Review & Preview
Ovitz on the Block?: There were several reports last week that onetime superagent Michael Ovitz is negotiating to sell his stake in the financially troubled management agency, Artist Management Group. A founding partner of Creative Artists Agency and former president of Walt Disney Co., Ovitz reportedly was talking to the Firm, a talent management agency. No word on how serious the talks might be.
Earnings News: Metro-Goldwyn-Mayer Inc., the Santa Monica-based movie studio controlled by Kirk Kerkorian, reported a first quarter net loss of $90.8 million, compared with a loss of $17.5 million for the like period a year ago. The year-ago figure excludes a $382.3 million one-time charge for changes in film accounting rules. MGM said its recent film releases hadn’t met expectations. Countrywide Credit Industries Inc. reported first quarter net income of $168 million, compared with $104 million for the like period a year ago. The Calabasas-based mortgage lender cited a drop in mortgage rates during the quarter that spurred home buying. Hilton Hotels Corp. reported net income of $34 million, compared with $55 million for the like period a year ago. While the continued lag of business travel was cited, Beverly Hills-based Hilton raised its earnings forecast for the rest of the year. Skechers U.S.A. Inc. reported first quarter net income of $20.3 million, compared with $17.1 million for the like period a year ago. Results were helped by the Manhattan Beach-based company’s line of roller skates, which has been promoted by Britney Spears. Wellpoint Health Networks Inc. reported first quarter net income of $141.1 million, compared with $96.5 million for the like period a year ago. Walt Disney Co. reported net income of $259 million for the second quarter ended March 31, up from a loss of $567 million in the like period a year ago which had included restructuring and impairment charges totaling $1 billion.
TRW Battle: Shareholders of TRW Inc. voted to give Northrop Grumman Corp. access to detailed company information. The move puts more pressure on the board of Cleveland-based TRW to open talks about Northrop’s $12.2 billion takeover bid. This week, TRW shareholders are set to consider Northrop’s proposal to start purchasing TRW shares.
Big Sale: California must sell up to $7.5 billion in short-term debt to pay its bills in June and July. The sale would surpass the record $5.7 billion worth of tax-exempt notes California sold last year, when the state experienced its worst one-year drop in tax revenues since World War II.
Departure: James Stanich resigned as president of embattled golf-course owner National Golf Properties Inc., but will remain on its board. National Golf is pursuing a controversial merger with golf-course operator American Golf Corp., despite the objections of two large shareholders. Stanich is son-in-law of David Price, who controls privately held American Golf and is chairman and founder of National Golf.
Specialty Shakeup: The fallout continued at Specialty Laboratories Inc., which had its lab testing license pulled earlier this month by the federal government on allegations that staff members were improperly licensed. James B. Peter, the Santa Monica company’s chairman and chief executive, stepped down and was replaced by two board members who will run the lab temporarily during the search for a new chief.
Economic Post: L.A. Mayor James Hahn promoted L.A. Business Team director Jonathan Kevles to deputy mayor for economic development. The Business Journal had reported on Feb. 18 that Hahn was planning the promotion. Peter Rodriguez was named assistant deputy mayor for economic development and Susan Cline will take Kevles’ place as business team director.
PREVIEW
Bush Visit: On Monday (29th), President George W. Bush will be touring Florence and Normandie, visiting a facility of the First African Methodist Episcopal Church of Los Angeles. Bush also plans to meet with Bishop Charles Blake, senior minister of the West Angeles Church of God. Bush’s visit is part of a two-day trip to California primarily to raise money for Republican gubernatorial candidate Bill Simon Jr. He will appear at a $1,000-per-plate Simon fundraiser Monday evening at the Century Plaza Hotel in Century City.
Pins & Needles: America Online Inc. put off until Wednesday (1st) its keenly awaited decision on whether to renew a contract with paid-search listings provider Overture Services Inc. Meanwhile, Overture reported its third straight quarterly profit, and re-upped with another closely watched client, Yahoo! Inc., for another three years. If AOL falls in line, Overture may have such a head start that upstart competitors such as Google Inc. can’t catch up.
More Earnings: Among the L.A. companies reporting first quarter earnings this week are Real Estate Investment Trust Kilroy Realty, machinery manufacturer Capstone Turbine Corp., financial services firm Fremont General Corp. and insurer Health Net Inc.
Dodger Dining: Have lunch with the team on Thursday (2nd) at the Westin Bonaventure. Players and coaches will be on hand at the noon luncheon, which is co-sponsored by the Los Angeles Area Chamber of Commerce and the L.A. Sports Council. Fans who purchase a table sponsorship will receive a priority table of 10, which includes a seat for a Dodgers coach or former Dodger great. Call 213-580-7524 for more information.
Riot Anniversary: Numerous special events and media coverage on the 10-year anniversary of L.A.’s civil unrest. On Tuesday (30th), a panel of local writers and residents ruminate at the Central Library at 7 p.m.
River Meet: Friends of the Los Angeles River sponsor the 13th annual River Clean-Up on Friday (4th) and Saturday (5th). Volunteers from business, schools and community groups are expected for the event, otherwise known as La Gran Limpieza. For information call 562-591-5980 or www.FoLAR.org.
Cable Woes: L.A. City Councilman Mark Ridley-Thomas holds a hearing of the Information Technology and General Services Committee to hear from representatives of two financially troubled cable companies, Western Integrated Networks LLC and Adelphia Communications Corp., that hold franchises in the city of Los Angeles.
