There seems to be light at the end of the tunnel for the fraud-ridden Satyam Computer Services. After Larsen & Toubro and Essar showed interest in buying whole or part of the Hyderabad-based IT major earlier this week, now IT major iGATE has also joined in.
The Bangalore-based iGATE Corporation, an integrated technology and operations (iTOPS) company, on Friday expressed interest in Satyam and also the board of iGATE has been meeting officials from the newly-formed board of Satyam.
Talking to CXOtoday, Phaneesh Murthy, Chief Executive Officer of iGATE, said, "We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business."
Asked about how he plans to raise the "moolah", he said the company is in touch with PE players who are ready to bring in the money.
iGATE Corp. is a Nasdaq listed company while the other entity, iGATE Global, was listed in National Stock Exchange (NSE) in Mumbai until January 2008, but de-listed from the Indian stock exchanges since.
Recently, the company announced its financial results for the fourth quarter and year ended Dec 31, 2008. Revenue for the year was $218.8 million compared to $201.7 million recorded last year. Net profit for the year increased to $29.3 million compared to $10.5 million last year. The company also added 27 new customers in 2008 showing their might in India.
Tarun Das, CII mentor and director on the Satyam board, has been saying that there were buyout offers from domestic and foreign companies, but without identifying any buyers. "Satyam has enormous fixed assets, human resource and technology assets. So, it is a very strong company. The board has not yet discussed the issue of looking for a buyer... But I have to truthfully say we have been approached by potential buyers," Das said.
Both L&T and Essar already have interest in Satyam. While L&T recently bought a little over 4 percent stake in the company, the engineering major is also into IT business through L&T Infotech. The Ruias-promoted Essar is also into IT-related business through its outsourcing firm, Aegis.
However, it is still not known where iGATE interest is. "We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation set the direction for the company," said Murthy.
i
Saturday, January 24, 2009
Toyota considers layoff of 1,000 full-time jobs
Toyota Motor Corp is considering cutting more than 1,000 full-time jobs in North America and the United Kingdom to cope with faltering global demand, a news report said on Friday.
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
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
Sun Microsystems begins laying off 6,000 across all ranks
Sun had earlier last year announced a series of changes designed to align its cost model with the global economy and accelerate the introduction of compelling open source innovations. As part of that effort Sun announced a global workforce reduction of approximately 5,000 to 6,000 employees, representing approximately 15% to 18% of the Company’s global workforce. Sun can confirm that today layoff notifications were given to approximately 1,300 employees as part of that action. Reductions were made across all levels, including vice presidents and directors.
Sun continues to make choices to align strategically, geographically and operationally with its plan for long term growth. We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities. We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the Company on track for improved financial performance.
Last November, Sun Microsystems said it would be laying off up to 6,000 employees — or around 18 percent of its workforce — after a weak first quarter performance. The cuts are happening today, we’re hearing from a well-placed source, ahead of the company’s second-quarter earnings report next Tuesday.
The server and software company is facing hard times as the market has shifted from closed-source to open-source software technologies, like Linux, and it is facing stiff competition from larger rivals like IBM and HP. To boot, a significant portion of the company’s business is in the financial sector — clients that aren’t in a position to make large purchases these days. Sun has been experimenting with software-as-a-service and other models to help it gain market share, and most prominently purchased open-source database company for MySQL for $1 billion last year. Here’s some more from the strategy announcement it released in November:
As part of this effort, Sun is announcing a global workforce reduction and alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon.
Agencies
Sun continues to make choices to align strategically, geographically and operationally with its plan for long term growth. We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities. We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the Company on track for improved financial performance.
Last November, Sun Microsystems said it would be laying off up to 6,000 employees — or around 18 percent of its workforce — after a weak first quarter performance. The cuts are happening today, we’re hearing from a well-placed source, ahead of the company’s second-quarter earnings report next Tuesday.
The server and software company is facing hard times as the market has shifted from closed-source to open-source software technologies, like Linux, and it is facing stiff competition from larger rivals like IBM and HP. To boot, a significant portion of the company’s business is in the financial sector — clients that aren’t in a position to make large purchases these days. Sun has been experimenting with software-as-a-service and other models to help it gain market share, and most prominently purchased open-source database company for MySQL for $1 billion last year. Here’s some more from the strategy announcement it released in November:
As part of this effort, Sun is announcing a global workforce reduction and alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon.
Agencies
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
Apple logs record $10-bn sales; beats recession
Apple Inc rose as much as 6.8% in Nasdaq trading as holiday demand beat estimates last quarter, helping allay concerns the recession and the absence of Chief Executive Officer Steve Jobs will stymie growth.
Overseas demand for iPod players, Macintosh computers and iPhones offset a US slowdown and pushed quarterly sales past $10 bn for the first time, Apple said. Analysts had expected profit to drop for the first time in five years.
The cachet of Apple’s products helped the company maintain orders and command premium prices, even as the economy shrank, job losses swelled and consumer lending dried up. By updating models and pushing into new countries, Apple was able to shrug off the worst holiday shopping season in four decades. The company also is coping with the temporary loss of its CEO, who is giving up his day-to-day role until June to take a medical leave.
“It shows that people, even in a downturn, like Apple products and want to buy them,” said Andy Hargreaves, an analyst with Pacific Crest Securities in Portland, Oregon. He’s one of 25 analysts tracked by Bloomberg who recommend buying the shares.
First-quarter net income rose 1.5% to $1.61 bn, or $1.78 a share, from $1.58 bn, or $1.76, a year earlier, Apple said. Sales rose 5.8% to $10.2 bn in the period ended December 27. Analysts in a Bloomberg survey estimated profit of $1.39 a share and sales of $9.76 bn.
Analysts had predicted a drop in profit after sales at US retailers fell more than twice as much as forecast in December, the sixth straight month of declines. The US accounts for more than half of Apple’s revenue.
Agencies
Overseas demand for iPod players, Macintosh computers and iPhones offset a US slowdown and pushed quarterly sales past $10 bn for the first time, Apple said. Analysts had expected profit to drop for the first time in five years.
The cachet of Apple’s products helped the company maintain orders and command premium prices, even as the economy shrank, job losses swelled and consumer lending dried up. By updating models and pushing into new countries, Apple was able to shrug off the worst holiday shopping season in four decades. The company also is coping with the temporary loss of its CEO, who is giving up his day-to-day role until June to take a medical leave.
“It shows that people, even in a downturn, like Apple products and want to buy them,” said Andy Hargreaves, an analyst with Pacific Crest Securities in Portland, Oregon. He’s one of 25 analysts tracked by Bloomberg who recommend buying the shares.
First-quarter net income rose 1.5% to $1.61 bn, or $1.78 a share, from $1.58 bn, or $1.76, a year earlier, Apple said. Sales rose 5.8% to $10.2 bn in the period ended December 27. Analysts in a Bloomberg survey estimated profit of $1.39 a share and sales of $9.76 bn.
Analysts had predicted a drop in profit after sales at US retailers fell more than twice as much as forecast in December, the sixth straight month of declines. The US accounts for more than half of Apple’s revenue.
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
Subscribe to:
Posts (Atom)