Of possible interest to readers.
UPDATE 1-ProQuest to restate earnings lower, eyes segment
sale
Fri Apr 28, 2006 11:04 AM ET
April 28 (Reuters) - Shares of ProQuest Co. (PQE.N: Quote,
Profile, Research) lost nearly a quarter on Friday after the
company said it would restate lower certain results due to
accounting irregularities and was looking at the sale of its
business solutions segment.
The company also said it was discussing with its lenders and
note
holders to temporarily waive its existing default.
The Ann Arbor, Michigan-based company said it has initiated
steps
to address the financial issues arising from the
restatement.
These include reduction of staff, capital expenditures and
operating expenses, and the potential sale of its business
solutions segment.
ProQuest expects the restatement to reduce previously
reported
pre-tax earnings by $35 million to $45 million for the first
three quarters of 2005 and by $45 million to $55 million for
the
full year 2004.
It also expects to restate earnings for fiscal years 2000
through
2003, but sees the aggregate reduction for these four years
to be
materially less that for 2004 and 2005.
ProQuest sees annualized pre-tax savings of about $10
million to
$20 million a year starting in 2007 and beyond because of
these
measures.
The potential sale of its business solutions division is a
part
its move to explore strategic alternatives to reduce debt
and
enhance value, ProQuest, an electronic publisher for
education
and automotive markets, said.
Chief Executive Officer Alan Aldworth said, "Given
ProQuest's
current financial circumstances we believe the sale of
Business
Solutions may be in the best interests of the
company."
The company expects full year 2006 revenue for the business
solutions segment of $185 million to $195 million, and
earnings
before interest and tax (EBIT) of $50 million to $55
million.
Shares of the company fell over 24 percent to $16.50 in
morning
trade on the Nasdaq. (Reporting by Saumyadeb Chakrabarty in
Bangalore)
http://today.reut
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