Building Plans Slow for Home Depot and Lowes, and Other Financially Challenged U.S. Companies for May 6

The 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 a special $99 subscription to the Summary.

Bebe Stores Inc., a Brisbane, Calif. retailer of women’s clothing with more than 250 stores, reported its third quarter net income declined 35%–to $8.4 million, on a 2% revenue decline–to $152 million.

Big 5 Sporting Goods Corp., an El Segundo, Calif. sporting goods retailer, reported its first quarter net income declined 46%–to $4.1 million, on a 2% revenue decline–to $213 million.

BlueLinx Holdings Inc., an Atlanta, distributor of building products, reported a first quarter net loss of $10.6 million, on a 25% revenue decline–to $717 million.

Centex Corp., a Dallas, homebuilder, reported a fourth quarter net loss of $910 million, on a 36% revenue decline–to $2.3 billion.  For the year, the firm reported a net loss of $2.6 billion, on a 30% revenue decline–to $8.2 billion.  Results included charges related to impairment and writeoff of $361.8 million and $2 billion in the quarter and the year respectively.

Countrywide Financial Corp. of Calabasas, Calif. has seen Bank of America Corp. state that it may not guarantee more than $38 billion of the company’s debt.  Countrywide, the largest mortgage lender in the U.S. and which is being purchased by BOA in a transaction valued at nearly $4 billion, has debt of nearly $97 billion.

Crocs Inc., the Niwot, Colo. plastic shoemaker which only two weeks ago reported it would cut nearly 670 jobs while closing a Canadian facility, announced it will lay off an additional 25 people.  The company expects to announce its first quarter financial results on 5/7.

Eastman Kodak Co., the big Rochester, N.Y. camera company, reported a first quarter net loss of $115 million, on flat revenue of more than $2 billion.  The results included a gain of $10 million related to its restructuring efforts.

EFJ Inc., an Irving, Texas maker of radio and radio-security systems for cellular providers, police departments and the military, reported a first quarter net loss of $2.1 million, on a 13% revenue decline–to $34 million. 

Elizabeth Arden Co., the Miramar, Fla. cosmetics firm which has been hurt by the weak retail environment, reported a third quarter loss of $3.8 million, on a slight sales decline–to $211 million.  The loss, which includes restructuring charges of $1.1 million, compares with income of $3.2 million for the same period one year earlier.  For fiscal 2008, the company expects earnings of as much as $1.36 a share with sales increasing as much as 2%. 

Ford Motor Co. has reached agreement with the Canadian Auto Workers on a tentative three-year agreement.  The contract covers 9,000 Ford employees.

Home Depot Inc., the Atlanta, firm which has slowed down its expansion efforts, is now halting plans to open fifty outlets in the U.S. while also agreeing to close fifteen underperforming stores over the next two months.  As a result, more than 1,200 employees could lose their jobs.  The changes could result in charges of as much as $585 million–equivalent to much of its first quarter earnings. 

Interpublic Group of Companies, the nation’s largest advertising firm, has agreed to pay a $12 million fine to the SEC related to its accounting practices.  The commission had been focusing on the company’s restatement of its financial results over the five-year period ended in 2002.  That restatement resulted in additional charges of $181 million.

Lowe’s Cos., the Mooresville, N.C. home improvement retail chain which has more than 1,500 outlets, is now delaying the opening of twenty stores this year.  The company’s original plan was to open 120 outlets this year. 

MarineMax Inc., a Clearwater, Fla. dealer of recreational boats with more than eighty locations in twenty states, reported a second quarter net loss of $3.5 million.  This compares with earnings of $3.3 million for the same period one year earlier.  Revenue declined to $233 million from $325 million for the second quarter of 2007.  The company cited the continued deterioration of the marine retail environment as one reason for the results.

Revlon Inc., the New York-based cosmetics products firm, reported a first quarter net loss of $2.5 million, on a 2% revenue decline–to $320.4 million.  Results included restructuring gains of $6.2 million.

Sun Microsystems Inc., the Santa Clara, Calif. firm which manufactures servers and other computer products and which is reducing its workforce by as many as 2,500 jobs, reported a third quarter loss of $34 million.  This compares with earnings of $67 million for the same period one year earlier.  Revenue declined slightly–to $3.3 billion.  Analysts had expected revenue of nearly $3.4 million.  The company could take charges of as much as $210 million related to the cutbacks.