Reported by Star-Bulletin staff & wire
Friday, June 5, 1998
AP, CHICAGO -- Hoping to reverse its declining fortunes, electronics maker Motorola Inc. is slashing 10 percent of its payroll, about 15,000 jobs, and trimming its manufacturing business. Motorola chopping
15,000 jobsIn announcing the cutbacks yesterday, company president Robert L. Growney said Motorola hopes to save $750 million a year once all the changes are made.
Acknowledging that the company failed to meet its expectations of better sales growth and profits this year, Growney said in a written statement that it was "clearly time to accelerate the implementation of our renewal plan."
Motorola said it could lose money in the second quarter before special charges reduce earnings by another $1.95 billion. In the first quarter, the company's net income fell to $180 million, or 30 cents a diluted share, from $325 million, or 53 cents a share, in the comparable period a year earlier.
Bank of Hawaii branch in Hilo closing in Sept.
HILO -- The downtown Hilo branch of Bank of Hawaii will close in September, the bank said.The branch at the corner of Keawe and Kalakaua streets will close after operations are moved to a nearby branch.
The move is part of plans announced earlier this year by the bank's parent company, Pacific Century Financial Corp., to streamline operations and cut costs, said Rick West, Bank of Hawaii vice president and regional manager.
Twelve employees are affected by the move. West said some positions will be transferred to the Bank of Hawaii's Kaikoo branch a mile away, which will take over the closing branch's accounts, safe deposit boxes and other operations.
Dollar hits 7-year high on good economic news
NEW YORK -- The dollar rose to a seven-year high against the yen, climbing to just shy of 140 yen, after a U.S. jobs report reflected a strong economy with little inflation."We're in a Goldilocks economy," said Joe Cambria, head of spot trading at Credit Suisse First Boston. "It's not too hot, not too cold. We're still in economic nirvana. We could see the dollar rise to 141 next week."
The U.S. currency rose as high as 139.98 yen, it's highest level since July 4, 1991, from 138.49 yen yesterday in New York. That was the dollar's biggest one-day gain in almost five weeks.
Analysts expect Intel to drop prices 15-20%
SAN FRANCISCO -- Intel Corp. is expected to cut prices Monday on Pentium II processors targeted for use in basic and performance PCs, as it moves to reduce prices more frequently in a sluggish PC market, analysts said.A spokesman for Santa Clara, Calif.-based Intel declined to comment on impending price cuts, but said Intel is now cutting prices more frequently.
"Because we have all these products going into new segments, we can't do price adjustments one time during the quarter like we used to do," Intel said. Analysts predict price cuts ranging from 15 percent to 20 percent.
Vivus says study of impotence drug flawed
NEW YORK -- The stock of Vivus Inc. rose today after the company, hoping to stem yesterday's slide, said its impotence drug, Muse, is more successful than a recent study indicates.In a study presented by researchers earlier this week, 27 percent of patients taking Muse experienced successful results.
However, Vivus said that 41 percent to 65 percent of men tested required a larger dose than what they received to see results. In the study, only 10 of 115 men were given the required dose, the company said. The company said further data will be presented this month.
Rolls-Royce sale to Volkswagen approved
LONDON -- Vickers Plc shareholders approved the sale of Rolls-Royce Motor Cars Ltd. to Volkswagen AG for $709 million, ending a seven-month fight for one of the world's most prestigious brands.Shareholders of the British manufacturer rejected a lower offer from Bayerische Motoren Werke AG, once the favored bidder in the tumultuous contest. They also spurned a last-minute approach from a group of Rolls-Royce enthusiasts eager to keep the 92-year-old carmaker independent.
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