Business Digest


February 09, 2005

In The Region

Under Armour chief, mayor to lead talks about job creation

Local business and political leaders will hold a public discussion tomorrow evening about jobs and the economy, part of a series of town-hall meetings around the country seeking to start a public conversation about the role of government and the private sector in creating employment.

"American Jobs: A National Conversation" is sponsored by the Council for Excellence in Government and the Global Markets Institute at Goldman Sachs. Panelists include Baltimore Mayor Martin O'Malley and Kevin Plank, president and founder of Under Armour Performance Apparel. Results of a poll of Baltimore residents about job creation are to be released at the meeting.

The meeting will be held at 6:30 p.m. tomorrow at the Johns Hopkins University Downtown Center, 10 N. Charles St.


Cisco's earnings up nearly 13%, but sales fall short of forecast

Cisco Systems Inc. reported yesterday that its fiscal second-quarter profits rose nearly 13 percent - though sales missed expectations - as the company's traditional router business continued to be strong, along with emerging technologies such as Internet telephones.

For the three months that ended Jan. 29, Cisco earned $1.4 billion, or 21 cents per share, compared with $724 million, or 10 cents per share, in the second quarter last year.

Excluding special items, Cisco earned $1.48 billion, or 22 cents per share, compared with a profit of $1.32 billion, or 18 cents per share, in the second quarter last fiscal year. Sales jumped 12 percent to $6.06 billion, from $5.4 billion last year.

The earnings met Wall Street expectations, but revenue didn't. Analysts were expecting Cisco to earn 22 cents per share on sales of $6.13 billion, according to a survey by Thomson First Call.

Dozens of Kmart stores to get new Sears format

Sears, Roebuck and Co. disclosed plans yesterday to switch dozens of Kmart stores to a new mid-sized store format called Sears Essentials, providing more details of what the combined Kmart-Sears retail behemoth will look like.

The new strategy for competing with discounters such as Wal-Mart Stores Inc. and Target Corp. will combine Sears products such as appliances, tools, home electronics and clothing with convenience items such as health and beauty ware, snacks and pet supplies.

Sears and Kmart Holding Corp. are awaiting regulatory approval of their merger, which will create the nation's third-largest retailer, Sears Holdings Corp. The deal is expected to close early next month.

Trump stockholders assail reorganization plan

Denouncing Trump Hotels & Casino Resorts' bankruptcy reorganization plan as "a basket of goodies" for Donald J. Trump, a group of common stockholders wants to file an alternative with fewer perks for the casino mogul and more value for stakeholders.

In a court filing Monday, the Official Committee of Equity Security Holders asked a judge to terminate Trump Hotels' exclusive right to reorganize its affairs. The Chapter 11 reorganization plan being considered by the court smells of inside deals benefiting Trump, his bankers and others at the expense of the approximately 32,000 holders of the casino company's common stock, the filing said.

The Equity Committee has not crafted an alternative proposal; it needs court permission to file such a plan. Judge Judith H. Wizmur of U.S. Bankruptcy Court in Wilmington, Del., is to hear arguments on the Equity Committee's motion Feb. 23.

Ask Jeeves search engine buys Web log index

Underdog online search engine Ask Jeeves Inc. has bought Bloglines, a Web log index and Internet news funnel popular with readers of online journals, in its latest bid to gain ground on heavyweight rivals Google Inc. and Yahoo Inc.

Ask Jeeves of Oakland, Calif., completed the acquisition last week and announced it yesterday. Many of the online sites tracked by Bloglines spent the weekend debating the pros and cons of the combination. The sales price wasn't disclosed.

The acquisition stems from a widening interest in Web logs, or "blogs," the online journals that have grown from mundane personal diaries into increasingly influential sources of news and commentary.

Microsoft to buy maker of protective software

Microsoft Corp. announced plans yesterday to acquire a company whose software aims to protect corporate networks from threats via e-mail and said it would sell a product based on the technology.

The deal for Sybari Software Inc., along with word that Microsoft is gearing up to release its first set of commercial anti-virus products, could hurt security companies including Symantec Corp. and McAfee Inc., analysts said.

Terms of the deal, the latest in a series of security-related purchases by Microsoft, were not disclosed. Sybari is privately held but had been planning an initial public stock offering.

Playtex to cut 300 jobs, about 20% of workers

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