Some more warnings ...
Last night, it was Washington Mutual. This morning, more credit crisis casualties are 'fessing up about problems in their businesses...
* H&R Block said it lost $136 million, or 42 cents per share, in the fiscal second quarter. That's worse than the year-ago $121 million, or 38 cents per share, and worse than the 35-cent estimate of analysts. That's a continuing operations loss, by the way. H&R Block is in the process of shutting down much of its Option One subprime mortgage business. Including discontinued ops (such as $252 million in losses on the sale of whole mortgage loans), the company's net loss more than tripled.
* Genworth Financial, formerly part of GE, said it'll miss 2008 profit forecasts do to housing-related losses. It's expecting operating earnings of $2.65 a share to $3.10 a share, below the average estimate of $3.28 a share. Genworth is the nation's fifth-largest mortgage insurer. Said CEO Michael Fraizer: "We did not expect the speed or degree of the unprecedented turn of the housing market."
Meanwhile, in early trading, shares of Washington Mutual are getting whacked, down almost $2. But all is not necessarily grim. Many troubled institutions have been successful at getting capital infusions -- albeit at a high cost. And it looks like pieces of more U.S. banks could potentially be sold off to cash-rich foreign buyers, if you believe some of the comments coming out of the Middle East region.
* H&R Block said it lost $136 million, or 42 cents per share, in the fiscal second quarter. That's worse than the year-ago $121 million, or 38 cents per share, and worse than the 35-cent estimate of analysts. That's a continuing operations loss, by the way. H&R Block is in the process of shutting down much of its Option One subprime mortgage business. Including discontinued ops (such as $252 million in losses on the sale of whole mortgage loans), the company's net loss more than tripled.
* Genworth Financial, formerly part of GE, said it'll miss 2008 profit forecasts do to housing-related losses. It's expecting operating earnings of $2.65 a share to $3.10 a share, below the average estimate of $3.28 a share. Genworth is the nation's fifth-largest mortgage insurer. Said CEO Michael Fraizer: "We did not expect the speed or degree of the unprecedented turn of the housing market."
Meanwhile, in early trading, shares of Washington Mutual are getting whacked, down almost $2. But all is not necessarily grim. Many troubled institutions have been successful at getting capital infusions -- albeit at a high cost. And it looks like pieces of more U.S. banks could potentially be sold off to cash-rich foreign buyers, if you believe some of the comments coming out of the Middle East region.
posted by Mike Larson at
9:12 AM
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