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CNNfn after the bell
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March 17, 1999: 6:46 p.m. ET
Grim outlook for General Cable, GE takes $20M Advanced stake, CMGI splits
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NEW YORK (CNNfn) - Profit warnings from General Cable, Engelhard and Aetrium, a stock split for CMGI, and earnings reports from two retailers, a medical waste management company, and a furniture maker dominated the headlines after the closing bell Wednesday.
Leading the after-hours round of announcements was CMGI (CMGI), which declared a 2-for-1 stock split. The Andover, Mass.-based firm, which owns a 20 percent stake in Lycos (LCOS), said recently it will not vote to approve the planned merger with USA Networks as the deal is structured. CMGI closed at 175-3/8, down 5-3/8 before the news was announced.
Issuing a profit warning was General Cable Corp. (GCN), a maker of copper wire and cable products. The company said pricing pressures and soft demand will cause first quarter earnings to fall about 15 to 17 cents a share below analysts' estimates and year-ago results.
Wall Street analysts had pegged the company's earnings at 37 cents a share for the first quarter ended March 31, according to First Call.
Aetrium Inc. (ATRM), a manufacturer of electromechanical equipment, also issued a profit warning. The company expects to report a loss of roughly 22 to 24 cents a share in the first quarter, below analysts' predictions for a loss of 13 cents a share.
A third company issuing a profit warning was Engelhard Corp. (EC), which said first-quarter results are expected to be below analysts' estimates, reflecting unusually high earnings from the company's industrial commodity division in the year-ago quarter.
The company said in a statement it expects to post a profit of about 28 cents for the quarter, compared with analysts' estimates of 32 cent and year ago profits of 30 cents.
Four companies posted earnings after the bell, led by online book retailer Books-A-Million (BAMM). The Birmingham, Ala.-based company posted earnings of $6.5 million, or 36 cents a diluted share, a penny lower than Wall Street expectations. Revenue for the quarter came in at $116.5 million.
Another retail outfit, Restoration Hardware (RSTO), posted fourth-quarter earnings of $6.2 million, or 35 cents a diluted share, on revenue totaling $87.4 million. This compares with earnings of $3 million, or 20 cents a share, on revenue of $47 million in the same quarter of 1998.
Results reported by the Corte Madera, Calif.-based home furnishings and hardware retailer were in line with Wall Street expectations, according to First Call.
Stericycle (SRCL), a provider of medical waste management services, posted fourth-quarter earnings of $2.3 million, or 20 cents a diluted share, beating Wall Street expectations by 6 cents a share. This compares with earnings of $619,000, or 6 cents a share, for the same quarter in 1997.
For the quarter ended Dec. 31, 1998, revenue came in at $21.9 million, a 73 percent increase over revenue of $12.7 million in the same quarter one year ago.
Rounding out Wednesday's crop of earnings reports was Herman Miller (MLHR), a Zeeland, Mi.-based furniture maker. The company posted third-quarter results of $29.9 million, or 34 cents a share, excluding a one-time gain of a penny a share. This compares with earnings of $32.6 million, or 36 cents a share, in the year-ago quarter.
The company's earnings were 2 cents better than Wall Street estimates, according to First Call.
Net sales for Miller's third quarter ended February 27, decreased 3.5 percent to $421.6 million compared with $436.7 million one year ago. New orders decreased by 6.4 percent to $386.6 million from $412.8 million recorded in the third quarter of last year.
Chief Financial Officer Brian C. Walker said, "Our year-over-year decline in new orders and revenue reflects a general softening in demand for our industry in the United States. In addition, our fiscal third quarter order bookings are typically negatively impacted by the holiday season."
"The softer demand is due, in part, to lower corporate profit expectations," he added. "Faced with lower earnings, companies either reduced or delayed investment plans. We are optimistic that recent announcements of stronger than expected U.S. economic growth, coupled with continued growth in white-collar employment, will increase confidence and strengthen demand."
And finally, lighting products maker Advanced Lighting (ADLT) reported GE was taking a $20.6 million stake in the company. GE has owned small blocks of Solon, Oh.- based Advanced since its initial public offering in December of 1995.
-- from staff and wire reports
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