Roundup: Constellation, DuPont Fabros, Capital One
From staff and wire reports
*Constellation Energy Group said it will sell its energy consulting and management subsidiary to the company's co-founder, Andrew R. Fellon. Constellation acquired the unit, Fellon-McCord & Associates, in 2003. Financial terms of the deal weren't disclosed. The companies will maintain a "strategic alliance," Constellation of Baltimore said.
The deal is expected to close on June 30.
*DuPont Fabros Technology, a real estate investment trust that owns data centers, said its first-quarter profit rose to $5.57 million (16 cents a share) from $497,000 in the corresponding period a year earlier. Funds from operations, which exclude depreciation and amortization, rose to $22.5 million (34 cents), the District company said. The company went public in October.
*Capital One Financial's reported losses in its credit card portfolio were relatively stable. The McLean lender wrote off $342.3 million from its $67.87 billion credit card portfolio in April, according to a filing with the Securities and Exchange Commission. At this rate, the company is writing off 6.1 percent of its loans annually.
Goldman Sachs analyst Brian Foran said the performance was as expected, or maybe a little better, but Scott Valentin, an analyst with Friedman, Billings, Ramsey, said April was usually the strongest month for credit performance, so flat losses compared with March actually represent an erosion in credit quality.
*W.R. Grace won an appeals court ruling that blocks prosecutors from adding witnesses in a case alleging that the company and six former executives contaminated a Montana town with asbestos and then covered it up. The ruling affirms a decision by a U.S. district judge in Montana that blocks the government from presenting trial witnesses it hadn't identified by Sept. 30, 2005.
*The collapse of a roof has hampered coal production at one of Foundation Coal Holdings' mines, the company said.
The company said "anomalous geological conditions" caused a roof to fall at the Emerald Mine, two miles south of Waynesburg, Pa. The collapsed roof impacted a longwall advance, which Foundation expects to curtail production for 14 to 17 days.
Foundation expects the Emerald Mine to produce 210,000 to 240,000 tons of coal in the second quarter. Last year, the mine produced an average of almost 1.5 million tons of coal each quarter.
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