Texas strike looms for Lockheed
Lockheed Martin Corp. said yesterday that a 300-member machinists union local at its Abilene, Texas, facility has rejected a final offer and that the workers are working without a contract. The union has authorized a strike but operations have been normal, said a Lockheed spokesman.
The Abilene plant, which has laid off nearly half its employees in the past year, makes parts for the F-16 fighter, the Tomahawk cruise missile and other aerospace programs. Union officials were not available for comment.
McCormick contract awarded
McCormick & Co. Inc. has selected Kinsley Construction to develop and build the spice manufacturer's 370,000-square-foot distribution center in Harford County. Kinsley, which has developed similar facilities for the Gap Inc. and Starbucks Corp., was awarded the project based on previous experience and because its bid came in at less than the $20 million McCormick had projected, McCormick said.
The company declined to reveal the exact amount of Kinsley's bid. Construction of the building in the Riverside Business Park, in Belcamp, will begin later this spring.
PaineWebber announces layoffs
PaineWebber Group Inc. announced yesterday it was laying off 5 percent of its work force in a broad restructuring aimed at coping with the securities industry slump. The cuts, the first since PaineWebber bought rival Kidder Peabody Group Inc. last fall, were expected to save the firm $20 million annually.
PaineWebber's army of 6,400 brokers, the industry's third-largest, was spared from the cutbacks. The cuts of under 500 salaried workers, from traders to investment bankers, were to be completed by the end of the month.
Xerox wins EDS contract
Xerox Corp. received a five-year contract valued at more than $500 million from Electronic Data Systems to operate and manage about 100 of EDS's network printing centers, the companies announced.
The contract -- the largest of its kind, the companies said -- strengthens Xerox's move into outsourcing and digital printing, and away from its traditional copier business, as the source of future revenue growth. The contract represents more than 10 percent of Xerox Business Services's $700 million in annual sales.
Buffett admits error on USAir
Billionaire investor Warren Buffett says in the annual report of Berkshire Hathaway Inc. that the company's 1989 investment in USAir Group Inc. was "a case of sloppy analysis." The company, which Mr. Buffett chairs, last week said it wrote off $268.5 million, or three-quarters, of its $358 million investment due to USAir's failure to reduce costs sufficiently. Suggesting the error may have been the result of "hubris," Mr. Buffett concluded, "Whatever the reason, the mistake was large."