Reported by Star-Bulletin staff & wire
Wednesday, July 19, 2000
United Air's parent warns on earningsCHICAGO -- UAL Corp., the parent of United Airlines, warned that third-quarter and full-year profit will be less than analysts forecast because of canceled flights and higher wages, pushing the stock down as much as 9.6 percent. UAL slid $5.69 to $53.56 in morning trading after the world's largest airline said third-quarter earnings may be as low as $2.60 a share, less than the $3.55 average estimate of analysts surveyed by First Call/Thomson Financial. UAL predicted full-year results as low as $8.25 a share, excluding charges, less than the $9.95 First Call average estimate. The Chicago-based airline said second-quarter profit from operations rose 17 percent on higher U.S. fares and Asian travel demand. Second-quarter net rose to $408 million, or $3.47 a fully distributed share, from $349 million, or $2.86, a year earlier.
CNET Networks buying Ziff-DavisNEW YORK -- CNET Networks is acquiring Ziff-Davis Inc. and its ZDNet subsidiary for $1.6 billion in stock, combining two of the Internet's most prominent providers of technology news and product information.
Ziff-Davis was a pioneer of the technology magazine industry and operator of the famed Comdex computer trade show -- businesses the company has chosen to abandon in a bid to focus on its popular network of Web sites. Under the takeover agreement, San Francisco-based CNET will exchange 0.3397 share of its stock for each share of Ziff-Davis and 0.5932 share of CNET stock for each share of ZDNet, a separately traded company in which Ziff-Davis is the majority owner.
In other news . . .WASHINGTON -- Resolving a tense trade dispute on the eve of an economic summit, Japan has agreed to sharply lower the connection charges foreign telephone companies must pay to compete in Japan.