CA Inc. Makes Cuts
April 7th, 2010. Published under Uncategorized.
CA Inc. is an IT management software company based in Islandia, New York. They’ve had a rough run over the past three years, shedding over 3,100 jobs in that time. It looks as if things are getting worse for them, they’re about to make another substantial cut.
Business software company CA Inc. said Tuesday that it’s cutting 1,000 jobs — or about 8 percent of its work force — and consolidating offices as part of a restructuring plan to reduce costs and become more efficient.
The company also steered earnings expectations to the lower end of its previous guidance for the year.
“I recognize that the actions we’re taking are difficult. But in the end, they will make CA stronger and more competitive,” CEO Bill McCracken said in a memo to employees Tuesday.
The job cuts will occur mainly in North America and mostly be completed by the end of September, according to a filing with the Securities and Exchange Commission.
They also have consolidation of offices in their future, which should help to cut down on expenses dramatically. Naturally, shares fell after this announcement. But if CA Inc. can continue to cut costs, they’ll live through the recession.
Blockbuster Getting Blocked
February 25th, 2010. Published under Uncategorized.
Blockbuster, that massive company which controlled the video renting industry for so long, is having a hard time in the recession. With Netflix and Redbox, as well as Internet pirating and the proliferation of move channels, biting into their share of the market, Blockbuster has experienced a severe decline in sales recently. Of course, the recession has not helped.
Blockbuster Inc., the largest U.S. movie-rental chain, will close at least 500 U.S. stores and is exploring ways to restructure debt.
Blockbuster is working with Rothschild Inc. on financing and strategy, the Dallas-based company said today in a statement. The company has total debt of $963.9 million, including leases, according to the statement.
The company closed 253 stores in January as more consumers turned to Coinstar Inc.’s Redbox movie vending machines, and mail-order and online rental services such as Netflix Inc.
It should come as no surprise that Blockbuster is struggling to keep its market share–Netflix and Redbox have provided more convenient and cheaper models for business. Blockbuster will have to find a way to keep up, or be relegated to the dustbin of business history.
Falling Prices, Rising Fortunes
February 8th, 2010. Published under Uncategorized.
In an economy such as ours every little penny hurts. This is especially true of gas prices because just a couple of cents per gallon multiplies significantly depending on how many gallons you use in a typical week or month. Truckers, taxi cab drivers, many professionals are disproportionately injured by high gas prices. This is why it’s such good news that the average gas price has fallen in the United States.
The average price of regular gasoline in the United States fell 5.76 cents over a two-week period to $2.67.
That’s according to the national Lundberg Survey of fuel prices released Sunday.
Analyst Trilby Lundberg says the average price for a gallon of mid-grade was $2.80. Premium was at $2.91.
Let us hope this is a sign of things to come in the economy–falling gas prices is a good omen indeed.
Gold is King
November 26th, 2009. Published under Uncategorized.
A crippling economy will often encourage individuals to turn to more long-lasting investments, like metal assets. Gold has traditionally been the asset of choice, especially since it has protected against both inflation and deflation since man had a concept of money.
However, in light of both the recessions and the current inflationary procedures the Federal Reserve is using to combat the recession, people have been flocking to Gold as a way to protect their wealth. These fears of inflation, especially, have pushed Gold to new heights, breaking all previous records for gold’s value. In Tokyo’s market, gold hit a new high of $1,194, while the dollar index fell to its lowest in fifteen months. Since the beginning of November, gold prices have risen some 15%. Apparently much of this is due to central banks worldwide buying up gold to add to their portfolios, in order to hedge their bets against inflation.
The market is highly sensitive to speculation of more bullion buying by central banks looking to diversify foreign exchange reserves, particularly in Asia, after a newspaper report that India is open to buying more gold from the International Monetary Fund following its purchase of 200 tonnes earlier this month.
I guess we’ll see where it goes from here.