to lay off 10,000
Eastman Kodak Co. is expected to announce next week that it will cut 10,000 jobs and take a $1-billion charge, analysts said, the latest in a series of restructurings that haven't done much to boost profit and market share. The cuts, some of which the photography company has already announced, will result in annual cost savings from $500-million to $800-million. Kodak also is expected to exit some business, hire other companies to make more of its camera equipment and consolidate its plants. Kodak last announced a restructuring in January, when it said it would cut 4,000 jobs to consolidate photo labs. Kodak, in Rochester, N.Y., has about 95,000 employees.
OXFORD CFO RESIGNS: The chief financial officer of Oxford Health Plans resigned Wednesday, a week after a disappointing earnings forecast prompted a stock sell-off that led to shareholder lawsuits. Andrew B. Cassidy said he would continue as chief financial officer of the Norwalk, Conn., health insurance company until a successor is named. On Tuesday, Oxford reported it lost $78.1-million for the quarter, more than it predicted just a week earlier, when the news cost Oxford stock 59 percent of its value in the Oct. 27 market plunge.
FACTORY ORDERS UP, NOT DOWN: Demand for chemical and metal products fueled the fourth consecutive increase in orders to the nation's factories in September, a sign American manufacturing has enough vigor to withstand disruption in Asian markets. Orders rose a moderate 0.4 percent to a seasonally adjusted $336.5-billion after a large 1.2 percent advance in August, the Commerce Department said Wednesday. Analysts had been predicting a decrease in September. The surprise increase fed optimism that manufacturing wouldn't suffer from decreased export sales to Southeast Asia.
DISCOUNT CHAIN EXPANDING: Consolidated Stores Corp. of Columbus, Ohio, the nation's largest closeout retailer, said Wednesday it will buy a leading West Coast discount chain for about $995-million in stock. The deal to acquire MacFrugal's Bargains Close-Outs Inc. will create a combined company with about 2,270 stores nationwide and more than $3.3-billion in annual sales. Consolidated Stores has 1,946 stores in all 50 states and Puerto Rico, including Odd Lots, Big Lots and Kay-Bee toy stores. MacFrugal's, based in Los Angeles, operates 321 stores in 18 states under the names Pic 'n' Save and MacFrugal's Bargains Close-Outs.
TREASURY AUCTION: The U.S. Treasury, in the second day of its quarterly auction of notes and bonds, on Wednesday sold $11.003-billion in 9}-year notes at an average yield of 5.955 percent. Demand was in line with expectations. On Tuesday, the Treasury sold $14.014-billion in three-year notes at an average yield of 5.762 percent. Today, the Treasury will sell $10.0-billion in 30-year bonds.
JLM INDUSTRIES INC.: The Tampa-based chemical merchant, manufacturer and distributor said Wednesday that third-quarter earnings were 29 cents a share, up from 9 cents a share the same period a year ago _ a 222 percent rise. Operating income totaled $3.7-million during the quarter that ended Sept. 30, up 42.3 percent from the $2.6-million earned during the same quarter last year. Revenues for the quarter were $63.5-million, 16.3 percent higher than the $54.6-million recorded for the quarter a year ago.
BRASSIE GOLF CORP.: The Tampa-based golf course owner and operator announced Wednesday that third-quarter revenues were $1.075-million, compared with $1.524-million for the same quarter a year ago. The company saw a net loss $320,114, or a cent a share, compared with a net loss of $426,491, or 2 cents a share, for the comparable period a year ago.
DOW DOLLAR YIELD
30 INDUSTRIALS VS. JAPAN'S YEN 30-YR. U.S. BOND
7692.57 123.07 6.22
+3.44 +0.92 -0.02