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Thursday, December 13, 2001 Universal
Express Acquires FedFinancial Tyco Declares Regular Quarterly Dividend Comdisco Reschedules Year End Earnings Release American Express Cuts 6,500 More Jobs
Life in the Fast Lane---When You Are Laid Off Auto Leasing vs. Buying Quiz: What Will You Do When Your Lease Runs Out? #denotes press release
___________________________________________________________________________ Universal
Express Acquires FedFinancial Universal
Express announces it has completed its planned purchase and implementation
of FedFinancial Corp - a commercial leasing company. This newest division
provides capital for the acquisition of all types of income producing
equipment.
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############################################## Tyco International Declares Regular Quarterly Dividend
CIT Exchangeco Declares Quarterly Dividend PEMBROKE, Bermuda and NOVA SCOTIA, Canada, / -- The Board of Directors of Tyco International Ltd. (NYSE: TYC, LSE: TYI, BSX: TYC), has declared a regular quarterly cash dividend of one and one quarter cents per common share. The Board of Directors of CIT Exchangeco (TSE: CGX.U), a subsidiary of Tyco Capital Corporation and Tyco International Ltd., has declared a quarterly cash dividend of U.S. $0.0086 per exchangeable share. The U.S. $0.0086 dividend represents 0.6907 of Tyco's regular quarterly dividend payable to holders of Tyco common shares. Each CIT Exchangeco exchangeable share is exchangeable for 0.6907 of a Tyco common share. The dividends are payable on February 1, 2002 to shareholders of record on January 2, 2002. About Tyco International Ltd, Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in medical device products, financing and leasing capital, plastics and adhesives. Tyco operates in more than 100 countries and had reported fiscal 2001 sales in excess of $36 billion. #### ############################ ########### Comdisco Reschedules Year End Earnings Release ROSEMONT, Ill.--( --Comdisco, Inc. (NYSE: CDO ) announced today that its fourth quarter and year end financial results, previously scheduled to be announced on Thursday, December 13, 2001, will now be released on Friday, December 21, 2001. Comdisco said that its earnings release is being rescheduled because of the current activity related to its Chapter 11 Bankruptcy filing, including the ongoing sales evaluation process for some or all of its Leasing businesses.... ## ############################# American
Express Cuts 6,500 More Jobs Associated
Press NEW
YORK – Financial giant American Express said Wednesday it is slashing
5,500 to 6,500 jobs and will fall short of Wall Street's fourth quarter
earnings estimates due to the slump in travel following the Sept. 11
attacks on the World Trade Center. Shares
dipped 4 percent on the news. The
New York-based company said it will take a charge of between $240 and
$280 million in severance fees and other restructuring charges for the
October-December period. It
also said earnings per share were likely to be in a range of 34 cents
to 36 cents, below the 40 cents expected by analysts surveyed by Thomson
Financial/First Call and considerably less than the 50 cents recorded
a year earlier. Investors
responded by sending shares of American Express down $1.41 to $32.85
in trading on the New York Stock Exchange. The
latest layoffs come on top of 7,700 cuts previously announced this year.
Altogether, the 13,200 to 14,200 jobs eliminated amount to a 15 percent
reduction in the American Express staff, which totaled 88,500 at the
start of 2001. The
company had no breakdown on how many jobs overall were being cut domestically,
but said they touched upon all divisions. The
new cuts are taking place primarily in the travel businesses and reflect
the sharp slowdown in that sector since Sept. 11, the company said in
a statement. It added that about half of those to be laid off in the
latest round already have been notified, with the balance to get pink
slips in 2002. "The
environment since Sept. 11 has underscored the need for us to create
greater flexibility in our cost structure so we can be more adaptable
to a period of economic uncertainty," said Kenneth I. Chenault,
chairman and chief executive. American
Express said it expected to save up to $260 million in 2002 as a result
of the latest cutback. The
company said its reduced fourth-quarter earnings "reflect the impact
of the Sept. 11 terrorist attacks on the financial markets, travel,
corporate spending and the overall economy." American
Express said the latest cutbacks were unrelated to the damage to its
headquarters building adjacent to the World Trade Center. Spokeswoman
Molly Faust said that the restructuring would not affect the company's
decision to return to the World Financial Center. "We will be moving
employees back in a phased approach beginning in 2002, as we announced
earlier," she said. Faust
also confirmed reports that American Express managers' pay has been
frozen. "Earlier
in November, we communicated to employees that managers and above would
not receive a merit increase for 2002," Faust said. She could not
provide the number of employees affected. American
Express said that travel billings were down 14 percent in September
from year-earlier totals, 10 percent in October and 6 percent in November.
Sales also were down at American Express Financial Advisors, the company
said. "Credit trends are likely to show a modest deterioration, reflecting the increase in unemployment and the overall industry environment," it added. ___________________________________________________________ Life
in the Fast Lane---When You Are Laid Off BY
DEBORAH LOHSE Until Pink Slip Day,
Sara Arlin had no trouble paying her $5,000 monthly expenses. She even
had cash to spare. Then, in late August
she lost her job and started collecting unemployment. It's been a wake-up
call. Her jobless benefits cover only her car payment and one credit-card
bill a month. She's spent about $15,000 in savings -- and has borrowed
$21,000 just to tide her over. So it is for thousands
of Silicon Valley's laid-off workers who have discovered the austerity
of California's unemployment system. Laid-off workers once making $1,900
a week or more are now trying to get by on $230 a week -- less than
the pay of a first-year burger-flipper. And that's without the free
Value Meal McDonald's provides its workers. California currently
pays the fourth-lowest maximum payout of any state in the nation, behind
Arizona, Mississippi and Alabama, despite ranking among the highest
in cost of living. (Washington's $496 is the highest payout, followed
by Massachusetts' $480, according to the Economic Policy Institute in
Washington, D.C.) And while next month
new California claimants can expect to get an extra $100 a week -- for
a total of about $1,429 a month, before taxes -- it still ranks California
behind about 20 states. And the 93,500 laid-off
folks in Santa Clara or San Francisco county get a double whammy: Not
only are the state benefits low, but they don't adjust for cost of living,
so pink-slipped people get the same benefits in low-cost Fresno or Bakersfield
as do those in high-cost Palo Alto or San Francisco. For many, even $330 a
week won't be enough to make ends meet. Recent data from the
Housing and Urban Development showed the Bay Area is the costliest place
in the country to rent. A one-bedroom apartment in San Jose renting
for just below the median is $1,289 a month. Even with next month's
increase in the maximum unemployment benefit, that will leave less than
$150 a month for food and all other expenses. For families living in
a $2,536-a-month four-bedroom apartment in San Francisco, forget it.
``Only $230 for somebody
living in the Bay Area? Where is their brain?'' said Mehran Dabbagh,
a laid-off marketing director who's been collecting benefits in between
short-term consulting gigs. ``If I was living in the boonies of Nebraska,
$230 would be enough. But living in the Bay Area, that's not enough
to pay my car payments.'' People are resorting
to a variety of tactics to get by. Some say they've already
eaten through $15,000 or $20,000 in savings, with no relief in sight.
Others can rely on a spouse's income, and have cut out non-essential
expenses ranging from restaurant meals, gym memberships, magazine subscriptions
and vacations. In extreme cases, some
are letting banks foreclose on homes they bought at the peak of the
market, and are considering relocating and starting over. ``You just ration,''
said Arlin, 35, an account manager who was laid off twice in three months
from Commerce One and a software start-up. ``You don't buy lobster and
prawns, you buy Hamburger Helper.'' Arlin said she's staying
in town, but she can't refinance her Campbell home to obtain cash or
lower payments, because she doesn't have proof of income. Others report
that homes they bought at the peak of the Bay Area housing market have
decreased in value, so there is no equity to tap for such a refinancing.
``I talk to hundreds
of people on a daily basis, all in varying degrees of panic and despair,''
said Brandt Cooper, director of resource management at Helm Technical
Services in Sacramento. Some workers are outraged
that formerly high-wage earners aren't getting more compensation. Benefits ``should have
been tiered by income,'' asserts Dabbagh, who said he can't believe
that the state pays the same maximum to low-paid workers as it does
to six-figure earners. ``I paid higher insurance than that guy but I'm
getting the same amount. This is robbery in the daylight.'' But Dabbagh's got it
wrong, said Jeffrey Wenger, an economist with the liberal Economic Policy
Institute. When it comes time to
collect, California's benefits are tiered, so that laid-off folks making
minimum wage get about $110 a week -- not the maximum. The unemployment benefit
system is funded by employers, who pay up to 5.4 percent of the first
$7,000 of pay for each worker. Those who hire a lot of high-turnover
workers, such as many minimum-wage employees, pay the highest rates.
Thus, in California,
high-wage workers get double the benefit that low-wage workers
get, despite the fact that their employers paid maybe half the taxes,
said Wenger. He adds that low-income workers are unlikely to have savings
or resources like higher workers. ``Where's the fairness in that?''
asked Wenger. California isn't alone
in falling short in covering minimal needs for a family or single person.
Nationwide, a family of four with one spouse working half-time at the
median wage and one laid off spouse would have fallen $1,317 short each
month in 1999, according to EPI. But California stands
out because the gap is much wider between its unemployment payments
and the cost of living in many areas. Daniel Lemin, a 24-year-old
laid off from his marketing job at NextCard last month, said his unemployment
checks are just barely enough to cover his $800 a month rent for a shared
apartment near the beach in San Francisco. But he's cutting out most
non-essential purchases, including restaurants, magazines and CDs. He's
putting CDs on his Christmas list instead. ``That list is getting longer,''
jokes Lemin, who said his old job paid less than $58,000. Many are regretting the
debts they ran up in their high-spending days, including credit-card-funded
vacations. Bohdan Barragan, a 22-year-old San Jose man recently laid
off from his job as an end-user analyst at Hewlett-Packard, is still
paying for his $7,500 vacation to Rome a few weeks ago. He'd saved $5,000
for the trip, but charged $2,500 extra on a credit card, on which he's
now only able to pay the minimum each month. ``I didn't think I was
going to be unemployed,'' said Barragan, who recently ran into a laid-off
HP colleague at the Campbell employment department office. Barragan, a snappy dresser,
said he's given up his $200-$300 monthly clothes shopping trips, and
now cooks at home instead of going to McDonald's or restaurants like
he used to. He shops at Safeway ``the best place to save money,'' rather
than his usual Whole Foods. Never having cooked much until now, Barragan says, ``I'm getting very familiar with the kitchen.'' #### ############################# #################### ######### Auto Leasing vs. Buying Quiz: What Will You Do When Your Lease Runs Out?
NASHVILLE, Tenn., -- Deciding whether to buy or lease a new car is not an easy decision for most people. Like many, Andrew Campanella is one new car buyer trying to sort through the pros and cons of this often puzzling question. "I've been thinking a lot about the benefits of buying versus leasing my next car," said Campanella. Campanella, 21, of Arlington, Va., is a senior at American University but also works full-time for a media relations firm. The new car, which he plans to buy after the New Year, is a reward for putting himself through school. "I first went to the Internet and found KBB.com where I started to gather all the information I could on the subject," Campanella said. "When I saw the new link to the ACVL Finance vs. Lease Quiz, I thought: that's just what I need." What Campanella found in taking the quiz was that there were definite benefits to leasing that he never considered. "Unlike other online tools," he said, "the ACVL quiz fully explained its recommendations. I'm leaning towards leasing now rather than buying based on what I've learned." The Association of Consumer Vehicle Lessors and Kelley Blue Book (www.KBB.com) are now offering this new "Leasing vs. Buying Quiz" for all consumers coming to Kelley's KBB.com website for automotive information and advice. The site is the number one automotive Internet gathering place with more than four million unique visitors a month and 20 million site hits a day. The "Leasing vs. Buying Quiz" prepared by the Association of Consumer Vehicle Lessors (www.acvl.com) assists consumers with their decision on whether leasing or buying is right for them. "To make an informed decision whether to lease or buy, the consumer needs to take into consideration what's going to happen at the beginning, during and at the end of the lease," said ACVL President Jesse Bragg. "Our quiz is intended to help the consumer take all the factors important to that individual into consideration before signing any agreement on a new vehicle," Bragg added. "We think the Leasing vs. Buying Quiz will be a great source of information for consumers making this decision," said Charlie Vogelheim, Editor of Kelley Blue Book. "Having the Quiz accessible from the 'advice' page of our KBB.com website will give millions of consumers the opportunity to make a more informed decision on buying vs. leasing. We recognize ACVL as the experts in the leasing field and applaud the great job they've done with all the leasing information they've put into their ACVL.com lease site. It's definitely the best on the Web," Vogelheim added. There are four main issues consumers should consider regarding their trade cycle when deciding whether to lease or buy, according to Bernard de Souza, chairman of the ACVL Customer Satisfaction Committee that developed the quiz. * The vehicle return/walkaway option applies only if you complete the lease term you choose -- be realistic and select a lease term you expect to complete. * You can avoid the hassles of negotiating a trade-in value only if you complete the lease term -- shorter lease term increases the likelihood that you'll do so. * Sales tax in most states is only paid on the lease payments rather than the full price of the vehicle. The shorter the lease term, the more sales tax you save compared with purchasing the vehicle. * If you want to keep your car more than six years, then leasing the car will probably mean you will have to buy the car at the end of the lease because the maximum lease term generally available is less than 66 months. In that case, you may have to pay a down payment and get financing at a higher interest rate than if you had financed the vehicle originally. The first three items make it beneficial to lease if you choose a lease term of two to four years. Although five-year lease terms are available for consumers, many people decide to trade prior to completing their lease term on five-year leases so items one and two may not benefit them. Also, the sales tax savings is reduced. For trade-in cycles longer than five years, refinancing issues tend to make financing a better option, although it is just one of a number of factors to consider. Consumers can take the ACVL "Lease vs. Buy Quiz" by visiting the Kelly Blue Book web site (select the advice page and then the Lease vs. Buy Quiz) at KBB.com, or by visiting the ACVL site directly (ACVL.com). About ACVL The ACVL, founded in 1993, is an association of the nation's largest vehicle lessors. Based in Nashville, Tennessee, the ACVL is a national trade association for the largest manufacturer and import distributor captive finance companies, banks and independent leasing companies. Its primary goals include increasing consumer understanding of lease benefits and responsibilities through improved disclosure. Further information about the ACVL and consumer vehicle leasing may be found on the Association's web site: ACVL.com. The association has been very active in many areas of consumer lease education. The ACVL has contributed significantly to the Federal Reserve Board web site on lease education (bog.frb.fed.us/pubs/leasing) and has often been asked to comment on both federal and state legislation designed to improve consumer disclosures on leases. About Kelley Blue Book Based in Irvine, California, Kelley Blue Book (www.kbb.com) is the most trusted automotive resource for consumers and the industry. It currently is celebrating its 75th anniversary. KBB.com attracts over 4 million unique visitors to its site and issues nearly 30 million pricing reports each month. J.D. Power and Associates has named KBB.com the number one automotive web site. ####
############################### Kit - I shared your "Today in History" with my husband who's a big Boston sports fan because I thought he might be interested in the Pats Dolphins item and (after praising me for my sports trivia knowledge) he responded back that the person who cleared the field was a state prisoner out on a work furlough - thought you might be interested. Take care and enjoy the holidays. Kimberlee R. Coleman Counsel CommVest, LLC (781) 239-7600 x.209 (781) 239-0377 fax Will add it to the Day in American History. Thank you. editor 1982, known as the "Great Snowplow Play." The New England Patriots defeated the Miami Dolphins, 3-0, in a driving snowstorm at Foxboro Stadium. The winning points came on a late field goal by John Smith, kicked after a snowplow came onto the field and cleared a spot for Smith and his holder. According to Kimberlee R. Coleman’s husband, the person who cleared the field
was a state prisoner out on a work furlough.
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