Buzzwords. They drive us all crazy. We all use them. As always, I am multi-tasking. However, I am trying to not be transparent as I am fully engaged in this window of opportunity to present to you the best of breed of buzzwords. See the article of a couple weeks ago in the Public Relations Society of America’s web site on buzzwords - http://www.prsa.org/supportfiles/news/viewNews.cfm?pNewsID=842347345 .
Then, after the first 15 minutes of your next important meeting, shout out “Bingo!”
Got any new ones to add to the list?
Wednesday, May 28, 2008
Sunday, May 25, 2008
Memorial Day
Tomorrow is Memorial Day. This is a traditional day to commemorate U.S. men and women who perished while in military service to their country. Many people observe this holiday by visiting cemeteries and memorials. A national moment of remembrance takes place at 3 p.m. US Eastern time. Another tradition is to fly the U.S. flag at half-staff from dawn until noon local time. Volunteers usually place an American flag upon each grave site located in a National Cemetery.
Most, if not all, of my Uncles were in the military service. One of my aunts was in the service. Most of my male cousins were in the service. I was in the Navy. It is humbling to be in the service of your country. I can't say that I looked forward to the day I would join the military. However, in hindsight, I learned a lot and a lot about myself during those times. I also learned to respect my country and respect those that gave so much more that I to preserve our liberty.
One goal I have in my life is to visit the Vietnam Memorial in Washington, D.C. It is something that I want to do but that I also do not want to do. I want to do it but I know it will be hard and emotional. I have friends whose names are on that wall.
Most, if not all, of my Uncles were in the military service. One of my aunts was in the service. Most of my male cousins were in the service. I was in the Navy. It is humbling to be in the service of your country. I can't say that I looked forward to the day I would join the military. However, in hindsight, I learned a lot and a lot about myself during those times. I also learned to respect my country and respect those that gave so much more that I to preserve our liberty.
One goal I have in my life is to visit the Vietnam Memorial in Washington, D.C. It is something that I want to do but that I also do not want to do. I want to do it but I know it will be hard and emotional. I have friends whose names are on that wall.
Wednesday, May 21, 2008
Biofuels - the real deal???
As I was getting my haircut today I was reading the June 2008 issue of Road and Track magazine. There is an interesting article on biofuels. Remembering a discussion I had with someone last Friday, I am forwarding some quotes for you.
Today we have finished motor gasoline that “includes 10-percent ethanol already blended in as an extender in roughly half the country. These days, “oxygenates” as in this E10 are solely extenders. With today’s oxygen-sensed engines, there’s no omissions benefit, and in fact there’s degradation in fuel economy and an increase in evaporative emissions.”
“note that about 16 percent of our gasoline today is traceable to Persian Gulf sources.”
“40 percent of our crude is coming from OPEC today.”
“To many, the downsides of corn ethanol are already apparent. There's the matter of fuel versus food, with corn prices almost tripling in the last two years. Ethanol proponents note that only 5 percent of our corn crop is for direct human consumption; some 65 percent of it is devoted to livestock. Others ask: But then who eats the livestock?”
“Distribution issues complicate widespread biofuel adoption. Because of its hygroscopic nature (ethanol readily soaks up water), it cannot be transported through petroleum pipelines. It must travel from its Midwest production facilities by rail or, at even higher cost, by truck. Thus, establishment of a national E85 network hasn't been particularly straightforward. It's only as I write this that the Los Angeles sprawl gets its first E85 station”
“E85 contains only about 70 percent of the energy content of gasoline. Thus, as verified in the EPA Fuel Economy Guide, a flex-fuel car takes a significant hit in its mpg when running E85. Today's E85 price at the pump is around 80 percent that of regular gasoline. But with its mpg deficit factored in, its effective price lies between those of middle and premium gasoline grades.”
“Biofuel production is complex. The feedstock must be gathered and concentrated (a nontrivial matter, as it's dispersed and not very dense). Whatever the process, it requires a lot of water. There's lots of waste, albeit much of it with other uses. The choice of feedstock is a key issue. If it's corn, only the starch is used. Transformed into sugars, these are then fermented. Last, the result is distilled to produce ethanol. Some say we barely have enough corn to support near-term Renewable Fuels Standard(RFS) goals, let alone those set for 2015 and beyond. What's more, increasing corn production has tradeoffs of water use, pesticide runoff and inherent risks of a monoculture.”
“For example, researchers have looked at greenhouse-gas emissions and total environmental impact of a variety of biofuel sources. A goodly number - U.S. corn, Brazilian sugar cane, Malaysian palm oil - were shown to have greater environmental detriment than gasoline. By contrast, feedstocks of basic cellulosic nature, things like wood chips, grass, even household garbage, hold promise.”
So, remember to not throw the baby out with the bath water. Hang on to that gas guzzler for awhile longer. I have what most people refer to as a ‘high performance vehicle’ yet I can set the cruise control at 80 mph and still get 28 mpg! And if I need to go faster, I can just ‘punch it’ and have a really good time.
Actually, now that I think of it, my car is a HYBRID – it burns gas and rubber.
Today we have finished motor gasoline that “includes 10-percent ethanol already blended in as an extender in roughly half the country. These days, “oxygenates” as in this E10 are solely extenders. With today’s oxygen-sensed engines, there’s no omissions benefit, and in fact there’s degradation in fuel economy and an increase in evaporative emissions.”
“note that about 16 percent of our gasoline today is traceable to Persian Gulf sources.”
“40 percent of our crude is coming from OPEC today.”
“To many, the downsides of corn ethanol are already apparent. There's the matter of fuel versus food, with corn prices almost tripling in the last two years. Ethanol proponents note that only 5 percent of our corn crop is for direct human consumption; some 65 percent of it is devoted to livestock. Others ask: But then who eats the livestock?”
“Distribution issues complicate widespread biofuel adoption. Because of its hygroscopic nature (ethanol readily soaks up water), it cannot be transported through petroleum pipelines. It must travel from its Midwest production facilities by rail or, at even higher cost, by truck. Thus, establishment of a national E85 network hasn't been particularly straightforward. It's only as I write this that the Los Angeles sprawl gets its first E85 station”
“E85 contains only about 70 percent of the energy content of gasoline. Thus, as verified in the EPA Fuel Economy Guide, a flex-fuel car takes a significant hit in its mpg when running E85. Today's E85 price at the pump is around 80 percent that of regular gasoline. But with its mpg deficit factored in, its effective price lies between those of middle and premium gasoline grades.”
“Biofuel production is complex. The feedstock must be gathered and concentrated (a nontrivial matter, as it's dispersed and not very dense). Whatever the process, it requires a lot of water. There's lots of waste, albeit much of it with other uses. The choice of feedstock is a key issue. If it's corn, only the starch is used. Transformed into sugars, these are then fermented. Last, the result is distilled to produce ethanol. Some say we barely have enough corn to support near-term Renewable Fuels Standard(RFS) goals, let alone those set for 2015 and beyond. What's more, increasing corn production has tradeoffs of water use, pesticide runoff and inherent risks of a monoculture.”
“For example, researchers have looked at greenhouse-gas emissions and total environmental impact of a variety of biofuel sources. A goodly number - U.S. corn, Brazilian sugar cane, Malaysian palm oil - were shown to have greater environmental detriment than gasoline. By contrast, feedstocks of basic cellulosic nature, things like wood chips, grass, even household garbage, hold promise.”
So, remember to not throw the baby out with the bath water. Hang on to that gas guzzler for awhile longer. I have what most people refer to as a ‘high performance vehicle’ yet I can set the cruise control at 80 mph and still get 28 mpg! And if I need to go faster, I can just ‘punch it’ and have a really good time.
Actually, now that I think of it, my car is a HYBRID – it burns gas and rubber.
Monday, May 19, 2008
Corporate news items.
General Electric is thinking about selling its appliances division, which has been supplying homes with refrigerators, air conditioners and the like for decades. The conglomerate is under pressure to improve returns to shareholders and the division is now a relatively small part of its business.
Freddie Mac, a government-backed housing-finance company, posted its third consecutive quarterly loss and unveiled a plan to raise $5.5 billion in new capital.
Circuit City is finally throwing in the towel. Confronted with weak sales, impatient shareholders, and a U.S. consumer pummeled by recession, the electronics chain capitulated on May 9 and retained Goldman Sachs to help negotiate a deal.
The moves almost certainly presage a sale of the chain, likely to Blockbuster, where Carl Icahn has stepped up and agreed to finance a Circuit City acquisition. The billionaire—Blockbuster's largest shareholder—has bought into a "game-changing" scheme announced last month in which the troubled electronics retailer would be combined with the troubled movie retailer to create a new national chain selling consumer hardware and software.
Hewlett-Packard launched its biggest acquisition since its 2002 takeover of Compaq, when it agreed to buy Electronic Data Systems. The deal is valued at $13.9 billion. HP hopes its new purchase will enable it to compete better with IBM in a broad range of computer services.
Apple. “In the March quarter, Mac sales blew away all forecasts, soaring 51% over the previous year, or more than three times the rate for the personal-computer industry. Throw in the iPod and iPhone, and Apple's total sales have surged from $5.2 billion in fiscal 2002 to $24 billion last year. Its share price has risen 2,300% over the past five years, giving the company a market capitalization, at $154 billion, that tops those of tech giants Hewlett-Packard , Dell, and Intel.
Millions of consumers are seeing the Mac in a new light. Once an object of devotion for students and artists, the Mac is becoming the first choice of many. Surging demand for the machines led Apple to predict revenues will rise 33% in the second quarter, to $7.2 billion, even in the face of an economic slowdown.”
Freddie Mac, a government-backed housing-finance company, posted its third consecutive quarterly loss and unveiled a plan to raise $5.5 billion in new capital.
Circuit City is finally throwing in the towel. Confronted with weak sales, impatient shareholders, and a U.S. consumer pummeled by recession, the electronics chain capitulated on May 9 and retained Goldman Sachs to help negotiate a deal.
The moves almost certainly presage a sale of the chain, likely to Blockbuster, where Carl Icahn has stepped up and agreed to finance a Circuit City acquisition. The billionaire—Blockbuster's largest shareholder—has bought into a "game-changing" scheme announced last month in which the troubled electronics retailer would be combined with the troubled movie retailer to create a new national chain selling consumer hardware and software.
Hewlett-Packard launched its biggest acquisition since its 2002 takeover of Compaq, when it agreed to buy Electronic Data Systems. The deal is valued at $13.9 billion. HP hopes its new purchase will enable it to compete better with IBM in a broad range of computer services.
Apple. “In the March quarter, Mac sales blew away all forecasts, soaring 51% over the previous year, or more than three times the rate for the personal-computer industry. Throw in the iPod and iPhone, and Apple's total sales have surged from $5.2 billion in fiscal 2002 to $24 billion last year. Its share price has risen 2,300% over the past five years, giving the company a market capitalization, at $154 billion, that tops those of tech giants Hewlett-Packard , Dell, and Intel.
Millions of consumers are seeing the Mac in a new light. Once an object of devotion for students and artists, the Mac is becoming the first choice of many. Surging demand for the machines led Apple to predict revenues will rise 33% in the second quarter, to $7.2 billion, even in the face of an economic slowdown.”
Thursday, May 15, 2008
Credit cards and Airlines...
Airlines have been encouraging customers to pay for tickets using various means beyond credit cards. They are doing this partly to reduce their high credit card processing costs.
This move happens to come as Americans are more often using debit cards and other direct-withdrawal payment methods.
But don’t use these other methods for airplane tickets. Under the federal Fair Credit Billing Act, a credit card company is required to return your money for a service not supplied, like an airplane trip. Debit payment agencies are not.
In recent weeks, some travelers on airlines like Skybus, ATA, Aloha and others have had to scramble for refunds when those airlines abruptly stopped flying. In general, it is a bad idea to pay for an airline ticket with anything but a credit card, Mr. Brancatelli, the publisher of the subscription business travel site Joesentme.com said, because resolving disputes is easier with a credit card company in your corner.
But worse, he said, “If your airline goes belly up and you paid with a debit card, you go to the back of the bankruptcy line with all the other unsecured creditors.”
Related airlines/credit card news. Frontier Airlines on Friday, April 11th, became the latest budget carrier to file for bankruptcy protection, but the airline promised to continue normal operations.
Frontier, based in Denver, said it had filed for protection after its main credit card processor tried to hold back substantial proceeds from its ticket sales. But the airline said it would continue to operate its full schedule of flights and honor ticket reservations.
Sean Menke, Frontier president and chief executive, in a statement said, “We felt that Frontier would be able to withstand the challenges confronting the U.S. airline industry, which include unprecedented and significant increases in the cost of jet fuel and the impact of the credit crisis in the financial markets, without seeking bankruptcy protection.”
“Unfortunately, our principal credit card processor, very recently and unexpectedly informed us that, beginning on April 11, it intended to start withholding significant proceeds received from the sale of Frontier tickets,” he said. “This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier’s liquidity and would have made it impossible for us to continue normal operations.”
In its court petition, Frontier said that the credit card processor, the First Data Corporation, had notified the airline that it was increasing the amount of collateral it required to $130 million from $54.5 million and that it would retain 50 percent of the airline’s bank card sales.
This move happens to come as Americans are more often using debit cards and other direct-withdrawal payment methods.
But don’t use these other methods for airplane tickets. Under the federal Fair Credit Billing Act, a credit card company is required to return your money for a service not supplied, like an airplane trip. Debit payment agencies are not.
In recent weeks, some travelers on airlines like Skybus, ATA, Aloha and others have had to scramble for refunds when those airlines abruptly stopped flying. In general, it is a bad idea to pay for an airline ticket with anything but a credit card, Mr. Brancatelli, the publisher of the subscription business travel site Joesentme.com said, because resolving disputes is easier with a credit card company in your corner.
But worse, he said, “If your airline goes belly up and you paid with a debit card, you go to the back of the bankruptcy line with all the other unsecured creditors.”
Related airlines/credit card news. Frontier Airlines on Friday, April 11th, became the latest budget carrier to file for bankruptcy protection, but the airline promised to continue normal operations.
Frontier, based in Denver, said it had filed for protection after its main credit card processor tried to hold back substantial proceeds from its ticket sales. But the airline said it would continue to operate its full schedule of flights and honor ticket reservations.
Sean Menke, Frontier president and chief executive, in a statement said, “We felt that Frontier would be able to withstand the challenges confronting the U.S. airline industry, which include unprecedented and significant increases in the cost of jet fuel and the impact of the credit crisis in the financial markets, without seeking bankruptcy protection.”
“Unfortunately, our principal credit card processor, very recently and unexpectedly informed us that, beginning on April 11, it intended to start withholding significant proceeds received from the sale of Frontier tickets,” he said. “This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier’s liquidity and would have made it impossible for us to continue normal operations.”
In its court petition, Frontier said that the credit card processor, the First Data Corporation, had notified the airline that it was increasing the amount of collateral it required to $130 million from $54.5 million and that it would retain 50 percent of the airline’s bank card sales.
Wednesday, May 14, 2008
Going Local.
Many retailers are reversing on a trend of having ‘cookie cutter’ stores throughout the country. Retail giants like Gap, Best Buy and Wal-Mart once prospered by opening identical stores around the country.
Macy’s is now joining the ranks of those who are ‘localizing’ their retail stores. They are adopting an approach that Ross and Best Buy have come to view as imperative as consumers are demanding more individualized selections. "With almost everything now available on the Internet, retailers need to give shoppers a reason to make the trip.
Best Buy began customizing the format, selection and service at its 600 U.S. stores four years ago, rather than pushing a uniform mix of merchandise. The electronics chain, which has since grown to 935 U.S. stores, began by identifying customer types and then determined store by store which customers were most important. Ross, a discount-apparel chain, intends to begin tailoring 15% of the merchandise categories in each of its more than 900 stores, starting this fall.
Department stores like Macy's also face increasing competition from fast-fashion retailers, such as Swedish clothier Hennes & Mauritz AB, known as H&M, and Inditex SA's Zara in the U.S., which track precisely what is selling in each store, down to the size, and stock them accordingly.
A localization strategy can boost sales at stores open at least a year by 1 to 3 percentage points -- and just 10% to 15% of inventory needs to be customized to get as much as 90% of the benefit, says Darrell Rigby, a Bain & Co. partner.
For more information see the article by Vanessa O’Connell of the Wall Street Journal that appeared in a myriad of online magazines.
Macy’s is now joining the ranks of those who are ‘localizing’ their retail stores. They are adopting an approach that Ross and Best Buy have come to view as imperative as consumers are demanding more individualized selections. "With almost everything now available on the Internet, retailers need to give shoppers a reason to make the trip.
Best Buy began customizing the format, selection and service at its 600 U.S. stores four years ago, rather than pushing a uniform mix of merchandise. The electronics chain, which has since grown to 935 U.S. stores, began by identifying customer types and then determined store by store which customers were most important. Ross, a discount-apparel chain, intends to begin tailoring 15% of the merchandise categories in each of its more than 900 stores, starting this fall.Department stores like Macy's also face increasing competition from fast-fashion retailers, such as Swedish clothier Hennes & Mauritz AB, known as H&M, and Inditex SA's Zara in the U.S., which track precisely what is selling in each store, down to the size, and stock them accordingly.
A localization strategy can boost sales at stores open at least a year by 1 to 3 percentage points -- and just 10% to 15% of inventory needs to be customized to get as much as 90% of the benefit, says Darrell Rigby, a Bain & Co. partner.
For more information see the article by Vanessa O’Connell of the Wall Street Journal that appeared in a myriad of online magazines.
Monday, May 12, 2008
Office Environment
For years researchers have said that a businesses’ physical workspace affects productivity, job satisfaction and profitability. Duh! It is a good thing we had researchers tell us that. But few companies actually make the change to getting rid of cube farms, adding natural light and adding larger common areas. Today’s work style of collaboration and flexible teams is hindered by the old cubicles-and-conference-rooms format.
Most of us would like to get our hands on Bob Propst, of furniture designer Herman Miller, who introduced the first office cubicle in 1968. But then where would that leave Scott Adams the creator of Dilbert? He would still be with Pacific Bell in an office somewhere in the East Bay of Northern California. Dilbert designed his own ultimate cubicle - http://www.ideo.com/dilbert/index.htm. I am most fond of page 5.
What are some of the latest ideas and trends for today’s office environment?
It needs to be adaptable and collaborative. Cubicle walls need to be lowered to foster communication. Traditional cubes are too isolating, but the “open desk” system that grew popular proved to be too noisy. Companies can simply lower cube walls from six feet to four feet thereby affording privacy and visibility. Lower them and add some glass on top to allow light to pass through the room. And, studies show that passersby will speak more quietly if they make eye contact with employees in cubicles.
Natural light! Executives today spend a lot of time travelling and in meetings. Move the hard-wall or private offices to the interior of the building. Worker bees who sit at their desks all day are at the windows. With the open spaces created by lowered cubicle walls, the natural light will permeate the entire floor. In addition to a better physical environment, better worker productivity and retention, this will also lower heating and cooling costs.
Desks for visiting staff. Executives and others who visit different divisions of the company need open space desks with the capability to make phone calls, check e-mail, print, copy, scan and spread out the paperwork.
Sliding glass doors. Textured doors provide privacy for workers and also let the light circulate. They also don’t require the ‘swing space’ of a regular door.
Write-on/wipe-off walls and glass surfaces may be written on with write-on/wipe-off markers for instant brainstorming.
Paint. A study indicated that the old off-white paint makes employees "feel tired and directionless." The right paint color choices in the workplace can improve employee attitudes, increase productivity, and even reduce the number of sick days employees use. Use it as a unifying element of a company's brand identity. This also reinforces the brand to clients and others who visit your offices. It is relatively inexpensive and very effective.
Other Trends: standing meeting rooms (where the absence of chairs produces shorter meetings), open workplace dividers with built-in shelving and glass windows, and in-floor electrical outlets that allow for the easy reconfiguration of space.
Things to look for: Do employees bring lamps from home to avoid harsh fluorescent lighting? Do employees spend a lot of time in transit to meeting rooms, printers, copiers, and fax machines? Study whether the layout of the building is helping or hindering employees to get work done. Is an area always empty? Is an area overcrowded? Are workers competing for certain furnishings or equipment and not using others?
If employee retention and productivity, lower heating and cooling costs, increased job satisfaction and increased profitability are on your list of desired goals, then improvement of your businesses’ physical environment may help get you there.
Most of us would like to get our hands on Bob Propst, of furniture designer Herman Miller, who introduced the first office cubicle in 1968. But then where would that leave Scott Adams the creator of Dilbert? He would still be with Pacific Bell in an office somewhere in the East Bay of Northern California. Dilbert designed his own ultimate cubicle - http://www.ideo.com/dilbert/index.htm. I am most fond of page 5.
What are some of the latest ideas and trends for today’s office environment?
It needs to be adaptable and collaborative. Cubicle walls need to be lowered to foster communication. Traditional cubes are too isolating, but the “open desk” system that grew popular proved to be too noisy. Companies can simply lower cube walls from six feet to four feet thereby affording privacy and visibility. Lower them and add some glass on top to allow light to pass through the room. And, studies show that passersby will speak more quietly if they make eye contact with employees in cubicles.
Natural light! Executives today spend a lot of time travelling and in meetings. Move the hard-wall or private offices to the interior of the building. Worker bees who sit at their desks all day are at the windows. With the open spaces created by lowered cubicle walls, the natural light will permeate the entire floor. In addition to a better physical environment, better worker productivity and retention, this will also lower heating and cooling costs.
Desks for visiting staff. Executives and others who visit different divisions of the company need open space desks with the capability to make phone calls, check e-mail, print, copy, scan and spread out the paperwork.
Sliding glass doors. Textured doors provide privacy for workers and also let the light circulate. They also don’t require the ‘swing space’ of a regular door.
Write-on/wipe-off walls and glass surfaces may be written on with write-on/wipe-off markers for instant brainstorming.
Paint. A study indicated that the old off-white paint makes employees "feel tired and directionless." The right paint color choices in the workplace can improve employee attitudes, increase productivity, and even reduce the number of sick days employees use. Use it as a unifying element of a company's brand identity. This also reinforces the brand to clients and others who visit your offices. It is relatively inexpensive and very effective.
Other Trends: standing meeting rooms (where the absence of chairs produces shorter meetings), open workplace dividers with built-in shelving and glass windows, and in-floor electrical outlets that allow for the easy reconfiguration of space.
Things to look for: Do employees bring lamps from home to avoid harsh fluorescent lighting? Do employees spend a lot of time in transit to meeting rooms, printers, copiers, and fax machines? Study whether the layout of the building is helping or hindering employees to get work done. Is an area always empty? Is an area overcrowded? Are workers competing for certain furnishings or equipment and not using others?
If employee retention and productivity, lower heating and cooling costs, increased job satisfaction and increased profitability are on your list of desired goals, then improvement of your businesses’ physical environment may help get you there.
Friday, May 9, 2008
It’s not all bad news out there…
IBM's first quarter net income surged 26 percent, IBM's revenue from the US is roughly 35 percent of its total, which has positioned the company well in the current economic environment.
Infosys reported a 10 percent rise in profit and Satyam had an 18 percent rise in quarterly profit.
AMN Healthcare Services Inc., a San Diego health care staffing firm, reported first-quarter net income of $9.5 million on May 7, up 16 percent from the like quarter in 2007. Revenue for the first quarter was $283.9 million, 3 percent above the revenue reported in last year’s first quarter. The public company saw growth in all three of its business segments — nurse, physician and allied health staffing — as well as improved profit margins. AMN Healthcare reaffirmed its forecasted revenue growth this year at 7 percent to 12 percent above 2007 results, with earnings to increase at a faster rate.
EDS posted a 62 percent plunge in first quarter profits, but new contract signings in the same period rose to $5.6 billion, up 66 percent from the same time last year. The news pushed EDS shares up by 4.77 percent for the year to date.
Ford - The Board of Directors of Ford Motor Company today recommended that its stockholders take no action at this time in response to the announcement by Tracinda Corporation that it has commenced a tender offer to acquire up to 20 million shares of Ford’s common stock at a price of U.S. $8.50 per share. The company’s Board said it will review and consider Tracinda’s offer and will advise stockholders of the Board’s position regarding the offer by May 22, 2008, as required under applicable securities law.
CISCO Systems, which makes networking equipment, met its own lowered quarterly sales target on Tuesday while beating analysts’ earnings forecast by 2 cents a share.
Cisco, based in San Jose, Calif., said revenue increased 10 percent, to $9.8 billion, from $8.9 billion, for its fiscal third quarter, ended April 26. Analysts had forecast revenue of $9.75 billion. Cisco’s earnings rose to 38 cents a share, from 34 cents a share in the quarter a year earlier. The company’s profit in the third quarter declined to $1.8 billion, or 29 cents a share, from $1.9 billion, or 30 cents a share. The figures included a 4 cents-a-share charge related to an acquisition during the quarter.
There were fears that the difficult economic climate in the United States might have hurt Cisco’s earnings during the quarter.
AT&T Inc. (NYSE:T) reported strong first-quarter results. This marked AT&T's 12th consecutive quarter of double-digit growth in adjusted earnings per share. $0.57 reported earnings per diluted share, up 26.7 percent versus $0.45 in the year-earlier first quarter. $30.7 billion in consolidated revenues, up 6.1 percent versus reported results for the year-earlier first quarter. "We delivered an excellent first quarter and a solid start to the year," said Randall Stephenson, AT&T chairman and chief executive officer. "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook.”
Infosys reported a 10 percent rise in profit and Satyam had an 18 percent rise in quarterly profit.
AMN Healthcare Services Inc., a San Diego health care staffing firm, reported first-quarter net income of $9.5 million on May 7, up 16 percent from the like quarter in 2007. Revenue for the first quarter was $283.9 million, 3 percent above the revenue reported in last year’s first quarter. The public company saw growth in all three of its business segments — nurse, physician and allied health staffing — as well as improved profit margins. AMN Healthcare reaffirmed its forecasted revenue growth this year at 7 percent to 12 percent above 2007 results, with earnings to increase at a faster rate.
EDS posted a 62 percent plunge in first quarter profits, but new contract signings in the same period rose to $5.6 billion, up 66 percent from the same time last year. The news pushed EDS shares up by 4.77 percent for the year to date.
Ford - The Board of Directors of Ford Motor Company today recommended that its stockholders take no action at this time in response to the announcement by Tracinda Corporation that it has commenced a tender offer to acquire up to 20 million shares of Ford’s common stock at a price of U.S. $8.50 per share. The company’s Board said it will review and consider Tracinda’s offer and will advise stockholders of the Board’s position regarding the offer by May 22, 2008, as required under applicable securities law.
CISCO Systems, which makes networking equipment, met its own lowered quarterly sales target on Tuesday while beating analysts’ earnings forecast by 2 cents a share.
Cisco, based in San Jose, Calif., said revenue increased 10 percent, to $9.8 billion, from $8.9 billion, for its fiscal third quarter, ended April 26. Analysts had forecast revenue of $9.75 billion. Cisco’s earnings rose to 38 cents a share, from 34 cents a share in the quarter a year earlier. The company’s profit in the third quarter declined to $1.8 billion, or 29 cents a share, from $1.9 billion, or 30 cents a share. The figures included a 4 cents-a-share charge related to an acquisition during the quarter.
There were fears that the difficult economic climate in the United States might have hurt Cisco’s earnings during the quarter.
AT&T Inc. (NYSE:T) reported strong first-quarter results. This marked AT&T's 12th consecutive quarter of double-digit growth in adjusted earnings per share. $0.57 reported earnings per diluted share, up 26.7 percent versus $0.45 in the year-earlier first quarter. $30.7 billion in consolidated revenues, up 6.1 percent versus reported results for the year-earlier first quarter. "We delivered an excellent first quarter and a solid start to the year," said Randall Stephenson, AT&T chairman and chief executive officer. "Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook.”
Thursday, May 8, 2008
Theme Parks – Cars/trucks – Movie makers
Disney's quarterly net income rose by 22% compared with a year ago. Despite the economic slowdown, the company recorded brisk trade at its theme parks and resorts, where revenue increased by 11%. The weak dollar was said to help, by making it more expensive for Americans to travel abroad and cheaper for foreigners to visit the parks.
Toyota said it expects to see earnings tumble 27% in the fiscal year ending March 2009. Toyota said the strong yen and weaker U.S. sales took a bite out of January-March earnings and projected worse was to come — a 27 percent plunge in its full-year profit.
An ill-timed bet on the U.S. truck and SUV market contributed to a 28% decline in Toyota Motor Corp.'s net profit for the fiscal first quarter. The Japanese auto giant expanded its truck manufacturing capacity in the U.S. just before a dramatic shift in American tastes away from trucks and sports-utility vehicles to small cars. A $1 billion Texas truck plant that Toyota opened in 2006 is operating well below capacity and eating into margins on the Tundra, a new full-size pickup.
"We are facing a severe business environment. However, Toyota considers this headwind as a valuable opportunity to turn into a more flexible and stronger company," Toyota President Katsuaki Watanabe said.
Toyota, which last saw its profit fall on an annual basis seven years ago, is facing a deep slump in U.S. sales. The company is benefiting from higher sales of small cars, such as the Yaris and Prius, but smaller cars are less profitable.
Business Week reports that Iron Man, the blockbuster superhero movie, starring Robert Downey Jr. as an industrialist who fights terrorists and arms dealers in a red-and-yellow metal suit, pulled off a $100 million-plus opening weekend
Marvel took $150 million from its film fund to make Iron Man and is paying Paramount Pictures (VIA) 10% of net revenues from ticket and video sales on top of its fees for marketing and distribution. Still, Iron Man could generate $1 billion in box-office, home-video, and other sales. And profits (less expenses) could be nearly $200 million, projects analyst Alan S. Gould of brokerage house Natisix Bleichroeder.
Previously, Marvel has licensed Spider-Man and X-Men, among other characters, to studios for about 5% of the box-office take. Marvel also shared the films' lucrative merchandise revenues. This meant that Marvel left a lot of money on the table when it let Sony Pictures produce the Spider-Man movies. With Iron Man and other self-produced films, Marvel will rake in most of the proceeds and all the merchandise sales
Toyota said it expects to see earnings tumble 27% in the fiscal year ending March 2009. Toyota said the strong yen and weaker U.S. sales took a bite out of January-March earnings and projected worse was to come — a 27 percent plunge in its full-year profit.
An ill-timed bet on the U.S. truck and SUV market contributed to a 28% decline in Toyota Motor Corp.'s net profit for the fiscal first quarter. The Japanese auto giant expanded its truck manufacturing capacity in the U.S. just before a dramatic shift in American tastes away from trucks and sports-utility vehicles to small cars. A $1 billion Texas truck plant that Toyota opened in 2006 is operating well below capacity and eating into margins on the Tundra, a new full-size pickup.
"We are facing a severe business environment. However, Toyota considers this headwind as a valuable opportunity to turn into a more flexible and stronger company," Toyota President Katsuaki Watanabe said.
Toyota, which last saw its profit fall on an annual basis seven years ago, is facing a deep slump in U.S. sales. The company is benefiting from higher sales of small cars, such as the Yaris and Prius, but smaller cars are less profitable.
Business Week reports that Iron Man, the blockbuster superhero movie, starring Robert Downey Jr. as an industrialist who fights terrorists and arms dealers in a red-and-yellow metal suit, pulled off a $100 million-plus opening weekend
Marvel took $150 million from its film fund to make Iron Man and is paying Paramount Pictures (VIA) 10% of net revenues from ticket and video sales on top of its fees for marketing and distribution. Still, Iron Man could generate $1 billion in box-office, home-video, and other sales. And profits (less expenses) could be nearly $200 million, projects analyst Alan S. Gould of brokerage house Natisix Bleichroeder.
Previously, Marvel has licensed Spider-Man and X-Men, among other characters, to studios for about 5% of the box-office take. Marvel also shared the films' lucrative merchandise revenues. This meant that Marvel left a lot of money on the table when it let Sony Pictures produce the Spider-Man movies. With Iron Man and other self-produced films, Marvel will rake in most of the proceeds and all the merchandise sales
Wednesday, May 7, 2008
Men and Women in the workplace – current challenges
American men aged 20 and up lost nearly 700,000 jobs while American women gained nearly 300,000 jobs between November 2007 and April 2008 according to the household survey of the Bureau of Labor Statistics (BLS). Why?
According to Business Week, men have the misfortune of having employment concentrated in the two sectors that are doing the worst: manufacturing and construction. Women employment is concentrated in sectors that are still growing, such as education and health care.
This situation is hardly good news for women, though. While they're getting more jobs, their pay is stagnant. Also, most share households with the men who are losing jobs. The troubles for the American male worker are hardly new. The manufacturing sector is in long-term decline, and construction goes through repeated booms and busts. Meanwhile women are graduating from college at higher rates than men. Some analysts even argue that men are less suited than women to the knowledge economy, which rewards supposedly female traits such as sensitivity, intuition, and a willingness to collaborate. "Men have tended to do better in the hierarchies, following orders and relying on positional power," says Andy Hines, with a Washington (D.C.) consulting firm.
And what about the pay – men make more than women, right? Men work more than women ... on the job anyway ... at least in terms of overall hours. That's just one reason why when you make a general comparison of men's and women's earnings in most fields, men usually come out ahead, according to Warren Farrell, a San Diego-based author. “People who do best in a field (financially) just plain put in more hours,"
But hours alone don't fully account for the gap in women's and men's earnings. Farrell identified 25 work-life decisions that men and women make in the course of their careers that have a direct bearing on their earning potential. Farrell found, for instance, that men are more likely to opt for doing that which can lead to a higher paycheck, including: relocate or travel extensively for work; take on more hazardous assignments; work in the hard sciences; take jobs requiring greater financial risk; work in unpleasant environments (e.g. prisons or coal mines).
Women, by contrast, are more likely to seek "careers that are more fulfilling, flexible and safe," Farrell writes. But the tradeoff is that "the pay can be lower because more people compete to be fulfilled, causing the supply to exceed the demand." Even among highly paid women -- those who make over $100,000 -- Farrell found they are more likely than men at the same pay level to forfeit some pay in exchange for more free time. Women often reduce their work hours so they can take care of their families. While men may end up with more pay in many fields, Farrell believes women can end up with a better life on balance.
In looking at respective pay, he found more than 80 occupations for regular working women in which they made more than their male counterparts. In 39 of the occupations he found women's median earnings exceeded men's earnings by at least 5 percent and as much as 43 percent. And why do some fields pay women a premium? "No one really knows perfectly the answer," according to Farrel. One factor may be scarcity. In fields like engineering, a company may get one woman and seven men applying for a job, Farrell said. If the company wants to hire the woman, they may have to pay a premium to get her. That's because she may have more competing offers than her male counterparts. The reason: not only is she a top performer who can boost a company's profitability but employing her helps a company improve its equal-opportunity standing, which in turn can help it secure government contracts.
Also, where women can combine technical expertise with people skills – such as those required in sales and other arenas where customers may prefer dealing with a woman – that's likely to contribute to a premium in pay.
It's not that Farrell doesn't think pay discrimination exists. It does, he said, but it's not always against women. There's plenty of it against men, too. He points to careers that have limited opportunities for men – e.g., dental hygienist or elementary school teacher because people prefer a woman in those roles.
Right now men are in a bad spot. The percentage of men aged 20 and over with jobs has fallen since last November from 72.9% to 72.2% in April. For women it rose from 58.1% to 58.3%. The adult male unemployment rate has risen twice as much as the female jobless rate since November.
If we look at employment sector by sector, manufacturing is over 70% male and construction is about 88% male. Meanwhile the growing education and health services sector is 77% female. The government sector, which has also remained strong, is 57% female.
Men are having a harder time than women getting back on track after losing a job. "For a man to move from a $20- or $30-an-hour union job to being a Wal-Mart greeter is devastating," says Claudia Goldin, a Harvard University labor historian. Men also shy away from some of the growing fields, such as nursing. Only about 10% of nursing students nationwide are male, notes Harriet R. Feldman, dean of the Pace University School of Nursing. Some retired nurses are actually going back to work because their husbands have lost jobs, says Lois Cooper, vice-president at Adecco Group North America.
If the recession persists, women will be more likely than men to hang onto their job. Why? In part, because women tend to choose professions in service industries, such as health care and education, which remain in demand even during tough times. Men, on the other hand, are more likely to work in manufacturing and construction, which are harder hit when consumer spending declines.
According to Business Week, men have the misfortune of having employment concentrated in the two sectors that are doing the worst: manufacturing and construction. Women employment is concentrated in sectors that are still growing, such as education and health care.
This situation is hardly good news for women, though. While they're getting more jobs, their pay is stagnant. Also, most share households with the men who are losing jobs. The troubles for the American male worker are hardly new. The manufacturing sector is in long-term decline, and construction goes through repeated booms and busts. Meanwhile women are graduating from college at higher rates than men. Some analysts even argue that men are less suited than women to the knowledge economy, which rewards supposedly female traits such as sensitivity, intuition, and a willingness to collaborate. "Men have tended to do better in the hierarchies, following orders and relying on positional power," says Andy Hines, with a Washington (D.C.) consulting firm.
And what about the pay – men make more than women, right? Men work more than women ... on the job anyway ... at least in terms of overall hours. That's just one reason why when you make a general comparison of men's and women's earnings in most fields, men usually come out ahead, according to Warren Farrell, a San Diego-based author. “People who do best in a field (financially) just plain put in more hours,"
But hours alone don't fully account for the gap in women's and men's earnings. Farrell identified 25 work-life decisions that men and women make in the course of their careers that have a direct bearing on their earning potential. Farrell found, for instance, that men are more likely to opt for doing that which can lead to a higher paycheck, including: relocate or travel extensively for work; take on more hazardous assignments; work in the hard sciences; take jobs requiring greater financial risk; work in unpleasant environments (e.g. prisons or coal mines).
Women, by contrast, are more likely to seek "careers that are more fulfilling, flexible and safe," Farrell writes. But the tradeoff is that "the pay can be lower because more people compete to be fulfilled, causing the supply to exceed the demand." Even among highly paid women -- those who make over $100,000 -- Farrell found they are more likely than men at the same pay level to forfeit some pay in exchange for more free time. Women often reduce their work hours so they can take care of their families. While men may end up with more pay in many fields, Farrell believes women can end up with a better life on balance.
In looking at respective pay, he found more than 80 occupations for regular working women in which they made more than their male counterparts. In 39 of the occupations he found women's median earnings exceeded men's earnings by at least 5 percent and as much as 43 percent. And why do some fields pay women a premium? "No one really knows perfectly the answer," according to Farrel. One factor may be scarcity. In fields like engineering, a company may get one woman and seven men applying for a job, Farrell said. If the company wants to hire the woman, they may have to pay a premium to get her. That's because she may have more competing offers than her male counterparts. The reason: not only is she a top performer who can boost a company's profitability but employing her helps a company improve its equal-opportunity standing, which in turn can help it secure government contracts.
Also, where women can combine technical expertise with people skills – such as those required in sales and other arenas where customers may prefer dealing with a woman – that's likely to contribute to a premium in pay.
It's not that Farrell doesn't think pay discrimination exists. It does, he said, but it's not always against women. There's plenty of it against men, too. He points to careers that have limited opportunities for men – e.g., dental hygienist or elementary school teacher because people prefer a woman in those roles.
Right now men are in a bad spot. The percentage of men aged 20 and over with jobs has fallen since last November from 72.9% to 72.2% in April. For women it rose from 58.1% to 58.3%. The adult male unemployment rate has risen twice as much as the female jobless rate since November.
If we look at employment sector by sector, manufacturing is over 70% male and construction is about 88% male. Meanwhile the growing education and health services sector is 77% female. The government sector, which has also remained strong, is 57% female.
Men are having a harder time than women getting back on track after losing a job. "For a man to move from a $20- or $30-an-hour union job to being a Wal-Mart greeter is devastating," says Claudia Goldin, a Harvard University labor historian. Men also shy away from some of the growing fields, such as nursing. Only about 10% of nursing students nationwide are male, notes Harriet R. Feldman, dean of the Pace University School of Nursing. Some retired nurses are actually going back to work because their husbands have lost jobs, says Lois Cooper, vice-president at Adecco Group North America.
If the recession persists, women will be more likely than men to hang onto their job. Why? In part, because women tend to choose professions in service industries, such as health care and education, which remain in demand even during tough times. Men, on the other hand, are more likely to work in manufacturing and construction, which are harder hit when consumer spending declines.
Tuesday, May 6, 2008
Save money on Prescription drugs!
A year or so ago I received a prescription that I took to my regular drug store pharmacy. They indicated that they would be checking with my insurance company on my co-pay. After a couple days I heard back from them – no co-pay, it would cost me $95 for a 30 day supply!!
As luck would have it, the day I was at the doctor, I was reading a local weekly newspaper whose front page headline spoke of the high prices of prescription drugs. I had read the article which did a cost comparison of various drug stores, pharmacies, and Costco. Costco was cheaper on every drug they compared – sometimes by a large margin. I moved my prescription to Costco (you don’t have to be a Costco member to use their pharmacy) and got my prescription for $64.
Just this week Wal-Mart announced expansion of their low-cost prescription drug program. They expanded their $4 discounted prescription drug program to offer 90-day supplies for $10 and to add several women's medications at a discount. They are also lowering the price of more than 1,000 over-the-counter drugs.
This is the third phase of the Wal-Mart plan. They have been offering $4 monthly supply prescriptions for a couple years now.
”More and more people find health care, and particularly prescribed medicines, difficult to afford. This is one of the reasons we continually work to take our $4 Prescription Program to the next level,” said Dr. John Agwunobi, Wal-Mart senior vice president and president, health and wellness. “We’re succeeding in our efforts to deliver simple, affordable, quality pharmacy solutions for families struggling with the rising costs of health care. And, our customers – and their budgets – are seeing a dramatic difference.”
Beginning today (5/5/2008), Wal-Mart, Neighborhood Market and Sam’s Club pharmacies will fill prescriptions for up to 350 generic medications at $10 for a 90-day supply. This option will give customers an additional choice and save them time and money without the hassle of purchasing or signing-up for a pharmacy discount card.
Expanding on the women’s medicines added to Wal-Mart’s prescription program in September 2007, Alendronate, the recently introduced generic version of Fosamax® used to treat osteoporosis, is now available at Wal-Mart, Neighborhood Market and Sam’s Club pharmacies for $9 for up to a 30-day supply or $24 for a 90-day supply. Compared to the $54 that women previously paid for the same generic supply or $102 for the same branded supply, Wal-Mart could save osteoporosis patients between $45 and $93 per month or up to $1,116 per year. In addition, medications to treat breast cancer (tamoxifen), menopause and hormone deficiency (combination estrogen/methyltestosterone tablets) were also added to the growing list of $9 women’s medications. Combined, Wal-Mart estimates that this expansion alone will save women more than $100 million annually.
Wal-Mart Stores and Neighborhood Markets today began a new $4 OTC program, offering customers more than 1,000 Over The Counter items priced at $4 or less without a prescription. Wal-Mart has rolled back prices on key OTC items to ensure that almost one-third of its OTC medicines are now $4 or lower. Now, many commonly used OTC medicines such as the Equate-brand versions of popular drugs like Zantac®, Pepcid® and Claritin® are priced at $4, approximately 50 percent lower than many national chain drugstores and grocers based on Wal-Mart’s internal research.
In California, Colorado, Hawaii, Minnesota, Montana, Pennsylvania, Tennessee, Wisconsin and Wyoming certain drugs are priced higher than the $4 and $10 prices
For further information on the program, customers can call 1-800-WAL-MART, visit their website at www.walmart.com/pharmacy or discuss the program with their local Wal-Mart, Neighborhood Market or Sam’s Club pharmacist.
A complete listing of the drugs in the program is available at: http://i.walmart.com/i/if/hmp/fusion/four_dollar_drug_list.pdf
As luck would have it, the day I was at the doctor, I was reading a local weekly newspaper whose front page headline spoke of the high prices of prescription drugs. I had read the article which did a cost comparison of various drug stores, pharmacies, and Costco. Costco was cheaper on every drug they compared – sometimes by a large margin. I moved my prescription to Costco (you don’t have to be a Costco member to use their pharmacy) and got my prescription for $64.
Just this week Wal-Mart announced expansion of their low-cost prescription drug program. They expanded their $4 discounted prescription drug program to offer 90-day supplies for $10 and to add several women's medications at a discount. They are also lowering the price of more than 1,000 over-the-counter drugs.
This is the third phase of the Wal-Mart plan. They have been offering $4 monthly supply prescriptions for a couple years now.
”More and more people find health care, and particularly prescribed medicines, difficult to afford. This is one of the reasons we continually work to take our $4 Prescription Program to the next level,” said Dr. John Agwunobi, Wal-Mart senior vice president and president, health and wellness. “We’re succeeding in our efforts to deliver simple, affordable, quality pharmacy solutions for families struggling with the rising costs of health care. And, our customers – and their budgets – are seeing a dramatic difference.”
Beginning today (5/5/2008), Wal-Mart, Neighborhood Market and Sam’s Club pharmacies will fill prescriptions for up to 350 generic medications at $10 for a 90-day supply. This option will give customers an additional choice and save them time and money without the hassle of purchasing or signing-up for a pharmacy discount card.
Expanding on the women’s medicines added to Wal-Mart’s prescription program in September 2007, Alendronate, the recently introduced generic version of Fosamax® used to treat osteoporosis, is now available at Wal-Mart, Neighborhood Market and Sam’s Club pharmacies for $9 for up to a 30-day supply or $24 for a 90-day supply. Compared to the $54 that women previously paid for the same generic supply or $102 for the same branded supply, Wal-Mart could save osteoporosis patients between $45 and $93 per month or up to $1,116 per year. In addition, medications to treat breast cancer (tamoxifen), menopause and hormone deficiency (combination estrogen/methyltestosterone tablets) were also added to the growing list of $9 women’s medications. Combined, Wal-Mart estimates that this expansion alone will save women more than $100 million annually.
Wal-Mart Stores and Neighborhood Markets today began a new $4 OTC program, offering customers more than 1,000 Over The Counter items priced at $4 or less without a prescription. Wal-Mart has rolled back prices on key OTC items to ensure that almost one-third of its OTC medicines are now $4 or lower. Now, many commonly used OTC medicines such as the Equate-brand versions of popular drugs like Zantac®, Pepcid® and Claritin® are priced at $4, approximately 50 percent lower than many national chain drugstores and grocers based on Wal-Mart’s internal research.
In California, Colorado, Hawaii, Minnesota, Montana, Pennsylvania, Tennessee, Wisconsin and Wyoming certain drugs are priced higher than the $4 and $10 prices
For further information on the program, customers can call 1-800-WAL-MART, visit their website at www.walmart.com/pharmacy or discuss the program with their local Wal-Mart, Neighborhood Market or Sam’s Club pharmacist.
A complete listing of the drugs in the program is available at: http://i.walmart.com/i/if/hmp/fusion/four_dollar_drug_list.pdf
Monday, May 5, 2008
Innovation
On my website and in other correspondence I have mentioned a lot about the value of innovation. I indicate the value of introducing innovation to help businesses be the best that they can be. I have quoted studies which indicate that innovation led to the extraordinary productivity gains in the 1990s. I referenced other studies which showed that a large and rising share of growth over recent decades is the result of innovation. I shared that OBCOM could bring valued innovation from “outside the office” into businesses to help them be their best and achieve their vision of success.
Now may be a critical time to look to innovation to keep ahead of the pack. In his recent autobiography, The Age of Turbulence, Alan Greenspan offers a worrying view of the prospects for the U.S. economy in the future. Quoting a review, “Most troubling of all, the author points to ‘a slowdown in innovation,’ which has been powering economic growth throughout much of the last century. This can be seen in companies using their cash flow to repurchase their own stock and pay larger dividends to shareholders rather than investing in new plants and equipment. He fears that this trend towards big dividends is ‘a warning signal of lowered prospective rates of return.’
It is important food for thought that American productivity might be slowing down, and as it does so, the price of U.S. goods may start climbing. Concerned investors everywhere should take note. If Greenspan is right, foreign markets may look more attractive.”
Now may be a critical time to look to innovation to keep ahead of the pack. In his recent autobiography, The Age of Turbulence, Alan Greenspan offers a worrying view of the prospects for the U.S. economy in the future. Quoting a review, “Most troubling of all, the author points to ‘a slowdown in innovation,’ which has been powering economic growth throughout much of the last century. This can be seen in companies using their cash flow to repurchase their own stock and pay larger dividends to shareholders rather than investing in new plants and equipment. He fears that this trend towards big dividends is ‘a warning signal of lowered prospective rates of return.’
It is important food for thought that American productivity might be slowing down, and as it does so, the price of U.S. goods may start climbing. Concerned investors everywhere should take note. If Greenspan is right, foreign markets may look more attractive.”
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