12:35 PM New York – Valero, U.S. Steel and Heidrick & Struggles decline after reporting lower than expected earnings.

Boyd Gaming Corporation, a casino operator reported net revenues declined 9% to $471.1 million for the first quarter 2008, compared to $517.0 million. Total adjusted operating earnings were $127.7 million in the first quarter 2008, compared to $155.4 million for the same period 2007.

Net loss in the quarter was $32.6 million, or $0.37 per share, compared to $35.1 million, or $0.40 per share, in the same period a year ago.

Boyd Gaming stock ((BYD: chart) rose 99 cents to $19.91.

Burlington Northern Santa Fe Corporation. a railroad network operator reported freight revenues increased 17% to $599 million, with an increase in fuel surcharges of approximately $280 million.

Quarterly earnings in the quarter were $1.30 per diluted share compared to earnings of $0.96 per share a year ago, which included a $0.14 charge for additional environmental expenses and a technology system write-off.

Burlington Northern Santa Fe Corporation’s subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces.

Burlington stock (BNI)) added $1.55 to $102.67.

Countrywide Financial Corporation., the mortgage lender reported first quarter 2008 loss of $893 million or $1.60 per share compared to $434 million, or 72 cents per share.

Deposit base grew as the company added 8 new branches in the quarter. The mortgage lender received daily application for mortgages of $2.2 billion and originated more loans. But sharply higher losses in the credit market overwhelmed the gain in loan sales.

In the quarter, the company originated $73 billion of loans of which $67 billion were for securitization and $6 billion for investment compared to $61 billion origination for sales and $8 billion for investment a year ago. Pricing margins for the sale of mortgage loans were stable but market volatility in the secondary market significantly affected the valuations.

Countrywide Financial Corporation in January agreed to sell itself to Bank of America for about $4 billion.

Countrywide stock (CFC: chart) edged 7 cents higher to $5.90.

Group 1 Automotive, Inc., an automotive retailer today reported first quarter 2008 revenues fell 3.8%, to $1.4 billion on 8.8% reduction in new vehicle unit sales that resulted in 7.0% lower new vehicle revenues.

Net income for the first quarter ended March 31, 2008 was $16.4 million, or $0.73 per diluted share compared to net income of $17.4 million, or $0.72 per share. The 2007 first-quarter results included after-tax charges of $2.5 million, or $0.10 per diluted share, for lease terminations.

Gross margin improved 40 basis points, to 16.6%, from the first quarter of 2007.

Group One (GPI: chart) added $1.20 to $27.77.

Heidrick & Struggles International, Inc., a provider of executive search and leadership consulting services reported first quarter 2008 revenues increased 7% to $153.1 million from $143.1 million in the 2007 first quarter.

Net revenue decreased 7.3% in the Americas, but increased 24.2% in Europe (or 14% on a constant currency basis), and increased 33.6% in the Asia Pacific region (or 22% on a constant currency basis).

Net income was $7.1 million and diluted earnings per share were $0.38, reflecting an effective tax rate in the quarter of 40.3%. Net income in the 2007 first quarter was $10.1 million and diluted earnings per share were $0.53, reflecting a 45.1% effective tax rate.