General Motors Corp. (GM)'s Saab, the Swedish-based subsidiary, filed for bankruptcy protection Friday so it can be spun off or sold by its struggling U.S. parent. The Swedish government has turned down GM's request for help for Saab, resulting in this filing. Meanwhile, it seems Chrysler LLC may try to convince the U.S. auto task force it should be merged with GM. GM shares declined 12% by 11:20 am.
Anglo American PLC (AAUK) announced Friday it will cut 19,000 jobs, or 10% of its workforce, this year and suspend dividend payments. The mining company reported a 29% drop in 2008 profits. The CEO said the deep global recession is severely affecting sectors and economies the company operates in. To understand, AAUK made 82% of its (already lower) 2008 revenue in the first half of the year. AAUK shares are declining 3.7% in pre-market trade. AAUK shares declined over 17% by 11:20 am.
Bank of America (BAC) CEO Kenneth Lewis has been subpoenaed by the New York State Attorney General Andrew Cuomo, who is investigating whether the bank misled investors over its purchase of Merrill Lynch. BAC shares are declining over 7% in pre-market trade. BAC shares declined over 16% by 11:20 am.
Ford Motor Co. (F) is benefiting from the troubles of the other two Detroit carmakers, GM and Chrysler, says the Wall Street Journal. Ford hasn't taken government money, and it even reached an agreement with the UAW to cut pay for laid-off workers and more, two days before GM and Chrysler reached the same deal. But most important, it has been having more success at luring away its competitors' customers. Ford shares are trading a little higher in pre-market action. Ford shares declined about 5.5% by 11:20 am.
Coca-Cola (KO) said Thursday it raised its quarterly dividend by 8%, to 41 cents from 38 cents. Following its strong quarterly earnings and steady cash flow, this move has been somewhat anticipated, although it is quite rare during these economic times. KO shares declined about 0.8% by 11:20 am.
New York Times Co. (NYT) meanwhile announced Thursday it is suspending dividend payments to shareholders. The move isn't surprising as the newspaper publisher has been struggling with declining profitability and a weak balance sheet. NYT shares jumped 6.8% by 11:20 am.
Reporting this morning are J.C. Penney (JCP), which topped estimates, and Lowe's (LOW), which missed by a penny. LOW shares are dropping over 5% in pre-market trade. LOW continued to trade 5.5% lower by 11:20 am.
Intuit (INTU), the tax preparation software provider reported upbeat results Thursday and shares are trading over 6% higher in pre-market action (shares soared over 11% by 11:20 am), as did Mylan (MYL). MYL shares are 2.8% higher in pre-market trade. MYL shares gained over 7% by 11:20 am.
Crocs Inc. (CROX) swung to a loss in the last quarter, but beat estimates by a wide margin. CROX shares are jumping over 11% in pre-market trade. Despite the strong gain in after-hours and pre-market trading, CROX shares are down 3.3% by 11:20 am.