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Friday May 7, 8:02 am Eastern Time
Company Press Release
America's Largest Companies Among Y2K Laggards
Wal Mart, Intel and Conagra rated "Low" for Y2K Progress; GM, Ford, Texaco, Chevron, Bell Atlantic rated "Below Average"
PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--May 7, 1999-- Some of nation's largest corporations are among the furthest behind in fixing their computer systems for the millennium, according to Weiss Ratings, Inc., the only provider of Y2K readiness ratings on banks, insurance companies, and Fortune 1000 companies.
Among the 50 largest nonfinancial corporations in America (by revenues), three companies -- Wal Mart, Intel, and Conagra -- received a Weiss Y2K Rating of ''low,'' indicating potentially serious delays in fixing their computer systems for the year 2000.
Meanwhile, 11 of the 50 largest companies received a Y2K rating of ''below average.'' These included America's two largest corporations, General Motors and Ford, as well as Texaco, Chevron, Bell Atlantic, Motorola, PepsiCo, Kroger Company, SBC Communications, United Technologies, and Compaq.
None of the nation's 50 largest nonfinancial companies merited a Weiss Y2K Rating of ''high,'' and only three of the largest 100 received a ''high'' grade -- Costco, American Stores, and AMR. Smaller companies among the Fortune 1000 receiving ''high'' Weiss Y2K ratings include Northrop Grumman, Continental Airlines, Consolidated Edison, and Unisource Worldwide, Inc.
Martin Weiss, Ph.D., chairman of Weiss Ratings commented: ''We've known for some time that small and mid-sized companies would have difficulties in their preparations for the new millennium. But the poor progress made by so many of America's largest companies comes as quite a shock, implying potentially serious disruptions in the operations and profits of at least some of these companies.''
The following is the distribution of ratings of the nonfinancial companies reviewed:
Y2K Rating Number of Companies
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High 51
Average 220
Below Average 208
Low 59
Insufficient Data 279
''One of the greatest dilemmas we face,'' added Dr. Weiss, ''is the continuing lack of public disclosure. Over 34% of the Fortune 1000 companies we reviewed have failed to disclose sufficient information on their Y2K progress upon which to base a rating. The disclosure issue is even worse among the nation's 11,000 banks and 4,000 insurance companies. Without this information, the public is more likely to assume the worst and make hasty decisions with their savings and investments.''
The Weiss Y2K Ratings for the Fortune 1000 are based on a proprietary model that compares publicly available data on Y2K budgets and expenditures over time and in relation to industry peer groups. Weiss rates banks, S&Ls, and insurance companies separately, based on the Weiss Y2K questionnaires received privately from these institutions.
Widespread Delays In Utilities And Telecommunications Industries
Overall, the 538 nonfinancial companies rated by Weiss have budgeted $26 billion for Y2K-related preparations, but have spent only $13.6 billion, barely half of the funds allocated. This indicates widespread delays and the likelihood of a major eleventh-hour rush to catch up as the end of the year approaches.
''I'm particularly concerned about the utilities and telecommunications industries, not only because they are essential to our everyday lives, but also because the majority of the companies in these industries tend to be lagging behind,'' said Dr. Weiss.
Among the 61 electric and gas utilities receiving a Weiss Y2K Rating, 69% received ''below average'' or ''low'' Y2K grades, while only 5% received ''high'' ratings. Among 19 telecommunications firms rated, 68% received ''below average'' or ''low'' grades, with none receiving a ''high'' grade.
Weiss also publishes financial safety and Y2K readiness ratings on insurers, banks, and S&Ls. The accuracy of its ratings has been favorably reviewed by the U.S. General Accounting Office (GAO) as well as national consumer organizations. For more information, contact Weiss Ratings at 800-289-9222 or visit the Weiss Ratings web site at www.weissratings.com.
Note to editors: The Weiss Y2K Ratings of the largest 100 companies are available.
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Contact:
Weiss Ratings Inc.
by
Yui & Company
Ellen Yui
301/270-8571
ellenyui@aol.com
or
Elizabeth Kelley Grace
561/989-9855
lizkg@aol.com |
