LIGHT READING 上说NT又要砍5000人，SIGH！[闲聊] [问题]
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LostRabbit
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http://www.lightreading.com/document.asp?site=lightreading&doc_id=57522
AUGUST 09, 2004
PREVIOUS NEWS ANALYSIS
Nortel Update May Include Layoffs
--------------------------------------------------------------------------------
Nortel Networks Ltd. (NYSE/Toronto: NT - message board) status update tomorrow could reveal staff cuts that number as many as 5,000, an analyst following the company says.
Granted, the update likely won't yield much new information -- the company has already said it is having trouble meeting its gross margin targets and keeping its operating costs below 40 percent of overall revenues (see Nortel: Material Margin Madness ).
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But tomorrow could be the day that thousands get the ax as the company tries to adjust its business. Per employee, Nortel's SG&A (selling, general, and administrative) expenses are "anywhere between 53 percent to 70 percent higher than its competitors," writes Scotia Capital analyst Gus Papageorgiou, in a note to clients this afternoon. The competitors Papageorgiou cites include Lucent Technologies Inc. (NYSE: LU - message board) and LM Ericsson (Nasdaq: ERICY - message board).
Nortel has already hinted of a headcount reduction, but Papageorgiou is one of the few to date that have ventured to put a number to the damage. He writes that staff reductions of approximately 5,000 -- with a $125,000 cost per head -- would take Nortel's SG&A expenses down by $617 million, making them only 14 percent of revenues, a figure closer to Lucent's and Ericsson's figures.
The analyst predicts most of the cuts will be in the U.S., where the labor costs more and the labor laws are more conducive to mass layoffs.
If no word of restructuring comes tomorrow, at least investors can look forward to financials on the horizon, according to Mark Sue of RBC Capital Markets. "We believe the larger event for Nortel may come on August 16 or 17, when it provides limited unaudited financials for the first and second quarters of 2004."
Sue predicts Nortel will earn two cents a share on revenues of $2.5 billion for the first quarter and two cents a share on revenues of $2.55 billion in the second quarter.
― Phil Harvey, News Editor, Light Reading
AUGUST 09, 2004
PREVIOUS NEWS ANALYSIS
Nortel Update May Include Layoffs
--------------------------------------------------------------------------------
Nortel Networks Ltd. (NYSE/Toronto: NT - message board) status update tomorrow could reveal staff cuts that number as many as 5,000, an analyst following the company says.
Granted, the update likely won't yield much new information -- the company has already said it is having trouble meeting its gross margin targets and keeping its operating costs below 40 percent of overall revenues (see Nortel: Material Margin Madness ).
ADVERTISEMENT
But tomorrow could be the day that thousands get the ax as the company tries to adjust its business. Per employee, Nortel's SG&A (selling, general, and administrative) expenses are "anywhere between 53 percent to 70 percent higher than its competitors," writes Scotia Capital analyst Gus Papageorgiou, in a note to clients this afternoon. The competitors Papageorgiou cites include Lucent Technologies Inc. (NYSE: LU - message board) and LM Ericsson (Nasdaq: ERICY - message board).
Nortel has already hinted of a headcount reduction, but Papageorgiou is one of the few to date that have ventured to put a number to the damage. He writes that staff reductions of approximately 5,000 -- with a $125,000 cost per head -- would take Nortel's SG&A expenses down by $617 million, making them only 14 percent of revenues, a figure closer to Lucent's and Ericsson's figures.
The analyst predicts most of the cuts will be in the U.S., where the labor costs more and the labor laws are more conducive to mass layoffs.
If no word of restructuring comes tomorrow, at least investors can look forward to financials on the horizon, according to Mark Sue of RBC Capital Markets. "We believe the larger event for Nortel may come on August 16 or 17, when it provides limited unaudited financials for the first and second quarters of 2004."
Sue predicts Nortel will earn two cents a share on revenues of $2.5 billion for the first quarter and two cents a share on revenues of $2.55 billion in the second quarter.
― Phil Harvey, News Editor, Light Reading
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Nortel to report next week, unveil new cost cuts
By Ottawa Business Journal Staff
Tue, Aug 10, 2004 9:00 AM EST
Nortel's Carling Avenue campus
Nortel Networks Corp. offered little fresh news Tuesday in the latest of its bi-weekly updates, with the first of its restatements and a host of new cost-cutting measures expected to come next week.
The Brampton, Ont.-based telecom equipment maker said it will release preliminary results for the first half of this year on Aug. 19, the first hard evidence of its performance for this year.
Nortel has also yet to release restated results for periods going back to 2001 due to accounting snafus that have apparently resulted from how the company incurred and recognized the costs associated with its drastic downsizing.
According to Reuters Research, the consensus among analysts is for a first-quarter profit of two cents a share on revenues of $2.55 billion. For the second quarter, the call is for three cents a share on revenue of $2.64 billion (all figures in U.S. dollars).
The one bright spot is that Nortel has said the restatements should not affect previously stated revenues and cash positions for the fiscal periods in question.
Nortel also expects its revenues this year will grow faster than the market, which it predicts will grow in the low to mid single digits.
However, two weeks ago new CEO William Owens warned the company has not been able to improve its operating margins as planned, demanding that further actions be taken to cut costs.
Those new cost cutting measures are expected to be revealed next week.
In a report Monday, Scotia Capital analyst Gus Papageorgiou suggested Nortel could cut another 5,000 staff, or 15 per cent of what remains of its workforce after the reductions of the past several years that reduced Nortel's headcount by about two thirds.
Mr. Papageorgiou said the problem is that Nortel still does not have the right business model to take full advantage of its technological leadership in areas such as wireless and Voice-over-Internet Protocol.
He believes new job cuts will come in sales, general and administrative because Nortel still spends far more in these areas than rivals such as Lucent Technologies and Ericsson.
Any new cuts are likely to hit Ottawa in some way, but a fresh wave of restructuring could have another benefit for the nation's capital. It is believed Mr. Owens may move the head office from Brampton to Ottawa.
By Ottawa Business Journal Staff
Tue, Aug 10, 2004 9:00 AM EST
Nortel's Carling Avenue campus
Nortel Networks Corp. offered little fresh news Tuesday in the latest of its bi-weekly updates, with the first of its restatements and a host of new cost-cutting measures expected to come next week.
The Brampton, Ont.-based telecom equipment maker said it will release preliminary results for the first half of this year on Aug. 19, the first hard evidence of its performance for this year.
Nortel has also yet to release restated results for periods going back to 2001 due to accounting snafus that have apparently resulted from how the company incurred and recognized the costs associated with its drastic downsizing.
According to Reuters Research, the consensus among analysts is for a first-quarter profit of two cents a share on revenues of $2.55 billion. For the second quarter, the call is for three cents a share on revenue of $2.64 billion (all figures in U.S. dollars).
The one bright spot is that Nortel has said the restatements should not affect previously stated revenues and cash positions for the fiscal periods in question.
Nortel also expects its revenues this year will grow faster than the market, which it predicts will grow in the low to mid single digits.
However, two weeks ago new CEO William Owens warned the company has not been able to improve its operating margins as planned, demanding that further actions be taken to cut costs.
Those new cost cutting measures are expected to be revealed next week.
In a report Monday, Scotia Capital analyst Gus Papageorgiou suggested Nortel could cut another 5,000 staff, or 15 per cent of what remains of its workforce after the reductions of the past several years that reduced Nortel's headcount by about two thirds.
Mr. Papageorgiou said the problem is that Nortel still does not have the right business model to take full advantage of its technological leadership in areas such as wireless and Voice-over-Internet Protocol.
He believes new job cuts will come in sales, general and administrative because Nortel still spends far more in these areas than rivals such as Lucent Technologies and Ericsson.
Any new cuts are likely to hit Ottawa in some way, but a fresh wave of restructuring could have another benefit for the nation's capital. It is believed Mr. Owens may move the head office from Brampton to Ottawa.
