Sun Microsystems Inc., a leading maker of computer servers and workstations, lowered its earnings outlook for the first quarter and announced plans Friday to cut its workforce by about 9 percent, or nearly 3,900 jobs. Sun, which had avoided layoffs during the current economic downturn, blamed its worsening condition on a steep slowdown in orders following the Sept. 11 terrorist attacks. A large percentage of business typically takes place in the final month of a quarter, he added. It was not clear whether purchases that would have taken place in September were simply delayed or canceled outright.
Computer chip maker Advanced Micro Devices Inc. warned Friday that its third-quarter loss will be worse than Wall Street expected, reflecting the damage from a fierce price war with industry leader Intel Corp. AMD said its losses will range between $90 million and $110 million, or 26 cents to 31 cents a share, for the quarter ended Sept. 30. Analysts surveyed by Thomson Financial/First Call were expecting a loss of 12 cents a share, excluding one-time charges.
Bridgestone Corp. will take a loss of up to $30 million for the latest tire recall at its U.S. subsidiary Bridgestone/Firestone, but the president of the Tokyo company refused to admit to any defects in the tires Friday. Bridgestone/Firestone agreed Thursday to a recall of 3.5 million more Wilderness AT tires ordered by the National Highway Traffic Safety Administration, which had been investigating reports that the tires suddenly lost their tread and may be linked to 271 fatalities. Last summer, Bridgestone/Firestone recalled 6.5 million tires, but it refused to expand the recall. The tires in the latest recall include those sold as original equipment on Mercury Mountaineer sport utility vehicles and the Ford Ranger pickup.
Freightliner’s union workers have voted to accept reductions in pay and benefits, hoping the concessions will help keep the company in Portland, Ore. About 3,000 people work at Freightliner’s headquarters, heavy truck-manufacturing plant and a parts plant in the city. The company also operates plants in North Carolina, Mexico and Canada.
Wells Fargo &Co., the nation’s fifth largest banking company, is buying banks and other businesses in seven states owned by Carl Pohlad and his family. Terms were not disclosed. Under the deal announced Friday, Wells Fargo is purchasing banking companies with $5.6 billion in assets, 117 locations, 2,300 employees and 300,000 customer households. Wells Fargo, based in San Francisco, is a $290 billion diversified financial services company.
From Herald news services
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