Diamonds and Dogs
9/18/12
HNI Corp. (HNI)HNI Corp broke the legs off of its chair today, crashing down 15.25% at $26.01. The office furniture maker saw its shares fall after slashing its 3rd quarter profit, sales prediction, and lowering full year guidance. The Iowa based company expects adjusted third-quarter net income to be around $0.55 per share down from its previous forecast of $0.65 to $0.70 per share. HNI also expects $539.5 million to $554.6 million in sales for the current quarter. Analysts' were expecting earnings of $0.64 per share on revenue of $562.3 million. Furthermore, the company cut its sales growth projection to a year-over-year increase of 7 to 10 percent. It previously expected growth of 11 to 14 percent. HNI shares lost almost $5.00 today.
Energizer Holdings Inc. (ENR)
Energizer kept going, and going today, up 10.75% at $75.22. The battery maker saw its shares charge up after announcing that it would reduce its global workforce in order to save $200 million. Energizer expects that 70 to 80 percent of the savings will improve the company's profitability. The remainder of the savings (20-30%) will be reinvested in order to drive long-term growth. In addition to reducing its global workforce, Energizer plans to save on procurement costs and overhead spending. CEO Ward Klein said, "We believe these initiatives will deliver substantial value for shareholders, and we will pursue these initiatives with urgency and focus, while establishing a framework to provide transparency and accountability." It looks like the Energizer Bunny will be joining the unemployment line.
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