ALSO. . .
* FedEx Corp., the largest overnight delivery company, said its fiscal fourth-quarter profit rose 11%, more than forecast, on a rebound in U.S. shipments. Net income rose to $245 million, or 85 cents a share, in the quarter ended May 31, from $221 million, or 73 cents, a year earlier. Revenue climbed 11% to $4.85 billion from $4.38 billion. FedEx was forecast to earn 81 cents, the average estimate of analysts polled by First Call/Thomson Financial. Shares of Memphis, Tenn.-based FedEx rose $2 to close at $39 on the New York Stock Exchange.
* Lockheed Martin Corp. has been awarded a $3.97-billion contract to begin the final development phase of the U.S. military’s so-called THAAD theater anti-missile defense system, the Pentagon said. In a major step forward for the evolving U.S. defense against tactical shorter-range missiles, the aerospace firm would complete engineering and manufacturing development of the Theater High-Altitude Area Defense over the next seven years under the contract.
* Dial Corp. said it expects earnings for its first half and fiscal 2000 to fall about 30%, well below last year’s results and analysts’ expectations, amid a slowdown in sales. “We stumbled in the first quarter and our recovery is taking longer than we had anticipated,” Chief Executive Mal Jozoff said. Dial will take a $26-million pretax restructuring charge in the first half. Dial in April posted lower first-quarter earnings. The Scottsdale, Ariz.-based maker of Dial soap, Purex detergent and other products reported earnings of 29 cents a share in the 1999 second quarter and $1.17 for the last fiscal year. Shares fell $2.13 to $10.94 on the NYSE on Wednesday.
* Del Monte Foods Co., the largest U.S. producer of canned fruits and vegetables, said fiscal fourth-quarter profit will fall because sales will be lower than expected. The company expects to earn 20 cents to 24 cents a share in the quarter ending Friday. The average estimate of three analysts polled by First Call/Thomson Financial was 30 cents. A year ago, it earned 28 cents. Del Monte said sales will decline 15% from the $370 million it had a year earlier. Retailers are reducing inventories of Del Monte’s canned foods. Del Monte shares slipped 6 cents to $8.38 on the NYSE. The news was reported after markets closed.
* America Online Inc. said it would appeal a Miami judge’s decision clearing the way for a class-action lawsuit that alleges that pop-up ads appearing on AOL violate the company’s agreement to charge customers only for time spent using its services. Judge Fredericka Smith of Miami-Dade County Circuit Court last week denied the No. 1 online service provider’s motion to dismiss the action, while at the same time certifying it as a class-action suit. Separately, the Federal Communications Commission said it would hold a hearing on AOL’s proposed $133-billion merger with Time Warner Inc.
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