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Garmin shares fall on analyst observations
Shares of Garmin (Nasdaq: GRMN) dropped after an analyst said demand seems sluggish following a visit to one of the company’s Taiwan plants.
“The factory was busy with activity, but management indicated they were not fully utilized,” wrote Deutsche Bank analyst Jonathan Goldberg in a client note. “Since Garmin does almost all of its manufacturing in-house, these plants typically carry little inventory. Nonetheless, our impression was one of sluggish demand.”
The analyst said that while last year Garmin saw a “significant portion” of its fourth-quarter revenue derived from orders placed after Thanksgiving, “there are no signs that this will occur again this year.”
He wrote that pricing continues to worsen and he would continue to avoid it.
Shares fell $0.96, or 5.2 percent, to close at $17.35 on Nov. 18. Earlier, the stock hit a multiyear low of $17.08.
Hanesbrands to cut 400 jobs and close yarn plant
Hanesbrands (NYSE: HBI), parent of Duofold, said it is cutting about 400 jobs and closing a yarn production plant to save money amidst a difficult economic climate.
The company said it is eliminating a total of 210 jobs from its supply chain management unit, and from corporate functions like customer management, finance, human resources, marketing and information technology. Hanesbrands also said it will close its yarn production plant in China Grove, N.C., by the end of the year, because demand for higher-end ring-spun yarn has decreased.
The company said it will cut 185 jobs with the plant closure. The job cuts and plant closing will lead to a charge of $14 million in the fourth quarter.
Of the 210 management and corporate jobs being pared, 155 will be based in Winston-Salem, and 35 will come from other U.S. locations. The remaining 20 will be from international sites. The company said it has about 48,600 employees worldwide.
Liberty Media senior debentures expire
Liberty Media, a subsidiary of Liberty Media Corp. (Nasdaq: LINTA, LMDIA, LCAPA), said the early participation date has expired for the cash tender offer of its 8-1/2 percent senior debentures due 2029 and 8-1/4 percent senior debentures due 2030.
On Nov. 3, Liberty commenced a tender offer for the maximum aggregate principal amount of debentures it can purchase for $285 million at a purchase price per $1,000 principal amount determined in accordance with the procedures of a modified “Dutch Auction.”
Liberty is the parent of Backcountry.com.
–Compiled by Wendy Geister
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