AmEx Cuts 7,000 Jobs; Oil Down on GDP; Governors Lobby Gov. on Auto Industry; Motorola Downsizes; Kodak Results Less Than Picture Perfect; Waste Management Recession Resistant
- American Express Co. (AXP) said yesterday (Thursday) that it plans to cut 7,000 jobs, or 10% of its global work force, in an effort to reduce costs by $1.8 billion in next year,
The Associated Press reported. The company will also suspend management-level salary increases next year and institute a hiring freeze. American Express has reported four straight quarters of profit declines.
- Oil prices fell more than 2% yesterday (Thursday), after economic data showed a 0.3% decline in gross domestic product (GDP). Light, sweet crude fell $1.54 at settle $65.96 a barrel, after trading as high as $70.60 earlier in the day. Oil is down 55% from the record high $147.27 a barrel reached in July. It is down 30% in October alone.
- The governors of six states have sent a letter to federal officials asking that they take "immediate action" in assisting troubled domestic automakers, The Associated Press reported. The governors of Michigan, Delaware, Kentucky, New York, Ohio and South Dakota all asked U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke to extend America’s domestic car companies the same kind of aid offered to financial institutions.
- Motorola Inc. (MOT) yesterday (Thursday) said its fourth-quarter results would miss expectations and that its mobile phone business would deteriorate even further in 2009, forcing the company to delay its plan to spin off the unit, Reuters reported. Motorola Co-Chief Executive Sanjay Jha outlined a plan to save the company $800 million in costs in 2009, by cutting 3,000 jobs, or 4.5% of the company's workforce.
- Eastman Kodak Co (EK) yesterday (Thursday) cut its 2008 revenue growth and earnings forecast after posting a slide in third quarter revenue. The company now sees revenue declining by 3% to 5%. Kodak’s third-quarter revenue fell 5% to $2.41 billion. Net income was $96 million, or 34 cents a share, up from $37 million, or 13 cents a share, one year ago.
- Waste Management Inc (WMI) yesterday (Thursday) posted an 11.5% jump in third-quarter earnings. The company reported net income of $310 million, or 63 cents per share, compared with $278 million, or 54 cents per share, a year earlier. Revenue rose 3.6 % to $3.53 billion.