The Boeing Co. warned Thursday that employment will decline in 2009 as the company responds to the global economic situation. The company announced Wednesday that it would cut 800 defense jobs in Wichita, Kan. Boeing did not specify how its commercial airplanes operation will be impacted. Boeing’s employment drop next year could exceed its typical attrition rate of 4 to 5 percent. The company could handle the decline by letting go of contract workers, attrition and layoffs.
Zumiez reports drop in 3Q income
Zumiez, a retailer of sports apparel, equipment and accessories, reported a drop in its third quarter net income to $6.8 million, down from $8.1 million in the same quarter in 2007. Comparable store sales also decreased 5.8 percent compared to a 13.2 percent increase a year ago. As retailers struggle amid the economic downturn, the Everett-based company saw sales and product margins shrink in September and October compared to its year-to-date trends through August. Zumiez recently lowered sales and earnings expectations for the rest of 2008, said Rick Brooks, chief executive officer of the company.
Barnes &Noble’s loss tops prediction
Barnes &Noble Inc. reported a larger-than-expected quarterly loss Thursday on significant drops in traffic and consumer spending at its stores. The company reported a loss of $18.4 million, or 34 cents per share, compared with a profit of $4.4 million, or 7 cents per share, a year earlier. Revenue dipped to $1.12 billion for the quarter, from $1.18 billion. Analysts surveyed expected a loss of 16 cents per share on revenue of $1.17 billion. The company now expects fourth-quarter profit of $1.40 to $1.70 per share and $1.30 to $1.60 per share for the year.
Rolls-Royce cuts jobs on 787, A380 delays
Rolls-Royce Group PLC said Thursday it plans to cut up to 2,000 jobs next year as demand for its products slumps amid the global economic downturn. The world’s second largest maker of aircraft engines said it plans to slash 140 jobs at its aerospace assembly and test facility in Derby, England. The plan will help it trim costs and reduce output as demand drops because of an uncertain economic outlook and delays on some of the company’s most high-profile projects, such as the Airbus A380 and Boeing 787. The reduction in head count comes on top of 2,300 job losses the company announced in January.
Dell 3Q profit falls as PC spending slows
PC maker Dell Inc. said Thursday its third-quarter profit fell 5 percent as businesses around the world bought fewer computers and other technology products. Dell’s earnings dipped to $727 million, from $766 million a year ago. But Dell bought back a significant number of shares over the last year, pushing earnings per share up 9 percent, to 37 cents per share. That was 3 cents better than analysts were expecting, according to a Thomson Reuters poll. Sales slipped 3 percent to about $15 billion. The slowdown in spending by corporations could not be offset by a 10 percent rise in consumer PC revenue.
From Herald news services