|
After the bell stock news
|
 |
September 28, 1999: 7:11 p.m. ET
Gillette cuts 3Q projections close while Emcore, Transport Corp. expect shortfalls
|
NEW YORK (CNNfn) - Gillette Co. warned of a likely shortfall in third-quarter sales after the markets closed Tuesday, while Global Crossing sealed its long-awaited merger with Frontier Corp.
Gillette Co.
Gillette Co. (G) warned investors that while it would meet analysts' earnings expectations for the third quarter, its overall sales would miss expectations by a whisker.
The Boston-based razor and blade maker said it would earn 32 cents per share during the quarter ended Sept. 30, a 7 percent increase compared with a year earlier and in line with analysts' expectations.
However, the company is also expecting a 1 percent decrease in total sales, predominately because of currency exchange rates in Latin America and Western Europe.
"A major contributor to the company's growth has been its ability to capitalize on economic gains in rapidly growing international markets," said Michael C. Hawley, Gillette's chairman and chief executive officer, in a statement.. "Recently, it has been difficult to achieve this success when those markets' economies take major downturns."
Factoring out exchange rates, Gillette sales are expected to grow 3 percent during the quarter, led by sales of the company's MACH3 shaving system, which are exceeding expectations.
Emcore Corp.
Elsewhere on the earnings front, Emcore Corp. (EMKR) said despite a large jump in new orders for their high efficiency solar cells, the company expects to miss third-quarter earnings and revenue expectations.
The semiconductor supplier said delays in obtaining export licenses from the U.S. State Department, combined with slightly lower than projected material sales, will result in quarterly revenue of roughly $14 million to $15 million, while its quarterly operating loss will be higher than the 15 cents per share analysts' expected.
Still, the company has continued to log additional purchase orders, increasing its solar cell backlog by 40 percent to approximately $7.4 million.
Transport Corp. of America
Transport Corp. of America (TCAM) said Tuesday its third-quarter profit stream ran out of gas toward the latter part of the third quarter after computer problems disrupted the company's ability to handle approximately 2,000 scheduled loads.
The Minneapolis-based company expects to lose roughly $1.7 million in revenue from those scheduled deliveries, pushing third-quarter pretax earnings below analysts expectations of 52 cents per share.
Company officials blamed database problems "associated with the upgrading of our logistics software," which created intermittent losses of communications with company drivers and customers for several days.
The company called the problems a "one-time event," however, insisting strong customer demand had resumed.
Global Crossing
After months of offers and counter-offers, Global Crossing (GBLX) completed its $11 billion acquisition of Frontier Corp. Tuesday.
The deal creates a global telecommunications company featuring a fiber-optic network connecting 170 major cities on five continents. The new company boasts a customer base of 1 million people.
Analysts had worried the merger might fall apart after Global Crossing shares fell sharply earlier this month in step with technology shares. The deal was worth $63 per Frontier share in March, but ultimately closed at $53.81 per share.
Inamed Corp.
Inamed Corp. (IMDC) will receive some expanded publicity Wednesday when it joins the Nasdaq National Market System.
The company said its stock received approval for the listing Tuesday and will commence trading on the Nasdaq composite index later this week.
Iamed, a maker of global surgical and medical devices, will retain its "IMDC" trading symbol.
WMS Industries Inc.
One stock investors won't be seeing even more of is WMS Industries Inc. (WMS), however.
The manufacturer of gaming machines and pinball games withdrew its registration statement to sell 3.5 million shares to the public in a secondary offering Tuesday, citing unfavorable market conditions.
Check S&P futures trading on Globex
Read latest market story from Asia
Wednesday's outlook
On the economic front, investors will be monitoring August's durable goods report, due out at 8:30 a.m. Economists expect the index to fall 0.9 percent after climbing a surprisingly strong 3.3 percent during July.
Among companies expected to report earnings, Autozone Inc. (AZO) is expected to post fourth-quarter earnings of 67 cents per share while analysts anticipate Cellstar Corp. (CLST) will record third-quarter profits of 27 cents per share.
|
|
|
|
|
 |
|
