Review & Preview
Review:
County Report Card: L.A. County earned a grade of C in a national study of how well county governments are managed. L.A., which was the largest county surveyed by Governing magazine and Syracuse University, was ranked about average in every category except capital management, where it picked up a D+, compared with the average B- grade. San Diego County was ranked best managed of California’s nine largest counties, with a B+ grade.
Earnings Galore: Several major L.A. area companies reported quarterly earnings last week. Among them: Hilton Hotels Corp. reported net income of $4 million, compared with $64 million in the year earlier period (the severe travel downturn was cited). Net income slightly exceeded expectations. Unocal Corp. reported a fourth quarter net loss of $29 million, compared with net income of $173 million in the year-ago quarter. The El Segundo company took an $86 million writedown for its Gulf of Mexico properties because energy prices fell. Northrop Grumman Corp. reported fourth quarter net income of $131 million, compared with $125 million in the year-ago quarter.
Writers On Their Own: A U.S. District Court Judge in Los Angeles ruled that 50 writers must file separate age discrimination suits against networks and producers rather than a single class-action suit. The writers claim that entertainment companies stopped giving them work once they turned 40 and replaced them with younger writers. Last week’s ruling will make it more difficult for the writers to carry out their litigation.
Bells and Whistles Dept.: A series of films will be released by four movie companies on high-definition videocassette. The films, which include “Die Hard” and “Terminator,” can only be used with players from JVC. JVC and the movie companies, Universal, Fox, DreamWorks and Artisan, say that the high-definition videotape is a specialty item and not intended to compete with the mass-market DVD format.
Power Probe: Federal regulators will investigate whether Enron Corp. used its influence to boost California natural gas and electricity prices during last year’s power crisis. Federal Energy Regulatory Commission Chairman Pat Wood agreed to the inquiry at the request of U.S. senators from California and Oregon. They claim that Enron may have artificially increased power prices by 30 percent.
Mann Overboard: Pittsburgh businessman Jeff Lewine’s attempt to purchase Mann Theatres from Paramount Pictures and Warner Bros. appears to have hit a snag. Lewine traveled to L.A. to negotiate a deal for the 29-theater chain but left empty handed, according to those with knowledge of the talks. The studios apparently want to keep Mann’s most important venues, including Grauman’s Chinese Theater and the Fox and Bruin theaters in Westwood.
Nibblin’ Again: Landmark Beverly Hills restaurant Nibbler’s, which filed for Chapter 7 bankruptcy last November after 45 years of operation, reopened last week. Los Angeles-based Old Town Clearwater Corp., a partnership managed by a prior Nibbler’s owner, Javid Mansouri, has assumed the lease at the 8383 Wilshire building.
Preview:
Job Search: State and county jobless numbers will be released on Friday (8th) and offer further indicators on whether the local economy has turned a corner. Since unemployment tends to be a lagging indicator, the general expectation is for steadily higher numbers in the coming months from December’s 5.7 percent rate.
Taking Account: Earnings season continues, with Occidental Petroleum, athletic shoemaker K-Swiss and tech trainer Learning Tree International set to come out with year-end numbers this week. Keep an eye out for MGM’s Wednesday (6th) filing. The fabled studio and its massive film and television library are on the market for an estimated $7 billion, and 2001’s numbers might offer a clearer sense of its true valuation.
Playa Update: Steve Soboroff makes one of his first appearances as head of the controversial Playa Vista development during a Business Roundtable breakfast on Thursday (7th) at the Peninsula Hotel in Beverly Hills.
Let the Games Begin: Brace yourself for a couple of weeks of non-stop Olympics chatter. Things kick off on Friday (8th) with the opening ceremonies tape-delayed, per usual, by NBC. The following Sunday (10th) is the NBA All-Star game from First Union Center in Philadelphia.
Big Speak: Town Hall Los Angeles continues to bring in the top names. This Tuesday (5th) radio impresario Norman Pattiz, chairman of Westwood One, speaks at a noon luncheon at the Millennium Biltmore Hotel. And the following Tuesday (12th), First Lady Laura Bush is scheduled to speak at a breakfast meeting at the Century Plaza Hotel.
Soft Landing: If necessity is the mother of invention, then recession must be some sort of Scroogish stepfather. Brushing itself off after a trying year, the Software Council of Southern California will gather this week to compare notes on the latest innovations and, no doubt, to swap harrowing survival stories. Los Angeles Times syndicated columnist Larry Magid will deliver the keynote address Thursday (7th) at the Millennium Biltmore Hotel.
Dream Chaser: As part of the city’s African American Heritage Month activities, Yolanda King, the eldest daughter of Dr. Martin Luther King Jr. is staging her critically-acclaimed play, “Achieving the Dream,” for a four-week run at the Los Angeles Theatre Center, on Spring Street downtown. Tickets for the play, which includes music, dance and celebrity guest singer at each performance, are $25.
