Business Notes
Staff -- TWICE, 11/5/2001
Recoton Expects Q3 Breakeven Financials
Lake Mary, Fla. — Accessories maker Recoton expects to report breakeven financial results in the third quarter ended Sept. 30, compared with a net loss of $1.9 million in the third quarter of 2000. The company expects to report revenue of about $136 million in the third quarter, down from $157.6 million in the third quarter of last year. Recoton is revising its fourth-quarter revenue estimate to about $210 million to $215 million, compared with revenue of $209.6 million in the year-ago fourth quarter. It is expected that net income should range between $8.5 million and $9.5 million in the fourth quarter, compared with net income of $7.9 million in the fourth quarter of 2000.
Kodak To Cut 4,000 Jobs, Q3 Profit Plunges 77%
Rochester, N.Y. — Kodak announced that it will cut as many as 4,000 jobs amidst news that its sales woes continue, to the tune of a 77 percent decline in third-quarter profits. The company expects to cut approximately 3,500 to 4,000 jobs this quarter from its slumping consumer and health-imaging sectors. Sales for the quarter totaled $3.3 billion, down 8 percent, compared with $3.59 billion in the third quarter of 2000. Net earnings were $96 million, compared with $418 million in the third quarter of 2000. Kodak's Consumer Imaging group's sales were down 8 percent to $1.78 billion, vs. the third quarter of 2000.
Nokia Chairman Gets 5-Year Extension
Helsinki, Finland — In an effort to ensure continuity in the leadership and management of mobile phone maker Nokia, Jorma Ollila, chairman/CEO, has been rewarded with another five years as head of the company. Ollila, who had been named president/CEO in 1992, took the chairman title in 1999. He joined Nokia in 1985. The vote of confidence comes at a time Nokia, earlier this month, reported lower sales and profits for its third quarter (see p. 45).
Electronics Boutique Updates Fiscal Q3 Estimate
West Chester, Pa. — Electronics Boutique still expects to report a year-over-year improvement in net income, but sales below previous estimates, according to an updated forecast of its fiscal third quarter ending Nov. 3. The retailer also said it expects better-than-anticipated gross margin due to enhanced operating efficiencies and benefits from expansion of its pre-owned video game business. Overall, the company still anticipates the video game market will grow more than 25 percent annually over the next few years. Citing delays in consumer purchases, attributable, in part, to the events of Sept. 11, Electronics Boutique expects comp-store sales will be in the negative single-digit range.
ArialPhone, CompUSA Set Store Stocking Deal
Vernon Hills, Ill. — ArialPhone announced a nationwide retail agreement with CompUSA, whereby the computer products retailer will carry the ArialPhone, a SOHO telephony product, in its 218 U.S. superstores, starting in October 2001. ArialPhone will be available at a suggested $399.99 retail.
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