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Worthington Industries, Inc. (NYSE: WOR) today reported results for the three- and six-month periods ended November 30, 2008.

(U.S. dollars in millions, except per share data)

		2Q2009				1Q2009			2Q2008			6M2009				6M2008
Net sales		$	745.4			$	913.2		$	713.7		$	1,658.6			$	1,472.6
Operating income (loss)			(211.6	)			79.7			11.5			(131.9	)			31.5
Equity income			11.0				25.0			14.9			36.0				29.9
Net earnings (loss)			(159.5	)			68.6			14.7			(90.8	)			34.9
Earnings (loss) per share		$	(2.02	)		$	0.86		$	0.18		$	(1.15	)		$	0.42

“There is a stark contrast between our first and second quarter results that reflects the dramatic downturn in the economy and an unprecedented drop in steel prices,” said John P. McConnell, Chairman and CEO. “The second quarter was marginally profitable, excluding the negative impact of certain charges. Still, we were able to generate cash from operations and have taken a number of actions to respond to the current climate.”

For the second quarter of fiscal 2009, net sales were $745.4 million, an increase of 4% from $713.7 million last year. The second quarter net loss was $159.5 million or $2.02 per diluted share, compared to net earnings of $14.7 million, or $0.18 per diluted share, for the same period last year.

The net loss for the second quarter included $209.8 million in pre-tax charges as follows:

• An inventory write-down of $98.0 million. A lower-of-cost-or-market adjustment was necessitated by the speed and severity of the recent decline in demand and steel pricing. This left the Steel Processing and Metal Framing segments, and the Mexican steel processing joint venture, with inventory in excess of the reduced demand while market values for that inventory plummeted. The inventory write-down negatively impacted earnings per diluted share by an estimated $0.86.
• A goodwill impairment charge for the Metal Framing segment of $96.9 million. The combined impact of the declining economy, particularly on the construction market, and the decreasing results at Metal Framing caused a reconsideration of key assumptions used in previous valuations to support its goodwill balance. After reviewing these assumptions and reviewing the fair value of the remaining assets, it was determined that the value of the business no longer supported the goodwill balance. The goodwill impairment negatively impacted earnings per diluted share by an estimated $1.07.
• Restructuring charges of $11.9 million for severance, asset impairments and professional fees related to the previously announced Transformation plan initiatives. The restructuring charges negatively impacted earnings per diluted share by an estimated $0.10.
• An increase to bad debt reserves of $2.9 million associated with the deteriorating financial condition of several customers, primarily automotive-related, in the Steel Processing and Automotive Body Panels segments. The increase in the bad debt reserves negatively impacted earnings per share by an estimated $0.02.

Coca-Cola Enterprises (NYSE: CCE) today said it expects to achieve full year comparable earnings per diluted share in a range of $1.28 to $1.31. Key operating factors in this guidance include stronger than expected volume performance in North America, continued solid European performance, and ongoing operating expense control efforts.

• 2008 full year comparable earnings per diluted share now expected in a range of $1.28 to $1.31.
• 120-day business review identified opportunities for a stronger marketplace presence, improved efficiencies and a new incidence-based economic model with The Coca-Cola Company enabling a more aligned 2009 business plan.
• 2009 outlook includes comparable EPS growth in a mid single-digit range excluding the expected impact of foreign currency headwinds.

“As we continue to face significant economic challenges throughout our territories, we remain focused on key value drivers designed to protect and enhance margins and free cash flow. We are encouraged by our progress in several key areas as we work to restore a foundation for growth at Coca-Cola Enterprises,” Mr. Brock said. “We are seeing slightly improved business trends in North America, including better than expected volume in response to our September pricing increase driven in part by improved execution and moderating commodity cost increases.”

After bailing out Wall Street, the White House has set the dangerous precedent that it is prudent to bail out entire industries, according to FreedomWorks. Billions of taxpayer dollars will be handed over to GM and Chrysler in exchange for a promise that the Detroit Three become profitable soon.

President Bush admitted to abandoning limited government principles this morning, “If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers.” Small government conservatives believe that the government has no place in picking winners or losers in the market place. This process takes money from productive companies and industries and rewards failing enterprises at the expense of more productive sectors of the economy.

With the auto bailout it is also clear that taxpayers were sold a bill of goods, as the TARP has become bailout piggy bank for failing businesses in ways never intended by the original legislation.

Using TARP funds to bailout the auto industry also raises additional questions about the constitutionality of the Emergency Economic Stabilization Act (EESA) that created the TARP program. Granting sweeping new discretionary authority and power to the Treasury Secretary with little oversight or input from Congress may violate the nondelegation principle. This momentous change in the relationship between government and market forces advanced by the EESA are more rightly deliberated and approved by Congress; they should not and cannot be delegated to unelected officials in the executive branch.

FreedomWorks activists made their opposition known by calling and emailing Capitol Hill and the White House. FreedomWorks members sent over 104,000 emails in an overwhelming response.

Rite Aid Corporation (NYSE:RAD) today reported revenues of $6.47 billion and a net loss of $243.1 million or $0.30 per diluted share for its fiscal third quarter ended November 29, 2008. Adjusted EBITDA was $252.0 million or 3.9 percent of revenues. All results and comparisons include the Brooks Eckerd stores and distribution centers, which the company acquired on June 4, 2007.

Third Quarter Highlights

• Adjusted EBITDA increased 8.5 percent due to a higher gross margin rate and good cost control.
• Overall same store sales increased 1.4 percent year-over-year due to solid performance in core stores, especially pharmacy, and improvement in Brooks Eckerd stores.
• Quarterly front-end same store sales in Brooks Eckerd stores were positive for the first time since the acquisition. Pharmacy same store sales continued to show progress, narrowing to a decline of 2.6 percent in the quarter versus a 4.6 percent decline in the second quarter.
• The company made significant progress in reducing selling, general and administration costs with SG&A 16 basis points lower than the third quarter last year.
• FIFO inventory was $222.9 million lower than prior third quarter due to working capital initiatives.

“I am pleased to report a significant improvement in our operating results this quarter with adjusted EBITDA up 8.5 percent,” said Mary Sammons, Rite Aid chairman and CEO. “With the Brooks Eckerd integration complete, our team has been totally focused on delivering profitable sales and taking unnecessary costs out of the business, and it showed. Same store sales were up, with pharmacy sales in core Rite Aid stores especially strong despite an industrywide slowdown in prescription growth. Our gross profit rate improved, and our cost savings initiatives intensified in the quarter. Improving operational efficiency is a top priority, and we expect to see even greater benefits from these initiatives going forward.”

Wimm-Bill-Dann Foods OJSC [NYSE: WBD] today announced its financial results for the third quarter and the first nine months ended September 30, 2008.

Highlights of the first nine months of 2008:

• Strong double-digit revenue growth across all business segments
• Group revenue increased 24.8% to US$2,194.1 million
• Gross profit grew 22.2% to US$707.0 million
• Operating income rose 15.1% to US$193.6 million
• Net income increased 3.7% to US$109.6 million
• EBITDA¹ rose 23.3% to US$282.7 million
• Operating cash flow grew 156.8% to US$168.5 million

“Despite a challenging operating environment, we achieved strong double-digit revenue and EBITDA growth in the third quarter and the nine months of 2008, which further testifies to the strength and resilience of the business and our focus on executing our strategy,” said Tony Maher, Wimm-Bill-Dann’s Chief Executive Officer.

“We continue to face significant headwinds created by a decline in consumer confidence in Russia and CIS, slower GDP growth, and unprecedented global financial turmoil. Nevertheless, our balance sheet is strong, our liquidity is excellent, and we are comfortable with our debt position, including a bond of approximately $185 million that we will pay down in March of 2009 if required. We may choose to refinance the debt if financing is available at attractive rates, but as of today, we are planning to repay those obligations with internal funds. We have a strong cash balance of $137 million as of the end of the third quarter and we continue to generate significant cash flow from operations, totalling $168 million in the first nine months of the year.”

“All of our business segments continue to post strong results, with group revenue growing 25% for the first nine months of 2008 on a year-over-year basis to nearly $2.2 billion. This growth has been purely organic. Our dairy segment delivered sales of $1.6 billion in the first nine months of 2008, up nearly 23% year-over-year. Our beverage business achieved sales growth of nearly 20% to $372.5 million through the first nine months of the year. And our baby food sales for the first nine months of 2008 grew 61% over same period in 2007 to $191.6 million.”

“Our gross profit for the first nine months of 2008 was $707 million, up 22% from the same period a year ago. This improvement was across all three business segments. EBITDA also continued to show solid improvement. For the first nine months of 2008, EBITDA was $282.7 million, up 23.3% from the first nine months of 2007.

The impact of the global economic crisis will spread to the mobile phone market resulting in a downturn in shipments in 2009. According to IDC, total mobile phone volumes will be 1.9% lower in 2009 than 2008 levels, the first downturn in annual shipment volumes since 2001 when shipments declined 2.3%. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets. However, emerging market growth has been steadily slowing as these markets mature. IDC now expects worldwide growth to be just 7.1% in 2008 before slipping into negative growth in 2009.

In recent months, a number of major industry players – including component suppliers, handset makers, and operators – have announced their concerns about handset volumes in 2009. Most have indicated that they expect a year-over-year decrease due to the flagging global economy.

“Nokia’s announcement was the first sign of troubles to come,” said Ryan Reith, senior analyst with IDC’s Mobile Phone Tracker. “However, the real concerns set in with announcements from the chipset vendors who supply the industry. Qualcomm, Texas Instruments, and MediaTek are among some of the suppliers announcing reductions in manufacturing for the upcoming year. There is a lot of uncertainty about how the markets will fare and inventory levels will be more of a focus point then ever before.”

The economic crunch has also affected consumer behavior, particularly consumers’ plans to purchase new devices. With less disposable income available and other expenses competing for attention, consumers may choose to hold on to their current devices rather than replace or upgrade them at the next possible opportunity, usually when a service contract expires. As long as the device functions properly, consumers may put off the replacement decision until more funds are available. This shift in demand will reduce the need for devices from handset vendors, much in the same way that the shift in supply will reduce the availability of devices from handset vendors.

IDC does not expect the downturn in mobile phone shipments to stretch past 2009. By 2010, the worldwide mobile phone market will show signs of improvement as economic recovery plans will have taken effect. With more disposable income in hand, consumers should feel more comfortable buying a new handset, especially if the opportunity to purchase was delayed. Beyond that, further growth is expected, but at a slower pace compared to the strong double-digit growth experienced in the years prior to the decline.

Additionally, not all segments of the mobile phone market are expected to decline. IDC expects converged mobile devices – commonly referred to as smartphones – to grow 8.9% worldwide in 2009. This contrasts sharply against the negative growth expected for the entire mobile phone market. Beyond 2009, growth will return to double-digit territory, faster than the overall mobile phone market.

“Converged mobile devices remain a much sought-after option for many consumers,” noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends. “Users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. Take a look at how gaming, mapping and location, entertainment, news, and social networking applications for converged mobile devices have taken off, allowing users to do much more than just make phone calls. In response, handset vendors have been building their product and applications portfolios to catch this wave of opportunity.”

Lower prices are also making converged mobile devices an attractive choice for consumers. It was not long ago that these devices cost well above the $200 price point with a two year contract. As prices have come down in recent quarters, these devices have become competitive alternatives to traditional mobile phones. Faced with the option of purchasing a converged mobile device at roughly the same price as a traditional mobile phone, consumers will be strongly tempted by the fully featured smartphone. Continued high demand and lower prices will keep this category growing, even as the overall market struggles.

Macrovision Solutions Corporation (NASDAQ:MVSN), a digital entertainment technology leader, today announced it has reached an agreement to sell its TV Guide Network property to Allen Shapiro and One Equity Partners for approximately $255 million in consideration, subject to a working capital adjustment at closing, plus up to an additional $45 million payable through earn-out provisions through 2012. The transaction, expected to close no later than April 1, 2009, includes the TV Guide Online (tvguide.com) business, certain indemnifications and is subject to customary closing conditions.

TV Guide Network is the 19^th most distributed network and available in 83 million homes. TV Guide.com is one of the fastest-growing online entertainment destinations with over 15 million monthly unique visitors.

“Today’s announcement further demonstrates our ability to execute against our business plan. We remain committed to delivering leading interactive program guide technology, data solutions and video search capability as key ingredients to the future of the digital home. This divestiture will further streamline our business operations and once again demonstrates our ability to execute on Macrovision’s vision of providing consumers with a uniquely simple home entertainment experience,” said Fred Amoroso, President and CEO of Macrovision. “Furthermore, we continue to make progress towards our goal of divesting TVG Network, our horse racing wagering channel, which we expect to sign in early 2009.”

“I believe the TV Guide Network and tvguide.com are unique properties in the media landscape,” said Allen Shapiro. “These assets and brands are extremely difficult to replicate and create significant opportunities for sustained growth. We are very enthusiastic about working with One Equity Partners to execute on our vision.”

“We are excited to partner with Allen Shapiro on this transaction,” said Greg O’Hara, a Managing Director of One Equity Partners. “With Allen’s expertise and impressive track record with media investments, we believe this acquisition will serve as a platform for other acquisitions across the entertainment and digital landscape.”

Ryan O’Hara, President of TV Guide Network added: “Over the last few years, the TV Guide Network team has made great strides in transforming the property into a fully distributed entertainment focused network that will continue to develop and prosper. This transaction is really a win for all constituents.”

The structure of the deal also allows Macrovision to utilize the strategic capabilities of TV Guide Online while remaining focused on Macrovision’s core competencies in technology. Specifically, Macrovision retains the key strategic on-line elements currently utilized through this site, namely its B2B grid syndications business, whereby the company licenses its online guide to other portals, and functionality that enhances its embedded guidance product offering, such as integration from embedded guides with online or mobile guides that allow for remote record.

More than 82 million TV households currently enjoy Macrovision licensed interactive programming guides (IPGs) which provides the TV viewer program listings information, making it the primary tool for managing the TV experience. Macrovision’s solution portfolio, which includes industry-leading IPGs and program metadata, associated patent portfolio, music and video metadata, media recognition, as well as networking and security technologies, position the company firmly at the center of the shift to digital entertainment. Macrovision continues to invest in and develop new guide technologies that ultimately enhance the consumers total entertainment experience, including new offerings for CE device makers, system operators, service providers and content providers of virtually all forms of entertainment.

Macrovision’s previously disclosed financial estimates for 2008 and 2009 included the results of the TV Guide Online business. As the TV Guide Online business is included in the sale of the TV Guide Network, the results of the TV Guide Online business will now be included in discontinued operations for all historical financial periods. Further, the overall proceeds for businesses being sold will be lower than previously expected. When considering the strength in Macrovision’s core technology solutions and elimination of the TV Guide Online business from continuing operations, 2008 adjusted pro forma revenue is now expected to range between $420 million and $430 million. After removing the TV Guide Online business from the estimates and adjusting for lower than expected sale proceeds, Macrovision’s 2009 revenue is now expected to range between $435 million and $475 million and adjusted pro forma earnings per share is expected to range between $1.15 and $1.45. Proceeds from all divestitures will be used to retire debt.

UBS Investment Bank served as financial advisor to Macrovision on this transaction.

The Pep Boys – Manny, Moe & Jack (NYSE:PBY), the nation’s leading automotive aftermarket retail and service chain, announced that its Board of Directors approved the payment of the next quarterly dividend of $.0675 per share payable on January 26, 2009 to shareholders of record on January 12, 2009. The annual dividend of $.27 per share currently yields approximately 7.8%.

Dave & Buster’s, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its third quarter ended November 2, 2008.  Total revenues decreased 3.2% to $119.7 million in the third quarter of 2008, compared to $123.7 million in the third quarter of 2007. This revenue decline was comprised primarily of a 6.0% decrease in comparable store sales offset by a $3.2 million increase in revenues from non-comparable operations. Total Food and Beverage revenues decreased 4.7%, while revenues from Amusements and Other decreased 1.4%.

EBITDA (Modified) for the third quarter of 2008 of $10.9 million was less than prior year EBITDA (Modified) of $11.5 million by 4.8%. Adjusted EBITDA, which excludes Startup costs and other non-recurring charges, decreased 4.8% to $11.8 million versus $12.4 million in the third quarter of fiscal 2007.

Total revenues for the 39-week period increased 1.9% to $398.4 million from $390.8 million for the comparable period last year. This revenue growth was comprised primarily of a 0.2% decrease in comparable store sales and an $8.2 million increase in revenues from non-comparable operations. Total Food and Beverage revenues decreased 0.4%, while revenues from Amusements and Other revenue increased 4.7%.

EBITDA (Modified) for the 39-week period of $57.8 million exceeded prior year EBITDA (Modified) of $48.7 million by 18.5%. Adjusted EBITDA, which excludes Startup costs and other non-recurring charges, increased 12.2% to $60.2 million, versus $53.7 million for the comparable period last year.

“Macroeconomic factors made for an extremely challenging sales environment, and hurricane Ike forced the closure of two of our stores for two weeks,” said Steve King, the Company’s Chief Executive Officer. “The result was that our top line suffered during the quarter. Despite these obstacles, our operating team did a great job of executing against our initiatives, and improving efficiency.”

Neiman Marcus, Inc. today reported financial results for the first quarter of fiscal year 2009. This release contains information regarding the Company’s adjusted operating earnings, EBITDA and adjusted EBITDA, all of which are non-GAAP financial measures (as described in the footnotes to the accompanying condensed consolidated statements of earnings and related information). Neiman Marcus, Inc. believes reporting adjusted operating earnings, EBITDA and adjusted EBITDA is a more meaningful representation of the Company’s on-going economic performance and therefore uses these metrics internally to evaluate and manage the Company’s operations. Adjusted operating earnings exclude the impact of certain items as described below under “Other Items.”

For the first quarter of fiscal year 2009, the Company reported total revenues of $986 million compared to $1.13 billion in the prior year. Comparable revenues decreased 14.5 percent. Operating earnings for the first quarter of fiscal year 2009 were $81.6 million compared to $189.7 million for the first quarter of fiscal year 2008. Adjusted operating earnings were $81.6 million in the first quarter of fiscal year 2009 compared to $157.2 million in the first quarter of fiscal year 2008.

See the attached schedule of “Other Operating Data” for the reconciliation of adjusted operating earnings and the Company’s statements regarding the use of this non-GAAP financial measure.

Other Items

The Company recorded other income of $32.5 million in the first quarter of fiscal year 2008 which represents a one-time pension curtailment gain as a result of the Company’s decision to freeze certain pension and retirement benefits as of December 31, 2007.

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