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CNNfn after the bell
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April 7, 1999: 6:14 p.m. ET
Liberty Media soars; Philip Morris reshuffles; SBC/Ameritech gets a boost
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NEW YORK (CNNfn) - Wednesday's after-hours news was ripe with solid earnings, management changes and a possible breakthrough in the stalled SBC/Ameritech merger discussions.
Philip Morris (MO) led all newsmakers by reshuffling its management deck late Wednesday. The world's largest producer of consumer package goods named John D. Bowlin president and chief executive of Miller Brewing Co. and Roger K. Deromedi president and CEO of Kraft Foods International.
Dismissed from the company were Miller Chairman and CEO John N. MacDonough and the beer maker's top marketing and sales executives. Company officials said the changes were an attempt to improve the performance at the world's No. 3 beer brewer.
Bowlin was previously president and CEO of Kraft while Deromedi served as Kraft's group vice president.
Another company looking for a jump-start is SBC Communications (SBC), which Wednesday agreed to sit down with Federal Communications officials to discuss possible conditions on its merger with Ameritech (AIT).
Jim Ellis, SBC's general counsel, said in a written statement the company still believed the telecommunications merger, agreed to more than eight months ago, should be approved without further conditions. But he said the firms were willing to discuss possible public interest concerns with the FCC to move the process along.
On the earnings front, Liberty Media Group (LMG) announced it earned $2.2 billion during fiscal 1998 compared to a net loss of $411 million a year earlier.
The Englewood, Co.-based media giant attributed the increase primarily to a $5.1 billion gain on disposition of assets.
In other earnings news, PC Service Source Inc. (PCSS) disclosed it expects net first-quarter earnings of approximately $1.1 million or 19 cents a share not including a net operating loss carry-forward. Analysts had been expecting a net loss of 3 cents a share.
HNC Software Inc. (HNCS) headed in the opposite direction, announcing it expected first quarter revenue to total between $48 million and $50 million, roughly 10 percent lower than the company's original expectations.
That will drop net earnings to approximately 15 cents to 17 cents a share, below Wall Street's prediction of 22 cents a share. Company officials blamed the revenue drop on an earnings shortfall in its Insurance Solutions Group.
Likewise, Celestial Seasonings (CTEA) found little spice in its second-quarter earnings, which are expected to be well below analysts' projections of 41 cents a share.
The Boulder, Co.-based hot tea manufacturer said preliminary estimations show second quarter revenues of $31.6 million and earnings per share of roughly 28 cents. Company officials said a number of factors resulted in a lower number of orders shipped during the quarter.
Also feeling the financial blues was MBIA Inc. (MBI), which announced it would double its set aside for net debt service starting during the first quarter and take a one-time pre-tax charge of $152.7 million to increase unallocated loss reserves.
The changes come as a result of a previously announced review of the company's unallocated loss reserves.
Food Lion Inc. (FDLNA) wasn't feeling much better, reporting first-quarter earnings of 12 cents a share, 2 pennies below Wall Street's expectations. Operating earnings were actually 13 cents a share, but the company took a $2.4 million charge to cover post-retirement benefits payable to Tom Smith, Food Lion's former president and CEO.
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