REVIEW
July 25 -31
Earning Roundup: Northrop Grumman Corp. reported second-quarter net income of $205 million, compared with $182 million for the like period a year ago. Revenue for the Los Angeles-based aerospace company jumped 57 percent, to $6.63 billion. Hilton Hotels Corp. reported second-quarter net income of $54 million, down from $76 million for the like period a year ago. Revenue for the Beverly Hills-based hotel chain fell 5 percent, to $983 million. THQ Inc. reported a net loss of $3.6 million, compared with net income of $2.3 million for the like period a year ago. Revenue for the Calabasas Hills-based video game company rose to $98.1 million from $85.8 million a year earlier. Unocal Corp. reported second-quarter net income of $177 million, compared with $114 million for the like period a year ago. Revenue for the El Segundo-based energy company rose 15 percent, to $1.56 billion. Walt Disney Co. reported second-quarter net income of $400 million, compared with $364 million for the year-earlier period. Revenue for the Burbank-based entertainment company rose 6.6 percent to $6.2 billion. Guitar Center Inc. reported second-quarter net income of $6.2 million, compared with $4.1 million for the like period a year ago. Revenue for the Westlake Village-based music store chain rose 14.9 percent, to $291.6 million. Kilroy Realty Corp. reported second-quarter net income of $13.4 million, compared with $5 million for the like period a year ago. Funds from operations for the Los Angeles-based real estate investment trust totaled $24.9 million, compared with $23.4 million a year earlier. Big Five Sporting Goods Corp. reported second-quarter net income of $6.3 million, compared with $4.1 million for the like period a year ago. Revenue for the El Segundo-based retailer rose 4.6 percent, to $170.1 million.
Lion Withdraws: Metro-Goldwyn-Mayer Inc. pulled out of the bidding for Vivendi Universal SA’s entertainment assets, leaving four potential bidders. Los Angeles-based MGM, which is controlled by billionaire Kirk Kerkorian, said Vivendi’s price expectations weren’t “consistent with our valuation of the assets.” MGM had offered $11.5 billion; press reports have Vivendi holding out for as much as $14 billion. The withdrawal leaves Edgar Bronfman Jr. (photo), NBC, Liberty Media and Viacom as still interested in all or part of the assets. Separately, Kerkorian’s Tracinda Corp. will make a cash tender offer for as many as 15 million shares at $16 a share, or $240 million.
Calpers Gains: The California Public Employees’ Retirement System, following two years of losses, gained 3.9 percent in the year ended June 30 from investments in rising stocks and bonds. Investments by the California State Teachers’ Retirement System also rose for the first time in three years with a 3.4 percent gain. About 60 percent of Calpers’ assets are invested in U.S. and international stocks.
Nemo Power: “Finding Nemo” has become the top-grossing animated film in the U.S. and Canada, passing Walt Disney Co.’s 1994 release, “The Lion King.” The Disney/Pixar Animation Studios undersea adventure brought in $4.4 million last weekend, raising its total to $313.1 million in its nine-week run. “The Lion King” grossed $312.9 million, according to Exhibitor Relations Co., although the numbers aren’t adjusted for a 39 percent rise in ticket prices since 1994.
PREVIEW
August 4 – 10
Film Fest: The American Film Institute hosts “An Evening Under the Stars” on Sunday (10th) at the Union Restaurant in Santa Monica featuring live jazz, cabaret-style entertainment, alfresco dining and a silent auction of film artifacts. For information: 310-652-1996.
VICA Welcome: The Valley Industry and Commerce Association holds its new member welcome reception and luncheon on Tuesday (5th) at 11:30 a.m. at the Radisson Valley Hotel in Sherman Oaks. For information: 818-907-7934.
Town Hall Lineup: Alberto R. Gonzales, counsel to the president and often mentioned as a future Supreme Court nominee, will speak on Wednesday (6th) at a noon luncheon meeting of Town Hall Los Angeles at the Omni Los Angeles Hotel. On Tuesday (5th), the Town Hall luncheon speaker will be Robert K. Ross (photo), president and chief executive of the California Endowment, who will discuss health care inequities. For information: 213-628-8141.
Sports Beat: The Dodgers are in town most of the week with a three-game series against Cincinnati (5th-7th) followed by a three game weekend series (8th-10th) against the Chicago Cubs. The Galaxy will be home on Saturday against Columbus while the Sparks are out of town for the week. There’s also the JPMorgan Chase Open at the Home Depot Center in Carson, with a lineup that includes Kim Clijsters and Lindsay Davenport.
Economic Preview: Still more earnings reports. Plus, on Monday (4th) it’s June factory orders followed on Thursday (7th) by June wholesale inventories and consumer credit. And on Friday (8th), it’s unemployment data for California and L.A. County.
Festival Scene: This being August, there are no shortage of weekend festivals. This week, it’s the Long Beach Jazz Festival (8th-10th) against the backdrop of the Queen Mary and Long Beach Marina. For information: 562-424-0013. In San Pedro on Saturday and Sunday, it’s the Block Party and Arts Festival, a local tradition featuring music, food, and interactive arts activities in a fun environment for the entire family. For information: 310-514-4940. And in downtown’s Little Tokyo, there’s the Nisei Week Japanese Festival celebrating traditional and contemporary Japanese American cultural heritage. For information: 213-687-7193.
Recall Deadline: Political gamesmanship is expected to reach a frenzied level as the filing deadline for replacement candidates in the Oct. 7 gubernatorial recall election arrives at 5 p.m. Saturday (9th). Gov. Gray Davis’ fate largely depends on who will run to replace him should he be recalled. As of late last week, more than 100 candidates had taken out papers to run, although only a handful had paid the $3,500 filing fee or gathered 65 signatures.
