Tupperware Corp. warned Thursday that its first-quarter results will be “significantly” below its prior year because winter weather conditions have weighed down its sales. Analysts currently expect the company to earn 22 cents a share in the first quarter, according to Thomson First Call, compared with earnings of 28 cents a share a year ago. The Orlando-based plastic container maker said it was unlikely that the lost sales can be recovered, despite new promotional programs. Tupperware stock closed Thursday at $14.79, up 25 cents, or 1.7 percent, on the New York Stock Exchange.
NATION
NISSAN OKS LENDING CHANGES
Nissan’s financing arm has agreed to stop marking up loan rates offered to qualified minority buyers under a proposed settlement of a class-action federal discrimination lawsuit. Nissan Motor Acceptance Corp. also agreed to tell car buyers their interest rate may be negotiable. The agreement seeks to settle a 1998 lawsuit by 10 black and Hispanic car buyers from Tennessee and Florida who said NMAC charged them higher interest rates on car loans than whites with similar credit ratings. Under the deal, NMAC would also pay $5,000 to $20,000 to each plaintiff named in the suit plus $1 million to America Saves, a Washington-based consumer agency. Lawyers said the suit involved about 125,000 plaintiffs.
JUDGE GIVES ENRON MORE TIME
Nearly 15 months into its bankruptcy, the New York judge overseeing Enron Corp.’s Chapter 11 case on Thursday gave the company more time to file an overall reorganization plan. The third extension granted by U.S. Bankruptcy Judge Arthur Gonzalez pushed the deadline for filing the plan to April 30 from Jan. 31. Enron had asked for the extension Jan. 27. The extension relieves pressure for Enron to decide whether to liquidate or emerge from bankruptcy as the company continues to review bids received on its assets.
INVESTORS OK REVERSE STOCK SPLIT
Agere Systems Inc. shareholders Thursday approved a reverse stock split for the struggling company. Shareholders approved the reverse split at their annual meeting. The Allentown, Pa., maker of communications chips, which operates a chip plant in Orlando, asked shareholders to approve a reverse split to help satisfy the New York Stock Exchange’s minimum stock price. The board may announce a reverse split of 1-for-5, 1-for-10 or 1-for-15, but hasn’t made a decision yet regarding when or if to execute one, an official said. Agere’s Class A shares closed up 10 cents, or 6.8 percent, at $1.58 Thursday on the New York Stock Exchange.
LATIN AMERICA
CARIBBEAN AIRLINE NEEDS HELP
Caribbean regional airline LIAT needs $9.2 million to keep its creditors at bay and restructure operations in order to continue operating, officials said. The Antigua-based airline, which is owned by several island governments, may need to merge with another regional carrier to avoid liquidation, Prime Minister Lester Bird said. Caribbean airlines have been struggling to cope with increased insurance and security costs and decreased air travel following the September 2001 attacks on the United States. Several Caribbean leaders have suggested a merger of LIAT, Trinidad-based BWIA and Jamaica Air, but no agreements have been made.
EARNINGS
Anglo-Dutch publisher Reed Elsevier PLC reported 2002 net profit of $289 million, up from $201 million the previous year. Revenue jumped to $8 billion from $7.27 billion. Reed’s portfolio ranges widely, from Variety, the entertainment industry trade magazine, to elementary school textbooks. Its Harcourt Education unit is based in Orlando.
Target Corp. reported fourth-quarter profit of $688 million, or 75 cents per share, compared with $658 million, or 72 cents per share, in the year-ago period. The results met analysts’ expectations. Revenues increased to $14.06 billion from $13.22 billion. For the full year, earnings were $1.65 billion, or $1.81 per share, on revenues of $43.92 billion.
J.C. Penney Co. reported fourth-quarter earnings of $202 million, or 68 cents per share, compared with $95 million, or 32 cents per share, a year earlier. Analysts had expected 66 cents per share. Revenue was nearly flat at $9.55 billion. Same-store sales rose 1.9 percent at Penney department stores and 2.5 percent at Eckerd drugstores. For the full year, Penney said it earned $405 million, or $1.37 per share, on revenue of $32.35 billion.
RadioShack Corp. reported fourth-quarter profit of $109 million, or 63 cents per share, compared with $35 million, or 18 cents per share, a year earlier. Excluding what it termed one-time items, RadioShack said it would have earned 59 cents per share, matching forecasts. Revenue was $1.50 billion, down from $1.52 billion a year earlier. For all of 2002, the company earned $263 million, or $1.45 per share, on revenue of $4.58 billion.
