The US moved into the third week of a government shutdown after Republicans and Democrats failed to reach an agreement to pass the federal budget. The talks are complicated by the Thursday deadline to raise the US debt ceiling.
Following companies and financial institutions have warned of project delays, employee furloughs and other consequences of a prolonged impasse:
** STANLEY BLACK & DECKER INC
The power tool maker cut its 2013 profit forecast due to the U.S. government spending cuts and shutdown and slower-than-expected margin expansion in its security business.
"We really believe the US government sequestration and shutdown have had a modest impact in Q3 on us and will have a slightly more significant impact on us in Q4," Chief Financial Officer Donald Allan said on a conference call with analysts.
** BNY MELLON CORP
The world's largest custody bank by assets said its balance sheet has ballooned by nearly $10 billion in October as its clients sit on more cash to ride out the turmoil caused by the U.S. government's shutdown.
"We've seen some various money market funds and various clients get more defensive and put more into cash, so our balance sheet is up about $10 billion since quarter-end," BNY Mellon Chairman and Chief Executive Gerald Hassell said Wednesday on a conference call. "We are prepared to handle that."
** FLIR SYSTEMS INC
The surveillance products maker cut its revenue forecast for the full year to $1.45-$1.5 billion from $1.5-$1.6 billion. "Ongoing uncertainty in the U.S. government is likely to continue to affect our performance in the fourth quarter, and our revised guidance is intended to reflect this environment," Chief Executive Andy Teich said on Tuesday.
** BABCOCK & WILCOX CO
The energy infrastructure company said if the government shutdown continued into November, it could have a "modest adverse impact" on the operating income of the firm's technical services group, which manages nuclear production sites for the U.S. Department of Energy. Many such sites at which the unit has contracts have seen a slowdown in activity and are preparing for furloughs, which will occur over the next two weeks if the shutdown prolongs, the company said.
** WAL-MART STORES