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CNNfn after the bell
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April 28, 1999: 6:45 p.m. ET
Print posts good earnings comparisons for two very traditional publishers
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NEW YORK (CNNfn) - So much for the paperless society. Amid the scurry over Amazon.com's earnings, print provided good earnings comparisons for two New York state publishers in very traditional media in Wednesday evening earnings news.
The Reader's Digest Association Inc. (RDA) shredded its earnings estimates, coming in 6 cents over expectations at 23 cents a diluted share. The Pleasantville, N.Y., company's net income was up 77 percent over a year ago for its third quarter, which ended March 31. Germany and the United Kingdom proved its strongest markets as the magazine and book publisher reduced revenue, down 7 percent to $591.8 million for the quarter, in a successful effort to improve margins.
R.H. Donnelley Corp. (RHD), the largest independent marketer of yellow pages advertising, bested its target, too. At 15 cents a share, its earnings were a cent better than expected. The Purchase, N.Y., publisher, which spun off from The Dun & Bradstreet Corp. in July 1998, billed $204.7 million in advertising sales, giving it commission revenue of $31.7 million for the quarter.
Nationwide Financial Services Inc. (NFS) hit its target of 68 cents a share on revenues of $657.1 million. The Columbus, Ohio, life insurance and pension products company said it was happy with its steady growth and now reports more than $89 billion in assets under management.
The news wasn't as good for SCI Systems Inc. (SCI), a Huntsville, Ala.-based electronics maker and aerospace supplier. It reported a sales and profit dip for its third quarter, which ended March 28. Revenues of $1.60 billion were down 5.3 percent. Diluted earnings dipped to 48 cents a share from 50 cents the same period the previous year. In March, it had issued a cautionary release that its earnings would disappoint analysts due to lower sales and the devaluation of the Brazilian real.
Darien, Conn.-based Swisher International Group Inc. (SWR) reported $63.2 million in sales for the first quarter. That was up slightly, but net income dropped 9.3 percent year-over-year to $7.1 million, or 21 cents a diluted share. The cigar maker continues its plans to go private and expects a shareholder vote in the second quarter.
Sunnyvale, Calif.-based semiconductor maker PLX Technology Inc. (PLXT) reported its first earnings as a public company. It earned 6 cents a share, up from a profit of a penny in the same quarter last year, on sales of $8.9 million. The company went public April 9.
In nonearnings news, New York-based copper producer and mining concern Asarco Inc. (AR) appointed Francis R. McAllister chairman and chief executive, replacing Richard de J. Osborne, who retired. McAllister had been president and COO.
Chemicals behemoth DuPont (DD) said its board had authorized the spin-off of its Houston-based Conoco Inc. energy unit to shareholders.
Furniture maker Ethan Allen Interiors Inc. (ETH) said its board had approved a 3-for-2 stock split, payable to shareholders of record as of May 7. The Danbury, Conn.-based company also upped its dividend 50 percent
The U.S. Justice Department said it settled a lawsuit allowing a bid from Suiza Foods Corp. (SZA) for Broughton Foods Co. (MILK) to go ahead after the companies agreed to sell a dairy.
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