(Source: Business Week)
MBIA Inc. (MBI) announces that its insurance subsidiary, MBIA Insurance Corp., has agreed to reinsure a portfolio of U.S. public finance bonds insured by Financial Guaranty Insurance Company with total net par outstanding estimated to be approximately $184 billion as of Sept. 30, 2008. MBIA will receive unearned upfront premiums, net of a ceding commission paid to FGIC, of about $741 million in connection with the reinsurance.
Fannie Mae (FNM) CEO Dan Mudd announces series of senior executive appointments, effective immediately, to oversee and implement the company's recently announced capital management and credit loss reduction plan. Names David Hisey as CFO [replacing Stephen Swad], Peter Niculescu as Chief Business Officer [replacing Robert Levin, who is retiring], and Michael Shaw as Chief Risk Officer [replacing Enrico Dallavecchia].
Williams-Sonoma (WSM) posts $0.08, vs. $0.23 a year ago, second quarter non-GAAP EPS on 12% lower same-store sales [SSS], 4.6% lower total sales. Sees 13.5%-15.5% third quarter SSS sales drop vs. previous decline of 6.5%-8.5% decline, $802-$820 million total sales, vs. $869-$887 million sales. Cuts fiscal year 2009 GAAP EPS est. to $1.03-$1.15 from $1.45-$1.58.
Brown-Forman (BF.B) posts $0.73, vs. $0.77, first quarter EPS as a $22 million pre-tax [$16 million after-tax] non-cash charge related to an abnormal number of agave plants identified during the first quarter as dead or dying offsets a 6.9% revenue rise. Due to the charge, reduces fiscal year 2009 EPS guidance to $3.60-$3.85.
Tiffany & Co. (TIF) posts $0.63, vs. $0.29, second quarter EPS on 1% lower same-store sales, 11% higher total sales. Raises $2.80-$2.90 fiscal year 2009 EPS est. to $2.82-$2.92 on worldwide sales growth of approximately 9%, which based on continued strong growth in Europe and Asia-Pacific [other than Japan] and a return to growth in comparable U.S. store sales in the fourth quarter due to an easier year-over-year comparison. Also expects the fiscal year 2009 operating margin to increase slightly over the prior year.
Sears Holdings (SHLD) posts $0.21 [excluding gain], vs. $1.15, second quarter EPS on 6.7% drop in Sears Domestic's same-store sales, 5.6% drop in in Kmart's same-store sales, 4.1% total revenue drop. Notes effects of slowing economy, lower gross margin generated at both Kmart and Sears Domestic. Sees fiscal year 2009 EBITDA comparable to, but no longer exceeding, last year's EBITDA.
Del Monte Foods (DLM) posts $0.04 first quarter loss from continuing operations vs. $0.01 EPS, as higher inflationary and other operational costs offset a 16% rise in sales.
