A brief in yesterday's Business section incorrectly reported details of the planned cutbacks at Chrysler Corp.'s Newark, Del., plant. The company and the United Auto Workers are still negotiating, and the impact on employees remains unclear.
The Sun regrets the error.
Chrysler to cut 1,600 Del. workers
Chrysler Corp. said it will fire 1,600 workers and take a $143 million charge against second-quarter earnings to cut one shift at a car plant in Newark, Del.
The unexpected 36-cent-a-share charge will take Chrysler's earnings 32 percent below analysts' estimates.
The company said the charge will cover unemployment benefits, other employee costs and the write-down of equipment and tooling.
Alex. Brown to sell debt securities
Alex. Brown Inc., taking advantage of the lowest interest rates in 16 months, plans to sell $150 million in debt securities.
Alex. Brown filed yesterday with the Securities and Exchange Commission to sell bonds. The firm said it plans to use the proceeds to increase capital, repay short-term debt or invest in subsidiaries.
'Super jumbo' jet put on hold
Boeing Co. and European partners British Aerospace, Aerospatiale of France, CASA of Spain and Daimler-Benz Aerospace of Germany have dropped plans to build a "super jumbo" jet capable of carrying up to 800 passengers because not enough airlines are interested in buying it.
The companies said they will take another look at the idea next year.
Japanese economy 'at a standstill'
Japan's government painted a grimmer picture of the nation's economy today, admitting for the first time that the hesitant recovery appears to have stalled.
"The recent gradual recovery trend appears to be at a standstill," the Economic Planning Agency said in its monthly overview of the economy.
The Japanese economy has been hit by the surge of the yen and sluggish exports.
Westinghouse to close Va. plant
Westinghouse Electric Corp., advancing its determined cost-cutting campaign, said it is closing its magnet wire plant in Abingdon, Va., idling 325 workers, and selling two Pennsylvania plants.
The Pittsburgh-based company has pared about 7,200 jobs through firings and attrition since January 1994.
Orange Co. defaults on bonds
Standard & Poor's said that Orange County defaulted on payment of $600 million in municipal bonds, even though the county's bondholders agreed last week to delay repayment for a year.
The credit rating agency said yesterday that the one-year extension did little to improve prospects that bondholders will be repaid next year.