Apr 12, 2001 - 10:20 AM

LSI to Close Colorado Springs Plant The Associated Press

COLORADO SPRINGS, Colo. (AP) - LSI Logic Corp. is closing its communications chip manufacturing plant here that employs 500 people, citing poor economic conditions and a rapid decline in the semiconductor market. The Milpitas, Calif.-based company announced Wednesday that it would shut down the plant in August and offer about 100 employees jobs at its Gresham, Ore., plant. The rest will be laid off.

LSI's other operations in Colorado won't be affected. The company makes communications chips for wireless, data networking and broadband applications.

Brett said the slumping national economy and a meltdown in the technology industry has had a "tremendous impact" on demand for LSI's products. He said customers are putting product orders on hold and LSI's inventory has increased dramatically as a result.

"We regret having to do this, but LSI was left with no choice," he said.

The company said it expects its first-quarter revenue to plummet 30 percent from the fourth quarter of 2000. The closure of the Colorado Springs plant means a $120 million to $150 million restructuring charge for the second quarter.

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On the Net:

http://www.lsilogic.com

AP-ES-04-12-01 1020EDT © Copyright 2001 Associated Press. All rights reserved.

-- Anonymous, April 12, 2001

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Response to ECON-LSI To Close Colorado Springs Plant

Apr 12, 2001 - 09:57 AM

Dow Jones to Cut 202 Jobs, Misses Lowered Profit Expectations By Seth Sutel The Associated Press

NEW YORK (AP) - Dow Jones & Co. said Thursday it is laying off 202 workers, or about 2 percent of its work force, as it reported first- quarter earnings just below expectations, which had already been lowered twice. The publisher of The Wall Street Journal announced plans a month ago to make "limited" staff cuts along with other cost reductions as it struggled to cope with a sudden downturn in advertising.

Dow Jones had already lowered its profit forecast twice for the January-March period, but the earnings still came in below the 18 cents per share consensus of analysts surveyed by Thomson Financial/First Call.

Dow Jones earned $14.7 million before one-time gains and losses, or 17 cents per share, down 81 percent from the comparable figures a year ago of $79.2 million, or 88 cents a share.

"As we had indicated previously, our advertising-supported businesses experienced a significant slowdown in the first quarter of 2001 against the exceptional gains last year," chairman and CEO Peter Kann said in a statement. "We've now moved aggressively to reduce expenses and better align them with the new revenue environment."

As part of its cost-reduction drive, Dow Jones said it has laid off 202 staff members, representing about 2 percent of its work force of 8,500. Dow Jones took a restructuring charge of $10.7 million in the first quarter as a result of the job cuts and the shutdown of Work.com, a joint venture with ExciteAtHome.

At the same time, Dow Jones warned that its second-quarter earnings would also fall below what analysts had been forecasting. Dow Jones said it now expects to earn 50 to 60 cents a share in the second quarter of this year, below the 77 cents consensus on Thomson Financial/First Call.

Including restructuring charges this quarter, a one-time gain from a business sale last year and other one-time items, net income was $6.2 million in the first quarter of this year, or 7 cents a share, and $88.7 million or 98 cents a year ago.

Revenues tumbled 17 percent to $459.9 million from $550.8 million a year ago, when its coffers were swelling with spending from dot-com companies and others eager to buy advertising space in The Wall Street Journal.

Hardest hit was Dow Jones' print publishing division, consisting largely of The Wall Street Journal. The Journal's operating income was $20.4 million excluding restructuring charges, down 83 percent from the first quarter a year ago, when operating income surged 126 percent.

In addition to the Journal, Dow Jones also publishes Barron's, Dow Jones Newswires, and numerous stock market indicators. It also publishes SmartMoney magazine in conjunction with Hearst Corp. and runs Factiva, a news database company, with the British financial news publisher Reuters.

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On the Net:

www.dj.com

AP-ES-04-12-01 0956EDT © Copyright 2001 Associated Press. All rights reserved.

-- Anonymous, April 12, 2001

Apr 12, 2001 - 03:32 PM

Times to Make Unspecified Staff Cuts With Buyouts, Layoffs By Seth Sutel The Associated Press

NEW YORK (AP) - The New York Times Co., blaming a slowdown in advertising and an uncertain economic outlook, announced Thursday that it would make an unspecified number of staff cuts with buyouts and layoffs. The news came the same day Dow Jones & Co., publisher of The Wall Street Journal, also announced layoffs of 202 people, or 2 percent of its staff. Dow Jones also eliminated 300 open positions.

The New York Times, however, declined to provide any details on the scope of the job reductions other than to say that they would occur across all of the company's business units.

Catherine Mathis, a company spokeswoman, singled out the company's online unit, which just laid off 17 percent of its staff in January, as one area sure to be affected by the new cost-cutting program. She declined to provide other details on the job cuts, saying the staff members affected had not yet been notified. [end snip]

AP-ES-04-12-01 1531EDT © Copyright 2001 Associated Press. All rights reserved.

-- Anonymous, April 12, 2001