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HAWAII

Verizon eliminates 20 technician jobs

CORRECTION Saturday, April 26, 2003 » Verizon Hawaii technicians affected by the company's decision to eliminate 20 positions have until mid-May to decide whether to accept an early-retirement severance offer from the company. A story on Page C1 Thursday incorrectly said the technicians must decide this month. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

Verizon Hawaii said yesterday it is cutting 20 technician jobs at its offices on Oahu and Maui.

The technicians, all members of the International Brotherhood of Electrical Workers Local 1357, must decide this month whether to accept an early retirement offer and would be off Verizon's payroll by the end of May, Verizon spokeswoman, Ann Nishida said.

She cited a slow economy and increased competition as the reason for eliminating the positions.

"Our goal, of course, is for no layoffs, so they would get an additional financial incentive if they choose the voluntary retirement package," she said.

Verizon's last round of cuts was in October, when the company offered similar incentive packages to eliminate 72 jobs. Those cuts came from the company's national operations divisions and were made primarily in Verizon's customer operations, construction, network services areas, repair resolution and enterprise solutions group.

Bankoh adds to asset business

Bank of Hawaii said it is in the process of expanding its Asset Management Business, which has more than $10 billion under administration, including $7 billion under management.

The bank, which will report its first-quarter earnings Monday, said it is establishing an investment strategy committee, adding new investment experts to its staff and entering into an alliance with Chicago Equity Partners, an employee-owned company that manages $4.6 billion of domestic equity strategies.

Bank of Hawaii and Chicago Equity Partners have entered into a letter of intent and are in the process of negotiating definitive agreements. Bank of Hawaii said it will supplement its current investment capabilities with CEP's market research and investment tools.

Meanwhile, the investment strategy committee, led by Bank of Hawaii Chief Investment Officer Bill Barton, will be responsible for economic forecasts, asset allocation and industry and bond market analysis. Members of the committee include Bob Crowell, who has been with the bank for more than 30 years and is head of the Tax-Exempt Fixed-Income team and senior portfolio manager of Hawaiian Tax-Free Trust; Clyde Powers and Bill Carpenter, senior portfolio managers; and Howard Hodel, head of the Asset Management Group. John Fujiwara, senior market risk manager, will serve as chief of staff for the committee.

MAINLAND

American Airlines board huddles

FORT WORTH, Texas >> AMR Corp.'s board met today to discuss the embattled carrier's fate and that of Chief Executive Don Carty, who infuriated unions last week and brought the prospect of bankruptcy back to the forefront.

Carty angered labor unions at AMR's American Airlines by disclosing special pension trust funding and retention bonuses for executives only after rank-and-file workers agreed to steep pay cuts. The unions now want to reconsider the concessions, which would almost certainly send the airline into bankruptcy.

At least one of the board's 12 members, former U.S. senator David Boren, has called for Carty's resignation. "In my opinion, Mr. Carty has lost the credibility and trust necessary to effectively lead the company through challenging times," Boren told the Tulsa (Okla.) World.

American Airlines spokesman Bruce Hicks would not comment on Boren's expected motion or Carty's intentions.

Boeing Capital raises lease loss provisions

Boeing Capital Corp., embroiled in negotiations with Hawaiian Airlines over leasing-contract terms, said yesterday it has increased its loss provision on leases and notes to 5.3 percent of its total portfolio from 3.5 percent at the end of 2002.

"The numbers reflect what's happening in the marketplace in terms of airplane values and customer credit ratings," Boeing Capital spokesman Russ Young said. "Those are probably the two big factors that go into that valuation. That's why the money has been reserved against potential losses."

Boeing Capital, the financing unit of Boeing Co., said revenues increased 24 percent in the quarter to $283 million from $228 million but its pre-tax income swung to a $113 million loss from a $66 million gain a year ago. Excluding previously announced charges of $193 million for strengthening reserves and revaluing certain assets, Boeing's net income would have risen 21.2 percent to $80 million.

Meanwhile, parent company Boeing Co. said its first-quarter net loss narrowed as it took smaller writedowns but that it was cutting its 2003 profit forecast because of expected losses on loans by Boeing Capital. Boeing's loss narrowed to $478 million, or 60 cents a share, from $1.25 billion, or $1.54, a year ago. Sales dropped 11 percent to $12.3 billion from $13.8 billion.

Nike says PR campaign counts as free speech

WASHINGTON >> Nike hoped to improve its bottom line and public image when it embarked on a public relations campaign against allegations it used Third World sweatshops to make sneakers, a lawyer told the Supreme Court yesterday.

Nike's effort is the centerpiece of an argument over free speech in the business world and whether private consumers can go to court if a company stretches the truth.

Nike painted a rosy picture of its labor practices and consumers relied on those misrepresentations when choosing products to buy, lawyers for a California activist argued. That is false advertising not protected by the First Amendment, lawyer Paul R. Hoeber told the court.