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Archive for Tuesday, September 11, 2001

Briefcase

September 11, 2001

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Michelin to eliminate 2,000 jobs in North America

Michelin North America Inc. is cutting 2,000 jobs, or about 7 percent of its work force, citing a downturn in tire markets and a need to increase its long-term competitiveness.

The company said it hoped to complete many of the cuts through normal attrition and voluntary severance programs.

Cuts will affect all aspects of Michelin's operations, spokeswoman Nancy Banks said. Michelin has 23 plants in North America and has 26,500 employees.

Economy

Consumers pull back credit

Consumers, worried about job prospects in a weakening economy, remained cautious in July about taking on extra debt, the government reported Monday.

The Federal Reserve said that consumer borrowing essentially was unchanged in July after falling 1.3 percent at an annual rate in June. The June decline marked the first time consumer borrowing had fallen in nearly four years.

Analysts said the weakness in borrowing shows that consumers, the main force keeping the economy out of a recession, have grown much more cautious in the face of the yearlong economic slowdown.

Manufacturing

Boeing shares fall 4 percent on warning of federal appeal

Boeing Co. shares fell 4 percent Monday to a 14-month low after the company said it could take a $1.4 billion charge if it loses a legal appeal over the government's termination of a contract for the A-12 stealth fighter.

The company also said it decided to appeal the latest ruling in the decade-old legal battle, an Aug. 31 federal court decision that upheld the government's 1991 action.

Boeing said in a filing with the Securities and Exchange Commission that it sees about a $1.4 billion effect on earnings from its repayment obligations if it loses.

Its stock fell $1.72 to close at $43.46 on the New York Stock Exchange.

Bankruptcy

Economy wipes out tissue manufacturer

American Tissue Inc., the fourth-largest maker of tissue in the United States, filed for Chapter 11 bankruptcy protection Monday.

American Tissue's products include toilet paper, facial tissues, napkins, towels, paper plates and paper bags sold as store brands and supplied to schools, malls and hospitals.

The Hauppauge, N.Y.-based company cited cyclical downturns in the pulp market and other factors for recent layoffs at mills in Wisconsin, Tennessee, New Hampshire and New York.

Gucci

Ownership squabble settled

A two-year legal battle for ownership of Gucci ended Monday with LVMH Moet Hennessy Louis Vuitton agreeing to let retailer Pinault-Printemps-Redoute take control of the prized Italian fashion house.

Pinault-Printemps-Redoute, or PPR, will buy LVMH's shares for about $800 million, raising its stake in Gucci to 53.2 percent from 42 percent.

PPR will offer to buy out other shareholders late and hopes to own about 70 percent of the style icon when the three-stage deal is completed in 2004.

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