Buisness in brief
Xerox appoints female CEOSTAMFORD, Conn. — Xerox Corp. appointed Anne M. Mulcahy as president and chief executive Thursday, making her one of only five female CEOs of a Fortune 500 company.
Mulcahy, formerly president and chief operating officer, succeeds Paul A. Allaire as CEO.
The copying machine manufacturer has been scrambling for more than a year to cope with stiff competition, a botched sales-force reorganization, sluggish sales and a sharp drop in its stock price. It is in the midst of a turnaround effort that includes the sale of billions in assets and the reduction of 8,600 jobs.
Mulcahys appointment came a day after Xerox posted a second-quarter loss of $281 million.Hewlett-Packard to cut 6,000 more jobs SAN JOSE, Calif. — High-tech giant Hewlett-Packard Co. said Thursday that it is eliminating 6,000 more jobs, or more than 6 percent of its work force, because of sluggish sales.
The job cuts come on top of 4,700 already announced this year by the Palo Alto-based maker of computers and printers.
The cutbacks came after sales turned out even worse than expected.
Carly Fiorina, HP chairwoman, president and chief executive, said she now expects revenue in the third quarter, which ends July 31, to decline 14 percent to 16 percent from the same time last year.Goodyear wins contract for post office tires WASHINGTON — The Goodyear Tire & Rubber Co. will supply the U.S. Postal Service with tires for the next decade at a cost of $115 million, the post office announced Thursday.
Goodyear will become the sole supplier of tires for the post offices more than 200,000 trucks, vans and delivery vehicles with the start of the new fiscal year in October, officials said.
The agency now buys tires from Goodyear, Bridgestone-Firestone and Michelin North America.
Under the deal, the post office is expected to buy some 235,000 tires annually over 10 years.Kellogg profits slip with Keebler resultsKANSAS CITY — Kellogg Co. reported a decline in second-quarter profits Thursday, in the cereal-makers first quarterly report which includes acquired snack-maker Keebler Foods.
The company behind cereal brands such as Frosted Flakes and breakfast foods from waffles to Pop-Tarts earned $114.6 million during the quarter, down from $165.6 million, excluding a restructuring charge, a year ago. On a per-share basis, Kellogg earned 28 cents, down from 41 cents a year ago.
Excluding the impact of inventory draw-downs and other costs associated with the recent Keebler acquisition, Kellogg said it earned $128 million, or 32 cents per share, in the second quarter. The company, based in Battle Creek, Mich., was expected to earn 28 cents a share, according to the First Call/Thomson Financial analyst survey.Energy prices impact Dow Chemical profits NEW YORK — Dow Chemical Co., the second-largest chemical company in the U.S., said Thursday net income fell over 57 percent in the second quarter amid higher energy costs and lower prices. Still, the company managed to beat analysts lowered expectations.
In the current challenging economic and industry environment, Dow delivered a relatively solid performance, said J. Pedro Reinhard, executive vice president and chief financial officer.
Net income fell to $280 million, or 31 cents a share, from $657 million, or 72 cents a share, a year earlier. The results included a charge of $24 million, or 2 cents a share, for expenses related to its restructuring and to its merger with Union Carbide earlier this year. Excluding the charge, earnings were 33 cents per share, beating the consensus analyst estimate of 30 cents.Lockheeds earnings triple but sales weakenBETHESDA, Md. — Giant defense contractor Lockheed Martin Corp.s second-quarter earnings more than tripled from a year ago, despite some weakness in sales at a number of its divisions including aeronautics and space systems.
Lockheed also announced Thursday that it was raising its profit outlook for this year and next.
The company, based in Bethesda, Md., earned $144 million, or 33 cents a share, in the quarter ended June 30, compared with earnings of $42 million, or 11 cents a share, a year ago. The year-ago results included some special charges of 18 cents a share. Excluding such items, Lockheed earned 29 cents a share in the second quarter of 2000.
The 2001 results topped estimates of 29 cents a share by analysts surveyed by Thomson Financial/First Call. Lockheeds shares rose $1.25 to $38.60 in afternoon trading on the New York Stock Exchange.
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