General Motors (GM) posts $11.21 second quarter adjusted loss per share, vs. $2.29 EPS from continuing operations a year ago, on 18% revenue drop. On reported basis, posts $27.33 loss, vs. $1.37 EPS. The auto maker cites significant losses in GM North America due to continuing U.S. industry volume declines, shifts in vehicle mix, long strike at American Axle (AXL), large lease-related charges; special charges associated with GM's ongoing restructuring actions; continued losses at GMAC Financial Services and updated estimates regarding recoveries and expectations of assumed benefit obligations in the Delphi bankruptcy.
Ambac Financial Group (ABK) settles one of its largest CDO exposures, AA Bespoke, in exchange for a final cash payment of $850 million to its sole counterparty. ABK says the benefit of this agreement is that it eliminates uncertainty with respect to future losses related to this transaction.
The NY Post says Lehman Brothers Holdings (LEH) is engaged in talks with prospective buyers about offloading some $30 billion in commercial mortgage assets and other hard-to-value securities that have dogged its balance sheet for months and ultimately resulted in the demotion of Chief Financial Officer Erin Callan and President Joseph Gregory. S&P maintains hold.
Chevron (CVX) posts $2.90, vs. $2.52, second quarter EPS on 48% revenue rise.
Sun Microsystems (JAVA) posts $0.35, vs. $0.50, fourth quarter non-GAAP EPS on 1.4% lower revenue. Sets additional $1 billion stock buyback.
Ingersoll-Rand (IR) posts $0.90, vs. $0.68, second quarter EPS from continuing operations on 38% revenue rise. Notes revenues and operating EPS of Trane [acquired June 5] for partial month of June are incl. in these results, along with one-time items related to acquisition costs. Posts $1.03 second quarter EPS from continuing operations [excluding items]. Anticipates that combined cos will provide annual pre-tax cost, revenue synergies exceeding $300 million in 2010. Sees $1.05-$1.10 third quarter EPS from continuing operations [excluding items] on $4.4-$4.5 billion third quarter revenue, $3.80-$3.90 2008 EPS from continuing operatioms [excluding items].
On July 31, Biogen (BIIB) and Elan (ELN) notified relevant regulatory agencies of two confirmed cases of progressive multifocal leukoencephalopathy [PML] in multiple sclerosis [MS] patients treated with Tysabri in the commercial setting. Early, incorrectly reported Jefferies cut target on ELN. Jefferies cut its target on BIIB.
Cigna (CI) posts $1.08, vs. $0.98, second quarter adjusted operating EPS on 11% revenue rise. Sees $4.05-$4.25 2008 adjusted operating EPS.
Schering-Plough (SGP) announces that the FDA has issued a "not-approvable" letter for sugammadex sodium injection for the reversal of muscle relaxation during general anesthesia. Says issues are primarily related to hypersensitivity/allergic reactions, not to the efficacy of sugammadex.
