HP earnings drop, but stock risesHewlett-Packard Co...

BUSINESS DIGEST

November 19, 1992|By Bloomberg Business News

HP earnings drop, but stock rises

Hewlett-Packard Co. yesterday reported a 46 percent plunge in its latest quarterly earnings, saying its results were squeezed by restructuring costs, competitive pressures and product changeovers.

But Hewlett-Packard shares rose sharply, closing up $3.375, to $58.75, as the company said orders were strong for many of its products. The company said its sales climbed to $4.3 billion, from $3.8 billion in the fourth quarter of last year. It said its results also included a pre-tax restructuring charge of $137 million to cover job cuts.

Allied Research awash in cash

Although Baltimore-based Allied Research Corp. had cash and cash equivalents on hand of $31.6 million, or $7.37 a share, as of Sept. 30, Chief Executive Officer Reinald Carter said the company has no plans to declare a cash dividend.

That amount is close to twice what the maker of anti-tank munitions had on hand at the end of 1991, when cash and cash equivalents totaled $17 million, or $3.96 a share. Mr. Carter said the company needs the cash to pay for day-to-day operations, and to use as collateral for banks to secure letters of credit and provide down payment guarantees.

MBNA sets $500 million issue

MBNA Corp., the Delaware-based credit card company, said yesterday that it set the price for $500 million in credit card-backed debt securities. The five-year securities will pay interest at a rate that will float 35 basis points, or 0.35 percent, above the London Interbank Offered Rate (LIBOR), which is now 3.25 percent. The first interest payment to investors on Jan. 15 will carry an annual yield of 3.60 percent.

MBNA's subsidiary MBNA America Bank, which is issuing the securities, also said it has appointed Chief Financial Officer M. Scot Kaufman to the position of vice chairman, and Senior Executive Vice President Vernon H. C. Wright to the board of directors.

Ford calls 4th-quarter loss 'likely'

Ford Motor Co. said yesterday that it "likely" will lose money in the fourth quarter and that its second-half 1992 losses could offset first-half profits "by a sizable amount." The company said, however, that full-year 1992 results will represent a substantial improvement over its 1991 loss of $2.26 billion. Ford made the statements in a quarterly filing with the Securities and Exchange Commission.

Pittsburgh paper nears accord

The Pittsburgh Post-Gazette said yesterday that it has reached a tentative contract with its striking Teamsters workers, clearing a major hurdle toward its purchase of the rival Pittsburgh Press. Terms were not disclosed. Neither paper has published regularly since May 17, when 650 Teamsters delivery workers walked off the job and were followed by members of nine other unions.

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