Here is a look at more of Monday's top business stories:
Metromedia Fiber Network files Chapter 11
NEW YORK, May 20 (UPI) -- Metromedia Fiber Network Inc. and most of its domestic units have filed voluntary petitions for reorganization under Chapter 11.
The company said that in conjunction with the filing, it reached an agreement with its senior secured lenders, which will enable it to fund operations while it implements a plan to become cash flow positive.
Metromedia said its reorganization plan includes significant cost reductions through a substantial deleveraging of the company's balance sheet, the disposal of non-productive properties, rejection of burdensome vendor contracts and reduction of personnel.
The digital communications infrastructure company, which expects to quickly stabilize its financial status, said it would continue to operate without interruption.
Metromedia Fiber Network Government Services Inc. was not one the units included in this filing and will continue to operate outside of the Chapter 11 proceeding.
The company also hired Impala Partners to assist in the restructuring and UBS Warburg to advise on strategic alternatives.
Nasdaq delisted Metromedia on Monday, as a result of the company not meeting certain listing criteria. Shares of Metromedia closed Friday at 5 cents.
In April, Metromedia said it defaulted on $675 million in debt and planned to restate results for the first three quarters of 2001 to account for unspecified adjustments.
In February, the company warned it might file for bankruptcy protection if it couldn't restructure its debt. Metromedia, which had issued $975 million of convertible notes to investor Verizon Communications in March 2000, defaulted on a $30 million interest payment.
Losses narrow at Toys "R" Us
PARAMUS, N.J., (UPI) -- Toys "R" Us Inc. said its first quarter losses narrowed to $4 million, or 2 cents a share, from a net loss of $18 million, or 9 cents a share, during the same period last year.
Analysts on Wall Street were expecting the company to post a loss of 5 cents a share, according to Thomson Financial/First Call.
Toys "R" Us said its sales rose 2 percent to $2.1 billion.
John Eyler, chairman and chief executive officer, said sales at the company's U.S. toy stores were soft due to weakness in their outdoor seasonal categories and a slowdown in the video business in April.
"However, we are encouraged by the continued strengthening of our core toy sales in our U.S. toy stores, which achieved a 5 percent comparable store sales increase during the quarter," said Eyler. "Our renovated Mission Possible stores maintained a positive sales gap over our un-renovated stores, with the 2001 Mission Possible stores achieving a 7 percent comparable store sales gap in the first quarter."
"We believe that the improvements being made to our business will enhance the financial performance of Toys "R" Us for the full year, and we are comfortable with the current Wall Street consensus estimate of $1.14 for the year," Eyler said.
The company said its U.S. toy store division reported a comparable store sales decrease of 2 percent for the first quarter, but reported an operating earnings improvement of 56 percent for the same period due to improved margin and expense control disciplines.
In conjunction with the previously announced plan to remodel the remainder of its toy stores, or approximately 250 stores, to the Mission Possible format during fiscal 2002 the company will continue to have a number of stores under construction at any point in time through the end of the third quarter.
During the first quarter a total of 115 stores were under construction.
The company said its Babies "R" Us business posted a 12 percent increase in total sales, a 3 percent increase in comparable store sales, and a 22 percent increase in operating earnings, in comparison with the year-ago period.
The company plans to continue to expand this division, and it remains on track with plans to add approximately 20 new Babies "R" Us stores, 6 of which opened in the first quarter, to the division this year.
The Kids "R" Us business reported a 12 percent comparable store sales decrease versus the first quarter of last year. The company said it expects to remodel an additional 30 stores to the new prototype before the back to school season, and to convert approximately 100 existing toy stores to Toys "R" Us/ Kids "R" Us combo stores during 2002.
Claire's sells men's apparel division
PEMBROKE PINES, Fla., May 20 (UPI) -- Fashion accessories retailer Claire's Stores Inc. said it has sold its men's apparel division, Lux Corp., to a private investment group for an undisclosed amount.
Lux Corp. based in Long Beach, Calif., is a 154-store chain that operates under the name Mr. Rags.
The transaction was completed through the sale of Lux Corp stock to a private investment group headed by Ivan Spiers and Bruce Friedman.
"Our goal for fiscal 2003 is to focus the company's efforts on its core fashion accessory brands, Claire's Accessories and Icing by Claire's," Rowland Schaefer, chairman and chief executive officer of Claire's said. "It is with these core brands that we can better enhance shareholder value."
Claire's Stores operates approximately 2,900 stores in the United States, the Caribbean, Puerto Rico, Canada, the United Kingdom, Ireland, Switzerland, Austria, Germany, France and Japan.
Juniper Networks buys Unisphere Networks
SUNNYVALE, Calif., May 20 (UPI) -- Juniper Networks Inc., the nation's second largest maker of equipment that directs Internet traffic, said it has signed a definitive agreement to acquire Unisphere Networks Inc., a Siemens company, for about $740 million in cash and stock.
The deal is subject to all required Board approvals, to Hart-Scott-Rodino approval and certain other customary closing conditions.
The acquisition, which is expected to close in the third quarter, is expected to broaden Juniper's offerings globally.
Juniper expects the deal to slightly lower its earnings in 2002, but add to earnings by 2003.
Juniper said it would pay $375 million cash and $365 million in stock, based on Friday's closing price of $9.85 a share, for Siemens Unisphere Networks.
Juniper will offer 36.5 million of its shares to Siemens stockholders, giving Siemens about 10 percent of Juniper.
The companies also said they would partner in the IP infrastructure arena.
Scott Kriens, chief executive office, president and chairman of Juniper Networks, said, "Our acquisition of Unisphere Networks highlights Juniper Networks' focus of supplying IP expertise to the leading service providers, carriers and PTTs throughout the world.
"These customers will now be able to leverage the global reach of Siemens to utilize both Juniper Networks and Unisphere Networks proven IP experience. The result is a broadly available portfolio of core, edge, cable and mobile IP routing and broadband access platforms," Kriens said.
Limited posts higher results, changes name
COLUMBUS, Ohio, May 20 (UPI) -- Apparel retailer Limited Inc. said its first quarter adjusted net income for the period ended May 4 rose to $49.9 million, or 10 cents a diluted share, from an adjusted $30.7 million, or 5 cents a share during the same period last year.
"The business has evolved from a group of specialty stores to some of the most recognizable brands in retail and that justifies a more active and vital descriptor," said Leslie H. Wexner, Limited Brands chairman and chief executive officer.
Adjusted results in 2001 exclude Lane Bryant, which Limited agreed to sell in August 2001. Analysts on Wall Street had expected the retailer to post a net income of 11 cents a share, according to Thomson Financial/First Call.
The company, which operates the Limited, Express, Structure and other chains, said its sales in the quarter rose to $2.03 billion from an adjusted $1.89 billion a year ago. In March, Limited completed its tender offer for Victoria's Secret parent Intimate Brands Inc.
Looking ahead, the company said it is comfortable with earnings forecasts of 8 cents per share for the second quarter, and earnings per share growth of 25 percent for the fiscal year 2002.
Meanwhile, Limited also announced its decision to rename the company Limited Brands.
"Through the hard work and commitment of our associates, the loyalty of our customers and the confidence of our shareholders, what was once a collection of specialty businesses has been transformed into a truly unique and vibrant portfolio of retail brands. The name Limited Brands more clearly describes who we are today, and is indicative of our strategy and commitment to brands going forward," he said.
The name change is effective immediately and follows the acquisition of all outstanding shares of Intimate Brands stock earlier this year.
