Thursday, May 28, 2009

Perusing the filings 05/28/09 (RUS, WDC, REV)



AlphaNinja - Well....there should be a filing shortly for this.

Russ Berrie and Company, Inc. Announces Exploration of Strategic Alternatives to Enhance Value:

"Russ Berrie and Company, Inc. (RUS) announced today that it has begun to explore a full spectrum of strategic alternatives to enhance shareholder value, a process it began as a result of several inquiries regarding potential transactions the Company received following the divestiture of its gift segment in December. While the Company's principal focus will continue to be the execution of various growth strategies for its infant and juvenile business, it will also evaluate a possible merger, acquisition, strategic partnership or sale of the Company.

Bruce Crain, President and Chief Executive Officer of the Company, commented, "The sale of our gift segment transformed our business and focused our efforts on the attractive infant and juvenile industry. Our objective now is to establish an even greater presence in the industry by building upon our market leadership. Based on the inquiries we have received, we have decided to examine a full range of alternatives that may enhance our long-term potential."

Mr. Crain continued, "In addition to considering our external strategic alternatives, we remain committed to our internal growth strategies to create shareholder value. Accordingly, we are focused on the following: first, to win market share by creating design-differentiated, branded products; second, to expand our product offerings into complementary categories; third, to grow and diversify our distribution channels; fourth, to drive sales and marketing collaboration across our businesses; and fifth, to capture operational synergies that yield cost savings throughout our organization."

AlphaNinja - Here's a case where you'd wish management had more skin in the game. Insiders own less than 1% of the stock, so they may not be as interested in resurrecting the share price as would management that were more invested. But I'll hope for the best....




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AlphaNinja - Western Digital (WDC), an AlphaNinja favorite thanks to its lavish Free Cash Flow generation, provides upside earnings guidance ahead of investor meetings....

from the 8k:

At meetings with investors and analysts this week and next, executives of Western Digital Corporation (the “Company”) will provide an update regarding current Company and hard drive industry dynamics.

Specifically, the Company expects to discuss, among other things, the following:

•Demand for the Company’s fourth fiscal quarter ending on July 3, 2009, is tracking ahead of the expectations which the Company outlined in its last earnings call on April 23, 2009.

At this point in the quarter:

-Company shipping linearity is ahead of plan.

-Industry and Company weeks of inventory remain at historically low levels.

-Price declines have been at the lower end of the anticipated range for desktop and notebook products and within the expected range for branded, consumer electronics and enterprise products.

-Actual industry demand, competitive conditions and Company execution in the month of June will determine the final outcome for the current quarter.





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AlphaNinja - Revlon(REV) guides down significantly, announces restructuring:

Revlon Implements Worldwide Organizational Restructuring
Improved Processes and Workflows Enable Significant Cost Reductions
Second Quarter 2009 Outlook Significantly Below Second Quarter 2008

NEW YORK--(BUSINESS WIRE)--May 28, 2009--Revlon, Inc. (NYSE: REV) today announced a worldwide organizational restructuring, rightsizing the organization to reflect the more efficient workflows and processes that the Company has implemented over the last two years. In addition, given the ongoing uncertain economic environment and the potential effect that it could have on net sales, this action will also provide the Company with additional flexibility.

Revlon President and Chief Executive Officer, Alan T. Ennis, stated, “Today’s announcement represents an important, necessary, and logical next step forward for Revlon. Over the past two years, we have built improved and more efficient processes and workflows, which now allow us to take this step to reduce annualized costs by approximately $30 million. This action, which we are implementing immediately, will enable us to become a stronger, more financially sound organization while staying true to our vision of providing glamour, excitement and innovation to consumers through high-quality products at affordable prices. Revlon has incredible talent and capabilities, broad geographic reach, and strong global brands. We will continue the execution of our successful business strategy, namely (i) building and leveraging our strong brands; (ii) improving the execution of our strategies and plans, and providing for continued improvement in our organizational capability through enabling and developing our employees; (iii) continuing to strengthen our international business; (iv) improving our operating profit margins and cash flow; and (v) improving our capital structure.”

Organizational Restructuring
The primary components of the organizational restructuring involve consolidating certain functions; reducing layers of management, where appropriate, to increase accountability and effectiveness; streamlining support functions to reflect the new organizational structure; and further consolidating the Company’s office facilities in New Jersey. The organizational restructuring will result in the elimination of approximately 400 positions worldwide, including approximately 325 current employees and approximately 75 open positions.
Annualized cost reductions from this organizational restructuring are expected to be approximately $30 million, of which approximately $15 million will benefit 2009 results. Restructuring and related charges are expected to be $20 million comprised of $17 million of employee-related costs, including severance and other termination benefits, and $3 million related to the consolidation of the Company’s office facilities in New Jersey. Approximately $17 million of the charges are expected to be recognized in the second quarter of 2009 with the remaining $3 million expected to be recognized in the second half of 2009. All of the charges are expected to be paid out over the 2009 to 2012 period, including $11 million in 2009, $6 million in 2010, and the balance of $3 million to be paid thereafter.

Second Quarter 2009 Outlook
Commenting on the outlook for the second quarter 2009, Mr. Ennis continued “While the mass color cosmetics category in the U.S., according to ACNielsen, continues to grow, the rate of growth has started to slow, and retailers are carefully examining and optimizing inventory levels. Additionally, as communicated in our first quarter earnings release call, first quarter 2009 net sales benefited from higher pipeline shipments of new color cosmetics products, as a result of the timing of shipments and our more extensive new product lineup. As a result of these factors, combined with the unfavorable impact of foreign currency fluctuations and pension expense, not including charges related to our organizational restructuring actions, we anticipate significant negative impact on net sales and profitability in our second quarter 2009 results as compared to the second quarter 2008.”


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