REVIEW
April 18 – 24
Earnings Roundup: Occidental Petroleum Corp. reported first-quarter net income of $325 million, compared with $25 million for the like period a year ago. Revenue for the Los Angeles-based energy company rose 56 percent to $2.4 billion. High oil prices were cited in the sharp gain. Jakks Pacific Inc. reported first-quarter net income of $6 million, compared with $2.2 million for the like period a year ago. Revenue for the Malibu-based toy company rose 13 percent, to $67.8 million. Cheesecake Factory Inc. reported first-quarter net income of $12.6 million, compared with $10.5 million for the like period a year ago. Sales for the Calabasas-based restaurant chain rose 15 percent, to $172.9 million. Overture Services Inc. reported first-quarter net income of $11.1 million, compared with $29.3 million for the like period a year ago. Revenue for the Pasadena-based Internet company rose 57 percent, to $224.7 million. Hilton Hotels Corp. reported first-quarter net income of $9 million, compared with $34 million for the like period a year ago. Revenue for the Beverly Hills-based hotel operator was $917 million, down from $921 million. Unocal Corp. reported first-quarter net income of $134 million, compared with $22 million for the like period a year ago. Revenue for the El Segundo-based energy company rose 74 percent, to $1.8 billion. Skechers USA Inc. reported first-quarter net income of $8.5 million, compared with $20.3 million for the like period a year ago. Revenue for the Manhattan Beach-based athletic shoe manufacturer fell 15 percent, to $208.6 million. Metro-Goldwyn-Mayer Inc. reported a first-quarter loss of $55.8 million, compared with a loss of $90.8 million for the like period a year ago. Revenue for the Santa Monica-based entertainment company rose 25 percent to $395.2 million. Wellpoint Health Networks Inc. reported first-quarter net income of $193.3 million, compared with $141.1 million for the like period a year ago. Revenue for the Thousand Oaks-based health care company rose 23 percent to $4.8 billion.
Guilty Pleas: Three former officers of L90 Inc. agreed to plead guilty to charges they schemed to boost revenue through fraudulent advertising barter transactions. The company, now known as MaxWorldwide and relocated to New York from L.A., also agreed to settle civil claims by the Securities and Exchange Commission. The SEC found that L90 misclassified about $26 million of its research and development expenses in 2000 and 2001. Last May, the company restated earnings because it improperly accounted for revenue.
Yuen Update: A federal judge turned down an effort by former Gemstar-TV Guide International Inc. executives Henry Yuen and Elsie Leung to receive a $37.6 million severance package. Yuen and Leung had filed suit against the Securities and Exchange Commission, alleging that the agency coerced Pasadena-based Gemstar into putting the severance money into an escrow account, pending an SEC probe. But in denying a preliminary injunction to release the payments, U.S. District Judge Marianna R. Pfaelzer said it had not been proven Gemstar acted on behalf of the SEC.
Slower Economy: A Chapman University survey shows that manufacturing activity in California slowed during the first quarter, with particular weakness in the technology sector. The university’s quarterly survey of 347 purchasing managers showed that overall factory activity fell to 49.3 in the January-March period, compared with 54.7 in the previous three months. A value below 50 means that the economy is contracting.
Comedy Buy: Viacom Inc. will acquire the half of Comedy Central it does not already own from AOL Time Warner Inc. for about $1.23 billion. Meanwhile, increased ad revenues at CBS and Viacom’s cable holdings boosted sales 6.7 percent in the first quarter, to $6.05 billion. First-quarter net income was $443.1 million, compared with a net loss of $1.11 billion for the like period a year ago.
PREVIEW
April 28 – May 4
Sports Beat: The Lakers and Timberwolves will square off on Tuesday (29th) at Minnesota and, if necessary, Friday (May 1st) at Staples and Sunday (3rd) again at Minnesota. The Dodgers, meanwhile, will be home this week against the Phillies Monday-Thursday (April 28th-May 1st), followed by a three-game weekend series against the Pirates (2nd-4th). There’s also the Kentucky Derby on Saturday (3rd).
Economic Reports: More hints about the post-war economy could be offered with Monday’s (28th) release of personal income and personal spending for March. On Tuesday (29th), it’s the Conference Board’s consumer confidence numbers and on Thursday (May 1st), the Chicago Purchasing Managers will release its monthly index.
Court Talk: Douglas Kmiec, dean of the law school at Catholic University and a frequent TV legal analyst, will offer his views on the Michigan affirmative action case and other legal matters on Tuesday (29th) during a luncheon meeting of the L.A. lawyers division of the Federalist Society at the Omni Hotel. For information: 818-995-5858.
River Cleanup: L.A. Mayor James Hahn is scheduled to appear at the 14th Great Los Angeles River Clean-Up on Friday and Saturday (2nd and 3rd) in which volunteers help haul trash from the river. Friday’s activities will focus on Fletcher Drive, just north of Silver Lake. For information: 323-223-0585.
Urban Talk: Local and state officials will address upcoming challenges facing Los Angeles and California on Friday (2nd) during a USC Forum beginning at 8:30 a.m. The forum will take place at USC’s Davidson Conference Center. For information: 213-740-2215.
Legal Trouble: The California Women’s Law Center fundraiser will be held Thursday (1st) at the ArcLight Cinema in Hollywood. Performer Lily Tomlin will be among the hosts helping raise funds for the organization, which addresses the specific legal needs of women. For information: 213-637-9900.
Meet the Dodgers: Local businesspeople can pose with slugger Shawn Green or ask Kevin Brown how it feels to be back on the mound at the L.A. Area Chamber of Commerce’s annual Dodgers Opening Pitch Luncheon on Thursday (May 1) at L.A. Center Studios. For information: 213-580-7585.
Good Nose: The 15th Vintage Bouquet Charity Wine Auction will be held on Sunday (4th) at Greystone Mansion in Beverly Hills. The auction features more than 20 premium California wineries, cuisine from local restaurants, live entertainment and a silent auction. Proceeds benefit the Beverly Hills Bar Foundation. Tickets are $75 per person. For information: 818-986-7990.
