Business briefs
Published 9:26 pm Thursday, March 27, 2008
Lumera Corp. of Bothell will merge with California-based GigOptix LLC, which specializes in integrated circuits for communication systems. The merger will result in the end of Lumera’s biotechnology business and the layoff of about 30 employees, about half the company’s work force. The combined company, to be known as GigOptix, will be based in California, but will keep a small office in Bothell. Shares of Lumera, which develops polymer modulators used in communications and defense applications, fell 12 cents, or 5 percent, Thursday to close at $2.07.
Turkmenistan Airlines buys 737s
Turkmenistan Airlines, the national carrier, has ordered three Next-Generation 737s, the Boeing Co. reported. The order for two 737-900ERs and one 737-700 is worth approximately $221 million at list prices. Turkmenistan Airlines’ all-Boeing fleet also includes 717s, Classic and Next-Generation 737s, 757s and one 767.
Economic stats feeble at year’s end
The economy nearly sputtered out at the end of the year and is probably faring even worse now amid continuing housing, credit and financial crises. The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading — unchanged from a previous estimate a month ago — provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate. The gross domestic product measures the value of all goods and services produced in the United States and is the best barometer of the country’s economic health.
Seattle firm makes bid on Aloha’s cargo
A Seattle company is offering to buy the cargo operations of Aloha Airlines, which filed for Chapter 11 bankruptcy protection last week. Saltchuk Resources Inc.’s offer announced Thursday is the first bid for any part of the Honolulu-based carrier. It’s subject to the approval of the U.S. Bankruptcy Court. The amount of the offer for Aloha’s cargo assets, equipment and service lines was not disclosed. Saltchuk says it is not interested in taking over Aloha’s passenger business. Saltchuk says it intends to retain as many Aloha employees as possible. The Seattle company has had a presence in Hawaii since 2000 when it acquired Young Brothers/Hawaiian Tug &Barge. It also owns Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores.
Investment firms grab up Fed loans
Big Wall Street investment companies have jumped all over the Federal Reserve’s unprecedented offer to obtain emergency loans, as borrowing more than doubled than in the program’s debut week. Those firms averaged $32.9 billion in daily borrowing over the past week from the new lending program, compared with $13.4 billion the previous week, the central bank reported Thursday. The program, which just began Monday, is part of the Fed’s effort to aid the financial system and keep it solvent. On Wednesday alone, lending reached $37 billion.
From Herald news services
