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Linens 'n Things in Talks on Debt
Linens 'n Things, the home-furnishings retailer taken private by Apollo Management, is in talks with bondholders to restructure debt as the slumping U.S. economy makes it harder for vendors to borrow.
The retailer, which lost money the past two years, may be trying to line up agreements with creditors to avoid filing for bankruptcy, said Carla Casella, a fixed-income analyst at J.P. Morgan Securities.
Linens 'n Things said in a statement that it postponed the payment of $16.1 million in interest due to noteholders. Lenders including General Electric, which arranged a line of credit for Linens 'n Things, support the restructuring efforts, the company said.
CONTRACTING
Northrop to Record Charge
Northrop Grumman said it will take a first-quarter charge of as much as $360 million because of a delay in building a $1.9 billion amphibious assault ship. Northrop shares fell $5.27, to $71.57.
The company said the USS Makin Island will be delivered in the second quarter of 2009 instead of the end of this year.
Northrop blamed Hurricane Katrina, which damaged its Pascagoula, Miss., shipyard and displaced experienced workers.
EARNINGS
Johnson & Johnson reported a 40 percent jump in first-quarter profit, mainly due to the weak dollar boosting foreign revenue and a charge that depressed results a year ago. The maker of health products reported that it earned $3.6 billion, up from $2.57 billion in the comparable period a year earlier. The year-ago quarter included a charge of $807 million. Revenue rose 8 percent, to $16.19 billion.
Intel, the world's biggest chipmaker, said its first-quarter earnings fell 12 percent because of costs related to the spinoff of a business. Profit declined to $1.44 billion from $1.64 billion. Sales rose 9.3 percent, to $9.67 billion. The company, based in Santa Clara, Calif., spent $300 million during the period to shed a money-losing unit that makes flash memory for cellphones.
Charles Schwab's first-quarter profit rose 12 percent as it added 246,000 brokerage accounts, its most in nearly seven years. The company reported earnings of $305 million, up from $273 million. Revenue climbed 13 percent, to $1.31 billion.
U.S. Bancorp said first-quarter earnings fell 3.5 percent, to $1.09 billion. Revenue was $3.87 billion, up 14 percent. The bank blamed the mortgage crunch for its lower profit but said its credit problems are manageable.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
