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Non-Tech : Cendant Corporation (NYSE:CD) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas George Warner who wrote (1438)	8/4/1998 7:44:00 PM
From: Roy F	Respond to of 3627

Cendant says more earnings data due next week August 4, 1998 07:23 PM NEW YORK, Aug 4 (Reuters) - Cendant Corp. CD said Tuesday it will release on August 13 results for the six quarters through June 30, 1998 and the final estimates of the impact on 1996 and 1995 income of accounting fraud and errors at its CUC International component. The results to be announced include second quarter earnings, results for the first six months of 1998, and "summary" restated financials for the four quarters and full year of 1997. The 1998 second quarter and first half results "will not be subject to further revisions based on the results of the company's investigation of accounting irregularities and errors at CUC," the diversified consumer and business services provider said in a prepared statement. Last week, representatives from Arthur Andersen and Deloitte & Touche made three hours of presentations at a Cendant board meeting, detailing $500 million in accounting deception and $200 million in errors over the past three years at CUC. At the meeting, the directors were told that 61 percent of CUC's 1997 net income last year was "nonexistent" and "90 percent of that (61 percent) was fraud." The meeting concluded with the resignation of Cendant chairman Walter Forbes, who was replaced by chief executive and president Henry Silverman, and the resignation of nine directors. Forbes has maintained he was unaware of the improprieties until they were uncovered earlier this year. Cendant also said Tuesday it will release "final estimates" of the total impact on 1996 and 1995 net income of the accounting fraud and errors at CUC, the membership-based marketer that merged with HFS Inc last December in the $11 billion deal that created Cendant. Cendant also said the deadline for shareholder proposals to be considered at the company's October 1, 1998 annual meeting is the close of business August 14. While the accounting irregularities were first announced in April, the company said last month the initial findings of an investigation into CUC found the problems to be worse than previously expected, calling them "widespread and systematic." On that day, the company's stock hit an all-time low of $14 per share. The shares were trading at around $40 before the news. In Tuesday afternoon New York Stock Exchange trade, Cendant shares were off $0.50 at $15.375 per share. The accounting probe's findings so far are expected to result in a reduction of Cendant's 1997 net income, before merger-related and one-time charges, of 22 cents to 28 cents per share, nearly double the previously expected impact announced in April. Cendant previously reported 1997 income of $1.00 per share before one-time charges. ((--Brendan Intindola, N.Y. Equities, 212-859-1734)) REUTERS