Global Crisis

[~virgo~]

Toyota, more firms sink

TOKYO - Grim corporate earnings data from the world’s biggest automaker and thousands of job losses underscored Friday the urgency driving debate over Washington’s massive economic stimulus plan.

Japan’s Toyota Motor forecast an operating loss of $4.9 billion for the financial year to March, after already losing $4.0 billion in the third quarter alone as the global crisis sends car sales plunging.

British Airways, Japan Airlines and a clutch of other big corporate names announced or forecast dismal figures, and thousands more jobs are to face the axe across the world as companies try to make ends meet.

Toyota expects an annual operating loss of 450 billion yen, three times bigger than it had predicted in December.

The company forecast a net loss of 350 billion yen for the year to March, against a previous projection of a 50 billion yen profit.

For the fiscal third quarter to December, the company reported an operating loss of 360.6 billion yen ($4.0 billion), in a dramatic reversal from a year-earlier profit of 601.5 billion yen.

“Both revenues and profits declined severely,” Toyota executive vice president Mitsuo Kinoshita said in a statement.

The slew of red ink and job cuts underlined the sense of emergency behind the US government’s attempts to pass a $900-billion stimulus plan, which it says is needed to kick-start the faltering economy.

Negotiations to pass the bill entered their final stretch late Thursday as the Senate wrapped up a fourth day of debate.

“I would hope that we can complete this legislation tomorrow. I have hopes and I’m cautiously optimistic that we can do that,” Democratic Senate Majority Leader Harry Reid said.

The plan attracted international controversy because of its “Buy American” clause, which forbade stimulus spending on a project unless all of the iron, steel and manufactured goods involved were made in the United States.

In London, British Airways reported a net loss of $186 million over the first nine months of its 2008-2009 financial year.

Japan Airlines, Asia’s largest carrier, said it expected a net loss of 34 billion yen ($374 million) in the year to March, while truckmaker Isuzu skidded into a 15 billion yen loss for the year.

Japan’s Sharp Corp. said it was eliminating 1,500 jobs and that it expected an operating loss of 30 billion yen for the year to March 31 — its first ever loss and a steep reversal on a previous forecast of a 130-billion-yen profit.

It said top managers would also accept pay cuts and forego bonuses. AFP

http://www.journal.com.ph/index.php?issue=...sec=1&aid=84782

[~virgo~]

Amkor lays off 1,500 workers

Electronics company Amkor Technology Inc. has laid off 1,500 workers from its two plants in the Philippines due to declining orders, a company official said yesterday.

The redundancies are the latest blow to the Philippines’ once-booming electronics sector which has slowed since accounting for over 60 percent of the country’s exports between August-November 2007.

Amkor Technology (Philippines) laid off the 1,500 workers from its two plants in the towns of Muntinlupa and Santa Rosa, Laguna effective Friday, said company vice president Danny Javelosa.

The company, which makes components for semiconductors, still employs 6,500 workers and is not anticipating further lay-offs, Javelosa told AFP.

He blamed the cuts on declining orders from overseas in the face of the global financial crisis.

The company had already been operating on a shortened work-week since December to avoid any retrenchments but was forced to reduce its workforce by nearly 20 percent this month as orders remained stagnant, he said.

Staff who had been with the company for almost 30 years were among the redundancies, he said, adding “we are giving the people fair compensation for the services they rendered.”

The Philippine export sector �" particularly the two leading sectors, electronics and garments �" has been hit hard by the global financial turmoil. Many companies in these areas have been forced to resort to retrenchments, shorter work hours or in some cases, outright closure.

The government fears that as many as 60,000 workers in the electronics sector could lose their jobs due to the financial crisis.

The electronics sector employs 480,000 workers. AFP

http://www.journal.com.ph/index.php?issue=...sec=1&aid=84773