that are more than 10% higher the same period a year ago after cutting costs and raising prices on their consumer and household products, according to analysts. Patrick Dunkerley at Securities Corp. of Iowa said Colgate had been improving efficiency by using computers to manage inventories and deliveries. (Reuters 01:08 PM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555118471-dd1>
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Sun Microsystems Inc. (SUNW)
Late yesterday, SUN MICROSYSTEMS INC CFO Michael Lehman said the company's first half fiscal 1999 revenue growth will be similar to the company's revenue growth rate in the second half of 1998. "It is more prudent to think of revenue growth rates in the first half of this year in the range of what we experienced in the second half," Lehman told analysts on a conference call. Lehman said Sun still remains concerned about the economies in Asia, especially in South Korea and Japan and that because Sun had strong results from those geographies in the first half of fiscal 1998, it expects a tough comparison. (Reuters 06:35 PM ET 07/16/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555106508-f86>
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Sun Microsystems Inc. (SUNW)
Lehman Brothers analyst George Eiling said he expects SUN MICROSYSTEMS INC to fare even better in the coming year than he had previously forecast. Eiling said in a research report that Sun's 13.3% revenue growth in the quarter was "above management's earlier guidance and $30 million above our projection." He said revenues would have grown another 3% but for some ailing world currencies. He raised the stock's 12-month price target to $60 from $55 and raised his fiscal 1999 earnings estimate to $2.70 a share from $2.65. (Reuters 12:41 PM ET 07/17/98)
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Telecommunicaoes Brasileiras Sa (TBR)
Late yesterday, the Rio de Janeiro Stock Exchange (BVRJ) on Sunday will stage a rehearsal of Latin America's largest ever privatization auction -- the sell-off of TELECOMMUNICAOES BRASILEIRAS SA. The auction, which is slated for July 29, is expected to draw hundreds of investors, spectators and protestors to the exchange building, a BVRJ official said. The government plans to sell 12 operating companies in Telebras -- three fixed-line, eight cellular units and the long-distance and international carrier Embratel, all in a single day. The drama is expected to raise $14 billion to the national coffers. (Reuters 12:06 AM ET 07/17/98) For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555110387-fe1>
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Telecommunicaoes Brasileiras Sa (TBR)
TELEFONOS DE MEXICO S.A. may bid on cellular telephone units being sold as part of TELECOMMUNICAOES BRASILEIRAS SA, a leading Mexican newspaper said. Reforma newspaper quoted "sources close to (Telmex)" as saying the company and its partner SBC COMMUNICATIONS INC would likely bid on one or more of eight cellular units being sold as part of Latin America's largest-ever sell-off. The newspaper said Telmex would likely make a formal announcement in the next few days, but had no other details. Brazil plans to sell 12 operating companies in Telebras -- three fixed-line, eight cellular units and the long-distance and international carrier Embratel, all on July 29. (Reuters 01:02 PM ET 07/17/98)
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Dow Jones 30 Industrials (DJIA)
MARKET NEWS: Wall Street ended at new highs Friday, capping a record-breaking week, but investors began wondering if the nation's ballooning trade deficit may replace earnings as the next source of worry. The Dow closed up 10 points at 9338. It was the Dow's third record close this week and second above 9300. The Nasdaq ended up eight points at 2009, its eighth straight record close and second above 2000. The S&P 500 index rose three points to 1187, a record. On the NYSE, declining issues led advances by a 15 to 13 margin with a moderate 618 million shares changing hands. The long bond shed 6/32 to yield 5.75%. For the full text story, see full story <http://www.infobeat.com/stories/cgi/story.cgi?id=2555120998-3b8> |
