Here is a look at more of Tuesday's top business stories:
Earnings fall 34 percent at Jones Apparel
NEW YORK, April 30 (UPI) -- Retailer and apparel maker Jones Apparel Group Inc. said its first-quarter net income dropped 34 percent as sales dropped and it took a charge for an accounting change.
Jones, with brands including Jones New York, Nine West and names licensed from Polo Ralph Lauren Corp., said its first quarter adjusted net income fell to $70.7 million, or 53 cents a diluted share, from $107.9 million, or 84 cents a share during the same period last year.
Revenue declined to $1.13 billion from $1.08 billion a year ago.
Before the effect of an accounting change, the company posted a net income of $84.5 million, or 63 cents a share, down from $96.4 million, or 84 cents a share a year ago.
Analysts on Wall Street had expected the company to post a net income of 65 cents a share, according to Thomson Financial/First Call.
Jones Apparel also said it sees second-quarter earnings in a range of 40 cents to 43 cents a share. It forecast earnings for the third quarter between 95 cents and 97 cents, and for the fourth quarter between 48 cents and 50 cents.
The company also forecast full-year earnings before charges of about $2.65 a share, with revenues of $4.2 billion. The projection includes its acquisition of jeans designer Gloria Vanderbilt Apparel Corp., which it closed on April 9. The purchase will add more than $125 in revenues and 4 cents a share to earnings for the year, it said.
The company also said it sees 2003 earnings per share for its core businesses of about $2.95 a share.
Earnings jump 68 percent at CareMark Rx
BIRMINGHAM, Ala., April 30 (UPI) -- Pharmacy benefits manager CareMark Rx Inc. said its first-quarter net income jumped about 68 percent, as all of its business lines turned in solid performances.
CareMark said its net income climbed to $59.2 million, or 24 cents a share, from $35.3 million, or 15 cents a share during the same period last year.
Analysts on Wall Street had expected the company to post a net income of 23 cents a share, according to Thomson Financial/First Call.
Revenue climbed to $1.61 billion from $1.37 billion a year ago.
Mail-order prescriptions, including specialty distribution, totaled 4.9 million, a 10 percent increase over the same period of 2001.
Mail-order prescriptions represented 22 percent of all prescriptions processed during the quarter, or 44 percent of all prescriptions processed on a retail-adjusted basis.
Retail claims totaled 17.8 million, a 10 percent increase over 2001 levels.
Mac Crawford, chairman and chief executive officer, said, "I am extremely pleased with our record-setting performance for the quarter.
"We continue to see penetration of mail services within our existing accounts, and experienced higher generic substitution rates when compared to last year. Both of these factors and our ability to leverage the existing resources favorably impacted our margins and helped drive the stronger-than-expected earnings for the quarter," Crawford said.
Looking ahead, the company said its strong performance, in addition to the recent acquisition of Choice Source Therapeutics, would allow it to raise its outlook.
CareMark estimated 2002 earnings per share in a range of $1.02 to $1.04, up from previous expectations of between 98 cents and $1.00.
Channell Commercial posts profit
TEMECULA, Calif., April 30 (UPI) -- Channell Commercial Corp., a telecommunications equipment maker said it posted a first-quarter profit after a loss a year ago, thanks to reduced costs even as revenues slipped.
Channell also said it expects second-quarter earnings to rise to 9 cents a share from 4 cents a year ago, due to increased orders.
The company, which last month raised its forecast citing strong U.S. demand for enclosure products, reported a first-quarter net income of $500,000, or 5 cents a share, compared with a net loss of $1.3 million, or 14 cents a share during the same period last year.
Revenues fell to $19.8 million from $22 million a year ago.
The company said revenues in the quarter ending March 31 exceeded expectations primarily due to strong demand from broadband customers.
In addition, somewhat greater than expected sales to three international telco customers contributed to the quarter's results.
On March 28, Channell said it expected first-quarter earnings between 2 cents and 4 cents a share, above its previous break-even estimate, with revenues of $19 million.
Transocean Sedco posts $1.29 billion loss
HOUSTON, April 30 (UPI) -- Transocean Sedco Forex Inc., the world's largest offshore oil and gas drilling contractor, said it posted a first-quarter loss of $1.29 billion, or $3.98 a share after taking a non-cash goodwill impairment charge of $1.36 billion, compared with a net income of $30.5 million, or 11 cents a share during the same period last year.
Before the charge, Transocean earned $77.3 million, or 24 cents a diluted share during the latest quarter.
Transocean said the charge resulted from the adoption of Statement of Financial Accounting Standards 142, under which goodwill is no longer amortized. Goodwill is the premium paid in an acquisition over the fair value of its assets.
This resulted in a write down to reflect reduced fair-market values associated with the company's shallow-water and inland water drilling rigs.
Michael Talbert, chief executive officer, said the outlook for oil and gas drilling activity in 2002 remains uncertain.
Demand for rigs has declined in Norway and the market for conventional "semisubmersible" rigs has weakened recently in the U.S. Gulf of Mexico and West Africa, he said.
"The international deepwater drilling market is essentially in balance, with opportunities emerging offshore India. The U.S. Gulf of Mexico deepwater market sector is currently oversupplied, but is expected to see higher rig utilization during the second half of 2002 or early 2003," Talbert said.
Transocean's fleet of shallow-water "jackup" rigs in the U.S. Gulf of Mexico is currently experiencing a modest improvement in customer interest, he added.
Owens-Illinois comfortable with First Call consensus
TOLEDO, Ohio, April 30 (UPI) -- Glass and plastic packaging maker Owens-Illinois Inc. said it expects its second-quarter earnings to be in line with the current Thomson Financial/First Call consensus of 61 cents a share.
The company cited "misleading characterizations" of the company's outlook by an unnamed financial reporting service.
In last year's second quarter, Owens-Illinois said it reported 54 cents a share before unusual items and without the amortization of goodwill.
New accounting rules allow companies to stop writing off goodwill -- the difference between the price paid to acquire a company and the fair value of its assets -- on a quarterly basis.
