Emerson Electric, MetLife, AT&T, others announce job cuts
ST. LOUIS (AP) -- Emerson Electric Co. is cutting 4,000 jobs, or 10 percent of its salaried work force, and will close about 20 of its 350 plants worldwide because of a decrease in customer demand and a downturn in the economy aggravated by last month's terrorist attacks.
Emerson also warned Monday that its operating earnings would be lower than Wall Street expects for this fiscal year.
Other companies announcing job cuts are:
AT&T Corp. is cutting an additional 2,400 jobs, meaning the telecommunications giant will have cut more than 8,000 jobs, or more than 6 percent of its work force, this year, the Wall Street Journal reported today.
The Journal cited the Communications Workers of America as saying that 2,400 union jobs will be cut, though AT&T would only say that a "small percentage" of jobs are being eliminated through buyouts, layoffs and attrition.
MetLife Inc. is cutting nearly 1,900 jobs to help trim costs and boost earnings amid losses in its auto and home insurance business.
The insurance giant also said Monday it will incur insurance losses of $210 million after taxes following the Sept. 11 terrorist attacks, dragging third-quarter earnings estimates to about 29 cents to 31 cents per share.
B/E Aerospace, a leading provider of commercial aircraft parts, is planning to cut about 1,000 jobs -- about 21 percent of its work force -- and close five production plants due to lagging demand following the Sept. 11 attacks.
The move leaves Wellington, Fla.-based B/E Aerospace with about 3,650 workers and 11 production plants worldwide. The company's management team agreed to take pay cuts ranging between 35 to 50 percent.
U.S. News & World Report has cut salaries by up to 10 percent and laid off 13 staff members as the magazine copes with a sharp decline in advertising.
In addition to the salary cutbacks, the magazine is suspending its usual contributions to the staff's 401(k) retirement plan. People earning more than $50,000 will take a salary cut of 10 percent, and those earning below $50,000 will get a 5 percent cut.
Earnings off at DaimlerChrysler
FRANKFURT, Germany (AP) -- Third-quarter net income at DaimlerChrysler AG plunged 70 percent as the fifth-largest automaker struggled to boost sales in the wake of the Sept. 11 terrorist attacks.
However, the results beat analysts' expectations, signaling that a costly turnaround package centered on the German-American automaker's ailing Chrysler unit is on track despite the impact of the attacks. Shares were 6 percent higher in afternoon trading.
For the three months ended September, DaimlerChrysler earned 902 million euros ($802 million), compared with 3.1 billion euros in the year-ago period.
The company's adjusted operating profit, excluding one-time gains and losses, rose 19 percent to 666 million euros ($592.7 million) from 540 million euros the year before. The figure surpassed analysts' expectations of about 350 million euros ($312 million).