Cendant confirms 1997 EPS cut, board to meet
July 28, 1998 09:13 AM
NEW YORK, July 28 (Reuters) - Cendant Corp.'s directors are to meet today to discuss the audit of CUC International Inc.'s financials, found earlier to be riddled with "irregularities and errors," a source close to Cendant said Tuesday.
Meanwhile, Cendant said in a statement that the audit committee of the board had received an oral summary of the CUC audit, and the findings are consistent with the announcement two weeks ago that the errors will result in Cendant's reported 1997 earnings being reduced by $0.22 to $0.28 per share, before one-time and extraordinary items.
Cendant reported 1997 earnings of $1 per share before one-time charges. The expected reduction is nearly double the first estimate of the impact, first announced in mid-April.
Cendant also said it expects the restatement of 1997 financials will "reverse significantly" more one-time merger charges than the $200 million, or $0.22 per share, estimated in the announcement two weeks ago.
The merger-charge reversal will not benefit 1997 net income before one-time and extraordinary items, the company said, but will "further reduce" the impact of the restatement on 1997 net income, and on Cendant shareholder equity.
Cendant said it expects to issue full restated and audited historical financial statements in early August.
In early New York Stock Exchange trade, Cendant shares were up 1-1/2 to 17-1/4.
REUTERS
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