Futures Point To A Higher Open

Futures Remain Slightly Higher As GDP Report Approaches - U.S. Commentary [$COMPX]

7/29/2005 7:53:21 AM With about a half hour to go before the release of the advance second-quarter GDP report, the futures continue to sit slightly above the flat line.

Along with reiterating its 11%-13% long-term EPS growth rate guidance, Wendy's (WEN) announced a number of initiatives aimed at improving the performance of its flagship business and enhancing value for its shareholders. The company revealed that this program included the planned initial public offering of 15%-18% of its Tim Hortons unit. The company said it hopes to complete the offering by the end of the first quarter of 2006.

Wendy's, which said it will review its portfolio of U.S. Tim Hortons stores, also revealed a program to improve its namesake business, including rebalancing the U.S. store mix, slowing new store development and closing 40-60 underperforming restaurants. In addition, Wendy's announced a 25% increase in its annual dividend rate and authorized an additional $1 billion stock repurchase.

Archer Daniels Midland (ADM) released results for the fourth quarter, posting earnings for the period of $0.30 per share. In the same period last year, the company lost $0.16 per share, including a charge of $0.39 per share for the settlement of fructose litigation. Wall Street analysts had expected the company to post a fourth-quarter profit of $0.28 per share. Net sales for the period came in at $9.4 billion, the company said, down from last year's $9.7 billion.

Lear (LEA) reported a second-quarter loss of $0.66 per share, including $0.98 per share in charges for restructuring, litigation and the impairment of an equity investment that was subsequently divested. Wall Street analysts had expected the company to earn $0.20 per share. Looking ahead, the company said it expects its full-year bottom-line result to come in somewhere between a loss of $0.25 and a profit of $0.15 per share, including the unfavorable impact of about $1.75 per share in one-time items. Sales for the full year are expected to be about $17 billion, the company said.