Motorola Sinking and Other Financially Challenged U.S. Companies for April 29

The items below are taken from the Credit Manager’s Weekly Summary of Financially Challenged Companies. A full issue contains information on more than 200 companies. Please visit the insideARM bookstore for information on subscribing to the Summary.

Advanced Energy Industries Inc., Fort Collins, Colo., reported its first quarter net income declined 53%–to $6 million. The results included restructuring charges of $674,000. Revenue declined 17%–to $88.9 million.

Alaska Air Group Inc., Seattle, reported a first quarter net loss of $35.9 million, more than triple its loss in the year-earlier quarter, because of high fuel prices. Revenue increased 11%–to nearly $840 million. The carrier added that it will pare back the fleet of its Horizon Air commuter unit.  Along with other cost-cutting moves, Alaska Air hopes to save about $150 million a year.

AutoNation Inc., a Fort Lauderdale, Fla. car retailer, reported its first quarter net income declined 35%–to $50.7 million. Sales fell 7%–to $4 billion.

Black & Decker Corp., hurt by the housing downturn, announced it will cut its payroll by 700 workers, hoping to reduce expenses. Also, the Towson, Md. tool company, with 25,000 employees around the world, reported its first quarter net income declined 38%–to $67.4 million. The results included extra charges of $18.3 million. Revenue declined 5%–to $1.5 billion.

Centex Corp. said it will exit the Detroit, Mi. market amid declining demand for homes. For its nine months ended 12/31, Centex, the U.S.’s biggest homebuilder, lost more than $98 million on operations.

Clear Choice Health Plans Inc., a Bend, Ore. insurer, reported a fourth quarter loss of $2.2 million, compared to a $222,000 loss a year ago. Revenue fell to $41.2 million, down from $44.1 million in the prior year’s fourth quarter.

Graphic Packaging International Inc., Marietta, Ga., is shutting down its folding-carton-manufacturing unit in Middletown, Oh., resulting in the loss of 133 jobs. The move is part of a consolidation that also recently called for ceasing production at a paper-lamination facility in Elk Grove Village, Il.

Kimball Hill Inc., a Rolling Meadows, Ill. homebuilder which recently filed Chapter 11, is scrambling to negotiate with investors so that it continue doing business. Kimball insists its operations are fine but that it ran into financial difficulties. In its filing, Kimball listed assets and liabilities of $631 million and $795 million respectively.  Also, the company, which last year lost $220 million, says it has $60 million in cash.

MDC Holdings Inc., a Denver, Colo. homebuilder, reported a first quarter net loss of $72.8 million. The results included asset-impairment charges of $54.8 million. Revenue sank 45%–to $406 million.

Motorola Inc.’s fortunes continue sinking, with no immediate end in sight as it faces ongoing declines in cellphone sales and shrinking market share.  Phone sales plunged 39% in the first quarter, contributing to a widened quarterly loss of $194 million, including $64 million in charges mostly from write downs. Revenue fell 21%–to $7.4 billion. The Schaumburg, Ill. company also warned that second quarter results will be poor. While some analysts suspect that the first quarter results could be the bottom, others are worried about Motorola’s delay in finding a new CEO to help turn things around. The company is in the process of spinning off its cellphone division, although details about how the splitup will work have yet to be worked out.

Ryland Group Inc., a Calabasas, Calif. homebuilder, reported a first quarter net loss of $29.3 million. Revenue declined 41%–to $416 million.

Superior Offshore International Inc., Houston, got a warning from Nasdaq that its stock could be delisted because of failing to file its annual report on time. Superior said it would delay the filing as it looks into how to address liquidity issues.