AIG (AIG) is down 1.64 to 34.98 after Citigroup says it is not clear that AIG's capital position is sufficient. Citigroup cuts price target, keeps hold.
Ligand Pharmaceuticals (LGND) shares are seen lower on report GlaxoSmithKline's (GSK) experimental drug Promacta doesn't significantly reduce bleeding when compared with a placebo. Promacta, discovered through a collaboration with LGND, is a short-term treatment for patients affected by chronic thrombocytopenic purpura, or ITP, a condition in which the blood doesn't clot as it should.
Keycorp (KEY) raises outlook for net loan charge-offs for 2008 from 0.65%-0.90% of average loans to 1.00%-1.30%, with second quarter and potentially third quarter net charge-offs running above this range as KEY deals aggressively with reducing exposures in the residential homebuilder portfolio and anticipates elevated net loan charge-offs in its education and home improvement loan portfolios. RBC Capital cuts estimates and price target.
Ford Motor (F) will cut its U.S. salaried workforce by 10%-12% in an effort to jump-start a turnaround plan stalling in the face of rising gasoline and raw material prices: Detroit News.
Talks between UAL Corp.(UAUA) and US Airways Group (LCC) appear to have fallen apart, marking the second time in a month that UAL failed to reach a deal with a rival airline and putting the future of industry consolidation in question, people with knowledge of the discussions said Tuesday night: NYT.
Learning Tree International (LTRE) says a special committee of its independent directors has decided to solicit an offer to purchase the company.
American Axle & Manufacturing Holdings (AXL) says its backlog of new and incremental business launching from 2009 through 2013 has increased to about $1.4 billion in future annual sales. Currently expects to launch about two-thirds of the $1.4 billion new business backlog in the 2009, 2010 and 2011 calendar years; the balance of the new business backlog will launch in 2012 and 2013.
Coca-Cola Enterprises (CCE) expects a mid- to high single-digit decline in second quarter EPS vs. year-ago. It says weakening economic trends have continued to limit volume performance in North America, particularly in higher margin 20-ounce packages of sparkling beverages and water, negatively affecting operating income.
Borders Group (BGP) posts $0.53 first quarter loss from continuing operations, vs. $0.50 loss a year ago, on 4.1% same-store sales decline at Borders domestic superstores, 1.0% total sales decline. Notes at Waldenbooks Specialty Retail segment, comps decreased by 0.8%, and at International segment, comps increased by 3.1%.
Polo Ralph Lauren (RL) posts $1.00, vs. $0.68 a year ago, fourth quarter EPS on 14% revenue rise. It continues to expect consolidated revenues for fiscal year 2009 to increase by a low-to-mid-single digit percentage, EPS in range of $3.95-$4.05. Sets $250 million stock buyback.
CBRL Group (CBRL) posts $0.46, vs. $0.44, third quarter EPS from continuing operations on 0.2% rise in same-store restaurant sales for Cracker Barrel Old Country Store, 2.1% lower same-store retail sales, 3.3% total sales rise. Street estimate was $0.48. It sees $3.02-$3.12 fiscal year 2008 EPS from continuing operations. Expects to report flat to slightly positive May same-store restaurant sales. Says beginning in fiscal year 2009, it will no longer report sales results monthly.
American Eagle Outfitters (AEO) posts $0.21, vs. $0.35, first quarter EPS on 6% lower same-store sales, 5% higher total sales. Street was looking for $0.19. It sees $0.28-$0.30 second quarter EPS.
Chico's FAS (CHS) posts $0.07, vs. $0.27, first quarter EPS on 18% lower same-store sales, 9.6% lower total revenue, narrowed gross margin. Continues to expect negative comparable store sales for the first half of fiscal year 2009, and expects to have lower EPS than the first half of fiscal year 2008.
Dow Chemical (DOW) says in response to rising energy costs, on June 1 it will raise the price of all of its products by up to 20% - depending on their exposure to rising energy, feedstock and transportation costs - and will review all terms to all customers.
Cogent (COGT) posts $0.16, vs. $0.07, first quarter EPS (non-GAAP) as improved gross margin offset 18% revenue decline. Notes first quarter revenue rose almost 13% sequentially.
Shanda Interactive Entertainment Ltd. (SNDA) posts RMB 3.94, vs. RMB 6.14, first quarter EPADS as lower investment income offset 46% revenue rise.