Business Notes

Newton, Iowa — Major appliance maker Maytag said it anticipates a 25 percent increase in second quarter sales, compared with the same three months in 2001, while it expects sales for the full year will be 15 percent higher than the previous 12 months. Maytag cites better-than-expected results in April and May, namely increased revenue and a favorable mix of higher margin products, which lead to margin improvement. However, the company has noted some market share decreases because of its deliberate emphasis on selling at the upper-third of market price points, rather than at the lower-price segments.

Boston— Hewlett-Packard plans to cut 10,000 jobs, out of a workforce of about 150,000, by the end of its fiscal year, Nov. 1. Another 5,000 cuts are planned for 2003, said CEO Carly Fiorina at an analyst meeting here early in June. HP, which just completed its merger with Compaq Computer, also expects $500 million in costs savings by the end of the fiscal year, and $2.5 billion by the end of 2003, said Fiorina. Earlier, it was anticipated that $2 billion would be saved by 2003 and $2.5 billion by 2004. HP is estimating revenue of $35 billion to $36 billion in its second half.

Helsinki, Finland— Mobile phone maker Nokia downgraded sales expectations for its mobile phones unit, with second quarter growth expected to be 0 to 4 percent, compared with the same quarter last year, rather than the 5 percent to 10 percent stated earlier. However, Nokia said its mobile phone unit pro forma operating margin is expected to be above 20 percent in the second three months, compared with the second quarter last year. It anticipates about 5 percent growth in the overall mobile phone market in the second quarter, with its market share increasing to 38 percent year over year. Nokia, due mainly to weak handset demand, sees net sales in the second quarter falling 2 percent to 6 percent, to a range of $6.5 billion to $6.8 billion, compared with the previous target of 2 percent to 7 percent growth in the three months.

Boston— Battery maker Duracell plans to offer $1 million in cash and prizes this summer in its "Power Up with the New Coppertop and Win $100,000" game. As part of a promotional campaign in which consumers have the opportunity to take home 11 $100,000 grand prizes, specially marked AA and AAA 8-packs of Coppertop batteries will have the word "winner" printed in green right on the batteries, signifying a $100,000 giveaway. In a specially marked 8-pack of AA and AAA Coppertops, a game piece will be included with a chance to win one of a number of additional prizes. Also, Duracell will deploy a team to travel the country in a customized stretch Hummer auto painted to resemble a Duracell battery. On-site demos of high tech audio and visual devices will highlight the tour.