The US Energy Department has declared a contest in which the company that makes the best power saving bulb will get a prize of $10 million. The contest winner will also receive consideration for federal purchasing agreements and will have a head start at cracking a vast consumer marketplace. The Energy Department will also award $5 million to the creator of an LED reflector lamp.
The L Prize has attracted significant attention in the lighting industry. Currently, 60 watt incandescent lamps represent 50 percent of all the lighting in the United States, with 425 million sold each year. The Energy Department says that if all those lamps were LED equivalents, enough power would be saved to light 17.4 million American households and cut carbon emissions by 5.6 million metric tons annually.
So far, Philips is the only company which has submitted its entry. The company has developed a led based bulb which uses one-sixth energy of a 60 watt incandescent bulb. "Philips is confident that the product submitted meets or exceeds all of the criteria for the L Prize," Rudy Provoost, Chief of Philips Lighting, said in a statement to New York Times. Philips has delivered 2,000 prototypes of its bulb to the Energy Department for testing.
Apart from few changes, the incandescent bulb continues to be similar to the Thomas Edison creation. But now the incandescent bulbs will be outlawed by new energy standards that go into effect in 2012. LED bulbs are now available but they have limited output and high prices.
The energy department has made certain criteria for the competition. All bulbs must be able to provide as much light as 60 watt incandescent bulb in 10 watt. The bulb must also last for more than 25,000 hours - about 25 times longer than a standard light bulb. Also, at least 75 percent of the bulb must be made or assembled in the United States. Philip's prototypes currently meet up in all criteria.
Speaking about the contest, James R. Brodrick, Manager of the Solid State Lighting Program of the Energy Department says that these will be the most publicly tested bulb ever. "We've probably eliminated almost 25 products that were horrible," said James R. Brodrick, manager of the Solid State Lighting Program of the Energy Department. "We test LED bulbs today that claim on the package that they're equivalent to 40 watts, but are really like 20-watt bulbs."
Kevin Dowling, Vice President for innovation at Philips Solid State Lighting Solutions, is confident that the LED light bulb can become an affordable option. "Over the long term, we can absolutely get the cost down to the $20 to $25 range," he said.
Agencies
Showing posts with label cut. Show all posts
Showing posts with label cut. Show all posts
Saturday, September 26, 2009
Saturday, July 4, 2009
Will struggling British Airways cut spending?
Troubled British Airways said Friday that it would slash capital expenditure by one fifth in the current financial year after posting another sharp drop in monthly passenger numbers.
"Market conditions continue to be very challenging with trading at levels well below last year," the struggling airline said in a trading update.
"In response to the challenging economic conditions British Airways has reviewed its business plan.
"Forecast capital expenditure has been reduced from 725 million pounds to 580 million pounds for 2009-2010 and is likely to remain at that level in 2010-2011."
The airline also announced it carried 2.93 million passengers last month, 4.9 percent fewer than in June 2008.
And BA repeated that it wanted to slash 3,700 jobs in the current financial year, which runs until March 2010. It has already axed 2,500 jobs worldwide over the past year.
BA also revealed that it would delay the delivery of its fleet of Airbus A380 superjumbos and announced more reductions to its summer 2009 and winter 2009-2010 flight schedules.
"The delivery schedule for the first six Airbus A380 aircraft has been extended by an average of five months with the first delivery still due in 2012," the carrier said.
"The schedule for the remaining six A380s has been extended by an average of two years with the final aircraft arriving in 2016."
In May, BA had reported an annual loss of 375 million pounds, blamed on plummeting demand for tickets as well as high fuel costs.
After diving into a financial loss, BA asked staff to work for free, while promising that chief executive Willie Walsh and finance director Keith Williams would forgo their July salaries.
Agencies
"Market conditions continue to be very challenging with trading at levels well below last year," the struggling airline said in a trading update.
"In response to the challenging economic conditions British Airways has reviewed its business plan.
"Forecast capital expenditure has been reduced from 725 million pounds to 580 million pounds for 2009-2010 and is likely to remain at that level in 2010-2011."
The airline also announced it carried 2.93 million passengers last month, 4.9 percent fewer than in June 2008.
And BA repeated that it wanted to slash 3,700 jobs in the current financial year, which runs until March 2010. It has already axed 2,500 jobs worldwide over the past year.
BA also revealed that it would delay the delivery of its fleet of Airbus A380 superjumbos and announced more reductions to its summer 2009 and winter 2009-2010 flight schedules.
"The delivery schedule for the first six Airbus A380 aircraft has been extended by an average of five months with the first delivery still due in 2012," the carrier said.
"The schedule for the remaining six A380s has been extended by an average of two years with the final aircraft arriving in 2016."
In May, BA had reported an annual loss of 375 million pounds, blamed on plummeting demand for tickets as well as high fuel costs.
After diving into a financial loss, BA asked staff to work for free, while promising that chief executive Willie Walsh and finance director Keith Williams would forgo their July salaries.
Agencies
Friday, May 22, 2009
Is HP set to layoff 6,400 employees in 2010?
US computer giant Hewlett-Packard reported a 17-per cent fall in quarterly net profit and said it plans to cut two per cent of its workforce, or nearly 6,400 workers, over the next year.
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
HP said net profit fell to $1.7 billion, or 86 cents per share, in the second quarter of its fiscal year from $2.1 billion, or 87 cents per share, a year ago, in line with the expectations of Wall Street analysts.
The Palo Alto, California-based company, the world's largest manufacturer of personal computers, said revenue was down three per cent in the quarter which ended on April 30 to $27.4 billion.
Chief financial officer Cathy Lesjak announced the planned layoffs in a conference call with analysts after the release of the results.
“We will be taking some targeted action to structurally change and improve the effectiveness of our product businesses,” she said.
“These actions will result in the elimination of approximately two per cent of the HP workforce as we further streamline and simplify our organization and supply chain. These actions will be implemented over the next 12 months.”
The only bright spot for HP in the quarter was in its services business, which notched up an operating profit of $1.17 billion in the quarter due to its purchase last year of EDS. “Our services business continued to deliver strong profitability with an increased deal pipeline and the EDS integration tracking ahead of schedule,” said HP chairman and chief executive Mark Hurd.
HP said revenue from its enterprise storage and servers division fell 28 per cent to $3.5 billion while software revenue declined 15 per cent to $880 million. Computer shipments were flat in a “challenging environment” and the division saw revenue fall 19 per cent to $8.2 billion. Revenue from laptop computers was down 13 per cent while desktop computer revenue fell 24 per cent.
Operating profit for the division fell to $374 million from $544 million a year ago. The imaging and printing group saw revenue decline by 23 per cent to $5.9 billion and operating profit fall to $1.1 billion from $1.2 billion a year earlier.
HP said revenue grew nine per cent in the Americas to $12.1 billion and declined by 11 per cent in Europe, the Middle East and Africa to $10.6 billion. Revenue fell 10 per cent in Asia Pacific to $4.7 billion.
HP said it expects third quarter revenue to be flat and full fiscal year revenue to decline by four per cent to five per cent with full-year earnings per share of between $3.76 to $3.88.
Agencies
Monday, May 18, 2009
Will Seagate layoff 1100 jobs?
Seagate Technology said that it plans to cut about 1,100 jobs from its workforce in a move the computer storage maker expects will reduce costs by about $125 million a year.
The job-cutting move, which affects about 2.5 percent of Seagate's workforce, is aimed at helping the company stay on track toward being cash-flow and earnings positive within its fiscal year 2010. It builds on a 10-percent reduction in jobs announced in January.
As a result of the new plan, Seagate, which competes with storage company Western Digital Corp, expects to take restructuring charges of about $72 million, primarily in the quarter ending in June.
Analysts said Seagate needs to make additional cost cuts like this, which may help it address debt obligations.
"The move will help the company avoid tripping its net leverage ratio debt covenant that was already renegotiated earlier this year," said JP Morgan analyst Mark Moskowitz, in a note to clients. "Seagate shares still face hurdles that could test investors' resolve in the slower summer months."
Seagate has been no stranger to restructuring in recent months as it deals with slow sales in the personal computer industry, which most others has seen demand shrink during the global economic downturn.
Back in December it said it would halt some operations during the holiday season and cut some 5 percent of its workforce.
About one month ago, on the same day that it reported disappointing quarterly gross margins, it eliminated its dividend.
The elimination of the quarterly dividend is expected to trim costs by about $60 million annually, the company said.
In January it replaced Chief Executive Bill Watkins, and Chief Operating Officer David Wickersham resigned. Chairman Stephen Luczo, who relinquished the CEO role to Watkins in 2004, has returned to the position.
Agencies
The job-cutting move, which affects about 2.5 percent of Seagate's workforce, is aimed at helping the company stay on track toward being cash-flow and earnings positive within its fiscal year 2010. It builds on a 10-percent reduction in jobs announced in January.
As a result of the new plan, Seagate, which competes with storage company Western Digital Corp, expects to take restructuring charges of about $72 million, primarily in the quarter ending in June.
Analysts said Seagate needs to make additional cost cuts like this, which may help it address debt obligations.
"The move will help the company avoid tripping its net leverage ratio debt covenant that was already renegotiated earlier this year," said JP Morgan analyst Mark Moskowitz, in a note to clients. "Seagate shares still face hurdles that could test investors' resolve in the slower summer months."
Seagate has been no stranger to restructuring in recent months as it deals with slow sales in the personal computer industry, which most others has seen demand shrink during the global economic downturn.
Back in December it said it would halt some operations during the holiday season and cut some 5 percent of its workforce.
About one month ago, on the same day that it reported disappointing quarterly gross margins, it eliminated its dividend.
The elimination of the quarterly dividend is expected to trim costs by about $60 million annually, the company said.
In January it replaced Chief Executive Bill Watkins, and Chief Operating Officer David Wickersham resigned. Chairman Stephen Luczo, who relinquished the CEO role to Watkins in 2004, has returned to the position.
Agencies
Saturday, May 9, 2009
Is US tightening of H-1B visa rules for Indians justified?
Indian professionals aspiring to go to the US to work may now find it more difficult to get H-1B visas with Washington deciding on stricter screening following complaints of misuse of the facility.
Acting on the complaints, the US has adopted “fraud prevention tactics” to prevent such misuse. “We’ve added fraud prevention tactics. We’ve begun looking at other more standard fraud investigatory techniques that weren’t being used in H-1B that we are now going to employ. It includes things like sites visits and worksites visits,” Janet Napolitano, secretary of the Department of Homeland Security, said.
Testifying before the Senate Committee on Judiciary, Napolitano said over the last month, the Department has added some tools to rigorously enforce H-1B visa programme and prevent fraud.
Napolitano comment’s on H-1B visa programme came in response to a question from senator Richard Durbin, who along with senator Chuck Grassley, has introduced a legislation in the US Senate in this regard. Senator Durbin alleged that most of the H-1B visa fraud is being done by companies in India.
“The most outrageous abuses when it comes to H-1B visas include the fact that some major companies overseas, primarily in India, have successfully managed to marshal many of these H-1B visas and make a profit off them,” Durbin said.
“They charged the citizens of India coming to the US on H-1B visas and after three to six years, when they are to return to India, they charge to place them in companies which will then compete with the US,” he alleged.
Agencies
Acting on the complaints, the US has adopted “fraud prevention tactics” to prevent such misuse. “We’ve added fraud prevention tactics. We’ve begun looking at other more standard fraud investigatory techniques that weren’t being used in H-1B that we are now going to employ. It includes things like sites visits and worksites visits,” Janet Napolitano, secretary of the Department of Homeland Security, said.
Testifying before the Senate Committee on Judiciary, Napolitano said over the last month, the Department has added some tools to rigorously enforce H-1B visa programme and prevent fraud.
Napolitano comment’s on H-1B visa programme came in response to a question from senator Richard Durbin, who along with senator Chuck Grassley, has introduced a legislation in the US Senate in this regard. Senator Durbin alleged that most of the H-1B visa fraud is being done by companies in India.
“The most outrageous abuses when it comes to H-1B visas include the fact that some major companies overseas, primarily in India, have successfully managed to marshal many of these H-1B visas and make a profit off them,” Durbin said.
“They charged the citizens of India coming to the US on H-1B visas and after three to six years, when they are to return to India, they charge to place them in companies which will then compete with the US,” he alleged.
Agencies
Wednesday, May 6, 2009
Has US companies cut 4,91,000 jobs during April 2009?
In a possible sign that the worst may be over for the country's labour market, a new report shows that American private companies slashed as many as 4,91,000 jobs in April, much less than expected.
The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".
Experts were expecting that the decline would be more than 6,00,000.
"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.
According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.
Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.
"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.
Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.
Further, small-size entities, which have less than 50 workers, saw a fall of 1,83,000 in employment.
"The employment declines among medium-and small-size businesses
indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.
The report sponsored by ADP is maintained by Macroeconomic Advisers, LLC and it is a measure of employment derived from an anonymous subset of roughly 5,00,000 US business clients.
In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.
Agencies
The latest ADP National Employment Report showed that non-farm private employment fell 4,91,000 from "March to April 2009 on a seasonally adjusted basis".
Experts were expecting that the decline would be more than 6,00,000.
"The estimated change of employment from February to March was revised by 34,000, from a decline of 742,000 to a decline of 7,08,000," ADP said in a statement on Wednesday.
According to the report, private employment in the service-providing sector plunged by 2,29,000 in April. During the same period, jobs in the goods-producing segment decreased 2,62,000 while that in the manufacturing sector dropped by 1,59,000.
Last month, construction employment dropped 95,000, which was also the "smallest" in nearly six months.
"This was its twenty-seventh consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,261,000. April's decline, however, was the smallest since November of 2008," the statement said.
Large businesses, defined as those with 500 or more workers, witnessed their employment decline by 77,000 whereas medium-size businesses -- having between 50 and 499 workers -- skid by 2,31,000.
Further, small-size entities, which have less than 50 workers, saw a fall of 1,83,000 in employment.
"The employment declines among medium-and small-size businesses
indicate that the recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy," it noted.
The report sponsored by ADP is maintained by Macroeconomic Advisers, LLC and it is a measure of employment derived from an anonymous subset of roughly 5,00,000 US business clients.
In the last six months of 2008, the subset represented nearly 4,00,000 US business clients representing nearly 24 million American employees working in all private industrial sectors, ADP said.
Agencies
Saturday, April 25, 2009
Will Yahoo layoff 700 more jobs?
Yahoo Inc said it would cut 5 per cent of its global workforce (nearly 700 jobs) and reported quarterly results that showed progress towards controlling costs, sending shares higher in an after-hours relief rally.
The Internet company said economic conditions remained challenging, as revenue on Yahoo Websites from both display ads and search ads fell during the first quarter.
But the decline in revenue was offset by better cost controls, as new Chief Executive Carol Bartz seeks to revive Yahoo's fortunes. "People were really looking at the profit structure of the business and for things not to be falling apart," said Kaufman Brothers analyst Jason Avilio.
Yahoo said last October it would cut about one-tenth of its workforce, or about 1,600 jobs. The company finished 2008 with roughly 13,600 employees and said it would take severance charges from the new round of layoffs during the second quarter.
The company also announced in an internal memo to employees on Tuesday that it planned to implement a mandatory shutdown of operations during the holiday week of December 25, 2009 through January 1, 2010.
Yahoo said its operating cash flow, excluding certain items, was $409 million in the first quarter, at the high end of the $365 million to $415 million range it forecast in January.
Yahoo shares were up 54 cents at $14.92 in after-hours trading on Tuesday. The company's stock is up roughly 9 per cent from its Monday close of $13.66.
Yahoo's financial report comes as speculation has mounted that the firm has restarted discussions with software giant Microsoft Corp about an Internet search partnership, following last year's failed merger negotiations.
Bartz, who replaced Yahoo co-founder Jerry Yang in the top job in January, declined to comment on anything related to Microsoft during the conference call on Tuesday.
But she reiterated her belief that search is a very valuable part of Yahoo's business.
"I'm well-versed enough in the search business at Yahoo to say it's absolutely critical to Yahoo," Bartz said in response to a question regarding whether she is now familiar enough with the business to respond to an offer for search.
In the first full quarter under Bartz's leadership, Yahoo generated revenue of $1.58 billion, down 13 per cent from the year-ago period. Exclud
ing traffic acquisition costs (TAC), Yahoo's revenue was $1.16 billion, compared with the average analyst expectation of $1.2 billion, according to Reuters Estimates.
The Sunnyvale, California-based company reported a net profit in the first quarter of $118 million, or 8 cents a share -- down from $537 million, or 37 cents a share, a year earlier. Wall Street analysts, on average, had forecast earnings at 8 cents a share, according to Reuters Estimates.
While revenues were "a bit light," Jefferies & Co analyst Youssef Squali said in an email that Yahoo's overall results, particularly on the bottom line, were not bad given the environment.
Yahoo said that revenue from display ads on its owned and operated websites slid 13 per cent year-over-year in the first quarter, with revenue from automotive advertisers down "substantially" and spending by retail advertisers "softened" compared to the year ago period.
Revenue from search-based ads on Yahoo sites were down 3 per cent. And Yahoo said that advertisers were spending less money to bid for the individual keywords that their ads appear alongside, echoing a theme present in results last week from Google Inc, the No.1 US Internet search company.
Yahoo, like Google, stressed the importance of keeping costs in line amid the difficult economy. The new round of job cuts come about two months after Bartz announced a reorganization of Yahoo's internal management structure.
The layoffs, said Bartz, are a "natural outgrowth" of the reorganization, which will allow Yahoo to streamline its operations and eliminate duplication of efforts.
The Internet company said it would also continue to implement unspecified "non-headcount cost reductions," so it can increase its ability to make strategic investments and target hiring in its core operations
"It's crucial that management adjusts the cost structure to the new growth (or lack thereof) realities; so margin protection is paramount to Yahoo right now," said Jefferies analyst Squali. "We think there is potential outperformance on margins."
Chief Financial Officer Blake Jorgensen told Reuters there were "still very dark clouds on the horizon" for the economy.
"I'll try to resist calling the bottom in any way," he said in a telephone interview.
Yahoo projected that sales in the current quarter would range between $1.425 billion and $1.625 billion.
Agencies
The Internet company said economic conditions remained challenging, as revenue on Yahoo Websites from both display ads and search ads fell during the first quarter.
But the decline in revenue was offset by better cost controls, as new Chief Executive Carol Bartz seeks to revive Yahoo's fortunes. "People were really looking at the profit structure of the business and for things not to be falling apart," said Kaufman Brothers analyst Jason Avilio.
Yahoo said last October it would cut about one-tenth of its workforce, or about 1,600 jobs. The company finished 2008 with roughly 13,600 employees and said it would take severance charges from the new round of layoffs during the second quarter.
The company also announced in an internal memo to employees on Tuesday that it planned to implement a mandatory shutdown of operations during the holiday week of December 25, 2009 through January 1, 2010.
Yahoo said its operating cash flow, excluding certain items, was $409 million in the first quarter, at the high end of the $365 million to $415 million range it forecast in January.
Yahoo shares were up 54 cents at $14.92 in after-hours trading on Tuesday. The company's stock is up roughly 9 per cent from its Monday close of $13.66.
Yahoo's financial report comes as speculation has mounted that the firm has restarted discussions with software giant Microsoft Corp about an Internet search partnership, following last year's failed merger negotiations.
Bartz, who replaced Yahoo co-founder Jerry Yang in the top job in January, declined to comment on anything related to Microsoft during the conference call on Tuesday.
But she reiterated her belief that search is a very valuable part of Yahoo's business.
"I'm well-versed enough in the search business at Yahoo to say it's absolutely critical to Yahoo," Bartz said in response to a question regarding whether she is now familiar enough with the business to respond to an offer for search.
In the first full quarter under Bartz's leadership, Yahoo generated revenue of $1.58 billion, down 13 per cent from the year-ago period. Exclud
ing traffic acquisition costs (TAC), Yahoo's revenue was $1.16 billion, compared with the average analyst expectation of $1.2 billion, according to Reuters Estimates.
The Sunnyvale, California-based company reported a net profit in the first quarter of $118 million, or 8 cents a share -- down from $537 million, or 37 cents a share, a year earlier. Wall Street analysts, on average, had forecast earnings at 8 cents a share, according to Reuters Estimates.
While revenues were "a bit light," Jefferies & Co analyst Youssef Squali said in an email that Yahoo's overall results, particularly on the bottom line, were not bad given the environment.
Yahoo said that revenue from display ads on its owned and operated websites slid 13 per cent year-over-year in the first quarter, with revenue from automotive advertisers down "substantially" and spending by retail advertisers "softened" compared to the year ago period.
Revenue from search-based ads on Yahoo sites were down 3 per cent. And Yahoo said that advertisers were spending less money to bid for the individual keywords that their ads appear alongside, echoing a theme present in results last week from Google Inc, the No.1 US Internet search company.
Yahoo, like Google, stressed the importance of keeping costs in line amid the difficult economy. The new round of job cuts come about two months after Bartz announced a reorganization of Yahoo's internal management structure.
The layoffs, said Bartz, are a "natural outgrowth" of the reorganization, which will allow Yahoo to streamline its operations and eliminate duplication of efforts.
The Internet company said it would also continue to implement unspecified "non-headcount cost reductions," so it can increase its ability to make strategic investments and target hiring in its core operations
"It's crucial that management adjusts the cost structure to the new growth (or lack thereof) realities; so margin protection is paramount to Yahoo right now," said Jefferies analyst Squali. "We think there is potential outperformance on margins."
Chief Financial Officer Blake Jorgensen told Reuters there were "still very dark clouds on the horizon" for the economy.
"I'll try to resist calling the bottom in any way," he said in a telephone interview.
Yahoo projected that sales in the current quarter would range between $1.425 billion and $1.625 billion.
Agencies
Sunday, April 19, 2009
Will Sony Ericsson layoff additional 2,000 jobs?
Sony Ericsson Mobile Communications Ltd, the mobile-phone venture of Sony Corp and Ericsson AB, said it will cut an additional 2,000 jobs to revive profit amid falling demand.
The measure will reduce costs by 400 million euros ($524 million) annually by mid-2010 and cost 200 million euros to implement, Sony Ericsson said in a statement. It follows a plan announced in July to slash 2,000 positions to save 300 million euros, which has been completed, and another unveiled in January to reduce costs by 180 million euros by the end of 2009.
Sony Ericsson reported its third straight quarterly loss today after it slipped to fourth place in global handset shipments at the end of last year. The London-based company has suffered as consumers snapped up touchscreen models from competitors such as Apple Inc with its iPhone.
“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand” Chief Executive Officer Dick Komiyama said in the statement. “We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible.”
Third loss
The first-quarter net loss was 293 million euros, compared with a profit of 133 million euros a year earlier, the company said. Sales fell 36 per cent to 1.74 billion euros.
Analysts in an SME Direkt survey predicted a 293 million- euro net loss on sales of 1.68 billion euros, based on 28 estimates.
Sony Ericsson’s gross margin, or sales minus manufacturing costs, narrowed to 8.4 per cent in the quarter from 29.2 per cent a year earlier.
Restructuring charges for the first two cost-cutting programmes will stay within the 300 million-euro sum set aside in July to pay for the measures, the company said.
The venture shipped 14.5 million phones, a 35 per cent drop from a year earlier. The company estimated its market share fell two percentage poi
nts to 6 per cent from the fourth quarter. The average selling price of its handsets fell to 120 euros from 121 euros in the fourth quarter as well as the year-earlier period.
Sony Ericsson predicts global industry handset unit sales will shrink at least 10 per cent this year from the 1.19 billion sold in 2008. Nokia Oyj, the world’s largest mobile-phone maker, yesterday reiterated its forecast of about a 10 per cent drop in the global handset market.
Nokia reiterated its margin targets for the year after announcing job cut programmes that will cover about 3,000 employees. The Espoo, Finland-based company’s first-quarter net income declined 90 per cent to 122 million euros.
Agencies
The measure will reduce costs by 400 million euros ($524 million) annually by mid-2010 and cost 200 million euros to implement, Sony Ericsson said in a statement. It follows a plan announced in July to slash 2,000 positions to save 300 million euros, which has been completed, and another unveiled in January to reduce costs by 180 million euros by the end of 2009.
Sony Ericsson reported its third straight quarterly loss today after it slipped to fourth place in global handset shipments at the end of last year. The London-based company has suffered as consumers snapped up touchscreen models from competitors such as Apple Inc with its iPhone.
“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand” Chief Executive Officer Dick Komiyama said in the statement. “We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible.”
Third loss
The first-quarter net loss was 293 million euros, compared with a profit of 133 million euros a year earlier, the company said. Sales fell 36 per cent to 1.74 billion euros.
Analysts in an SME Direkt survey predicted a 293 million- euro net loss on sales of 1.68 billion euros, based on 28 estimates.
Sony Ericsson’s gross margin, or sales minus manufacturing costs, narrowed to 8.4 per cent in the quarter from 29.2 per cent a year earlier.
Restructuring charges for the first two cost-cutting programmes will stay within the 300 million-euro sum set aside in July to pay for the measures, the company said.
The venture shipped 14.5 million phones, a 35 per cent drop from a year earlier. The company estimated its market share fell two percentage poi
nts to 6 per cent from the fourth quarter. The average selling price of its handsets fell to 120 euros from 121 euros in the fourth quarter as well as the year-earlier period.
Sony Ericsson predicts global industry handset unit sales will shrink at least 10 per cent this year from the 1.19 billion sold in 2008. Nokia Oyj, the world’s largest mobile-phone maker, yesterday reiterated its forecast of about a 10 per cent drop in the global handset market.
Nokia reiterated its margin targets for the year after announcing job cut programmes that will cover about 3,000 employees. The Espoo, Finland-based company’s first-quarter net income declined 90 per cent to 122 million euros.
Agencies
Wednesday, March 18, 2009
Is Nokia set to cut 1,700 jobs globally?
Nokia Oyj, the world’s biggest maker of mobile phones, plans to cut 1,700 jobs globally by scaling back sales, marketing and some technology functions to adapt to falling consumer demand.
The company, based in Espoo, Finland, will start consultations with unions regarding the cutbacks, which are part of previously announced plans to adjust to a shrinking market, Nokia said in a statement today. Of the cuts, about 700 will be in Finland, spokeswoman Eija-Riitta Huovinen said by telephone.
“Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company,” Nokia said in the release.
In January, Nokia said that it would slash its dividend for the first time in seven years and forecast a 10 percent slide in industry sales as the global crisis saps consumer demand. Nokia sold 15 percent fewer phones in the fourth quarter than a year earlier and cut its industry sales forecast for a third time since November.
Agencies
The company, based in Espoo, Finland, will start consultations with unions regarding the cutbacks, which are part of previously announced plans to adjust to a shrinking market, Nokia said in a statement today. Of the cuts, about 700 will be in Finland, spokeswoman Eija-Riitta Huovinen said by telephone.
“Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company,” Nokia said in the release.
In January, Nokia said that it would slash its dividend for the first time in seven years and forecast a 10 percent slide in industry sales as the global crisis saps consumer demand. Nokia sold 15 percent fewer phones in the fourth quarter than a year earlier and cut its industry sales forecast for a third time since November.
Agencies
Sunday, March 15, 2009
Will Creative Technology layoff 300 jobs?
Struggling Singaporean digital entertainment products maker Creative Technology is to cut 300 jobs globally, mostly in Europe and the United States, the company said.
It said in a statement the company said that there would be a restructuring charge of 10 million dollars for severance payments and headcount cost reductions in the current third quarter ending March.
The Singapore-listed firm has struggled to make inroads against Apple's iconic iPod in the MP3 or digital music player market despite pumping in massive investments.
In the second quarter ended December 2008, Creative Technology racked up a net loss of 32.4 million dollars compared with a profit of 7.6 million dollars for the same period in the previous financial year.
Agencies
It said in a statement the company said that there would be a restructuring charge of 10 million dollars for severance payments and headcount cost reductions in the current third quarter ending March.
The Singapore-listed firm has struggled to make inroads against Apple's iconic iPod in the MP3 or digital music player market despite pumping in massive investments.
In the second quarter ended December 2008, Creative Technology racked up a net loss of 32.4 million dollars compared with a profit of 7.6 million dollars for the same period in the previous financial year.
Agencies
Sunday, February 15, 2009
Oil companies cut ATF prices in India
Public sector oil companies on Sunday slashed jet fuel or ATF prices by 3.7 per cent, the tenth reduction since September.
Aviation Turbine Fuel (ATF) prices in Delhi were slashed to Rs 29,158 per kilolitre, effective midnight tonight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.
The fuel used by airlines till Sunday was priced at Rs 30,288 per kilolitre. After Sunday's Rs 1,130 a kilolitre reduction, jet fuel is priced at early 2005 levels.
For the 3.3 per cent increase in rates on January 16, jet fuel prices have been reduced for the tenth time on Sunday since September 1, 2008, when international crude oil prices started to decline.
In Mumbai, home to the nation's busiest airport, ATF rates were down by Rs 1,191 per kl to Rs 29,985 per kl on Sunday.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of USD 147 a barrel. But they have since been slashed every month till October and twice in November.
State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.
Agencies
Aviation Turbine Fuel (ATF) prices in Delhi were slashed to Rs 29,158 per kilolitre, effective midnight tonight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.
The fuel used by airlines till Sunday was priced at Rs 30,288 per kilolitre. After Sunday's Rs 1,130 a kilolitre reduction, jet fuel is priced at early 2005 levels.
For the 3.3 per cent increase in rates on January 16, jet fuel prices have been reduced for the tenth time on Sunday since September 1, 2008, when international crude oil prices started to decline.
In Mumbai, home to the nation's busiest airport, ATF rates were down by Rs 1,191 per kl to Rs 29,985 per kl on Sunday.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of USD 147 a barrel. But they have since been slashed every month till October and twice in November.
State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.
Agencies
Tuesday, February 10, 2009
GM to cut 10,00 salaried jobs
General Motors says it's cutting 10,000 salaried jobs, blaming the need to restructure the company amid the continued drop in new vehicle sales.
The Detroit-based automaker says it will reduce its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM's 29,500 salaried US jobs are expected to be eliminated.
The job cuts are part of the restructuring plan GM submitted to Congress late last year. Most of the cuts are expected to take place by May 1.
GM says the cuts will vary by global regions depending on staffing levels and market conditions.
GM also is cutting the pay of most of its salaried U.S. workers beginning May 1 and continuing at least through the end of the year.
Agencies
The Detroit-based automaker says it will reduce its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM's 29,500 salaried US jobs are expected to be eliminated.
The job cuts are part of the restructuring plan GM submitted to Congress late last year. Most of the cuts are expected to take place by May 1.
GM says the cuts will vary by global regions depending on staffing levels and market conditions.
GM also is cutting the pay of most of its salaried U.S. workers beginning May 1 and continuing at least through the end of the year.
Agencies
Wednesday, February 4, 2009
US private cos layoff 5,22,000 jobs in January
Private sector companies in the US slashed a stunning 5,22,000 jobs in January, in yet another indication of the worsening labour market situation.
The latest ADP (Automatic Data Processing Inc) report showed that non-farm private employment on a seasonally adjusted basis, declined 5,22,000 in January 2009.
The ADP National Employment Report is based on anonymous payroll data and is maintained by Macroeconomic Advisers LLC.
In a statement today, ADP said the report for January estimates "non-farm private employment in the service-providing sector fell by 2,79,000".
While the goods-producing sector shed 2,43,000 jobs, the manufacturing industry saw the loss of 1,60,000 jobs last month.
According to the report, large businesses which are defined as those with 500 or more workers, slashed 92,000 jobs. Further, medium-size and small-size entities reduced their workforce by 2,55,000 and 1,75,000 employees, respectively.
Medium-size companies are those having 50 to 499 people whereas small-size firms are described as those with less than 50 workers.
Agencies
The latest ADP (Automatic Data Processing Inc) report showed that non-farm private employment on a seasonally adjusted basis, declined 5,22,000 in January 2009.
The ADP National Employment Report is based on anonymous payroll data and is maintained by Macroeconomic Advisers LLC.
In a statement today, ADP said the report for January estimates "non-farm private employment in the service-providing sector fell by 2,79,000".
While the goods-producing sector shed 2,43,000 jobs, the manufacturing industry saw the loss of 1,60,000 jobs last month.
According to the report, large businesses which are defined as those with 500 or more workers, slashed 92,000 jobs. Further, medium-size and small-size entities reduced their workforce by 2,55,000 and 1,75,000 employees, respectively.
Medium-size companies are those having 50 to 499 people whereas small-size firms are described as those with less than 50 workers.
Agencies
Friday, January 30, 2009
Starbucks & AOL join in cutting jobs
Joining major companies cutting jobs as recession deepens, popular coffee giant Starbucks and internet services major America Online plans to lay off about 6,700 employees in the coming months. Starbus, which has reported a 69% drop in profit for the first fiscal quarter, has announced slashing its headcount by 6,000 and closing of 300 stores.
AOL chief executive Randy Falco sent an internal memo to employees about plans to cut jobs — 7,000 or 10% of its workforce.
Electronics parts maker Jabil Circuit says it is cutting 3,000 jobs mostly overseas, or nearly 4% of its work force, because of the global economic turmoil.
St Petersburg, Florida-based Jabil Circuit said about 10 of its global plant sites will be affected, and about 10% of the cuts will take place in the United States. It currently has 85,000 workers.
The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.
About 3,000 Thai workers have reportedly lost their employment in the first month of 2009, while more than 60,000 others are at risk of losing their jobs soon, according to the ministry of labour.
Since the New Year, 50 private firms have closed, causing 2,863 employees to lose their jobs. Another 102 companies are likely to be impacted by the economic crisis, with 68,122 employees’ jobs to be affected. Of this number, 23,296 workers are likely to be laid off, while another 44,826 may be asked to reduce their working hours, director-general of the department of labour protection and welfare Amporn Nitisiri said in Bangkok.
In Malaysia more than 10,000 have lost their jobs since January 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan has said.
Agencies
AOL chief executive Randy Falco sent an internal memo to employees about plans to cut jobs — 7,000 or 10% of its workforce.
Electronics parts maker Jabil Circuit says it is cutting 3,000 jobs mostly overseas, or nearly 4% of its work force, because of the global economic turmoil.
St Petersburg, Florida-based Jabil Circuit said about 10 of its global plant sites will be affected, and about 10% of the cuts will take place in the United States. It currently has 85,000 workers.
The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.
About 3,000 Thai workers have reportedly lost their employment in the first month of 2009, while more than 60,000 others are at risk of losing their jobs soon, according to the ministry of labour.
Since the New Year, 50 private firms have closed, causing 2,863 employees to lose their jobs. Another 102 companies are likely to be impacted by the economic crisis, with 68,122 employees’ jobs to be affected. Of this number, 23,296 workers are likely to be laid off, while another 44,826 may be asked to reduce their working hours, director-general of the department of labour protection and welfare Amporn Nitisiri said in Bangkok.
In Malaysia more than 10,000 have lost their jobs since January 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan has said.
Agencies
Saturday, January 24, 2009
Harley to cut 1,100 jobs as profit falls
Harley-Davidson Inc said Friday it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.
The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 per cent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.
The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pennsylvania, plant and close its distribution facility in Franklin, Wisconsin, whose duties will be handled by a third party.
Harley also said it will end its domestic transportation fleet operation.
The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 per cent of the job cuts will occur this year and the rest in 2010.
The cuts will result in one-time charges of $110 million to $140 million over 2009 and 2010, Harley said. Once they are finished, the cuts will save between $60 million and $70 million per year.
Harley has been stung by the rapid downturn in motorcycle demand. The economic recession has prompted many consumers to put off purchases of its high-end bikes, while the credit crunch has kept some would-be customers from obtaining financing.
Meanwhile, the company remains in the midst of a shake-up among top management. Chief Executive Jim Ziemer said last month he would retire in 2009, and the company remains in the process of finding a successor. Sy Naqvi, the head of Harley's troubled financial-services arm, resigned earlier this month. Chief Financial Officer Tom Bergmann has taken on Naqvi's old duties until a replacement is found.
Harley said worldwide retail sales fell 13.1 per cent in the fourth quarter, with sales in the U.S. _ its biggest market _ falling nearly 20 per cent. International sales crept higher, though, and the overall heavyweight motorcycle sales fell 25.5 per cent in the same period, Harley said.
For the full year, worldwide retail sales fell 7.1 per cent. Harley said it is slashing new motorcycle shipments in 2009 to between 264,000 and 273,000 to cope with the down market. That would be a drop of 10 per cent to 13 per cent from a year earlier.
In 2008, Harley said it shipped 303,479 new motorcycles, down 8 per cent from 330,619 new motorcycles in 2007.
Agencies
The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 per cent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.
The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pennsylvania, plant and close its distribution facility in Franklin, Wisconsin, whose duties will be handled by a third party.
Harley also said it will end its domestic transportation fleet operation.
The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 per cent of the job cuts will occur this year and the rest in 2010.
The cuts will result in one-time charges of $110 million to $140 million over 2009 and 2010, Harley said. Once they are finished, the cuts will save between $60 million and $70 million per year.
Harley has been stung by the rapid downturn in motorcycle demand. The economic recession has prompted many consumers to put off purchases of its high-end bikes, while the credit crunch has kept some would-be customers from obtaining financing.
Meanwhile, the company remains in the midst of a shake-up among top management. Chief Executive Jim Ziemer said last month he would retire in 2009, and the company remains in the process of finding a successor. Sy Naqvi, the head of Harley's troubled financial-services arm, resigned earlier this month. Chief Financial Officer Tom Bergmann has taken on Naqvi's old duties until a replacement is found.
Harley said worldwide retail sales fell 13.1 per cent in the fourth quarter, with sales in the U.S. _ its biggest market _ falling nearly 20 per cent. International sales crept higher, though, and the overall heavyweight motorcycle sales fell 25.5 per cent in the same period, Harley said.
For the full year, worldwide retail sales fell 7.1 per cent. Harley said it is slashing new motorcycle shipments in 2009 to between 264,000 and 273,000 to cope with the down market. That would be a drop of 10 per cent to 13 per cent from a year earlier.
In 2008, Harley said it shipped 303,479 new motorcycles, down 8 per cent from 330,619 new motorcycles in 2007.
Agencies
Friday, January 23, 2009
Intel to shut sites in Malaysia, Philippines; To layoff 6,000 jobs
Intel Corp said on Wednesday it would close manufacturing plants in Malaysia and the Philippines, as well as its only remaining factory in Silicon Valley, cutting as many as 6,000 jobs.
The announcement comes a day after the world's largest maker of microprocessors used in personal computers slashed prices on a number of its chips and a week after it reported a decline in fourth-quarter revenue.
Intel said it would close two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines.
It will also halt production at a wafer fabrication facility in Hillsboro, Oregon, as well as its Santa Clara, California plant -- a factory connected to its headquarters and the only one left in Silicon Valley.
The actions will result in a reduction of 5,000 to 6,000 jobs, Intel said. It ended 2008 with around 84,000 employees.
Not all cuts at the affected plants will lead to job losses and some workers will be offered positions at other facilities, it said, adding that the restructuring will take place between now and the end of 2009.
"It's not a surprise given that their first quarter is probably going to be challenging, and they're trying to do what they can to cut costs in places that make sense," said Taunya Sell, an analyst at Ragen Mackenzie, a division of Wells Fargo.
Intel said it was not halting production at any of its more advanced factories.
Intel shares rose about 1 percent to $13.40 in after-hours trading, after rising 3.11 percent to close at $13.26 on the Nasdaq stock market.
Last week, Intel said its fourth-quarter revenue fell 23 percent from the year-ago period and profit tumbled 90 percent. It also held back on giving detailed quarterly forecasts, citing economic uncertainty.
Analysts have been wary about Intel's outlook for the year as chip sales slide. PC makers and other technology companies have been trimming inventory and cutting back on purchases.
Intel also faces competition from new, cheaper chips made by Advanced Micro Devices Inc (AMD.N).
On Tuesday, Intel said it was lowering prices on some of its processors, including price cuts of up to 40 percent on some of its higher-powered, faster quad-core chips.
AMD said earlier this month that it expected to post additional restructuring charges for fiscal 2008 and 2009.
Agencies
The announcement comes a day after the world's largest maker of microprocessors used in personal computers slashed prices on a number of its chips and a week after it reported a decline in fourth-quarter revenue.
Intel said it would close two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines.
It will also halt production at a wafer fabrication facility in Hillsboro, Oregon, as well as its Santa Clara, California plant -- a factory connected to its headquarters and the only one left in Silicon Valley.
The actions will result in a reduction of 5,000 to 6,000 jobs, Intel said. It ended 2008 with around 84,000 employees.
Not all cuts at the affected plants will lead to job losses and some workers will be offered positions at other facilities, it said, adding that the restructuring will take place between now and the end of 2009.
"It's not a surprise given that their first quarter is probably going to be challenging, and they're trying to do what they can to cut costs in places that make sense," said Taunya Sell, an analyst at Ragen Mackenzie, a division of Wells Fargo.
Intel said it was not halting production at any of its more advanced factories.
Intel shares rose about 1 percent to $13.40 in after-hours trading, after rising 3.11 percent to close at $13.26 on the Nasdaq stock market.
Last week, Intel said its fourth-quarter revenue fell 23 percent from the year-ago period and profit tumbled 90 percent. It also held back on giving detailed quarterly forecasts, citing economic uncertainty.
Analysts have been wary about Intel's outlook for the year as chip sales slide. PC makers and other technology companies have been trimming inventory and cutting back on purchases.
Intel also faces competition from new, cheaper chips made by Advanced Micro Devices Inc (AMD.N).
On Tuesday, Intel said it was lowering prices on some of its processors, including price cuts of up to 40 percent on some of its higher-powered, faster quad-core chips.
AMD said earlier this month that it expected to post additional restructuring charges for fiscal 2008 and 2009.
Agencies
Due to drop in profits, Ericsson to cut 5,000 jobs
Wireless equipment maker LM Ericsson on Wednesday said profits dropped 31 per cent in the fourth quarter, citing restructuring charges and weaker handset sales, and said it would slash 5,000 jobs.
Ericsson said net profit fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
It reported ``a dramatic drop'' in the contribution from its handset unit, Sony Ericsson. The joint venture with Japan's Sony last week said it had swung to a fourth-quarter loss of euro187 million ($243 million).
For the full year 2008, it posted a profit of 11.3 billion kronor, nearly half the 21.8 billion kronor reported for 2007.
Boosted by a weakening krona, Ericsson's sales in the fourth quarter rose 23 per cent to 67 billion kronor, from 54.5 billion kronor a year earlier.
The share soared nearly 11 per cent to 62 kronor in Stockholm stock market opening.
The world's leading maker of mobile broadband infrastructure said it released the fourth-quarter results a week ahead of schedule because it believed they exceeded market expectations.
In a statement, Chief Executive Carl-Henric Svanberg described his company's performance in 2008 as ``solid,'' pointing out the sales and the operating margins, excluding Sony Ericsson. He warned however that the financial downturn makes it ``difficult to more precisely predict to what extent consumer telecom spending will be affected, and how operators will act.''
The company said it needs to widen its savings program as the global financial crisis continues to pressure the industry, tough competition and the technical development. That would mean cutting 5,000 jobs, or more than 6 per cent of its 79,000-strong work force, Ericsson said.
The Stockholm-based company said it expected restructuring charges of 6 billion-7 billion kronor, yielding annual savings of around 10 billion kronor by the second half of the year.
In a webcast news conference with analysts and journalists, Svanberg said ``we're doing this of course because of the uncertainty in the market.''
For 2009, he said it will be a priority for the company to stay close to its customers to understand their behavior and needs, adding his company is also preparing for tougher times to be able to defend its margins and extend its leadership.
Agencies
Ericsson said net profit fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
It reported ``a dramatic drop'' in the contribution from its handset unit, Sony Ericsson. The joint venture with Japan's Sony last week said it had swung to a fourth-quarter loss of euro187 million ($243 million).
For the full year 2008, it posted a profit of 11.3 billion kronor, nearly half the 21.8 billion kronor reported for 2007.
Boosted by a weakening krona, Ericsson's sales in the fourth quarter rose 23 per cent to 67 billion kronor, from 54.5 billion kronor a year earlier.
The share soared nearly 11 per cent to 62 kronor in Stockholm stock market opening.
The world's leading maker of mobile broadband infrastructure said it released the fourth-quarter results a week ahead of schedule because it believed they exceeded market expectations.
In a statement, Chief Executive Carl-Henric Svanberg described his company's performance in 2008 as ``solid,'' pointing out the sales and the operating margins, excluding Sony Ericsson. He warned however that the financial downturn makes it ``difficult to more precisely predict to what extent consumer telecom spending will be affected, and how operators will act.''
The company said it needs to widen its savings program as the global financial crisis continues to pressure the industry, tough competition and the technical development. That would mean cutting 5,000 jobs, or more than 6 per cent of its 79,000-strong work force, Ericsson said.
The Stockholm-based company said it expected restructuring charges of 6 billion-7 billion kronor, yielding annual savings of around 10 billion kronor by the second half of the year.
In a webcast news conference with analysts and journalists, Svanberg said ``we're doing this of course because of the uncertainty in the market.''
For 2009, he said it will be a priority for the company to stay close to its customers to understand their behavior and needs, adding his company is also preparing for tougher times to be able to defend its margins and extend its leadership.
Agencies
Tuesday, January 13, 2009
Seagate sacks CEO and to cut 800 workers
Seagate Technology has replaced its top two executives and said it plans to cut 800 jobs — 10 percent of its US work force — as the hard drive maker endures a bruising slowdown in technology spending.
Its stock fell more than 15 percent. In a surprise move, the Scotts Valley-based company announced that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.
The company also announced that it plans to cut 10 percent of its 8,000 US-based workers. It has 53,000 workers worldwide.
A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track.
Wickersham's jobs will be taken by Robert Whitmore, 46, Seagate's executive vice president and chief technology officer.
Seagate is the world's largest maker of computer hard disk drives, with more than 30 percent of the global market. But its business has suffered badly because of the economic meltdown, which has sapped information-technology budgets and demand for new personal computers and servers that use Seagate's products.
Oversupply in the industry has also hurt Seagate and other disk drive manufacturers. Luczo takes the reigns of a company whose stock price plunged more than 80 percent last year and that warned in December its fiscal second-quarter results would fall far below Wall Street's expectations. Seagate lowered its guidance for sales in the period by about $500 million, cautioning that slumping demand and price pressures were hurting the company more than it had anticipated.
Seagate, which is scheduled to report its full quarterly results Jan. 21, expects revenue of $2.3 billion to $2.6 billion.
Agencies
Its stock fell more than 15 percent. In a surprise move, the Scotts Valley-based company announced that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.
The company also announced that it plans to cut 10 percent of its 8,000 US-based workers. It has 53,000 workers worldwide.
A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track.
Wickersham's jobs will be taken by Robert Whitmore, 46, Seagate's executive vice president and chief technology officer.
Seagate is the world's largest maker of computer hard disk drives, with more than 30 percent of the global market. But its business has suffered badly because of the economic meltdown, which has sapped information-technology budgets and demand for new personal computers and servers that use Seagate's products.
Oversupply in the industry has also hurt Seagate and other disk drive manufacturers. Luczo takes the reigns of a company whose stock price plunged more than 80 percent last year and that warned in December its fiscal second-quarter results would fall far below Wall Street's expectations. Seagate lowered its guidance for sales in the period by about $500 million, cautioning that slumping demand and price pressures were hurting the company more than it had anticipated.
Seagate, which is scheduled to report its full quarterly results Jan. 21, expects revenue of $2.3 billion to $2.6 billion.
Agencies
Saturday, January 10, 2009
As airline demand falls Boeing likely to axe 4,500 jobs
Boeing Co., the world's second-largest airplane maker, is planning to cut about 3 percent of its work force as jetliner demand falls, hurt by the global economic downturn.
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
Thursday, January 8, 2009
Is Dell likely to cut 1,900 jobs from Ireland?
Dell Inc, the world's No. 2 PC maker, will cut about 1,900 of 3,000 jobs at its manufacturing plant in Limerick in the west of Ireland, Dell said on Thursday.
Dell, which ranks itself as Ireland's largest exporter, largest technology company and second largest company overall, said it would move production of computer systems for customers in Europe, the Middle East and Africa to its Polish plant and third-party manufacturing partners.
Dell cut more than 8,000 jobs last year and struggled to regain market share it lost to larger rival Hewlett-Packard Co. It also said last year it would outsource more manufacturing to cut costs.
Agencies
Dell, which ranks itself as Ireland's largest exporter, largest technology company and second largest company overall, said it would move production of computer systems for customers in Europe, the Middle East and Africa to its Polish plant and third-party manufacturing partners.
Dell cut more than 8,000 jobs last year and struggled to regain market share it lost to larger rival Hewlett-Packard Co. It also said last year it would outsource more manufacturing to cut costs.
Agencies
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