Oracle says EU underestimated rivals

Oakland Tribune, Apr 1, 2004 by BLOOMBERG NEWS NEWS

Oracle Corp., the world's third-largest software maker, plans to challenge European Union antitrust objections to its $9.4 billion hostile bid for PeopleSoft Inc. by arguing regulators are ignoring new competitors in the market, people familiar with the matter said. In closed-door hearings that began Wednesday in Brussels, Oracle will argue the European Commission underestimates rivals such as Baan Co. and the market for smaller businesses, said the people, who declined to be identified. The commission began its probe in November by focusing on the market for larger multinational companies, dominated by Redwood City-based Oracle, Pleasanton-based PeopleSoft and Germany's SAP AG.

Intel CEO sees bonus increase

Intel Corp., the world's largest semiconductor maker, said that Chief Executive Craig Barrett's bonus increased 41 percent last year and that he received more than twice as many stock options. Barrett received $610,000 in salary in 2003, the same as in 2002, Intel said in an SEC filing. His bonus rose to $1.51 million from $1.07 million, and he got options to buy grew to 1.35 million shares from 584,000. Intel's net income surged 81 percent to $5.64 billion last year. Barrett, 64, has added Centrino chip packages that let laptop computers connect wirelessly to the Internet, and he has pushed the company to buy equipment that reduces manufacturing costs.

EMI slashes work force, cuts artist roster

EMI Group Plc, the world's third-largest record company, plans to shed 1,500 jobs, or a fifth of its work force, after the global music industry shrank for a fourth year in 2003. The company's shares jumped 8 percent. EMI, whose artists include Norah Jones and the Rolling Stones, said the cuts will cost about $138 million. EMI will also drop underperforming acts. EMI, which failed to buy Warner Music last year, is adding to 2,000 job cuts made since late 2001 amid a slump that has prompted competitors to merge. Sony Corp. and Bertelsmann AG in December agreed to combine their music units. Market leader Universal Music Group has fired workers and sold compact disc plants as online piracy dents sales.

Corning to add workers -- overseas

Corning Inc., which cut its work force by more than half since 2001 as sales of its fiber-optical cable plummeted, will add workers this year to keep pace with soaring demand for glass used in liquid- crystal displays for flat-panel televisions and computer monitors. Employment should rise from about 20,000 at the end of last year, Chief Financial Officer Jim Flaws said in an interview. He declined to provide a specific number of hires. Most of the new jobs will be at LCD-glass factories in Japan and Taiwan. Shipments of LCD glass rose 50 percent in 2003 and are expected to rise 30 to 50 percent this year. Corning said it sold out of glass during fourth-quarter, and is adding capacity to keep up with demand from customers such as Samsung Corp. and Sharp Corp.

Electronic retailers see profits surge

Best Buy Co., the largest U.S. electronics retailer, boosted fourth-quarter profit 51 percent on higher holiday sales of televisions and digital cameras. No. 2 Circuit City Stores Inc. increased profit 26 percent. Shares of both companies rose. Net income at Best Buy climbed to $469 million, or $1.42 a share, in the quarter ended Feb. 28, the Minnesota-based company said. Best Buy also raised profit forecasts. Circuit City's net income rose to $89.6 million, or 43 cents. Sales gains of 9.7 percent at Best Buy stores open at least 14 months came at the expense of Circuit City, whose comparable- store sales rose 1 percent. Best Buy's customer loyalty program helped it boost market share, the company said.

Firms seek to build nuclear power

Exelon Corp. and Entergy Corp., the biggest U.S. nuclear-power generators, and five other companies will seek U.S. government funding in the first new nuclear-plant license application in 30 years. The group expects to spend $49 million over seven years to advance reactor designs by General Electric Co. and Siemens AG's Westinghouse unit, the companies said. The U.S. Department of Energy asked the industry in November to test the Nuclear Regulatory Commission licensing process adopted in 1992. No new U.S. nuclear stations have been started since a 1979 core meltdown at Three Mile Island Unit 2 in Pennsylvania, the worst nuclear-power accident in U.S. history.

Modified sees grow profit for Monsanto

Monsanto Co., the world's biggest developer of genetically engineered crops, said quarterly profit rose 54 percent as it cut costs and sold more modified corn and soybean seeds. Net income rose to $154 million, or 57 cents a share, in the fiscal second quarter ended Feb. 29, from $100 million, or 38 cents, a year earlier, the St. Louis-based company said. Sales increased 15 percent to $1.49 billion. Chief Executive Hugh Grant is selling assets and cutting workers while focusing on gene-modified foods to lift profit.