IN THE PAPERS
In The Papers 22 January
22-01-2009
by Sylvia Leatham
Intel to close older factories | eBay in Q4 profit slump
The Irish Independent reports that so-called 'black widow' Catherine Nevin has failed in her bid to have her prosecution for possession of a mobile phone thrown out of court. The mobile phone possession charge against Nevin, who has not yet entered a plea, follows a probe by the National Bureau of Criminal Investigation into unlawful use of mobile phones by inmates at the women's prison at Mountjoy. Nevin is serving a life sentence for murder. She faces a fine of up to EUR10,000 if prosecuted on indictment, or she could have her life sentence extended by up to five years under tough new prison laws introduced last year.
The paper also notes that Irish online music video firm Muzu TV is considering establishing offices in London and New York following a major content deal this week. "We've 18 staff in Dublin now and we're looking into offices in New York and London over the next six months," said Muzu TV managing director Mark French. Read more on the deal as reported by ENN on Monday.
According to the Financial Times, Japanese consumer electronics giant Sony has indicated it will post a JPY260 billion (USD2.9 billion) operating loss in the year to March 2009, as the global downturn and strong yen wreak havoc on sales. The group was expecting an operating profit of JPY200 billion last October but Sony made an operating loss during the peak Christmas trading period and cut its sales forecast by 14 percent to JPY7,700 billion. Sony said that JPY340 billion of the drop in operating profit was due to its electronics division, with JPY250 billion of that due to price competition and the weak economy. There will be further losses of JPY65 billion on securities held by the company’s insurance arm.
The paper also says that UK telecoms firm BT Group has warned that profits from its Global Services division have tumbled and its efforts to get to grips with the problems will lead to a STG340 million write-off. Indeed, the charges could be even higher, BT said, and another "substantial" write-off could result from talks over two large contracts. An operational review of the division, which provides telecoms and IT services for multinational companies and government departments, could led to yet more "substantial" charges for reorganisation and rationalisation to cut the cost base. Ian Livingston, BT chief executive, warned that as a result, group profits for the third quarter would be lower, although BT’s other divisions would edge profits higher by 5 percent.
The Wall Street Journal reports that chip giant Intel is to close several older factories, displacing 5,000 to 6,000 workers. The company had previously expressed optimism that earlier job cuts would be sufficient to cope with the recession's impact on its business. Intel will close one plant in Oregon and stop wafer processing in a facility at its headquarters in California. It also plans to close facilities in Malaysia and the Philippines. Intel said not all of the affected employees, about 6 or 7 percent, will lose their jobs. Some may be offered positions at other factories.
The paper also says that online auction firm eBay has posted a 31 percent slump in fourth-quarter profit and the company's first quarterly revenue decline. For the fourth quarter, eBay reported earnings of USD367 million, or USD0.29 a share, down from USD531 million, or USD0.39 a share, a year earlier. Revenue for the quarter was USD2.04 billion, down from USD2.18 billion, as shoppers pared Christmas budgets and shifted away from eBay's core online auctions. eBay also indicated that conditions remain uncertain in the current quarter.
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