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LEGAL
BearingPoint plan for turnaround approved
BearingPoint, the business-consulting firm that sold most of its assets, got a step closer to emerging from court protection after a bankruptcy judge approved a required outline of its reorganization plan.
The disclosure statement, approved Tuesday by U.S. Bankruptcy Judge Robert Gerber in New York, will now be voted on by creditors as they accept or reject the plan, which would pay noteholders from zero to 15 percent of their claims. If it's approved, Gerber will consider confirmation of the plan itself at a hearing scheduled for Dec. 17.
"This is the next-to-last step of the resolution of BearingPoint's financial problems," said the company's lawyer, Alfredo Perez of the firm Weil Gotshal & Manges. We "expect to emerge from bankruptcy by the end of the year."
BearingPoint, based in McLean, Virginia, was spun off from the accounting firm KPMG in 2000.
-- Bloomberg News
EARNINGS
Profit slips at Discovery
Silver Spring's Discovery Communications reported a third-quarter profit of $101 million (22 cents a share) on $854 million in revenue, down from a profit of $174 million profit (31 cents) on $845 million in revenue in the third quarter of last year.
Through the first nine months of this year, however, profit nearly doubled as revenue remained relatively flat. Results were impacted by a number of charges and large tax payments.
Discovery chief executive David Zaslav said that adjusted operating income before depreciation and amortization grew 17 percent in the quarter.
Third-quarter revenue at the U.S. networks was up 5 percent, but down 2 percent internationally, thanks to foreign currency changes.
-- Frank Ahrens
Corporate Executive Board profit drops
Corporate Executive Board said its third-quarter profit fell 29 percent, to $14.2 million (41 cents a share) from $20 million (59 cents) a year earlier, but the corporate strategy and human resources consultancy beat analyst expectations and shares gained.
Excluding one-time items, the Arlington company earned 45 cents per share. Analysts polled by Thomson Reuters expected, on average, 28 cents per share.
Revenue fell 25 percent to $106.8 million from $142.4 million. Total expenses dropped 20 percent to $84.9 million.
Deutsche Bank-North America analyst Paul Ginocchio responded to the third-quarter results by upgrading the shares to "Hold" from "Sell" on lower costs and raising his price target to $22 from $18.
The company's shares rose 5.7 percent to close at $25.38.
-- Associated Press
