In The Region
CompuDyne warns that fourth quarter won't meet estimates
CompuDyne Corp., a maker of security systems, said yesterday that fourth-quarter profit will be less than expected because expenses rose for several projects.
The current period will be "only nominally profitable," the Hanover-based company said in a statement. CompuDyne spokeswoman Maggie Johns refused to give a specific number.
The company, which hasn't provided a per-share earnings estimate for the quarter ending today, cut its profit forecast for 2002 to 45 cents a share, from 60 cents, during the third quarter, Johns said. CompuDyne earned 22 cents a share in the first three quarters combined and would need profit of 23 cents a share in the current quarter to meet the 12-month forecast.
Results also won't meet CompuDyne's forecasts partly because some plants were underused and some customers deferred orders, the company said.
Tyson among firms proposing tariffs to Mexico
U.S. chicken producers including Tyson Foods Inc., Pilgrim's Pride Corp. and Perdue Farms offered to pay tariffs to Mexico for five years to head off a trade dispute and maintain access to their third-largest market.
Under a proposal made by the companies, the duties would be set at 98 percent next year and gradually be lowered to zero by 2008 if Mexico halts an investigation into U.S. chicken sales that could result in protective tariffs.
Farmers have been protesting in Mexico City, seeking government support and saying they can't compete with U.S. companies, with tariffs on chicken and more than 80 other farm products scheduled to end tomorrow under the 1994 North American Free Trade Agreement.
Elsewhere
Winnick resigning today from board of Global Crossing
Gary Winnick, founder and chairman of Global Crossing, said yesterday that he would resign from the bankrupt telecommunications company's board of directors effective today.
In a letter to the board, Winnick said he is stepping down after helping develop a reorganization plan for the company and making good on his pledge to reimburse $25 million to employees who owned company stock in their retirement plans.
Winnick's announcement comes a week after the Justice Department, after an investigation of Global Crossing's accounting practices, decided not to seek criminal charges against company executives.
Winnick deposited $25 million into an escrow account two weeks ago, although it is unclear how the money will be distributed to employees who had part of their 401(k) plans invested in company stock.Global Crossing sought bankruptcy protection in January. By then senior executives had sold hundreds of millions of dollars of their stock options. Investors lost billions of dollars.
Worldwide chip sales up nearly 20% last month
In the latest sign that the semiconductor industry is rebounding from its slump, worldwide chip sales improved nearly 20 percent in November over those of November 2001, an industry group said yesterday.
Global sales reached $12.68 billion last month compared with $10.6 billion in the same month last year, according to the Semiconductor Industry Association. Wireless chips drove much of the growth, said George Scalise, the trade group's president.
Hynix Semiconductor granted another reprieve
Hynix Semiconductor, the troubled South Korean chip maker, won another reprieve yesterday as its creditors approved a $4 billion plan to keep the company alive.
The debt relief was approved despite opposition from some creditors, who said their institutions would not advance more funds to the company, which was once a core member of the Hyundai conglomerate. There have already been two rescues of Hynix in the last two years.
Lower check volume may cause Fed layoffs
The Federal Reserve may eliminate jobs in the check-clearing and processing operations of its 12 regional banks as electronic payments reduce the number of checks consumers and businesses write.
Presidents of all 12 regional Fed banks recently sent letters to employees saying that check volume was dropping because of electronic payments and consolidation in the financial-services industry. About 5,200, or 22 percent, of the 23,550 employees at the regional Fed banks help process checks.
The Federal Reserve handles about 40 percent of the checks cleared in the United States.
Honeywell pension fund bolstered by $700 million
Honeywell said yesterday that it contributed $700 million in stock to its pension fund.
Honeywell estimates it could take a charge of up to $1.7 billion on shareholders' equity because the fair value of the pension plan's assets is less than the obligation. The technology and manufacturing company made a $100 million cash contribution to the pension plan in September.
On Nov. 15, Honeywell said in a filing that it expects 2003 pension expenses of $235 million to $335 million. The company is expecting pension income of about $140 million this year.
Comdisco resolving accounting issues
Comdisco Holding Co. said yesterday that it delayed filing its annual report with the Securities and Exchange Commission in order to resolve accounting issues related to its emergence from bankruptcy. Comdisco said the report will be released Jan. 14.
The Rosemont, Ill.-based Comdisco, which filed for Chapter 11 bankruptcy protection in July 2001, emerged Aug. 12 with a plan to sell off remaining assets over three years. The company said it will adopt fresh-start reporting and is determining the impact on its financial statements.
Comdisco leases computer, medical, telecommunications and other high-tech equipment and provides security for corporate computer systems.
Online lender settling credit-reporting charges
Quicken Loans Inc., an online mortgage lender sold in July by Intuit Inc., agreed to settle charges it violated credit-reporting laws, U.S. consumer protection officials said.
The Federal Trade Commission charged that Quicken Loans failed to inform consumers when their home mortgage applications were denied, in the agency's first such challenge to an online lender.
The notification is required to let consumers challenge inaccurate information in credit reports, the FTC said. Quicken Loans settled the charges by agreeing to notify consumers when they're denied pre-approval for home mortgages based on information in their credit histories.
Critical Path receives Nasdaq delisting notice
Critical Path Inc. said yesterday that it has received a delisting notice from the Nasdaq stock market because it doesn't meet the minimum $1 a share price requirement.
The San Francisco-based communications software company said it will present a plan to restore compliance during a scheduled Jan. 30 hearing with the Nasdaq Listing Qualifications Panel. Critical Path said its stock will remain on the Nasdaq, at least until the hearing date.
Hanover Compressor to lay off about 500
Hanover Compressor Co., which provides natural gas compression services, is laying off about 500 employees globally.
More than one-third of the affected workers are in Houston, where the company is based. About 190 Houston-area employees will be laid off, Hanover spokesman Lee Beckelman said.
The company is still settling on specific reductions, which are are primarily tied to the consolidation of manufacturing facilities, Beckelman said. Some administrative personnel also will be pooled as part of the process, he said.
This column was compiled from reports by Sun staff writers, the Associated Press, Bloomberg News and the New York Times.