Review
May 14 – 20
Earnings Roundup: Computer Sciences Corp. reported fourth-quarter net income of $190.6 million, compared with $162.7 million for the like period a year earlier. Revenue for the El Segundo-based computer systems company rose 30 percent, to $4 billion. JB Oxford Holdings Inc. reported a first-quarter net loss of $2.2 million, compared with a loss of $681,000 for the like period a year ago. The Beverly Hills-based brokerage is under investigation for its possible involvement in the mutual fund trading scandal.
Network Lineups: The networks rolled out their new shows for next summer and fall. NBC will add “Friends” spinoff “Joey” and four other new shows in August, an earlier rollout than in the past, to retain viewers after it broadcasts the Olympic games. All told, the network will add seven more shows throughout the 2004-05 season. ABC, with a new executive team, will focus on dramas, including a spinoff of the successful series “The Practice,” which just completed a long run. CBS will rely on its successful “C.S.I.” franchise, adding a New York edition of the crime show. The top-rated network will be adding only two comedies to its lineup. Fox will debut six programs in June that will include a courtroom drama, “The Jury,” and a reality show, “The Casino.” Fox will debut its new shows in three shifts over the year.
Housing Boom: Real estate prices continued to run up in April, with the median price of a single-family home reaching $387,000, up 27.7 percent from a year earlier. Sales, however, were down 5.8 percent for the month, pointing to the area’s tight supply of housing. Some experts expect prices to soften as a result of higher interest rates.
Sony Talks: Howard Stringer (photo), chief executive of Sony Corp.’s U.S. unit, confirmed that the company is in talks for a possible purchase of Metro-Goldwyn-Mayer Inc. Stringer, speaking at Sony’s annual strategy meeting, said the company is undertaking an exclusive analysis of the Los Angeles-based movie studio.
Gas Update: There was another jump in pump prices for the week ended May 17, according to a survey by the Energy Information Administration. An average gallon of self-serve regular in the Los Angeles area was $2.304, up from $2.250. L.A. continues to be the highest-priced market in the survey. Statewide, an average gallon of gas was $2.269, up from $2.223. Separately, Sen. Barbara Boxer accused Shell Oil Co. of expediting plans to shut down its Bakersfield refinery this summer, which would create further supply problems. Shell said the closure wouldn’t happen until after Labor Day.
Newspaper Deal: Freedom Communications Inc., parent of the Orange County Register and other media properties, completed its restructuring. More than half the members of the founding Hoiles family cashed in their holdings as part of an agreement in which two private-equity investors, Blackstone Group and Providence Equity Partners, will become major investors. Terms of the restructuring guarantee that the remaining family members will hold at least 50.1 percent voting power.
Pooh Ruling: Los Angeles Superior Court Judge Charles W. McCoy refused to step down from the case involving litigation over “Winnie the Pooh” royalties. McCoy had thrown out the claims by Stephen Slesinger Inc. against Walt Disney Co. over unpaid royalties, and then Slesinger asked the judge to disqualify himself because he had written a book in which he made favorable comments about Disney. Another judge must now review Slesinger’s claims.
Preview
May 24 – 30
Holiday Weekend: It’s the first three-day weekend of the summer and despite record-high gasoline prices, lots of motorists are expected to be traveling. On Monday (31st) there will be the usual closures (banks, schools, most offices) but larger stores will be open.
Movie Time: Memorial Day Weekend is traditionally the start of the summer film season (even though the studios have tried to premiere their first blockbusters a few weeks earlier). This year, “Raising Helen,” starring Kate Hudson, is likely to get big audiences, as will “The Day After Tomorrow,” the action adventure story of catastrophic climate changes starring Dennis Quaid and Jake Gyllenhaal. Both open on Friday (28th).
Sports Beat: The Lakers play in Games 3 and 4 of the NBA Western Conference finals against Minnesota on Tuesday (25th) and Thursday (27th) at Staples Center. If Game 5 is necessary, it will be played at Minnesota on Saturday (29th). The Dodgers return home for a three-game weekend series against Arizona (28th-30th). The Angels are away all week. The Galaxy is home on Saturday (29th) against Dallas. The Avengers are home on Sunday (30th) against Orlando. This is also the week of the French Open and the Senior PGA Golf Championship.
Economic Reports: Tuesday (25th): April existing home sales and May consumer confidence data from the Conference Board. Wednesday (26th): April durable goods orders and new home sales. Thursday (27th): Preliminary first quarter gross domestic product data. Friday (28th): April personal income, personal spending and University of Michigan consumer sentiment data.
Presidential Talk: Karen Hughes, one of President Bush’s most trusted advisors, will discuss her days at the White House on Tuesday (25th) as part of the ongoing Distinguished Speaker Series at the Pasadena Civic Auditorium. Hughes has a new book, “Ten Minutes From Normal.” For information: 626-449-7360.
Organic Order: Do bureaucrats and middle managers rule the world? Anne-Marie Slaughter, dean of Princeton University’s Woodrow Wilson School of Public and International Affairs, will raise that question on Monday (24th) during a dinner meeting of the Los Angeles World Affairs Council at the Beverly Hills Hotel. For information: 213-628-2333.
Award Winners: Several small business owners will be recognized on Tuesday (25th) at the 23rd annual Small Business Awards luncheon at the Millennium Biltmore Hotel. For information: 213-580-7500.
