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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (1033)	12/8/1998 12:13:00 AM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

Boeing cuts earnings projection, cites Asia slowdown SEATTLE, Dec 1 (Reuters) - Boeing Co reduced its expectations for 1999 earnings on Tuesday and said it plans to cut production on its 747 model and other jets due to the continuing economic slowdown in Asia. Boeing said it expects to have net earnings of $1.5 billion to $1.8 billion next year, down from a July forecast of about $2 billion, although projected revenues of $58 billion were unchanged. The company also said it continues to project 1998 earnings at slightly over $1 billion on revenues of $56 billion. For the year 2000, Boeing projected revenue of $50 billion as commercial aircraft deliveries fall to a projected 490 airplanes from 620 in 1999 and 546 in 1998. Boeing did not release an earnings projection for 2000 but said operating margins are likely to be somewhat lower than 1999. Boeing also said it expects more job reductions than previously indicated, with the total workforce dropping from a mid-1998 peak of 238,000 to as few as 200,000 by year-end 1999, with an additional 10,000 reductions expected in 2000. "Clearly, the economic slowdown in Asia is driving air traffic down which impacts our customers' plans and operations," said commercial airplane group President Alan Mulally said in a statement. "Our actions today will match production to market demand to support our customers." ((-- Seattle bureau 206-386-4848, marty.wolk@reuters.com))

To: porcupine --''''> who wrote (1033)	12/17/1998 12:02:00 AM
From: porcupine --''''>	Read Replies (1) \| Respond to of 1722

IBM has no specific plans for proceeds of sale NEW YORK, Dec 8 (Reuters) - International Business Machines Corp. said Tuesday the $5 billion in cash it will gain from the sale of its Global Network business to AT&T Corp. is not earmarked for any specific purpose. "We will use this cash as we use all of the other free cash at IBM," IBM Chairman Louis Gerstner told reporters at a press conference in New York to discuss the sale of the Global Network unit. IBM uses free cash to "invest first in R&D (research and development); we invest in capital to build our future businesses; we make selective acquisitions; we invest in our marketing...the rest is returned to our shareholders through share buybacks. And that sequence and priorities will remain in place," Gerstner said. IBM does not expect to get the $5 billion until the second quarter of 1999, after the sale faces regulatory review. IBM's Global Network business provides a variety of data networking services for clients, including setting up and managing their internal networks and providing external Internet connections. The business serves roughly 35,000 corporate customers in 900 cities in more than 100 countries around the globe and provides Internet access to more than one million individual users in 59 countries. The sale allows IBM to exit the data networking business and focus on its mainstay software, services and hardware businesses. For AT&T, the purchase of the IBM unit, as well a planned international alliance with British Telecommunications Plc , will help the phone company leap-frog into a leading position in providing global networking services to multinational corporations, analysts said. (( Jessica Hall, New York newsroom 212-859-1729))