Weekly Summary of Financially Challenged U.S. Companies for Feb. 4

 
The 10 items below are taken from the The Credit Manager’s Weekly Summary of Financially-Challenged U.S. Companies dated February 4. 2008. A full issue contains information on more than 200 companies. Please visit the insideARM bookstore for information on subscribing to the summary.

Citing a contract dispute with bankrupt parts manufacturer Plastech Engineered Products Inc., Chrysler LLC idled four plants with the possibility of closing other operations. As a result of the closings, which could affect more than 10,000 workers, Chrysler is seeking bankruptcy court approval to have access to certain Plastech machines that make parts for the company.

Cohu Inc., a Poway, Ca. maker of semiconductor equipment, reported its fourth quarter net income sank 62%–to $2 million. Revenue declined 25%–to $57.1 million. For the year, net income fell 55%–to $8 million, on an 11% revenue decline–to $241 million.

Brookfield Homes Corp. of Del Mar, Ca, reported a fourth quarter net loss of $24 million, on a 40% revenue decline–to $198 million.  The loss, which compares with income of $59 million for the same period one year earlier, included a $61 million charge.  For the year the company reported its net declined nearly 90%–to $15.7 million, on a 33% revenue decline–to $583 million.  The earnings decline included charges of $102 million.

Gannett Co., the McLean, Va. newspaper publisher, reported its fourth quarter net income declined 31%–to $245 million. Revenue declined 12%–to $1.9 billion. Not counting an extra charge, earnings beat expectations. Advertising revenue at its USA Today newspaper sank 17%. For the year, Gannett’s net income was down 9%–to more than $1 billion, on a 5% revenue decline–to $7.4 billion.

H&R Block Inc., the Kansas City, Mo. tax-preparation company, will trim its workforce by 500 jobs by the end of April.  That includes 325 actual job cuts and not filling another 180 currently open positions.  Block will take related pretax charges of about $117 million, hoping that the downsizing will save it about $110 million a year.

Modine Manufacturing Company of Racine, Wis. reported a third quarter net loss of $47 million, on an 8% sales increase–to $495 million.  The loss, which compares with income of $16 million for the same period one year earlier, included charges of $31 million from the impairment of goodwill and assets. Modine makes heat exchangers as well as parts for heating and air conditioner systems.

Reddy Ice Holdings Inc.’s buyout deal has been called off. The proposed $1.1 billion buyout, by GSO Capital Partners, was terminated after Morgan Stanley announced that it might pull its agreement to finance $700 million in debt.  As a result of the deal falling apart, Reddy will get $17 million from affiliates of GSO.  Reddy Ice, San Antonio, Texas makes bagged ice.

Semitool Inc., a Kalispell, Mt. maker of semiconductor manufacturing equipment, reported a first quarter net loss of $780,000. Revenue declined 29%–to $48.6 million.

Seneca Foods Corp., Marion, N.Y., reported its third quarter net income declined 40%–to $6.8 million. Sales fell 2.5%–to $381 million.

Whirlpool Corp., the maker of large household appliances, announced plans to shut down its plants in La Vergne, Tenn. and Reynosa, Mexico.  The plant closures, which will result in the loss of more than 1,200 jobs, are part of a strategy to increase efficiency.