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Saturday, March 15, 2003

Business digest



Compiled from wire reports

Profit forecast down; Ford shares fall

DETROIT - Ford Motor Co.'s share price fell Friday as several analysts cut their profit forecasts for the automaker, a day after the company said it was slashing production.

Several auto suppliers also saw their shares slide Friday.

In trading on the New York Stock Exchange, Ford fell 37 cents, or 5.2 percent, to close Friday at $6.76. Earlier this week, Ford shares fell to lows not seen in more than a decade.

United Airlines may further reduce flights

CHICAGO - United Airlines CEO Glenn Tilton said Friday the carrier could reduce its flying schedule even before an Iraqi conflict begins if the public's war jitters continue to limit bookings.

Such a move would entail more layoffs, Tilton indicated in a message to employees.

United, which operates about 1,700 daily flights and has 72,500 employees, already has cut about a quarter of its flying capacity and work force in the past 18 months.

The Wiz stores file for bankruptcy

WILMINGTON, Del. - TW Inc., operator of The Wiz retail electronics stores, filed for bankruptcy protection to liquidate its assets and pay creditors.

TW's parent, closely held GBO Electronics Acquisition LLC, bought the retailer from Cablevision Systems Corp. in March. Cablevision decided to shed the unprofitable business in February and exit the consumer electronics business.

Cablevision bought the retail chain out of bankruptcy in 1998 for about $95 million, as part of a plan to sell cable modems and high-definition TV sets. Sales didn't materialize as quickly as the company expected.

Bebe Stores won't meet estimates

NEW YORK - The stock of Bebe Stores Inc. fell Friday after the women's clothing retailer said its quarterly results would be well below Wall Street's estimates.

Bebe now expects earnings between 3 cents and 5 cents a share for the fiscal third quarter ending March 31 - below the 11 cents a share mean estimate of analysts surveyed by Thomson First Call.

Shares of Bebe, based in Brisbane, Calif., closed Friday at $12.01, down $2.34, or 16 percent, on the Nasdaq Stock Market.

Ameritrade dampens earnings outlook

OMAHA, Neb. - Discount broker Ameritrade Holding Corp. lowered its earnings and revenue projections Friday for its second quarter and said earnings for the year may fall short of Wall Street's expectations. .

Ameritrade said it would earn 1 cent to 2 cents a share in its second quarter ending March 31 on net revenue ranging from $132 million to $150 million.

That was down from its January estimate.

German bank will reduce jobs, bonuses

FRANKFURT - Commerzbank AG, Germany's fourth-biggest bank, plans to eliminate about 2,800 more jobs and slashed bonuses for investment bankers by more than half after its first annual loss last year, sources said.

The cuts would bring the total announced to 7,100, or almost 19 percent of the workforce, since the bank began shedding jobs in October 2001. The plan includes about 480 jobs in the securities unit, 13 percent more than announced last month.

The bank lost 298 million euros ($319 million) last year.



Treasury secretary visits town
Leap in diesel prices drives through economy
Inflation rises, confidence dips
Eight women of achievement chosen for YWCA award
Chiquita consults with SEC on bankruptcy write-downs
Delta offers staff 60 days off, no pay
If war ends quickly, oil price may drop, stabilize
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