January 16, 2003 |
Stocks slumped Wednesday after a lackluster capital spending forecast from technology bellwether Intel disappointed investors looking for signs that corporate America's profit picture is improving. Downbeat outlooks from DuPont, the No. 1 U.S. chemical company, and Automatic Data Processing, the top U.S. payroll services company, exacerbated investors' concerns.
November 13, 2002 |
Major U.S. companies say they'll eliminate jobs next year and hold spending on new equipment flat with this year's levels because they expect the economy to be anemic, according to a survey released Tuesday. Almost two-thirds of the chief executives surveyed by the Business Roundtable in New York forecast that real gross domestic product will increase less than 2% in 2003, well below the average annual growth rate of 3.2% over the last decade.
September 19, 2002 |
A new wave of heavy selling is driving major technology and telecom stocks to multiyear lows, dashing hopes that the bottom finally has been reached in the sectors. On Wednesday, stocks including Lucent Technologies Inc., Nortel Networks Corp., EMC Corp. and Advanced Micro Devices Inc. fell to new lows in active trading, with former high-fliers Lucent and Nortel now fetching less than $1 a share. Others, including Intel Corp. and Sun Microsystems Inc.
August 9, 2002 |
Cablevision Systems Corp. said it would slash 2003 capital spending, cut 7% of its jobs and close or sell certain money-losing operations, including some Wiz electronics stores, as the company tries to cover an estimated $900-million cash shortfall. The company's shares fell $1.24, or 16%, to $6.60 on the New York Stock Exchange. Cablevision said it would pare capital spending to $550 million to $650 million next year, from $1 billion in 2002.
July 27, 2002 |
Venture capitalists are still having a hard time finding places to invest their funds. U.S. venture-capital firms, struggling with lagging returns, invested $5.06 billion in the second quarter, 43% less than a year earlier, according to the latest survey by Ernst & Young and VentureOne. Industry spending was the lowest since the fourth quarter of 1998 when $4.86 billion was invested, the survey of 1,200 firms found.
May 9, 2002 |
WorldCom Inc. plans to take out a $5-billion loan from banks after it exercises an option to borrow on an existing credit line for one year, according to people familiar with the matter. The long-distance phone company, which has reported seven consecutive drops in quarterly profit, plans to take up its right to borrow $2.65billion on the existing credit line before it expires June 7.
April 24, 2002 |
Corning Inc., the world's largest maker of fiber-optic cable, said Tuesday that its planned restructuring to return to profitability will include a further 12.5% reduction in its work force and lower capital spending. Chief Financial Officer James Flaws said the company plans to cut up to 4,000 salaried workers from its 32,000-person work force. Corning cut 12,000 jobs last year, mostly hourly workers.
March 20, 2002 |
General Motors Corp., the only U.S. auto maker to turn a profit in 2001, plans to reduce spending by at least $4.3 billion this year to boost earnings as vehicle prices fall and health-care costs rise. The largest auto maker will reduce about $1 billion from capital spending, $2 billion from its North American material costs and $1.3billion from manufacturing, engineering and health-care budgets, executives said.
August 30, 2001 |
WorldCom Group, the unit of WorldCom Inc. that owns the largest Internet network, will reduce capital spending as much as 31% next year, to $5.5 billion, as some equipment suppliers cut their prices. WorldCom, at a conference for investors in Clinton, Miss., also reiterated 2001 forecasts for the unit, according to a filing at the Securities and Exchange Commission. WorldCom said 2002 capital spending for the company, including the MCI Group consumer long-distance unit, will be $6 billion.