In The Region
US Airways workers agree on a second round of concessions
US Airways employees represented by the Communications Workers of America reached agreement yesterday with the bankrupt airline for a second round of concessions, saying they feared it would shut down if they didn't acquiesce.
Last week, the pilots' union agreed to $101 million more in annual concessions. Yesterday, the CWA, which represents about 6,300 reservations agents, gate workers and other passenger service employees, agreed to an unspecified amount of cuts. Based on previous cuts, though, the CWA's concessions probably fall in the $15 million range.
Earlier this year, US Airways' 32,000 employees agreed to annual concessions of $840 million a year as part of a plan to cut costs by $1.2 billion a year.
Allegheny Energy land in W.Va. brings $6.9 million
Allegheny Energy Inc. said yesterday that it will sell 3,208 acres of West Virginia land from a non-utility subsidiary to the Canaan Valley Institute, an environmental group, for $6.9 million.
The Hagerstown energy company has been trying to sell assets to improve its liquidity after its credit rating was downgraded in October and a subsidiary defaulted on key credit agreements. Allegheny is in discussion with its banks to borrow $1.3 billion to restructure existing debt.
In February, Allegheny sold 12,000 acres of wetlands to the U.S. Fish and Wildlife Service for $16 million to add to the Canaan Valley National Wildlife Refuge. In January, the company donated 250 acres of land there to the West Virginia Department of Natural Resources.
Aether obtains contract with No. 5 trucking firm
Aether Systems Inc., an Owings Mills mobile communications company, announced yesterday that its trucking division has obtained a major contract with U.S. Xpress Enterprises Inc., the nation's fifth-largest publicly owned carrier.
U.S. Xpress, based in Chattanooga, Tenn., decided to equip its 5,500 trucks with Aether's MobileMax after months of testing it in more than 100 vehicles. The price of the contract was not released.
The system automatically shifts between land-based and satellite communications, allowing a carrier to determine when a driver arrives at or leaves a location, or crosses state lines. It also monitors driver and vehicle performance.
RWD Technologies renames division
RWD Technologies, a Columbia technology consulting and electronic learning company, said yesterday that it has a new president and a new name for one of its divisions.
The company renamed its e-learning and online commerce division to RWD Applied Technology Solutions. It was previously known as Latitude360.
RWD also named the former acting president of the division, Jeffrey W. Wendel, to the position of president of RWD Applied Technology Solutions. Wendel has been with RWD since 1994, the company said.
Elsewhere
3 big airlines' stocks decline over data showing revenue fall
The most recent bad news from the airline industry shocked even the pessimists, sending stock prices sharply lower yesterday and forcing analysts to reconsider widely held assumptions.
Shares of American, Delta, Continental and other major carriers fell after data from an industry group showed that revenue fell 1.5 percent industrywide in November compared with the same month a year ago.
While the decline might appear inconsequential, it caused a stir because it showed the situation worsening just when everyone thought it was improving, however minimally.
Shares of American fell 80 cents, or nearly 11 percent, to close at $6.64 on the New York Stock Exchange. Delta's stock dropped $1.02, or 8 percent, to $11.90 on the NYSE, where shares of Continental fell 75 cents, or 10 percent, to $6.99.
United cuts fares on tickets sold in Dec. for next year
United Airlines, moving to retain passengers while it restructures in bankruptcy, began a sale yesterday on tickets bought by the end of the year.
The fare sale, which applies to most of United's 1,800 daily flights, was accompanied by advertisements in major markets and national newspapers. Travel analysts said the cuts, which other carriers were expected to match, were not drastic but showed United's determination to remain competitive without slashing ticket prices heavily.
The sale fares are for domestic travel from Jan. 1 through April 4 and overseas from Jan. 13 until March. The fare sale comes nine days after cash-strapped United filed for Chapter 11 bankruptcy protection.
Deutsche Bank to let IBM do its European computing
Deutsche Bank AG said yesterday that it will spend $2.5 billion on a 10-year outsourcing contract with International Business Machine Corp., and send 900 employees to IBM's giant technology services arm.
In the deal, expected to begin in the first quarter next year, Deutsche Bank will transfer its European computer data centers and technology workers to IBM, which will provide the bank with computing power and services. The bank expects to save about $1 billion over the 10 years.
IBM will consolidate Deutsche Bank computer centers in Belgium, Germany, Italy, Poland, Portugal, Switzerland, Spain and Luxembourg into a central data center in Germany's Rhine-Main region, the companies said.
Monsanto's CEO resigns unexpectedly
Monsanto Co. President and Chief Executive Officer Hendrik A. Verfaillie has resigned effective immediately, ending a 26-year career at the agricultural products company, Monsanto said yesterday.
Board Chairman Frank V. Atlee III will serve as CEO while a search for a replacement is conducted, the company said.
No reason for Verfaillie's leaving was given in the press release. But the company has reported big losses this year on declining sales. Calls to Monsanto's St. Louis headquarters were not returned.
Revlon weighs accepting $150 million cash infusion
Revlon Inc., struggling with a heavy debt load and a competitive environment, is considering a proposal for a cash infusion of up to $150 million from MacAndrews & Forbes, a holding company controlled by Ronald O. Perelman, the cosmetic giant's chairman.
The maker of the Almay skin care line and Flex shampoos said the investment would be provided through equity and a senior unsecured line of credit. The investment would be used to finance its growth plan, which involves developing new products, Revlon said.
Under the proposal, Revlon would make a $50 million rights offering that would allow shareholders to purchase additional shares of Class A common stock. MacAndrews & Forbes has advised Revlon that it would purchase its pro-rata share of the rights offering and back up the rights offering by purchasing all of the new Class A shares that aren't sold.
Goodrich to reorganize into three divisions
Aerospace parts maker Goodrich Corp. will reorganize into three divisions as it absorbs the aeronautical systems business it bought from TRW Inc. this year for $1.5 billion, company officials said yesterday.
John Grisik will serve as president of airframe systems, Jack Carmola will head the engine systems area and Cindy Egnotovich will be in charge of the electronic systems, Goodrich said.
Vodafone to replace CEO Gent with Sarin
Vodafone Group PLC chief executive Sir Christopher Charles Gent announced yesterday that he planned to resign, and the mobile phone giant named the head of a San Francisco telecommunications company to succeed him.
Gent, 54, will step down after the company's July 30 annual meeting, when Arun Sarin, 48, of Accel-KKR Telecom will take over, the company said.
This column was compiled from reports by Sun staff writers, the Associated Press and Bloomberg News.