DEC cuts losses in halfDigital Equipment Corp., the...

BUSINESS DIGEST

January 15, 1993

DEC cuts losses in half

Digital Equipment Corp., the computer giant that is struggling to return to profitability, said yesterday that it cut net losses by more than half in the latest quarter. Wall Street responded enthusiastically, sending Digital's stock $7 higher on the New York Stock Exchange to $41.875 as volume surged to move than 5 million shares.

The second-largest U.S. computer company said net losses fell in the second quarter that ended Dec. 26 to $73.9 million, or 57 cents a share, from $155.2 million, or $1.25 a share, a year ago.

Siemens to cut up to 15,000

Siemens AG, the German electronics giant, plans to cut up to 15,000 jobs this year, its chairman said yesterday. He said

between 10,000 and 15,000 jobs would be trimmed from a total work force of 413,000. Some 6,000 jobs will be cut in Siemens' computer division.

S&P downgrades IBM debt

Another bond rating firm lowered its opinion of International Business Machines Corp.'s debt, dropping the computer maker from the top-flight grade yesterday. Standard & Poor's Corp. was 10 months behind the other large credit rater, Moody's Investor Service, in downgrading IBM, but dropped the company one notch lower.

Federal S&L panel convenes

A federal commission appointed to investigate the causes of the savings and loan debacle convened yesterday -- nearly four years after taxpayers began demanding to know why they were forced to bail out the industry.

The National Commission on Financial Institution Reform, Recovery and Enforcement -- an eight-member commission, was created by the 1989 legislation that began the bailout.

J.P. Morgan stock drops

J. P. Morgan & Co.'s stock fell sharply yesterday, even though the bank reported profits of $1.4 billion in 1992 and an 11 percent rise in fourth-quarter earnings.

Analysts said Morgan's latest financial results showed a disturbing rise in expenses and lower-than-expected revenues.

NovaScreen is purchased

A small College Park biotechnology company has purchased NovaScreen, a small portion of Scios-Nova Inc.'s business. NovaScreen is a service offered to other biotechnology companies that screens thousands of compounds for possible commercial applications.

The business, purchased for an undisclosed amount of cash, stock and future payments, will remain in Baltimore.

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