540 JOBS TO BE LOST AT UNOVA FIRM TIGHTENS OPERATION.Byline: Evan Pondel Staff Writer WOODLAND HILLS - Unova Inc. will lay off 540 people as part of a broader plan to consolidate two of the manufacturer's Midwest subsidiaries, company officials said Friday. The move stems from an announcement earlier this month that Cincinnati Machine and Lamb Technicon, two divisions of Unova, will combine their business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets to form newly named Unova Manufacturing Technologies. The job cuts amount to roughly 8 percent of the company's 6,500 employees. ``Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. is down right now among manufacturing companies,'' said David Brooks David Brooks is the name of:
It's also too premature to project if Unova's consolidation will affect the Woodland Hills-based company's third-quarter results due out Wednesday. The company, a leading manufacturer of machines that make car and airplane parts, saw its stock surge to about $24 in the late 1990s. Since then, Unova shares have steadily declined, now hovering in the single digits. In the second quarter, Unova reported a net income of $22.3 million, or 38 cents a share, compared with a net loss of $2.8 million, or 5 cents a share, in the same period a year ago. Though an improvement, Larry Brady, chief executive officer, said ``doubts about technology spending make it difficult to predict continuing growth'' in certain business segments at Unova. A potential salvo to unsettling un·set·tle v. un·set·tled, un·set·tling, un·set·tles v.tr. 1. To displace from a settled condition; disrupt. 2. To make uneasy; disturb. v.intr. times for Unova: The company settled a patent spat with Japan's NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Corp. earlier this month. The dispute involved a rechargeable computer battery that uses a microprocessor chip to monitor power levels. Financial terms of the settlement have not been disclosed. Looking ahead, the consolidation of Unova's businesses will ultimately streamline the company's operations. Brooks said its an important merger that will help ease the financial burden of running two companies. Jim Herman, a senior vice president of Unova, will be named president of Unova Manufacturing Technologies. His new role includes direct responsibility for all global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. . Michael Keane For the Canadian hockey player, see . Michael Keane (born 29 December 1982 in Dublin) is an Irish footballer who has recently signed for eircom League of Ireland Premier Division team St Patrick's Athletic. , Unova's chief financial officer, will lead the transition team. ``Our Cincinnati Machine and Lamb Technicon brands will continue to represent the best products and ideas that meet the needs of this new marketplace,'' said Herman in a statement. Job cuts from the merger will be completed by the end of next summer. ``The cuts are being made in Europe and the U.S.,'' Brooks said. ``It's certainly a difficult market right now.'' Adapting to different environments isn't new for Unova. The $1.5 billion industrial technologies company was formed in 1997 as a result of a spinoff of Western Atlas Western Atlas was formed in 1987 through the merger of Western Geophysical (owned by Litton Industries) and Dresser Atlas. The resulting company was a joint venture of Litton and Dresser Industries until it was spun off as a publicly traded company in 1994. Inc.'s industrial technology businesses. Western Atlas was created in 1994 after existing as the $2 billion commercial segment of Litton Industries Inc. Brooks said Unova plans to relocate its headquarters to Seattle next summer. ``Our largest division, Intermec, is located in Seattle,'' he said. ``Our corporate headquarters of about 40 people is essentially the only presence we have in Southern California.'' Unova Manufacturing Technologies will be based in Detroit. Unova shares advanced 15 cents, or 3.1 percent, to close at $5 Friday on the NYSE NYSE See: New York Stock Exchange . |
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