In The Papers 10 November

10-11-2008

by Sylvia Leatham

Flextronics job losses confirmed | Multinationals wouldn't choose Ireland again: report

The Irish Times reports that 118 jobs will be shed before Christmas at Limerick firm Flextronics. SIPTU members were informed of the extent of the job cuts by officials at a special meeting over the weekend. Last month, it had been feared that 100 of the 290 jobs were at risk at the firm's Raheen facility, which is dependent on business from PC giant Dell. At last Saturday's meeting the company proposed 130 redundancies, but following negotiations with the trade union this number was reduced to 118.

The Irish Independent says that nearly half of multinational companies based in Ireland have told the IDA they would not choose to locate again to Ireland because of high business costs and poor infrastructure. A survey by the state agency found that 45 percent of firms would choose to locate in another country, with most choosing Eastern Europe, followed by India, the UK and other locations in Europe. Companies questioned in the IDA Client Survey said the agency should be involved in addressing infrastructural deficits, upskilling and supports for research and development, and addressing costs, particularly in the area of energy and utilities.

The Irish Examiner says that Consumer Choice magazine predicts it will be a gizmo and gadget-filled Christmas for Irish people. The publication of the Consumer Association of Ireland (CAI) tested 20 mobile phones and found the Sony Ericsson W890i came out tops, closely followed by the Nokia 5310 Xpress Music and the Samsung SGH-F480 Tocco. The Apple iPhone 3G was also labelled a "choice buy" by the magazine.

According to the Financial Times, Cable & Wireless has postponed its plans to de-merge its telecoms division as it announced first-half profits and raised its full-year guidance. "The board believes that in these markets retaining the current group structure provides the best value to shareholders, given the strength of a single combined balance sheet and the defensive qualities of our large and diverse businesses," the company said. EBITDA for the six months ended 30 September grew from STG276 million to STG308 million, while profits before tax fell from STG166 million to STG129 million. C&W revised its group EBITDA guidance for 2008-2009 to STG780 million, up from STG725 million.

The paper also says that new Vodafone chief Vittorio Colao is to outline a fresh attack on costs when he releases the company's half-year results on Tuesday. The mobile industry has not been through a deep recession before, and Vodafone shocked investors in July by issuing a revenue warning. Analysts and investors will be poring over the interim results from the world's largest mobile phone operator by revenue to understand how the global economic downturn is impacting the industry's bellwether company.

The Wall Street Journal reports that Intel is taking its next step in building a business in healthcare, introducing technology to help homebound patients with chronic medical problems. The company has announced a series of trials with healthcare organisations of specialised hardware and software developed by the chipmaker. The tests are designed to show whether the new tools bring improved results in treating conditions such as diabetes, hypertension and heart disease.

The paper also notes that European Union regulators have unveiled a compromise on a controversial telecommunications overhaul. The European Commission agreed to create a pan-European telecoms regulator that is far smaller and less powerful than initially proposed. The body would have competence only over telecom regulation, with no oversight of spectrum or network security.

The Sunday Business Post reports that Ryanair could face large fines if it fails to provide a contact e-mail address on its website. The ruling by the European Court of Justice could see Ryanair pay up to EUR100,000 under the EU's E-commerce Directive, which requires company websites to include an e-mail address and an alternative way for consumers to contact the company. The ruling said a company must offer customers what it described as "a rapid, direct and effective means of communication, in addition to its electronic mail address". At present, Ryanair offers its customers a telephone line, which is only available from 9am to 5.45pm, Monday to Friday.

The same paper writes that a number of Irish-American businessmen are raising USD5 million for a new website aimed at the Irish diaspora. Irishcentral.com, which is based in New York, has 12 employees and is planning to open headquarters in Dublin. It is currently talking with investors in both Ireland and the US, and will be launched around St Patrick's Day next year. The site will offer Irish-themed news, sports, entertainment and business coverage.

The Sunday Business Post also writes that Ireland has an opportunity to become a global centre for innovation, according to Microsoft executive Cliff Reeves. The general manager of the software firm's emerging business unit said there was "no reason why Ireland can't become a hotbed for new companies offering products and services that can attract customers around the world". This is despite the current economic downturn that is affecting businesses.

The paper also writes that the USD60 million sale of mobile software firm Changing Worlds to US company Amdocs is the second big return for Trinity Venture Capital Holdings, since it floated last year. TVC will get up to USD16.4 million for its 28 per cent stake in Changing Worlds, with USD11.6 million paid immediately. The money is a 3.7 times return on TVC's original investment. Meanwhile, Merrion Stockbrokers clients may get up to EUR1.7 million from the sale, while Enterprise Ireland will earn close to EUR900,000 and UCD will get EUR2.9 million.

The paper also writes that Dublin-based Idiro Technologies has secured its first deal in the United States, worth more than EUR1 million. The deal is said to be with one of the top mobile phone operators in the US, but the company is keeping quiet on exactly which one. The firm's software provides telecommunications companies with a way to analyse consumer behaviour and target customers with products and services. It has already won awards, including two at the Data Strategy awards in London last month.

The paper also reports that virtual credit card company 3V Transaction Services is in talks to establish partnerships with retailers in Germany. The firm launched in the country in September, and according to 3V, progress has been "comfortable". The system, which provides a way to use credit card numbers online, has won more than 200,000 customers since its 2005 launch.

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