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News > Companies
Pennzoil cuts profit target
June 26, 2001: 5:55 p.m. ET

Automotive product maker cuts dividend, plans to restructure
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NEW YORK (CNNfn) - Pennzoil-Quaker State Co. said Tuesday that its second-quarter earnings will fall short of Wall Street forecasts and that it would restructure its business to enhance growth.

In addition, the Houston-based automotive product maker announced that its board of directors has reduced its quarterly dividend to 2.5 cents per share.

Pennzoil warned that it now expects second-quarter earnings to be between 13 to 15 cents per share. For the full year, the company said it would earn between 65 to 70 cents per share. Wall Street had expected Pennzoil-Quaker to earn between 29 to 33 cents per share with a consensus at 30 cents in the second quarter and 98 cents for the year, according to First Call.

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The company blamed the industry-wide slowdown for its earnings revision.

"While the company has been executing well on its strategy to create one of the leading automotive consumer products powerhouses, we have been fighting an uphill battle against a very difficult macro environment," James J. Postl, president and chief executive officer of Pennzoil-Quaker, said in a statement.

Pennzoil-Quaker said it is taking the restructuring and dividend actions in response to continued weak demand for automotive consumer products, resulting from high gasoline prices, fewer miles being driven by motorists and the lingering effects from increased retail prices for motor oil.

Shares of Pennzoil-Quaker (PZL: Research, Estimates) ended Tuesday trading up 75 cents at $15.53. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.