IN THE PAPERS
In The Papers 6 July
06-07-2009
by Sylvia Leatham
Samsung issues bullish forecast | Nortel Networks may get rescue bid
The Financial Times reports that memory chip and LCD screen maker Samsung Electronics has issued a surprisingly bullish profit forecast, suggesting that the worst might be over for the tech giant. The company said in a trading update that operating profit in the second quarter may have jumped more than five-fold from the first quarter. It expects operating profit on a consolidated basis to range from KRW2,200 billion (USD1.74 billion) to KRW2,600 billion in the April-to-June period, while revenues are estimated at KRW31,000 billion to KRW33,000 billion. The consolidated figures include earnings from overseas affiliates. Samsung will unveil its second-quarter results on 24 July.
The paper also says that MatlinPatterson Global Advisors is considering leading a rescue bid for the whole of Nortel Networks, the struggling Canadian telecoms equipment maker operating under bankruptcy court protection. The New York-based private equity company, which is one of Nortel's biggest creditors, is trying to put together a consortium of investors to fund a recapitalisation of the Canadian company, according to sources. "MatlinPatterson believes Nortel can survive as a free-standing company and does not need to be auctioned off in pieces," said a source close to the company.
The paper also says that UK telco BT has set the base salary of its executives at rates below the average paid to senior managers at rival firms. However, the company says remuneration packages will still deliver significant rewards for top performance. "We set our exec base pay below the average for comparator companies with the potential for our execs to receive above-average pay through variable compensation in return for excellent and sustained performance," a spokesman for BT said. The amended pay proposals come amid poor performance at the telecoms group and growing shareholder dissatisfaction with large remuneration packages in general at UK companies.
According to the Wall Street Journal, US consumer electronics giant Best Buy is to begin selling 'green' vehicles. The retailer has begun offering electric-powered scooters, bicycles and Segway transporters in 19 locations in California, Oregon and Washington.
The Sunday Tribune reports that children are accessing adult-only content on YouTube, despite efforts by the video site to prevent under-18s viewing the material. The paper says that children as young as 13 have seen the explicit content, according to a recent survey. The study found that one in seven under-18s in Ireland had accessed the material while more than one in five aged 13 or younger admitted looking at adult-only content on YouTube at least once. Although the site requires you to register to look at these clips the company admitted age verification was difficult.
The same paper says that the four major record labels are to go to the High Court in an attempt to speed up a court case to force Irish ISPs to stop their customers illegally sharing music online. UPC and BT are being brought to court by EMI, Universal, Warner Music and WEA, who want the case heard in the Commercial Court to speed things up. The labels took a High Court case against Eircom which resulted in the 'three strikes' out-of-court settlement being agreed between the two parties.
The Sunday Business Post writes that a new business has been set up to enable users to get competing bids for contracts they have up for grabs. The website, Zumpty.ie, allows users to advertise jobs they need doing and companies can then bid for them. Users can choose the most competitive offer. The concept for the site was created by entrepreneur Gavin Dunne.
The same paper writes that a programme to help support budding entrepreneurs at DIT is seeking applicants. The Hothouse Venture Programme is a biannual scheme that accepts 16 budding entrepreneurs to support. The knowledge-intensive start-ups will get the chance to base themselves in the programme's centre and will be able to access business supports.
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