1st Quarter

United Parcel Service Inc., the world's largest package delivery service, increased first-quarter profit 8.5% as the company benefited from higher overseas shipments and favorable currency exchange rates. Net income climbed to $611 million, or 54 cents a share, from $563 million, or 50 cents, before an accounting change in the 2002 period. Sales rose 5.8% to $8.02 billion. International shipments rose 3.

Facing rejection from federal regulators, local telephone giant SBC Communications Inc. on Wednesday withdrew its application to provide long-distance service in Michigan, one of its major areas of operation. SBC, the dominant local carrier in California and 11 other states, retreated after questions arose about wholesale billing discrepancies involving rivals that lease its network parts.

The Los Angeles office market probably won't rebound until next year as leasing activity and rents remain relatively flat, brokers say. The office vacancy rate in Los Angeles County dipped to 18.1% in the first quarter, from 18.6% a year ago, according to Cushman & Wakefield, one of the nation's largest commercial brokerages. Landlords filled more space by cutting prices: the average lease rate was $2.13 per square foot per month, down from $2.19 in the 2002 first quarter.

General Electric Co. said first-quarter profit fell nearly 9% as gas turbine sales dropped sharply and plastics earnings were more than halved. GE said it expects second-quarter profit to decline as much as 15%. That means the conglomerate needs a big rebound in the second half of the year to meet 2003 profit goals. The Fairfield, Conn., company reported first-quarter earnings of $3.2 billion, or 32 cents a share, before an accounting change, down from $3.5 billion, or 35 cents, a year earlier.

Boeing Co. said Thursday that its first-quarter net earnings would be reduced by $994 million, or $1.23 a share, mainly because of an accounting charge to reflect the sharply declining value of companies it acquired in the last seven years. As a result, analysts expect the Chicago-based aerospace and defense giant to post a net loss for the first quarter. Earlier estimates were that Boeing would earn about 42 cents a share. Boeing expects to report the first-quarter results April 23.

Genentech Inc., the world's second-largest biotechnology company, said Wednesday that first-quarter profit rose 59% because of higher sales of its cancer drugs and a lower tax rate. The South San Francisco-based company reported net income of $151.5 million, or 29 cents a share, compared with $95.3 million, or 19 cents, a year earlier. Wall Street had forecast earnings of 28 cents for the latest quarter. Revenue rose 32% to $749.7 million from $568.1 million in the first quarter of last year.

Like many financial advisors, Joel Framson has a lot of nervous clients. Fearful about the economy and the stock market, some are reluctant to shift their portfolios away from what has held up well for the last three years -- such as high-quality bonds, money market funds and "value"-oriented stocks. Yet the West Los Angeles financial planner thinks this is a logical time to be buying more of what's down rather than what's up. He just has to convince his clients.

The San Francisco Federal Reserve Bank said Thursday that the regional economy "hit the pause button" in the first three months of the year as consumers and businesses reined in spending in the lead-up to war with Iraq. Issuing its quarterly economic update, the San Francisco Fed said consumer purchases had slowed "especially on non-discounted merchandise" and that sentiment has declined steadily.

The number of bankruptcies of U.S. public companies tumbled in the first quarter. In the almost-completed period, 39 public firms with about $10 billion in assets have filed for bankruptcy protection, down from 69 firms with $77 billion in assets a year earlier, according to BankruptcyData.com.

Vitesse Semiconductor Corp., which makes chips for telecommunications gear, said Monday that its fiscal first-quarter loss narrowed to $11 million as expenses fell. The loss was 6 cents a share, from $106.9 million, or 54 cents, a year earlier, the company said. Sales fell 2.4% to $38.2 million, from $39.1 million. Excluding expenses, the company said, its loss was 6 cents a share. On that basis, the loss matched the average estimate of analysts surveyed by Thomson First Call.