Here is a look at more of Monday's top business stories:
Peregrine conducting investigation into accounting
SAN DIEGO, May 6 (UPI) -- Peregrine Systems Inc., a software maker, said it is conducting an internal investigation into potentially inaccurate accounting brought to its attention by KPMG, the company's independent auditors.
KPMG was hired by Peregrine in April to replace Arthur Andersen LLP for the audit of the company's recently completed fiscal year.
Peregrine said it has informed the SEC of its internal investigation and will keep the SEC informed of its progress.
The company said the focus of the investigation questions the accounting of up to $100 million of revenue recorded during fiscal 2001 and 2002. The $100 million is a preliminary estimate of the amount of revenue involved.
Transactions were recorded initially as revenue from indirect channels and may have been written off in later quarters, Peregrine said.
On April 30, the company delayed the release of its fiscal fourth-quarter and full fiscal 2002 results because KPMG needed more time to complete work taken over from Arthur Andersen. The company's fiscal year ends in March.
The company also said Chairman and Chief Executive Steve Gardner and Chief Financial Officer Matt Glass had resigned.
Executive Vice President Rick Nelson was named acting chief executive officer and a board member. Fred Gerson, chief financial officer of the San Diego Padres baseball team, was named acting CFO.
Peregrine also named John Moores as chairman of the board. Moores had previously served as chairman between March 1990 and July 2000.
Peregrine joins a list of former Arthur Andersen clients to face questions about their accounts, including Global Crossing Ltd. and Enron Corp.
Earnings rise 31 percent at Masco
TAYLOR, Mich., May 6 (UPI) -- Masco Corp. said its first-quarter net income climbed 31 percent to $150.2 million, or 31 cents a share, from $115 million, or 25 cents a share during the same period last year.
Analysts on Wall Street had expected the company to post a net income of 29 cents a share, according to Thomson Financial/First Call.
Sales rose 11 percent to $2.1 billion from $1.9 billion a year ago.
Chairman and Chief Executive Officer Richard A. Manoogian said, "We are pleased with our performance in the first quarter and are experiencing continued improvement in sales and incoming orders in many of our product lines.
"Recently implemented profit improvement programs are also contributing to margin enhancement," he said.
Looking ahead, Manoogian said, "If present positive sales and economic trends continue, Masco believes that second quarter earnings should approximate 37 to 39 cents per common share, and that full-year 2002 earnings should approximate $1.45 to $1.50 per common share, compared with the company's previous outlook guidance for 2002 of $1.40 to $1.45 per common share."
Analysts on Wall Street expect the company to post a second quarter net income of 37 cents a share and a full year net income of $1.44, according to Thomson Financial/First Call.
Earnings rise 23 percent at Church & Dwight
PRINCETON, N.J., May 6 (UPI) -- Church & Dwight Inc., maker of Arm & Hammer baking soda, said its first-quarter net income rose 23 percent to $14.9 million, or 36 cents a share, from $12.1 million, or 30 cents a share during the same period last year.
Sales rose to $256.8 million from $226.8 million a year ago.
Excluding charges last year for a plant shutdown and amortization of goodwill, the company said it posted earnings per share of 42 cents, compared with 33 cents last year.
Robert A. Davies, III, chairman and chief executive officer, said, "We are pleased at the strong first-quarter results which stemmed from solid growth in most of our base businesses as well as earlier-than-expected acquisition benefits from our October 2001 purchase of Carter-Wallace's consumer businesses.
"Our strategy is to reinvest a high percentage of the acquisition benefits in increased marketing and product development, which will tend to moderate profit growth for the next two or three quarters," he said.
Looking ahead, the consumer products maker said it expects to post full-year earnings per share of $1.58 to $1.60, above current analysts' estimates of $1.45 to $1.51 per share.
In February, the company said it was aiming for annual earnings growth during the next three years of 12.5 percent to 15 percent. It also had said that most of its earnings growth for 2002 would come in the second half of the year.
Church & Dwight acquired the consumer products business of Carter-Wallace Inc. in October 2001. It said in February that costs from integrating recent acquisitions would hold down earnings growth in the first half.
