W.R. Grace Discloses Criminal Probes
W.R. Grace, a Columbia chemical maker that was forced into bankruptcy protection by asbestos claims, is the target of criminal investigations by the Justice Department and the state of New Jersey, the company said in a filing with the Securities and Exchange Commission. The investigations are focusing on Grace's operations at a now-closed plant in Hamilton Township, N.J., W.R. Grace said. In June, Grace and two former executives were sued by the New Jersey attorney general's office, which accused them of lying about cleanup at the site.
Grace said it was unable to estimate the financial impact of the lawsuit and investigation.
Allied Defense to Delay, Restate Results
Allied Defense Group, a maker of ammunition and surveillance systems, will delay its second-quarter financial report to correct accounting errors and restate results for 2002, 2003, 2004 and the first quarter of 2005. The changes are expected to improve 2005 earnings. In March, the Vienna company restated certain results from the previous three years to adjust for errors in its treatment of foreign currency exchange contracts.
BearingPoint to Support FDIC
BearingPoint, a McLean consulting and technology firm, was awarded a contract with the Federal Deposit Insurance Corp. that could be worth as much as $23 million. The contract calls for BearingPoint to help the FDIC integrate and monitor its network security systems. The contract includes one base year and four optional one-year extensions.
Pepco Holdings' second-quarter profit fell 29 percent, to $64 million (34 cents a share) from $90.4 million (53 cents) in the comparable quarter a year earlier, as mild weather reduced demand and fuel costs hurt results at its wholesale power unit. The District-based owner of utilities in the District and four states said revenue rose 1.2 percent, to $1.71 billion. The number of cooling degree days, a measure of demand for air conditioning, fell 29 percent in Pepco's service territories. At its Connectiv Energy unit, which sells wholesale power, profit fell 47 percent, to $12.9 million.
Saul Centers of Bethesda said its second-quarter funds from operations, a common measure of profitability for real estate investment trusts, was $12.5 million (57 cents a share), compared with $11.7 million (55 cents). Net income after preferred dividends rose 14 percent, to $4.9 million (29 cents) from $4.3 million (27 cents). Revenue for the quarter ended June 30 was up 10 percent, to $30.7 million.
Saul Centers owns and operates 42 shopping centers in the Washington region with about 7.4 million square feet of leasable space.
Guilford Pharmaceuticals of Baltimore recorded a $26.5 million loss (58 cents a share) for the second quarter, compared with a $21.3 million loss (63 cents). Revenue rose 15 percent, to $12.8 million. Shares of Guilford closed down 9 cents, at $3.45.
Compiled from staff and news service reports.