REVIEW
November 7 – 13
Tenet Earnings: Tenet Healthcare Corp. reported a third-quarter net loss of $308 million, compared with net income of $328 million for the like period a year ago. Revenue for the Santa Barbara-based hospital chain declined to $3.3 billion from $3.5 billion. Tenet has cut earnings estimates four times since disclosing a year ago that it raised prices to trigger higher payments for very sick Medicare patients, touching off U.S. investigations. Separately, Tenet said an independent review of 23 cases at its Doctors Medical Center in Modesto shows that patients didn’t get unnecessary care. Blue Cross of California, a unit of Wellpoint Health Networks Inc., cancelled its contract at the hospital after alleging that treatment was too aggressive for some heart patients.
Other Earnings: Activision Inc. reported a second-quarter loss of $10 million, compared with net income of $9.1 million for the like period a year ago. Revenue for the Santa Monica-based video game publisher fell 31 percent, to $117.5 million. Public Storage Inc. reported third-quarter net income of $89.7 million, compared with $83.4 million for the like period a year ago. Funds from operations for the Glendale-based real estate investment trust rose 22 percent, to $99.8 million. Computer Sciences Corp. reported second-quarter net income of $108.1 million, compared with $92.9 million for the like period a year ago. Revenue for the El Segundo-based computer company rose 32 percent, to $3.6 billion. Homestore Inc. reported a third-quarter net loss of $30.6 million, compared with a net loss of $91.7 million for the like period a year ago. Revenue for the Westlake Village-based real estate listings company rose to $55.1 million from $53.9 million. Arden Group Inc. reported third-quarter net income of $3 million, compared with $3.2 million for the like period a year ago. Revenue for the Los Angeles-based parent of Gelson’s Markets rose 3.7 percent, to $101.2 million. The results for the three months ended Sept. 30 do not reflect the additional business stemming from the supermarket strike.
Plane Protection: Northrop Grumman Corp., which equips military aircraft with missile defenses, said it could put similar technology on 300 commercial jets used to transport troops and supplies within a year if the government approves. The deployment, which Northrop said would cost $810 million if done over a year or $600 million in about 18 months, would be designed to protect the planes from shoulder-fired missiles. Los Angeles-based Northrop expects the Department of Homeland Security to select about four companies next month to develop a program to protect passenger jets from such missiles.
Gasoline Update: Prices keep dropping. A survey by the Energy Information Administration shows that for the week ended Nov. 10 an average gallon of self-serve regular in Los Angeles was $1.672, down from $1.708 a week earlier. The statewide average was $1.685, down from $1.711. Nationally, pump prices remain higher than a year ago.
Rent Check: Rodeo Drive climbed 11 spots in the worldwide rankings of the most expensive retail real estate. Average rent for the Beverly Hills address rose 20 percent, to $264 a square foot for the 12 months ended June 30, ranking Rodeo Drive 21st out of 226 global locations surveyed by Cushman & Wakefield. New York’s Plaza District on Fifth Avenue was the most expensive, with average rent of $850 a square foot.
PREVIEW
November 17 – 23
The Governator: On Monday (17th), Arnold Schwarzenegger takes the oath of office as the 38th governor of California. The 11 a.m. swearing-in ceremony takes place on the west steps of the state Capitol and will be televised live on several L.A. TV and radio stations. On Tuesday (18th), the state Legislature will convene in concurrent special sessions to address the multibillion-dollar budget deficit and consider further reforms to the workers’ compensation system.
Sports Beat: College football’s annual cross-town rivalry between USC and UCLA on Saturday (22nd) takes on greater importance this year because of the Trojan’s shot at the national championship game. It’s a sellout at the Coliseum, by the way. On the NBA front, the Lakers are home on Friday (21st) against Chicago and Sunday (23rd) against Memphis. The Clippers are out of town all week. The Kings are home on Wednesday (19th) against Nashville.
Transit Confab: Mobility 21, a daylong session on L.A.’s transportation problems, will be held on Monday (17th) at the Westin Bonaventure. Among the scheduled speakers are L.A. Mayor James Hahn, L.A. County Supervisor Zev Yaroslavsky and MTA CEO Roger Snoble, so the bus mechanics’ strike is sure to come up. For information: 213-580-7565.
Economic Reports: Monday (17th): September business inventories. Tuesday (18th): October consumer price index. Wednesday (19th): October housing starts and building permits. Thursday (20th): October leading economic indicators.
‘Tis the Season: Believe it or not, the first Christmas Parade of the year will be held on Saturday (22nd) as part of Huntington Park’s annual holiday pageant presentation. The parade will feature the usual marching bands, antique cars, horse-drawn carriages and floats. For information: 323-582-0909.
Confidence Man: Former con man Frank Abagnale, subject of last year’s Steven Spielberg film “Catch Me If You Can” will appear on Wednesday (19th) at the Pasadena Civic Auditorium as part of the Distinguished Speaker Series. For information: 626-449-7360.
Market Talk: Jeremy Siegel, author of “Stocks for the Long Run” and a prominent lecturer on the economy and financial markets, will speak on Monday (17th) at the Milken Institute Forum in Santa Monica. Siegel, professor of finance at University of Pennsylvania’s Wharton School, will discuss the current market activity. For information: 310-570-4605.
