Posted on Thu, Jul. 24, 2008
In the Region
NutriSystem's profit slims down even more
NutriSystem Inc., the Horsham weight-loss company, said second-quarter net income dropped for the fourth straight time as customers trimmed spending. Profit and sales topped analysts' estimate, sending the stock up 12 percent in late U.S. trading. Profit of $22 million, or 71 cents a share, compared with $33.5 million, or 96 cents, in the same period a year earlier, NutriSystem said in a statement. Sales declined 9.1 percent to $194 million.
- Bloomberg News
Airgas earnings up 33 percent in first quarter
First-quarter earnings at Airgas Inc., Radnor, jumped 33 percent to $68.9 million, or 81 cents a share, compared with $51.7 million, or 63 cents a share, in the prior-year period. Sales were $1.1 billion, an increase from $915.1 million a year ago. "The strong outlook for energy and infrastructure construction continues, and export activity is still supporting U.S. manufacturers in the face of slowing domestic demand," Peter McCausland, chief executive officer, said in a statement. "Acquisition activity is also contributing to our growth," he said.
- Bob Fernandez
Wyeth profit dips but exceeds expectations
Wyeth said its second-quarter profit fell 6.3 percent on charges for severance and other costs related to job cuts, but the drug developer still topped Wall Street expectations and raised its full-year outlook. The company, which employees about 5,300 people in Collegeville, Montgomery County, said its profit fell to $1.12 billion, or 83 cents per share, in the April-June period, compared with profit of $1.2 billion, or 87 cents per share, a year ago. But excluding a $155.2 million charge primarily for work force reductions and employee severance, the company said it earned 91 cents per share. Revenue rose 5 percent to $5.95 billion from $5.65 billion a year ago.
- AP
A sweet second quarter for Hershey Co.
A price increase and streamlined production lines helped the Hershey Co. to dramatically higher second-quarter sales and profit. Hershey said it earned $41.5 million, or 18 cents a share, for the three months ended June 29, compared with last year's second-quarter gain of $3.6 million, or a penny per share, as it spent heavily to transform its production lines. Sales rose 5 percent to $1.1 billion, boosted by a price increase and growth in some key brands, while Hershey reaffirmed its 2008 guidance of sales growth of 3 percent to 4 percent and earnings of $1.85 to $1.90 per share. Shares closed up $1.90, or 5.4 percent, at $36.85.
- AP
Unisys pins loss on industry weakness
Unisys lost money during the second quarter, but it lost less money than it did last year. The Blue Bell company said its net loss for second-quarter 2008 was $14 million, or 4 cents per share, compared with a loss of $65.5 million, or 19 cents per share, in second-quarter 2007. Revenue for the period fell 3 percent, to $1.34 billion this year from $1.38 billion in the second quarter of 2007. In a written statement, Unisys president and CEO Joseph W. McGrath said revenue in the quarter fell primarily because of weakness in the financial services industry. Shares closed down 37 cents, or 8.9 percent, at $3.81.
- Stacey Burling
Sovereign's move on soured loans eats into profit
Sovereign Bancorp Inc., the second-largest U.S. savings and loan by assets, said second-quarter profit fell 14 percent as it set aside more money to cover soured loans. Net income declined to $127.4 million, or 22 cents a share, from $147.5 million, or 29 cents, in the same period a year earlier, the Philadelphia-based lender said. Analysts had expected, on average, profit of 16 cents a share. Provision for credit losses was $132 million, more than doubling from $51 million in the second quarter of 2007. Debt that Sovereign doesn't expect to be repaid climbed to $86.9 million from $25.7 million a year earlier as more auto and home-equity loans defaulted. Sovereign closed up 75 cents, or 8.6 percent, at $9.47.
- Bloomberg News
Generic-drug competition hurts GlaxoSmithKline
GlaxoSmithKline P.L.C. posted a 3 percent drop in second-quarter profit after strong competition from generic drugs outweighed asset sales and the cost-saving effects of job cuts. Glaxo, which has about 5,900 employees in the Philadelphia region, reported that profit fell to 1.29 billion pounds ($2.6 billion) in the three months ended June 30, compared with 1.33 billion pounds a year earlier. Revenue rose 3.5 percent to 5.9 billion pounds ($11.8 billion), from 5.7 billion pounds.
- AP
Judge orders Lannett to change vitamin packaging
Lannett Co., the Philadelphia generic-drug manufacturer, was ordered by U.S. District Judge Joseph Farnan in Wilmington to alter packaging on 400,000 bottles of prenatal vitamins shipped to distributors because they violate KV Pharmaceutical Co.'s trademark. A Lannett spokesman didn't immediately return a call for comment.
- Bloomberg News
SEI shares dip after news of income drop
Shares in SEI Investments Co. closed down slightly after the Oaks company said its second-quarter net income fell 34 percent, largely because of a $27.3 million noncash charge related to holdings of troubled structured-investment products by money market funds sponsored by SEI. Net income was $46.16 million, or 24 cents per share, down from $69.50 million, or 34 cents per share share, in the same period a year ago. Revenue was off 4 percent, to $329.52 million, from $343.26 million, the company said.
- Harold Brubaker
Elsewhere
Two lawmakers rip proposal on chemical exposure
Leading congressional lawmakers are pushing the Bush administration to withdraw a last-minute proposal that could make it harder to limit workers' exposure to dangerous chemicals. Sen. Edward M. Kennedy of Massachusetts and Rep. George Miller of California, the Democratic chairmen of the Senate and House Labor Committees, made the demand in a letter to Labor Secretary Elaine Chao. It came in response to a Washington Post report that the Labor Department is skirting normal procedures to push through a rule change that could slow limits on workplace chemicals and toxins.
- AP
Boeing revenue holds steady; earnings fall
Revenue held steady for Boeing Co. during the second quarter, but earnings fell because of a previously disclosed $248 million charge related to delays in its Airborne Early Warning and Control System. The company said earnings fell 19 percent to $852 million, or $1.16 per share, for the second quarter of 2008 compared with $1.05 billion, or $1.35 per share, during the second quarter of 2007. Revenue fell slightly, from $17.02 billion in the second quarter of 2007 to $16.96 billion this year. Boeing's helicopter division in Ridley Township employs about 5,000 people. Shares closed down $2.54, or 3.7 percent, at $66.72.
- Stacey Burling
Yield on money-market funds remains at 1.84%
The average seven-day yield on taxable money-market funds was 1.84 percent this week, unchanged from last week, according to iMoneyNet Inc. The average yield on tax-free funds rose to 1.13 percent from 1 percent last week.
- Rhonda Dickey
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