BizJournals Portfolio

Subprime Suspect

From lawn care to fast food, every industry is blaming the mortgage meltdown.
Illustration of businessmen fingering real estate sign.

In a recent S.E.C. filing, Silicon Valley chipmaker National Semiconductor cautioned, "Spreading subprime-mortgage failures could affect our future costs and revenues."

Lawnmower giant Deere & Co. warned investors, "The impacts of inflation and subprime-credit issues, which could affect interest rates and the housing market, are also a concern."

Fast-food chain Wendy's, which is exploring the idea of putting itself up for sale, announced late in 2007 that the "subprime-mortgage problems have … greatly curtailed merger-and-acquisition activity."

Leap Wireless, a player in the prepaid-cell-phone market, warned of higher turnover "if recent disruptions in the subprime-mortgage market affect the ability of our customers to pay for their service."

Regarding its disappointing customer traffic, Tween Brands, which runs clothing chains Limited Too and Justice, suggested that a "deterioration of the subprime-mortgage situation … may have exacerbated the decline."

Hewlett-Packard warned of "conditions in the residential real estate and mortgage markets … and other macroeconomic factors affecting spending behavior." 


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