Pre-Open Movers 7/01: CIT Group (CIT) Higher on Home Lending Biz Sale; Fortune Brands (FO) Lower on Warning

July 1, 2008 9:30 AM EDT

StreetInsider.com Pre-Open Movers:

CIT Group Inc. (NYSE: CIT) 17% HIGHER; agreed to sell its Home Lending business, consisting of $9.3 billion in assets and related servicing operations, to Lone Star Funds for $1.5 billion in cash and the assumption of $4.4 billion of outstanding debt and other related liabilities. In a separate transaction, CIT agreed to sell its approximately $470 million manufactured housing portfolio to Vanderbilt Mortgage and Finance, Inc. for approximately $300 million. Net cash proceeds from the two transactions are expected to be approximately $1.8 billion. In the second quarter of 2008, CIT expects to record an estimated pretax loss for the Home Lending segment of approximately $2.5 billion ($2.0 billion after tax).

Metabolix (NASDAQ: MBLX) 12.4% HIGHER; announced that Telles(TM), its joint venture with Archer Daniels Midland Company (NYSE: ADM) that produces Mirel(TM) bioplastics, has entered into an agreement to supply Mirel bioplastic resin to Labcon North America, a leading manufacturer of laboratory supplies, for the production of its new Pagoda pipet reloading system.

Fortune Brands, Inc. (NYSE: FO) 6.3% LOWER; updated its earnings outlook for Q2 and FY2008. Weakening consumer sentiment in the U.S., the ongoing correction in the U.S. housing market, and a large and unexpected Australian tax increase on ready-to-drink spirits products have together created a more challenging environment for the company's products. Wachovia downgrades.

Standard Microsystems Corp. (Nasdaq: SMSC) 6% LOWER; reports Q1 EPS of $0.39, versus the consensus of $0.38. Revenues came in at $92.8 million, versus the consensus of $90.83 million. Sees Q2 EPS of $0.45-$0.49, versus the consensus of $0.53. Sees Q2 revs of $97-$99 million, versus the consensus of $101.4 million.

CBRL Group, Inc. (Nasdaq: CBRL) 6% LOWER; June comparable store restaurant sales were down 1.2%. Comparable store retail sales were up 0.2%. Based on current trends and estimates, the Company now expects fiscal 2008 income from continuing operations per diluted share to be in the range of $2.77 to $2.87 per share. The Wall Street consensus is $3.03.

Quantum Fuel Systems Technologies Worldwide Inc. (Nasdaq: QTWW) 5.8% LOWER; reports a Q4 loss of $0.09, or a loss of $0.06 from continuing operations, 1 cent worse than the analyst estimate of ($0.05). Revenues for the quarter were $9.7 million, versus the consensus of $8.10 million.

VF Corporation (NYSE: VFC) 4.7% HIGHER; sees Q2 EPS exceeding its prior guidance of about $0.80 by 10-12% due to stronger earnings from operations and a net favorable benefit from the resolution of various tax matters.

Lehman Brothers (NYSE: LEH) 4% HIGHER; after the close, Morgan Stanley initiated coverage of the stock with an Overweight rating.

Altera Corp. (Nasdaq: ALTR) 3.4% LOWER; Jefferies cuts to Underperform

Forest Oil Corporation (NYSE: FST) 2.9% HIGHER; today announced that it has increased its acreage position in East Texas/North Louisiana to approximately 143,000 gross acres (113,000 net acres) through acquisitions and leasing activity. Forest believes that approximately 114,000 gross acres (90,000 net acres) are prospective for the Haynesville/Bossier Shale trend in the current area of heightened activity in East Texas/North Louisiana. The majority of Forest's acreage is in Harrison County, Texas and Red River, Webster and Bienville Parishes of Louisiana.

NYSE Euronext, Inc. (NYSE: NYX) 2.5% LOWER; Goldman removes from Buy List

Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) 2% HIGHER; reports Q3 EPS of $2.14, compared to the analyst estimate of $1.87. Revenues for the quarter were $972 million, versus the consensus of $937.67 million. Sees Q4 revs "significantly higher" compared to Q407.

Macquarie Infrastructure Co. Trust (NYSE: MIC) 2% HIGHER; Wachovia upgrades to Outperform

Lehman Brothers Holdings Inc. (NYSE: LEH) 1% HIGHER; Recovers after yesterday's 11% sell-off. Morgan Stanley starts at Overweight.

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• Morgan Stanley
• Jefferies & Co
• Lehman Brothers
• Wachovia
• Lone Star Funds

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