Financially Challenged U.S. Companies for Feb. 7

The 12 items below are taken from the Credit Manager’s Weekly Summary of Financially Challenged Companies. A full issue contains information on more than 200 companies. Please visit the insideARM bookstore for information on subscribing to the Summary.

Accelrys Inc., a San Diego, Ca. data software firm, reported a third quarter net loss of $1.2 million. Revenue declined 5%–to $19.6 million.

BP PLC, the British-based oil giant, will slash its payroll by 5,000 jobs by the middle of 2009, as it trims management and boosts efficiency. Those job cuts are in addition to 9,500 jobs that will be removed from its payroll in connection with a plan to sell gasoline stations in the U.S.  The combined workforce reductions amount to about 15% of its worldwide payroll. Also, BP reported its fourth quarter net income increased 53%–to $4.4 billion. Revenue increased 30%–to $81.2 billion. For the year, net income slipped 5%–to $20.8 billion, on a 7% revenue increase–to $289 billion.

Charming Shoppes Inc., in an ongoing restructuring, will close nearly 150 of its underperforming locations, including 100 of its Fashion Bug stores.  The Bensalem, Pa.-based women’s-apparel retailer, which will also close down its Petite Sophisticate chain, added that it cut about 200 jobs, or about 13% of its corporate and field management staff.  Charming Shoppes, which also owns th Lane Bryant chain, reduced its capital budget by 30% for this year and reduced its planned new-store openings by about 50%.

Fidelity National Financing Inc., a Jacksonville, Fl. financial services firm, reported a fourth quarter net loss of $44.9 million, including a charge of nearly $136 million for boosting its loss reserves. Revenue fell 28%–to $1.3 billion.

Fortunoff Fine Jewelry and Silverware LLC, as expected, filed for bankruptcy protection.  The filing, in the U.S. Bankruptcy Court in Manhattan, N.Y., listed assets and liabilities of more than $100 million each.  The case number is 08-10353. Also filing for bankruptcy protection was M. Fortunoff of Westbury LLC and Source Financing Corp.

FreightCar America Inc. of Chicago, Il. reported a fourth quarter net loss of $16.6 million, on a 65% sales decline–to $137 million.  The loss, which includes charges of $31 million, compares with income of $34 million for the same period one year earlier.

Huttig Building Products Inc. of St. Louis, Mo. reported a fourth quarter net loss of $5.8 million, on a 22% sales decline–to $180 million.  The loss, which compares with a $4.3 million loss for the same period one year earlier, includes a gain of $900,000 from the disposal of certain capital.

Macy’s Inc., the giant Cincinnati, Oh. retailer, announced it would reduce its workforce by more than 2,500 jobs as part of its efforts to consolidate certain operations.  The company expects to take pretax restructuring charges of as much as $150 million this year as a result of its efforts.  In addition, the company reported January same-store sales declined 7%, more than analysts had anticipated.

North River Boats Inc., Roseburg, Or., closed its manufacturing facility in Tacoma, Wa. and moved production to its Roseburg  site, in an effort to trim costs.

Planar Systems Inc., a Beaverton, Or. supplier of displays, reported a first quarter net loss of $3.5 million, more than twice its loss in the year-earlier quarter, because of interest expenses, foreign-exchange losses and other items. Planar narrowed its operating loss from $3 million a year ago to $2.4 million in the recent quarter. Revenue was strong, however, jumping 24%–to $80.6 million, thanks to sales of touchscreen monitors and other products. However, Planar issued a warning that it will likely incur a loss in its second quarter on revenue of between $73 million and $77 million. 

Tumbleweed Communications Corp., a Redwood City, Ca. email security concern, reported a fourth quarter net loss of $3.1 million. Revenue declined 15%–to $14.3 million. For the year, Tumbleweed lost $10.8 million on a 7% revenue decline–to $57.5 million. Both the quarter and year included restructuring charges of $930,000. Tumbleweed commented that the just-ended year was a “transformational” period and said that at the end of the quarter it had cash and other near money of about $26.3 million.

Wickes Inc., which recently filed Chapter 11, said in the filing that it might be headed for a liquidation if a buyer can’t be found. The Wheeling, Il. furniture retailer hopes to follow a speedy path to a sale as a going concern or investment, but it also warned that it will “conduct an orderly liquidation” in the absence of an investment. Wickes landed in bankruptcy after making an apparent strategic goof, undertaking an expansion just as the housing crunch hit.