electronics

Report: NHTSA Lacks Critical Electronics Expertise

by The Huffington Post on January 18, 2012

Huffington Post…

The National Highway Traffic Safety Administration doesn’t know enough about car electronic systems to respond effectively when problems arise, according to a report from the National Research Council’s Transportation Research Board released Wednesday. The study was requested by NHTSA following the 2009-2010 Toyota recalls for sudden acceleration problems. The report found that although those issues weren’t caused by Toyota’s electronic systems, the agency still needs more expertise in this area. Because of this lack of expertise, the agency was not able to adequately convince the public that electronics were not to blame for Toyota’s problems, according to the report. Some safety watchers still believe, however, that electronics is the root cause of the accidents and deaths associated with unintentional acceleration . With its lack of electronic safety experts, NHTSA has been unable to “respond convincingly when concerns arise,” the report said. Part of the Department of Transportation that’s dedicated to safety on the roads, NHTSA counts among its responsibilities the monitoring of safety defects in vehicles and pushing automakers to conduct recalls if problems occur. Over the past two decades, automakers have increasingly been loading up cars with electronics, from high-tech radios and DVD players to systems that rely on electronics for acceleration and braking. All those electronics can interfere with one another, potentially causing problems. Simple issues could include the shutting down of navigation systems and radio interference, while complex problems might involve cars turning off or accelerating out of control. The study backed up claims by critics who have said that the safety regulatory agency doesn’t know enough about electronics problems to effectively monitor them. The Transportation Research Board recommended that NHTSA engage a standing advisory committee of electronics experts to oversee electronics safety. “It’s unrealistic to expect NHTSA to hire and maintain personnel who have all of the specialized technical and design knowledge relevant to this constantly evolving field,” said Louis Lanzerotti, a professor at the New Jersey Institute of Technology and chair of the committee that authored the report. “Neither the automotive industry, NHTSA, nor motorists can afford a recurrence of something like the unintended acceleration controversy.” NHTSA responded by saying it has begun bulking up its expertise in this area: “NHTSA has already taken steps to strengthen its expertise in electronic control systems while expanding research in this area — and the agency has considerable experience dealing with vehicle electronics issues in its research, rulemaking, and enforcement programs,” the agency said in a statement. “But, NHTSA will continue to evaluate and improve every aspect of its work to keep the driving public safe.” Wednesday’s report also stated that NHTSA was justified in closing its investigation of Toyota’s electronic acceleration issues. “This finding should further reinforce confidence in the safety of Toyota and Lexus vehicles,” said Toyota spokeswoman Celeste Migliore. “To date, all of the scientific evidence has confirmed what millions of Toyota drivers prove each day — that they can depend on their vehicles for safe and reliable transportation.” The report did not criticize NHTSA for its role in investigating Toyota’s sudden acceleration problems. NHTSA eventually identified two causes for the sudden acceleration in Toyota cars: floor mats that got stuck under the accelerator pedal and moisture in gas pedals resulting in their sticking open. But the fact that NHTSA could not convince the public there were no electronics problems is “troubling,” the report said. Some safety advocates like Safety Research & Strategies’ Sean Kane have argued there are electronic problems in the cars. Kane explained in May that a study by NASA released in February did not clear Toyota. “The investigations actually showed numerous ways that Toyotas can experience unintended acceleration without alerting the fault detection system,” he wrote in a report. “They were simply dismissed as unlikely.” At the time of the NASA study, Toyota had responded, “We believe this rigorous scientific analysis by some of America’s foremost engineers should further reinforce confidence in the safety of Toyota and Lexus vehicles.” Wednesday’s report also said NHTSA needs to overhaul the way it intakes consumer complaints so it can better identify problems when they arise. NHTSA’s Office of Defects Investigation takes complaints from drivers via mail, phone calls or through its website. The system was set up in 2000 following the Ford/Firestone tire recalls as a way to potentially detect problems earlier. Congress determined at the time that NHTSA could have detected problems with the Firestone tires on the Ford Explorer had it collected complaints in a timelier fashion, even possibly saving some lives. But the Office of Defects Investigation has become a repository of a vast database of problems that is difficult to wade through. The process of complaint collection and monitoring needs to be improved, the report said, so NHTSA investigators can more easily spot troubling trends.

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Report: NHTSA Lacks Critical Electronics Expertise

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Marshall Goldsmith: It’s Time to Step Up!

by Marshall Goldsmith on January 7, 2012

Huffington Post…

The world is often filled with people saying that someone else should do something and the workplace often filled with people pointing fingers at why someone else is the problem. My friend and colleague Dr. John Izzo has just released his sixth book titled Stepping Up: How Taking Responsibility Changes Everything and it addresses this issue and provides a great solution! John’s book shows how stepping up and taking responsibility is good for your career, good for the workplace, will make your relationships better and just might save the world. John and I have known each other for years as part of a learning group that meets once a year. We keep in touch year round and challenge each other to keep growing. We met recently, and talked about his new book. Following is my interview with John about his new book. MG : What is Stepping Up and why is it the right book for our time? JI : Stepping Up is seeing a need and deciding you are the person who can, should and will do something about it. We live in a time when we face so many problems such as poverty and climate change can only be solved when each of us steps up in our sphere of influence to create change. What’s more victim thinking has become pervasive in our society with everybody pointing a finger at someone else as the source of the problem. What we need are people at work and in communities who step up and decide they are going to create change. MG : It’s not my job, it was someone else’s fault, she needs to change, and someone should do something about this or that, are phrases that you hear often. What is the impact on a person’s career and life when those words become the norm? JI : Research shows that people who focus on what they can change rather than the external forces that influence them are more successful, less stressed and happier than those who feel like victims. What’s more we can’t fix anything but ourselves, so the moment we focus on what someone else needs to do we lose our power. In the book I suggest that every time you find yourself saying “someone else should do something about… ” you should instead ask, “What can I do about this?” It’s as true in a relationship as it is in a company or a community. MG : You say stepping up is good for your career but a lot of people believe that people who stick their necks out at work get their heads cut off. Yet you share some fascinating research that suggests the opposite is actually true. JI : The myth at work is that speaking up and challenging things will get you in trouble. But in the book I show research that shows that the opposite is true. People who speak up and challenge the status quo by bringing constructive ideas for change are rated more highly by their managers and are more likely to get promoted. But there is a caveat. People who finger point and blame are rated poorly so the key is to be what I call a “constructive irritant”. Speak up with ideas rather than blame and always begin by saying here is what I will do. Those are the kind of people who get ahead. MG : You surveyed people to ask why they don’t step up more, what did you discover? JI : The number one reason people said they don’t step up is because they think “I am only one person it won’t matter if I step up.” So what if I recycle or stop using plastic bags at the store, if I try to do something about work life balance in my company, or if I take a step to improve morale in my workplace. This feeling that it won’t matter if we step up is actually dangerous. One reason we don’t step up is we forget two important concepts. The first is what I call aggregate influence, which is that one person’s actions gets aggregated with that of many others and suddenly it has a big impact. The irony is that unless individuals take action there is no aggregate influence. The second is what I call the responsibility ripple, that when one person steps up it challenges others to step up. Stepping up is contagious. So one person matters because when you aggregate all those actions together something big happens and when we step up we create a ripple that grows. MG : Can you give me an example from the book that shows the power of stepping up to change things for yourself and others? JI : The book has so many, but here are two of my favorites. Three employees at a mid-sized company were complaining all the time about work life balance saying someone should fix this. Then one day they asked a different question-”what can we do.” They agreed to stop emailing each other on weekends and to never personally schedule a meeting after normal work hours. They just started telling others what they were doing and within two months they had thirty five people meeting once a week to come up with ideas. In a year, the company had adopted many of the practices they started. That is what happens when you start to meet and ask what we can do instead of what they need to do. The second example, two high school seniors who heard about a kid who got bullied for wearing a pink shirt and instead of shrugging their shoulders they got their fellow students to show up the next day wearing pink shirts. They stopped the bullies in their tracks and now there are pink shirt days in twenty countries. That is the responsibility ripple in action. MG : I think you are on to something about the zeitgeist of our time — the need for people to take personal responsibility. Why is it so important? JI : Well, Marshall, you have spent your career trying to get people to look at themselves. Something happens when we look in the mirror and take responsibility. It changes your career, your life and ultimately the world. Go to our site and you will see videos of some of the people we feature in the book www.steppingupforchange.com .

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Marshall Goldsmith: It’s Time to Step Up!

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The Coolest Green Innovations And Advances Of 2011

December 28, 2011

2011 was an important year for green innovations and technological advances. In the world of fuels, a number of strides were made. President Obama announced increased fuel standards for both big and small vehicles in the coming years. Alternative fuels also made headlines. The use of biofuel for aviation is becoming a reality, after the U.S. military announced it would begin using it , and a joint U.S.-Chinese venture tested biofuel in civilian aircraft . Solar technology also grew in 2011. Researchers at Notre Dame have invented a house paint that could one day be used to collect solar energy. Elsewhere in the midwest, scientists at the University of Michigan invented an “optical battery” that might eventually eliminate the need for semi-conductors in solar cells. For more of 2011′s best green technology innovations, vist EarthTechling for their ” 2011 Green Technology Year In Review. ” Check out some of the coolest and most important green advances of 2011, and vote for your favorites! For more on the best of 2011, visit bestof2011.aol.com .

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Two Directors Resign From Board Of Struggling Company

December 27, 2011

Two Eastman Kodak directors resigned from the board last week, the struggling photography company said in a filing with U.S. regulators on Tuesday. Both directors – Adam Clammer and Herald Chen – were representatives of private equity firm KKR & Co on Kodak’s board. Kodak said Clammer and Chen notified the company of their resignations on December 21. Kodak did not give any further details as to why the directors resigned, and a spokesman was not immediately available for comment. Kodak earlier this year drew down on its revolving credit facility and on November 3 told investors that it may need to issue new debt or complete a multibillion-dollar patent sale to survive the next year. Kodak has hired Jones Day, a law firm known for restructuring cases, as well as restructuring firm FTI Consulting, but has denied that it intends to file for bankruptcy. It has been struggling to cope with the collapse of its film business. (Reporting By Michael Erman, Additional reporting by Greg Roumeliotis; Editing by Gary Hill) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Rising Green Movement Launches Counter-Attack Against Shale Oil Boom

December 27, 2011

* Green groups seen slowing development * Success in fighting pipeline energizes efforts * Shale oil and gas industry on defensive By Ayesha Rascoe WASHINGTON, Dec 27 (Reuters) – A resurgent green movement is launching a multi-pronged counter-attack against the shale oil and gas boom in the United States that could slow, though ultimately not stop, development. Building upon their unexpected success in the battle against the Keystone XL pipeline, a renewed onslaught from environmentalists is putting the shale industry on the defensive while adding to costs, limiting expansion and potentially scuttling major projects. “I think it’s the totality of what’s going on all at once, that’s the biggest concern,” said Barclay Nicholson, a lawyer for the Washington-based Fulbright & Jaworski law firm, which has represented companies involved in shale development. With new oversight pending from federal and state authorities and lawsuits, Nicholson said critics of shale development have a plethora of avenues to fight back. Environmentalists, alarmed at what they see as unchecked industrialization of rural areas, say they are working to secure more regulation of the rapidly growing shale industry to protect fragile areas from damaging practices. PIECE MEAL APPROACH After legislation aimed at addressing climate change failed to make it into law last year, green groups have been forced to take a more piece meal approach to energy policy. That strategy worked well against TransCanada’s proposed Canada-to-Texas Keystone XL pipeline, which environmentalists successfully turned into a potent symbol of the threat of carbon-intensive oil sands crude. In November the Obama administration delayed the project, once described as a “no brainer” by Canada’s Prime Minister Stephen Harper, after a wave of protests erupted in Washington and on the campaign trail. The decision was like a shot of adrenalin for the green movement and groups are planning more creative and high profile efforts to fight a range of energy projects. Republicans in Congress maneuvered to keep Keystone alive by including a provision in tax legislation that would force the White House to make decision on the project within 60 days. But green groups have vowed to fight on and the administration has already said it cannot approve the project because of the time needed to study new routes. “For the moment we’re stuck fighting one pipeline, one gas well at a time,” said Bill McKibben, who rose to prominence with his staging of huge protests against Keystone and is now using his influence to attack the fracking bonanza. FRACKING IN THE SPOTLIGHT Oil and gas companies are using advanced drilling techniques to unlock vast stores of shale fuel across the country, which is bringing legions of rigs, trucks and workers to areas unused to such activity. The companies employ the controversial “fracking” drilling process, that involves fracturing rock formations by shooting vast and often secret cocktails of water and chemicals deep underground to free a trove of hydrocarbons. The oil and gas industry argues that the fracking technique has been used safely for years and advances in the practice have set off a revolution that is creating jobs and boosting U.S. energy security. But, environmentalists warn against downplaying their concerns about fracking. “I’m not sure that they really want a Keystone XL fight on their hands, because the public is strong and they’re not going to back down on this issue,” said Deb Nardone, director of the Sierra Club’s natural gas reform campaign, which formally launched this year. Worries about shale output have already prompted the Environmental Protection Agency and the Interior Department to begin crafting new regulations that address issues such as wastewater disposal and disclosure of chemicals. Green Groups have made headway with their appeals in New York, where authorities have imposed a temporary moratorium on shale drilling. Environmentalists also cheered a decision by regulators to delay a vote on lifting a ban on shale drilling in the Delaware River basin that affects the states of New York, Pennsylvania, Delaware and New Jersey. John Sachs, a director at energy investment bank Taylor-DeJongh, said the economic and domestic energy benefits of access to cleaner burning natural gas will ultimately win out, but green groups may be able to make inroads in some areas. “It may slow down some of the development in some states,” Sachs said. He said such delays would not necessarily be negative for development, because it would allow industry and regulators to address some of the public concerns. CHANGING THE MAP American Gas Association president Dave McCurdy recently told reporters that while there were some legitimate concerns about development, the problems were manageable. “None of those are going to halt the production of shale gas in this country,” McCurdy told reporters earlier this month. “It is changing the political and economic map.” Still, the expansion of shale production has spawned dozens of local groups and activists focused on combating development. Scott Ely, a resident of the small town of Dimock, Pennsylvania, very much at the epicenter of the fight over shale production, said he is trying to spread his story. Green groups have rallied in support of Ely and 10 other families in Dimock that say their water was contaminated after Cabot Oil and Gas began drilling in their area. Cabot has denied responsibility. “As far as the oil industry goes, this is a machine you’re probably not going to be able to stop because the world needs its gas,” Ely said in Dimock in December where supporters in a publicity event delivered fresh water to the families. “But because of what we did three years ago, when we started coming out, they’ve already started making changes in the way they operate.” (Reporting By Ayesha Rascoe; Editing by Bob Burgdorfer)

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Why Lindsay Lohan Landed On Grover’s ‘Naughty’ List

December 27, 2011

Grover Norquist targeted actress Lindsay Lohan for “costing all taxpayers so much money” on Americans For Tax Reform’s annual “Naughty and Nice List.” In an interview with Newsmax released Sunday , Norquist expanded on the “naughty” on his organization’s list. “Oh dear, there’s so many. I mean, [President Barack] Obama for killing too many jobs. Lindsay Lohan for costing all taxpayers so much money every time she goes to court — or forgets to go to court. We have Frank Wolf, a Republican who called for 2 trillion dollars in tax increases — that was unfortunate,” he said. He added the super committee to the list for trying to raise taxes. (Video above via Newsmax .) Rep. Frank Wolf (R-Va.) blasted Norquist on the House floor last October for being “a roadblock to realistically reforming our tax code” because of the ATR Taxpayer Protection Pledge not to raise taxes. Wolf added that he didn’t “support raising taxes on the American people.” On Norquist’s “nice” list were New Jersey Gov. Chris Christie (R) and Wisconsin Gov. Scott Walker (R). He expanded on the super committee: “I think at the end of the day that super-secret committee did us a favor by not supporting a tax increase, but I’m not sure how much credit we want to give them for that,” referring to the fact that the bipartisan committee made up of 12 members of Congress failed to come up with an agreement to cut the deficit. Norquist also attacked Occupy Wall Street protesters. “They’ve really done a good job of reminding the American people that there are people out there who think they should make a living off of your work,” he said. “They don’t spend their days looking for work. They just spend their days being mean to policemen and blocking traffic for people who do go to work. And then they whine and have demonstrations demanding that everybody pay them welfare.” At Americans for Tax Reform’s annual holiday party, partygoers were greeted by a cartoon , first published in the Pittsburgh Post-Gazette , showing Norquist as Santa Claus. “He’s making a list, checking it twice, gonna find out who’s naughty or nice!” said the first of two passerby in the cartoon. “That’s Grover Norquist!?” said the second.

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Greek Retailers See Worst Holiday Season In Decades

December 27, 2011

ATHENS (Reuters) – Greece’s stores had their worst Christmas in decades, with retail sales dropping by 30 percent compared with the same period last year as the economic crisis shattered consumer confidence, the ESEE retail federation said on Tuesday. “Nine out of 10 Greeks are less generous, not out of choice but out of necessity,” ESEE said. “Retailers endured a Christmas gloom that chipped away any optimism they had before the holidays.” The sharp drop in sales came despite widespread discounts by retailers in the run-up to Christmas. Greeks have been suffering wage and pension cuts, rising inflation and a recession now into its fourth year, which has slashed living standards and forced them to cut spending. Clothing and footwear sales dropped 40 percent, electrical goods by 30 percent, and sales in the food and drinks sector by 15 percent compared with the same period last year, ESEE said. (Reporting by Karolina Tagaris, editing by Jane Baird) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Apple Wins Legal Battle Against iPhone Competitor

December 19, 2011

‪ ‬ By Ina Fried, Trade Body Says HTC Is Violating Apple Patent, Bans Some Imports via All Things D In a closely watched case, the U.S. International Trade Commission on Monday ruled that Taiwanese cell phone maker HTC is violating an Apple patent and ordered an import ban on some of the company products. The organization found that HTC devices infringed on two claims related to an Apple patent. However, the ban will not take effect until April, the ITC said in a ruling, giving time for carriers to make transition plans and for HTC to demonstrate ways it has avoided infringement (by working around the patent, dropping infringing features or other means). “Notice is hereby given that the U.S. International Trade Commission has found a violation of section 337 in this investigation and has issued a limited exclusion order prohibiting importation of infringing personal data and mobile communications devices and related software,” the agency said. “The Commission has determined that exclusion of articles subject to this order shall commence on April 19, 2012.” HTC will be able to import some refurbished products to satisfy repair claims on already sold products, but will not be able to bring new products into the country after April 19, unless the ruling is reversed or it can show its products no longer infringe the patent in question. The ruling had been delayed several times. HTC said in a statement it was pleased the commission reversed a ruling that HTC infringed on another of Apple’s patents and that it narrowed the ruling on the patent in which it did find infringement. “While disappointed that a finding of violation was still found on two claims of the ’647 patent, we are well prepared for this decision, and our designers have created alternate solutions for the Œ647 patent,” HTC said in a statement. See the ruling here. Trade Body Says HTC Is Violating Apple Patent, Bans Some Imports via All Things D More From All Things D: AT&T Dropping Its T-Mobile Bid, Owes Billions to Deutsche Telekom Beyond Tablets: The Next Five Computing Form Factors IBM Predicts Home Electricity From Your Bike, Mind-Reading Computers Facebook’s Social Ad Strategy Suffers Legal Blow

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Karen Leland: Mobile Devices Are Creating Meeting Madness At Small Businesses

September 1, 2011

A few weeks ago, I was off site at a small biz client’s office facilitating a marketing strategy session. At the start, everyone in the room was constantly checking their cell phones for email messages, texting and attempting to be both in the meeting and working — at the same time. When I suggested we would get further in a shorter amount of time by focusing on the agenda in front of us and putting away the electronics for a few hours, I received looks that screamed everything from, “Surely you must be joking,” to, “Heretic!” “I need to check my email,” stammered one participant. “I’m on deadline for a project,” said another, barely looking up from his keyboard to make the point. “But we always answer our phones, even in meetings,” said another. I’ll spare you the ugly details, but what ensued was a discussion about how the constant use of technology impacts our focus (hence productivity) and even our sanity. Things have gotten so out of hand, in fact, that a June 2011 survey by Qumu conducted by Harris Interactive revealed that the majority of those surveyed (62 percent) believe that during work meetings, their co-workers are sneaking a peek at their mobile devices. The most common ways people believe others are stealing a glance at their handhelds include: 47% – Hiding their mobile device under the table 42% – Excusing themselves to go to the restroom 35% – Hiding their mobile device in their folders/notebooks/papers 9% – Pretending to tie their shoes 8% – Creating a distraction Interestingly, 37 percent of the respondents didn’t think “sneaking a peek” was necessary — they thought people would just look at their mobile devices in plain view. It’s a slippery slope, and it seems the embarrassment of not paying full attention in a meeting has been trumped by the self-justified importance of being wired in. The real problem with all this mobile madness is that it can take a heavy toll on our relationships with others at work and has been proven to dramatically reduce our productivity. In one study, the Institute of Psychiatry at the University of London found that when workers are constantly juggling emails, phone calls and text messages, their IQs fall 10 points. Another study by Rubinstein, Meyer and Evans found that when people switched back and forth between tasks, there was a substantial loss of efficiency and accuracy, in some cases up to as much as 50 percent. In my experience, small businesses suffer just as much as major corporations from their constant checking of cell phones in important meetings and even one-on-one conversations. And while big businesses have a much larger group of staff to cushion the impact, small businesses are by nature tight on people resources and need to get the most productivity out of those they do have. But most of us don’t need a study to tell us what we see in front of our eyes daily –that distraction is bad for business. So if you’re ready to take the leap and let go of your mobile device in meetings, here are some ways you can step away from the cell phone and come face-to-face with your focus. • Make it company policy to not use cell phones during business lunches, one-on-one meetings with staff and customers or in-group meetings. • Don’t bring your computer into meetings for note taking. Instead, use a recording device or take notes the old fashioned way — on paper with a pen. If you do need to use your computer to take notes, use a software program to lock yourself out of your email for the duration of the meeting. • Create a cell phone collection box and gather up all cell phones at the beginning of meetings and give them back at the end. If all of this isn’t enough to make you want to throw your cell phone out the window during your next meeting, consider this report just in from TeleNav . One third of us would rather give up sex than part — even briefly — with our phones. How has the use of cell phones during meetings impacted your productivity? We would love to hear your comments. This article originally appeared at Xero.com , online accounting software for small business. Karen Leland is a freelance journalist, best-selling author and president of Sterling Marketing Group where she helps businesses create killer content and negotiate the wired world of today’s media landscape — social and otherwise. For questions or comments, please contact her at kleland@scgtraining.com.

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Best Buy Settles Class-Action Job Discrimination Lawsuit

June 17, 2011

Best Buy Co agreed to settle a class-action lawsuit accusing the largest U.S. electronics retailer of job discrimination, paying a total of $200,000 to the nine named plaintiffs plus as much as $10 million for legal fees and costs. The lawsuit was filed in 2005 in the U.S. District Court in Oakland, California, by eight current and former employees and one job applicant. They accused Best Buy of infractions such as denying desirable job assignments and promotions and transfers to African-American, Latino and female employees. Best Buy agreed to a four-year consent decree, during which it would implement “comprehensive affirmative relief addressing the hiring, assignment, promotion and exempt compensation claims.” It agreed to name someone to oversee the implementation of processes designed to improve diversity in management and to post its non-discrimination, anti-harassment and anti-retaliation policies on an internal company website. The terms provide “extensive injunctive relief that will materially advance the goal of equal employment opportunity for African Americans, Latinos, and women at Best Buy,” James Finberg, a lawyer for the plaintiffs, wrote. Finberg was not immediately available to comment further. U.S. District Judge Phyllis Hamilton is expected to consider preliminary approval of the accord on August 3, court papers show. A hearing to consider final approval could take place on October 12, the papers show. The U.S. Supreme Court is expected this month to rule whether a gender bias lawsuit against Wal-Mart Stores Inc may continue to proceed as a class action, on behalf of a group believed to exceed 1.5 million current and former female workers. The Best Buy case is Holloway et al v. Best Buy Co et al, U.S. District Court, Northern District of California, No. 05-05056. (Reporting by Martinne Geller, Jonathan Stempel and Dhanya Skariachan; Editing by Gary Hill) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Sony Paid Big Money To Mitigate PlayStation Network Hack

May 23, 2011

TOKYO — Sony Corp. is expecting an annual loss of $3.2 billion, reversing its earlier projection of a return to profit, as the electronics giant struggles with production disruptions from Japan’s tsunami and a hacker attack on its online gaming service. The Japanese maker of PlayStation 3 video game machines and Bravia flat-panel TVs said Monday that the projection of a 260 billion yen ($3.2 billion) net loss for the fiscal year ended March 2011 was largely due to writing off 360 billion yen ($4.4 billion) related to a tax credit booked in a previous quarter. Sony announced the loss ahead of its official earnings announcement Thursday under Tokyo Stock Exchange guidelines. The company had earlier projected a 70 billion yen ($860 million) profit. Like many other Japanese manufacturers, Sony has been hampered by the production disruptions set off by the March 11 earthquake and tsunami that killed more than 25,000 people, destroyed many factories and sent the nation’s economic recovery into reverse. The company kept its operating profit forecast unchanged at 200 billion yen ($2.46 billion). It expects to report sales of 7.18 trillion yen ($88.2 billion), slightly down from an earlier projection of 7.2 trillion yen ($88.5 billion). Masaru Kato, Sony’s chief financial officer, said parts shortages in the aftermath of the disaster have eased but a full recovery hasn’t yet been realized. “In the first quarter, we saw quite a major impact on our manufacturing activities,” he said. After the quake, “negative factors have grown bigger” and offset earlier improvement in the previously loss-making games division, dashing hopes for a profit. Tokyo-based Sony also faced a new challenge to its reputation following a massive security breach affecting more than 100 million online accounts. After temporarily closing down its online gaming services last month, Sony began restoring its PalyStation Network services in the U.S. and Europe on May 15 mainly for online gaming, chat and music streaming services. Sony spent 14 billion yen ($170 million) to cover costs that included identity theft insurance for customers, improvements to network security, free access to content, customer support and an investigation into the hacking. Sony has seen plunging sales of flat-panel TVs and other gadgets, and was likely to remain in the red in its TV business for the seventh year straight. Sony has also taken a beating in music players and other portable devices to Apple’s iPod, iPhone and iPad. The company booked a 40.8 billion yen ($439 million) loss for the fiscal year ended March 2010 after a 98.9 billion yen loss the year before_ Sony’s first annual red ink in 14 years. ___ Associated Press writer Tomoko A. Hosaka contributed to this report.

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LG Electronics Q1 net loss USD15m

April 27, 2011

LG Electronics Q1 net loss USD15m

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Japanese Automakers Further Delay Restarting Factories

March 22, 2011

TOKYO (Reuters) – Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) cut output at five more plants and Toyota Motor (7203.T: Quote, Profile, Research, Stock Buzz) further delayed restarting its Japanese assembly lines, as the country’s catastrophic earthquake plays havoc with the global supply of parts and products. Global electronics and autos companies have been hardest hit by the turmoil, but in an illustration of how the ripples are spreading, global miner Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) (RIO.AX: Quote, Profile, Research, Stock Buzz) warned the disruptions posed a threat to its expansion plans. More than 10 days after a 9.0 magnitude earthquake and 10-meter tsunami struck the northeast of Japan, manufacturers are struggling to get back up to speed as factories grapple with power cuts, crippled infrastructure and a shortage of parts. Such is Japan’s position in the global supply chain that companies from Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz) to General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) and Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) are feeling the impact. Toyota, the world’s largest automaker, said all 12 Japanese assembly plants would remain closed until at least Saturday and it was not sure when they would reopen. Production lost between March 14-26 would be about 140,000 units. Toyota had hoped to have resumed assembly on Tuesday. Electronics giant Sony said five more of its plants, mostly in central and southern Japan, were hit by parts shortages stemming from the disaster and would close or reduce output until the end of the month. “If the shortage of parts and materials supplied to these plants continues, we will consider necessary measures, including a temporary shift of production overseas,” the maker of PlayStation games consoles said in a statement on Tuesday. The plants make products such as digital and video cameras, televisions and microphones, Sony said. A sixth plant in Chiba, north of Tokyo, was set to resume production on Tuesday, but it could be interrupted by rolling blackouts that are affecting some areas supplied by Tokyo Electric Power (TEPCO) (9501.T: Quote, Profile, Research, Stock Buzz), the operator of the stricken Fukushima nuclear plant. Including two factories only partially restarted last week, 15 of Sony’s 25 Japanese plants are currently affected. It has a total of 54 plants worldwide. TECH CHAIN VULNERABLE Japan’s grip on the global electronics supply chain is causing particular concern. It produces around a fifth of the world’s computer chips and exported 7.2 trillion yen ($91.3 billion) worth of electronic parts last year, research from Mirae Asset Securities shows. “There are a huge number of little bits of the high-tech food chain which are done nowhere but in Japan,” said Sam Perry, senior investment manager of Pictet Japanese Equity Selection Fund. “Nobody else has the quality or the consistency, and in some cases the technology, to do it.” Japan dominates with the supply of LCD film and sealants for semiconductors, among other areas, Perry added. “You simply can’t do high-tech without Japan.” Fujifilm Holdings (4901.T: Quote, Profile, Research, Stock Buzz), the largest producer of triacetyl cellulose film used in making LCD panels, said its main factories are all west of Tokyo and were not directly affected. It has other facilities in northeast Japan, but said any disruptions were unlikely to damage its earnings. Konica Minolta (4902.T: Quote, Profile, Research, Stock Buzz), the second-largest maker of the LCD film, said its three factories in the Tokyo region had been affected by the rolling power cuts. Company officials declined to specify what these factories produce. Camera and copier maker Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz), which has suspended all its domestic camera production until at least Thursday, said a lack of gasoline was affecting distribution and stopping staff getting to work in areas such as the island of Kyushu, where train services are minimal. Nikon (7731.T: Quote, Profile, Research, Stock Buzz), which makes cameras and precision equipment, said it expects to resume production at all its north Japan plants by the end of March, but warned power cuts and shortages of parts could make a return to full production difficult. Renesas Electronics Corp (6723.T: Quote, Profile, Research, Stock Buzz), the world’s No.5 chipmaker, restarted operations on Saturday at a semiconductor plant in Yamagata prefecture, in northwest Japan, a company spokeswoman said on Tuesday — leaving output suspended at six of the firm’s 22 factories in Japan. RIPPLES SPREAD Rio Tinto, the world’s No.2 iron ore miner behind Brazil’s Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz), is worried the disaster will disrupt supplies of mining equipment, tires and parts, which could set back some of its expansion plans. “The impact of the Japanese earthquake and tsunami have been many and diverse, and they affect us,” Rio’s head of iron ore Sam Walsh told an industry conference in Perth. “Some steel mills have suspended operations and suppliers of heavy equipment, such as Hitachi, have been impacted,” he said. Hitachi Construction (6305.T: Quote, Profile, Research, Stock Buzz), Japan’s No.2 maker of earthmoving equipment, said five plants in Ibaraki prefecture, north of Tokyo, closed after the quake. Three have partially reopened, but there is no timetable for re-opening the others. Tsunami damage to the nearest port means Hitachi is shipping some products from Yokohama, near Tokyo. Car makers are also struggling to get production lines restarted. On top of Toyota’s delays, Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) (HMC.N: Quote, Profile, Research, Stock Buzz) was also extending its production suspension until Sunday from Thursday. A fifth of Honda’s leading Japan-based suppliers affected by the earthquake have said it will take “more than a week” to recover, Honda said late on Monday. In a sign of some return to normality, Japan’s top three steelmakers reported some progress in restoring production. Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) said output at the three blast furnaces at its mainstay plant in eastern Japan had recovered to pre-quake levels, while JFE Steel Corp (5411.T: Quote, Profile, Research, Stock Buzz) said two blast furnaces at its 10 million tonnes-a-year plant near Tokyo were now operating normally. (Additional reporting by Junko Fujita and Nathan Layne in TOKYO and James Regan in PERTH; Writing by Lincoln Feast, Editing by Ian Geoghegan) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Samsung Electronics eyes high profits in 2011

March 19, 2011

Samsung Electronics eyes high profits in 2011

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Tech Supply Chain Takes A Hit Following Japan Catastrophe

March 16, 2011

As Japan struggles to recover from the recent earthquake and tsunami, disruptions in the supply chain for electronics are expected to ripple across the globe. Japan is responsible for 14 percent of global production in computers, and other consumer electronics, according to IHS iSuppli. Japanese makers for certain parts, such as flatscreen panels, have an ever stronger hold on their respective supply markets. Sixty percent of the world’s silicon wafers–used in semiconductor chips –are made in Japan. Some analysts predict it could take six months before the tech supply chain returns to normal. Plants run by Toshiba, Panasonic and Sony have already been struck with damage, forcing shutdowns of several facilities. Sony has closed at least seven factories so far. American companies with plants in Japan have also reported significant damages to centers. Texas Instruments’ Miho plant, responsible for about 10 percent of the company’s 2010 revenues, will take until June to reopen. Till then, Texas Instruments has announced plans to transfer 60 percent of manufacturing to other locations. Factory damage is not the only concern. Infrastructural issues in the country–involving roads and mandated power outages–could delay rebuilding efforts for affected plants, and aslso slow the speed of transportation for parts. Repairing infrastructure throughout the country could take years. Just-in-time manufacturing , which lets manufacturers buy and receive parts just before they’re needed, has been an important part of electronics production in Japan. The policy lets companies save costs on keeping parts that are not immediately necessary. But the nature of just-in-time manufacturing means that delays in the delivery chain could slow, or even stall, the assembly line for any given device. Though plants may revert to contingency plans, extended delay in manufacturing could leave companies scrabbling to find the parts they need as quickly as they can manage. The supply chain has about two weeks of excess stock that will offset immediate delays, meaning that shortages will begin to show even greater effects in a few weeks. The long-term results for the global chain could last even longer, especially as investigations into the state of affected nuclear plants cast uncertainty over electricity supply. Some analysts say at least 10 percent of electricity capacity in the country will remain offline for a few months. “It’s going to be choppy,” a Merrill Lynch analyst told reporters . “It’s all about Japan’s recovery and about finding stuff elsewhere. It’s a more complicated process than people think.” Prices for key parts have started to increase following plant shutdowns in Japan. Prices for NAND flash memory, a major storage component for mobile phones and tablets, have increased up to 20 percent following the disaster. Forty percent of NAND chips are made in Japan. Flat panel touchscreens could also face shortages. And BT resin, a substance used in chip packaging, could take an even harder hit. Ninety percent of global BT resin supply comes from Japan. As prices for parts rise, some expect there will be shortages for the electronics that use them, like tablets, smartphones, and LCD TVs. Prices for actual finished electronics may feel the pressure as well, with some experts predicting price hikes for those goods. Yet other analysts counter that price increases for consumer electronics are not likely , as upping pricetags might affect consumer demand. “The Japan earthquake and tsunami could result in significant shortages of certain electronic components, potentially causing pricing for these devices to increase dramatically,” a report from iSuppli said . China , where many electronics are manufactured, has begun to deal with disruptions. Japan exported $176 billon of goods in 2010 to China, making it their largest source of imports. Though it’s unclear what exactly the extent of the disruption might be, experts agree that the negative impact will exceed that of the Kobe Earthquake of 1995. Analysts predict costs of reconstruction could be 50 percent higher than in 1995, with costs potentially topping $180 billion, 3 percent of Japan’s GDP. “What you’ve got here is massive uncertainty on a whole number of fronts and I think that’s what we’re all grappling with is that we need more clarity, but we’re not going to get more clarity as long as things are not yet under control,” said Tu Packard, senior economist at Moody’s Analytics. “It’ll be more challenging this time as compared to Kobe. It didn’t affect the nuclear power plants so the story was, in a sense, comparatively speaking, more straightforward.”

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LG Electronics’ latest phone boasts 3-D screen

February 15, 2011

LG Electronics’ latest phone boasts 3-D screen

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‘Successful’ iPad Competitor Overstates Sales

February 2, 2011

Samsung Electronics Co.’s Galaxy Tab, the company’s answer to Apple Inc.’s iPad, isn’t selling as well as the company has let on.

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AVAD Appoints New Senior Director, Sales & Vendor Management

January 6, 2011

Custom Electronics Industry Leader Names Veteran CE Exec Jim Barton to Lead Sales and Vendor Management for Continued Growth

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Jeffrey T. Schlarbaum Named President, IEC Electronics; Donald S. Doody Named Executive Vice President

October 7, 2010

NEWARK, NY–(Marketwire – October 7, 2010) –  IEC Electronics Corp. ( NYSE Amex : IEC ) has announced the appointment of Jeffrey T. Schlarbaum as President, IEC Electronics and the appointment of Donald S. Doody as Executive Vice President, effective October 1, 2010. 

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Sharp(R) Electronics Names Eric Hafter Senior Vice President, Sharp Solar Energy Solutions Group

August 26, 2010

MAHWAH, NJ–(Marketwire – August 26, 2010) –  Sharp Electronics Corporation (SEC) today announced that Eric Hafter has been named Senior Vice President of Sharp Solar Energy Solutions Group (SESG), a division of SEC and the U.S. solar arm of Sharp Corporation. In this position, Mr. Hafter is responsible for all U.S. sales and marketing of Sharp’s solar energy products and solutions. Mr. Hafter reports to Mr. Kozo Takahashi, Chairman and CEO of Sharp Electronics Corporation

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Foxconn Rallies (PHOTOS): iPhone Factory Suicides Spur Corporate Pep Rally

August 18, 2010

SHENZHEN, China (AP)– Following a string of suicides at its Chinese factories, Foxconn Technology Group raised workers’ wages and installed safety nets on buildings to catch would-be jumpers. Now the often secretive manufacturer of the iPhone and other electronics is holding rallies for its workers to raise morale at the heavily regimented factories. The outreach to workers shows how Foxconn has been shaken by the suicides and the bad press they have attracted to the normally publicity shy company. The latest suicide — the 12th this year — occurred August 4 when a 22-year-old woman jumped from her factory dormitory in eastern Jiangsu province. The motivational rallies are titled “Treasure Your Life, Love Your Family, Care for Each Other to Build a Wonderful Future” and will be held at all facilities in China, according to Burson Marsteller, a public relations firm representing Foxconn. “For a long period of time I think we were kind of blinded by our success,” said Louis Woo, special assistant to Terry Gou, the founder of Foxconn’s parent company. “We were kind of caught by surprise.” The rally Wednesday was taking place at Foxconn’s mammoth industrial park in Shenzhen, which employs 300,000 and where most of the suicides took place. Story continues below However, Woo acknowledged that there will be challenges in preventing such tragedies among such a large work force. “No matter how hard we try, such thing will continue to happen,” he said. Foxconn, part of Taiwan’s Hon Hai Precision Industry Co., has built itself into the world’s largest contract maker of electronics, by delivering quality products on thin profit margins for its customers which include Apple Inc., Sony Corp., Dell Inc., Nokia Corp. and Hewlett-Packard Co. Labor activists, however, say that success has come in part from driving workers hard by enforcing a rigid management style, operating a too-fast assembly line and requiring excessive overtime. The company denies that it treats employees inhumanely and has pledged to prevent more suicides and improve worker well-being. The troubles at Foxconn came to light amid high-profile labor unrest in China and highlighted Chinese workers growing dissatisfaction with the low wages and pressure cooker working conditions that helped turn the country into an international manufacturing powerhouse. One activist said Foxconn’s Wednesday rally was unlikely to boost morale and does not replace the need for more thoroughgoing reforms. “I don’t think today’s event is going to achieve anything except provide a bit of theater,” said Geoffrey Crothall, spokesman of the China Labor Bulletin, a labor rights group based in Hong Kong. “Basically what Foxconn needs to do is treat its workers like decent human beings and pay them a decent wage. It’s not rocket science.” “They’re still tackling this from a top-down approach, they are organizing the workers. They’re not allowing the workers to organize themselves,” Crothall said. A similar gathering was held Monday at Foxconn’s campus in the northern city of Taiyuan, which employs about 60,000 workers. A Foxconn official in Taipei said the company decided that day to remove safety nets from the Taiyuan plant, although there are no plans to do the same at its other factories. In May, Gou promised to work harder to prevent more deaths. More counselors were being hired and employees also were being assigned to 50-person groups to watch one another for signs of emotional trouble. Foxconn also announced two raises, more than doubling the basic worker pay to 2,000 yuan ($293) a month at the Shenzhen compound. But workers have to pass a three-month review period before they qualify for the second raise. ___ Associated Press writer Debby Wu contributed to this report from Taipei.

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China’s Slowdown Sends A Chill Through Trade Partners

August 17, 2010

BEIJING — China’s abrupt growth slowdown is sending a chill through Asian economies and as far away as Australia and Africa as its voracious demand for imports fades. Beijing is cooling its economy with lending and investment curbs after explosive 11.9 percent first-quarter growth fed fears of overheating. Growth is slowing more sharply than expected, cutting demand for American and European factory machinery, industrial components from Asia and iron ore and other raw materials from Australia and Africa. The timing is awkward for exporters that were buoyed by China’s quick rebound from the global crisis and are seeing sales elsewhere weaken. The country had become more important than ever to its neighbors as its stimulus-driven expansion helped to cushion the blow of weak U.S. and European sales. “It’s definitely going to show in slower growth in all of the Asian economies that send goods to China,” said Mark Walton, senior economist for brokerage CLSA Asia-Pacific Markets. China, which overtook Japan as the second-biggest economy in the second quarter, is a major market for Asian nations. It buys 28 percent of Taiwan’s exports, 25 percent of South Korea’s and more than 20 percent of mining giant Australia’s. More than half of Hong Kong’s exports go to the mainland. Japan, which Monday reported sharply lower second quarter growth, saw a significant slowing in exports to China during the period. Its exports to China in April were up 41 percent from a year earlier but by June the growth rate had slackened to 22 percent. But suppliers of iron ore for steel production and other raw materials are expected to be hardest-hit by slowing growth in China. They range from Australia, Indonesia and Malaysia to Brazil and parts of Africa and profited from a construction boom fed by China’s 4 trillion yuan ($586 billion) stimulus and a flood of bank lending. “Chinese efforts to prevent overheating in asset markets will have negative effects on our markets,” CEO Tom Albanese of Anglo-Australian miner Rio Tinto Ltd. said this month. Construction faded fast as Beijing wound down its stimulus and clamped down on credit in April to prevent bubbles in real estate and stock prices. That slowed a surge in housing costs but slashed demand for steel, cement and other materials. That prompted some forecasters to cut their growth outlook for this year, though they say China easily can meet the government’s target of 8 percent. The expansion in Chinese factory output, retail sales and investment slowed so sharply that some analysts said Beijing might need to ease its controls to revive growth, which fell to 10.3 percent in the second quarter and is expected to drift lower. July import growth fell to 22.7 percent over a year earlier from June’s 34.1 percent, startling economists who expected a decline of only a few percentage points. Housing sales plunged 19.3 percent from a year earlier and auto sales weakened. Suppliers of manufactured goods also face a hit, though less severe. Taiwan is a major source of components for Chinese factories that make televisions and other electronics, many for export to the United States. The island could suffer a double blow as Chinese and U.S. spending weaken at the same time. “I expect to see smaller economic growth for quarter two than quarter one, and the upcoming quarters will again see smaller growth than quarter two,” said Hu Chung-ying, vice chairman of the Cabinet’s Council for Economic Planning and Development. ___ Associated Press Writers Debby Wu in Taipei and Tanalee Smith in Adelaide, Australia, contributed to this report.

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Sharp(R) Electronics Names John Herrington President, Sharp Electronics Marketing Company of America

August 12, 2010

MAHWAH, NJ–(Marketwire – August 12, 2010) –   Sharp Electronics Corporation today announced that John Herrington has been named President of Sharp Electronics Marketing Company of America (SEMCA). In this position, Mr. Herrington is responsible for all the U.S. sales and marketing of all Sharp’s consumer electronics products including those in the display, audio and video categories, as well as health and environment-related products. Mr. Herrington reports to Mr. Toshihiko Tanimoto, Sr. Executive Vice President, Sharp Electronics Corporation.

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Brian Clark Howard: eBay: The World’s Marketplace [Infographic]

August 3, 2010

Personally, I’ve bought and sold dozens of things on online auction giant eBay . I’ve picked up turntables and records, books, and a book on cassette. I’ve sold computer parts , a watch and a car — the latter I delivered to a guy in the Bronx who’s wife wasn’t too happy to learn what he had been up to online. eBay is a fascinating company (and social experiment), which is why I was excited the guys from Online University made their latest infographic about it. See Ozone hole up for sale on eBay There’s few things like the (legal) rush of bidding on eBay. Or if you’re feeling lucky, try selling a car on there with no reserve — now THAT’s one for nail biting. As in much of life, much of the action doesn’t happen til the very end, as most of us are procrastinators. (By the way, eBay uses what’s called proxy bidding , based on an English second-price auction, which is similar to a Vickrey auction, for those of us who geek out on theory.) See 14 of Freecycle’s Most Outrageous Free Deals As the infographic below shows, the growth of eBay has been truly phenomenal (with the possible negative side effect of the political career of one Meg Whitman ). eBay enjoys estimated annual sales of $60 billion, with 89.5 million “active” users, enough so that the site would rate as the 13th largest country in the world. Also, who knew what the first sale was? Click for larger version Source: Online University Embed this Image on Your Site: [Via: Online University ] More Fresh Links: Watch: Recycling Electronics Pays Off for You and the Planet How to Recycle Used Electronics The Most Fuel-Efficient Cars of 2010 13 Amazing Facts About Green Roofs 8 Products Designed to Fail Early

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Gorilla Glass, 1962 Invention, Poised To Be Big Seller For Corning

August 2, 2010

CORNING, N.Y. — An ultra-strong glass that has been looking for a purpose since its invention in 1962 is poised to become a multibillion-dollar bonanza for Corning Inc. The 159-year-old glass pioneer is ramping up production of what it calls Gorilla glass, expecting it to be the hot new face of touch-screen tablets and high-end TVs. Gorilla showed early promise in the ’60s, but failed to find a commercial use, so it’s been biding its time in a hilltop research lab for almost a half-century. It picked up its first customer in 2008 and has quickly become a $170 million a year business as a protective layer over the screens of 40 million-plus cell phones and other mobile devices. Now, the latest trend in TVs could catapult it to a billion-dollar business: Frameless flat-screens that could be mistaken for chic glass artwork on a living-room wall. Because Gorilla is very hard to break, dent or scratch, Corning is betting it will be the glass of choice as TV-set manufacturers dispense with protective rims or bezels for their sets, in search of an elegant look. Gorilla is two to three times stronger than chemically strengthened versions of ordinary soda-lime glass, even when just half as thick, company scientists say. Its strength also means Gorilla can be thinner than a dime, saving on weight and shipping costs. Corning is in talks with Asian manufacturers to bring Gorilla to the TV market in early 2011 and expects to land its first deal this fall. With production going full-tilt in Harrodsburg, Ky., it is converting part of a second factory in Shizuoka, Japan, to fill a potential burst of orders by year-end. “That’ll tell you something about our confidence in this,” said Corning President Peter Volanakis. Investors are taking notice. In June, Sanford C. Bernstein & Co. in New York raised Corning’s projected share price, predicting Gorilla would be its second biggest business by 2015. “There’s a wide range of views on how successful this product will be,” said Deutsche Bank analyst Carter Shoop. “But I think it’s safe to say that, in aggregate, people are becoming much more bullish. It’s a tremendous opportunity. We’ll have to see how consumers react.” DisplaySearch market analyst Paul Gagnon said alternatives “obviously scratch easier, they’re thicker and heavier, but they’re also cheaper.” He estimates that a sheet of Gorilla would add $30 to $60 to the cost of a set. It remains to be seen “whether this becomes a hit trend that propagates to other models and sizes or remains in the confines of a premium step-up series of products,” Gagnon said. “This is a fashion trend, not a functional trend, and that’s what makes (the growth rate) very hard to predict,” said Volanakis. “But because the market is so large in terms of number of TVs – and the amount of glass per TV is so large – that’s what can move the needle pretty quickly.” Based in western New York, Corning is the world’s largest maker of glass for liquid-crystal-display computers and TVs. High-margin LCD glass generated the bulk of Corning’s $5.4 billion in 2009 sales. By ramping up volume production quickly in a budding market, Corning is pursuing a well-worn strategy designed to keep rivals from gaining ground. Its patience is also well practiced. Executives know too well the gulf between inspiration and application is sometimes decades-wide. Corning set out in the late 1950s to find a glass as strong as steel. Dubbed Project Muscle, the effort combined heating and layering experiments and produced a robust yet bendable material called Chemcor. Then in 1964, Corning devised an ingenious method called “fusion draw” to make super-thin, unvaryingly flat glass. It pumped hot glass into a suspended trough and allowed it to overflow and run down either side. The glass flows then meet under the trough and fuse seamlessly into a smooth, hanging sheet of glass. To make Chemcor, Corning ran the sheets through a “tempering” process that set up internal stresses in the material. The same principle is behind the toughness of Pyrex glass, but Chemcor was tempered in a chemical bath, not by heat treatment. Corning thought Chemcor sheets created this way would be the material of choice in car windshields, but British rival Pilkington Bros. intervened with a far cheaper mass-production approach. And another Chemcor adaptation in photochromic sunglasses also fizzled in the retail market. Fusion draw finally proved its commercial value when Japanese electronics companies, looking for slim sheets free of alkalis that contaminate liquid crystals, turned to Corning’s soda-lime LCD glass in the 1980s. Corning rapidly turned into the world’s biggest supplier of LCD glass for laptops and that business blossomed around 2003 when LCD technology migrated to TVs. In 2006, when demand surfaced for a cell phone cover glass, Corning dug out Chemcor from its database, tweaked it for manufacturing in LCD tanks, and renamed it Gorilla. “Initially, we were telling ourselves a $10 million business,” said researcher Ron Stewart. With relatively low startup costs, Gorilla should generate its first profit this year. And now that production is back on, designers are again exploring using it in unexpected places, like refrigerator doors, car sunroofs and touch-screen hotel advertising. Among the 100-plus devices with Gorilla are Motorola Inc.’s Droid smart phone and LG Electronics’ X300 notebook. Whether Apple Inc. uses the glass in its iPod is a much-discussed mystery since “not all our customers allow us to say,” said Jim Steiner, general manager of Corning’s specialty materials division. Since the Civil War, Corning has turned out a glittering array of innovations from railroad signals to Pyrex and auto-pollution filters to optical fiber. Allotting 10 percent of revenue to research keeps promising projects brewing at its Sullivan Park research hub on Corning’s hilly outskirts. Optical fiber is another example of an invention that took a long time to come into its own. In 1934, chemist Frank Hyde came up with a practical method of making fused silica – an exceptionally pure glass – in bulk, yet it wasn’t put to use as optical fiber until the 1970s. Once there, it helped create the Internet revolution. In his office lobby, Steiner showed off a 400-foot-long spool of flexible, 16-inch-wide glass that’s as thin as a sheet of paper. “Kind of like Chemcor was back in the ’60s,” he said. “We’re not sure what we’re going to do with it, but it’s cool, isn’t it?”

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Toyota Lashed Out At Professor David Gilbert During Big Recall

July 10, 2010

CARBONDALE, Ill. — It’s the kind of publicity any university might dream about: An instructor uncovers a possible flaw that’s causing some of the world’s most popular cars to accelerate suddenly. His ground-breaking work attracts interest from Congress and reporters worldwide. But as Southern Illinois University’s David Gilbert sought to show that electronics might be to blame for the problem in Toyotas, the world’s largest automaker tried to cast doubt on his findings. One Toyota employee even questioned whether he should be employed by the school, which has long been a recipient of company donations. Electronic messages obtained by The Associated Press show the automaker grew increasingly frustrated with Gilbert’s work and made its displeasure clear to his bosses at the 20,000-student school. “It did kind of catch us off-guard,” university spokesman Rod Sievers said. So did the fallout. Two Toyota employees quickly resigned from an advisory board of the school’s auto-technology program, and the company withdrew offers to fund two spring-break internships. “I didn’t really set out to take on Toyota. I set out to tell the truth, and I felt very strongly about that,” said Gilbert, who was among the first to suggest that electronics, not sticky gas pedals or badly designed floor mats, caused the acceleration that required the Japanese automaker to recall millions of vehicles. Toyota insists its relationship with the school remains “strong,” and company officials say they have no plans to stop contributing to SIU. They also say the two Toyota representatives who stepped down from the advisory board did so merely to avoid any appearance that the company was exerting influence over Gilbert’s testimony. “We have absolutely no issues with SIU and retain an excellent relationship. That won’t change,” Toyota spokeswoman Celeste Migliore said. Driven by his own curiosity, Gilbert in January found he could manipulate the electronics in a Toyota Avalon to recreate the acceleration without triggering any trouble codes in the vehicle’s computer. Such codes send the vehicle’s computer into a fail-safe mode that allows the brake to override the gas. Gilbert said he reported his “startling discovery” to Toyota, and the automaker “listened attentively.” But Gilbert said he never heard back from the company, which has steadfastly maintained the problems were mechanical, not electronic. Next, Gilbert told the National Highway Traffic Safety Administration, then made plans to tell Congress. “I didn’t feel I could just be passive in this,” he said. Along the way, Gilbert told the university in writing that he had been tapped as a consultant for a company called Safety Research & Strategies Inc., which asked him to study the safety of electronic throttle controls. Gilbert’s boss, Terry Owens, wished him well: “Good luck in your investigation,” Owens wrote in a Feb. 10 e-mail. “I hope it leads to public safety and publications.” One of Gilbert’s research partners, an assistant professor named Omar Trinidad, nervously asked Owens whether the findings would “negatively affect my tenure track or even jeopardize my tenure with SIUC? If you have any reservations on what we are doing, please do not hesitate to inform me.” Owens tried to reassure Trinidad: “If your investigations are upheld and have major impact resulting in papers, presentations, and national recognition of expertise, these are all factors that will benefit your research productivity.” Hours later, on the eve of his congressional testimony, Gilbert appeared in an ABC News “World News” report showing correspondent Brian Ross driving a Toyota rigged to quickly accelerate. When it did, a shaken Ross said he had a hard time getting the car to come to a stop. ABC News later acknowledged that a picture in the segment showing a tachometer with its needle zooming forward was taken from a separate instance in which a short-circuit was induced in a parked car. But almost immediately after the ABC report, media outlets began calling the school looking for Gilbert. By then, he was headed to Washington – without a cell phone. Hardly anyone at the university knew Gilbert was going to Washington to testify, Sievers said. The next day, Gilbert made his case to the House Energy and Commerce Committee, and lawmakers seized on the testimony as proof Toyota engineers missed a potential problem with the electronics. Gilbert’s appearance unleashed a publicity firestorm that Southern Illinois scrambled to control. E-mail chatter among administrators talked of the need to tout Toyota’s “very productive relationship” with the university. Within days, a product-liability attorney representing Toyota said company attorneys wanted to meet with Gilbert and university officials to discuss Gilbert’s use of donated Toyota vehicles and “related matters.” “We would like to explain our analysis of the situation and what we believe is a reasonable solution,” Vincent Galvin wrote. At the meeting four days later, Gilbert said, the visitors pressed him to justify his testimony – something he refused to do, saying he stood by his sworn statements to Congress. Gilbert, who owns a Toyota Tundra pickup, believes the meeting “was meant to maybe intimidate me.” The university asked Gilbert and Jack Greer – director of the auto-technology program – to fly to California to see a demonstration at Exponent Inc., a consulting firm hired by Toyota. “I wasn’t really sure what the point of the trip was, but to keep the peace, I agreed to go,” Gilbert said. Toyota did not wait for that visit to fire back. Six days later, a group of experts assembled by Toyota to refute Gilbert’s findings told reporters his experiments were done under conditions that would never happen on the road. Gilbert’s work “could result in misguided policy and unwarranted fear,” Chris Gerdes, director of Stanford University’s Center for Automotive Research, told reporters. His organization is funded by a group of auto companies that include Toyota. To Gilbert, “it seemed like an awful large amount of effort to be extended by a company to dispel something.” He was unswayed by what he saw in California. The pressure on him continued to build. On March 8, Mark Thompson – identifying himself as an SIU alum and, without elaboration, a Toyota Motor Sales employee – voiced in an e-mail to the university’s then-chancellor, Sam Goldman, his “great concern and disappointment” about Gilbert. Thompson said he was “deeply disturbed” by what he called Gilbert’s false accusations about the automaker. Thompson reminded Goldman that he and Toyota regularly contributed to the university – including a $100,000 check to the auto-tech program in late 2008 – and “due to the outstanding reputation your automotive technology program has, we donate much more than money,” including cars. “I ask you why your organization allows such activities to be performed by one of your professors and most importantly allowed to be reported to the media in a false manner,” Thompson wrote. “I believe he should not be an employee of our fine university.” Goldman later assured Thompson that “we are taking this matter very seriously for the reasons you cite in your e-mail and for our very strong desire to maintain our relationship with Toyota.” As a research university, Goldman added, faculty are allowed to research independently and publish their findings, while observing ethical and conflict-of-interest guidelines. Gilbert insists he never felt his job was threatened, though “there were some moments where I kind of felt I was standing alone.” Still, he said, if his work “can somehow make a car safer in the very narrow scope of electronic throttle controls … then to me it’s worth it. Because that could be someone’s life that I could be saving.”

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Jameco Promotes Gil Orozco

June 30, 2010

BELMONT, CA–(Marketwire – June 30, 2010) –  Jameco Electronics, a distributor of electronic components , announced the promotion of Gil Orozco to Vice President of Product Management. He will be responsible for managing Jameco’s portfolio of more than 150 franchise manufacturer relationships and 50,000 electronic component products.

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Asian Stocks Have Biggest Weekly Advance This Year on U.S. Economic Data

June 18, 2010

By Kana Nishizawa June 19 (Bloomberg) — Asian stocks rose this week, driving the MSCI Asia Pacific Index up the most since December, as U.S. economic reports eased concern that deficits in Europe will slow a global recovery, and brokerages boosted investment ratings. Samsung Electronics Co. , Asia’s biggest semiconductor maker, gained 3.1 percent in Seoul this week on the outlook for chip demand. Nissan Motor Co. jumped 6.2 percent in Tokyo after Citigroup Inc. reiterated its “buy” rating on the carmaker. Cnooc Ltd., China’s largest offshore oil producer, rose 4.7 percent in Hong Kong as crude oil exceeded $75 a barrel and analysts recommended the stock. Nintendo Co. soared 16 percent in Osaka, Japan, after introducing a new video-game player. The MSCI Asia Pacific Index rose 3.3 percent this week, the most since the period ended Dec. 4. It has lost 3.6 percent this year on concern Greece and other European countries will struggle to curb their budget deficits and repay debt. “There was a lot of pessimism about what’s happening in Europe that took the market down,” said Tim Leung , who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. “It’s rebounding from that pessimism.” Japan’s Nikkei 225 Stock Average rose 3 percent this week, South Korea’s Kospi Index climbed 2.2 percent, Hong Kong’s Hang Seng Index gained 2.1 percent, and Taiwan’s Taiex index increased 2.7 percent. China’s Shanghai Composite Index declined 2.2 percent in a two-day week shortened by holidays. Chip Shares Advance Samsung Electronics, which receives about 44 percent of its sales from the Americas and Europe, gained 3.1 percent to 822,000 won this week in Seoul. Tokyo Electron Ltd., the world’s second-biggest maker of semiconductor equipment, increased 2.3 percent to 5,690 yen in Tokyo. Taiwan Semiconductor Manufacturing Co., the world’s biggest maker of custom chips, increased 3.6 percent to NT62.7 in Taipei. Global sales in the chip industry will increase almost 30 percent this year, compared with an April forecast of 22 percent, Morris Chang, chairman and chief executive officer of TSMC, said this week. The MSCI Asia Pacific Index has slumped 10 percent from its high this year on April 15 as swelling budget deficits prompted Standard & Poor’s to cut ratings of Greece, Spain and Portugal. The retreat has driven down the average price of shares in the gauge to about 14.8 times estimated earnings . The ratio sank to 13.8 times on May 18, the lowest level since December 2008. U.S. Boost Stocks rebounded this week, with the MSCI Asia Pacific Index advancing every day . The Thomson Reuters/University of Michigan preliminary index of consumer sentiment for June advanced to the highest level since January 2008, and the Federal Reserve Bank of New York said its general economic index of manufacturing rose in June for an 11th consecutive month. “U.S. economic data remain resilient, and economies continue to improve globally,” said Kiyoshi Ishigane , a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees more than $65 billion. Li & Fung Ltd. , a trading company that generates two-thirds of its sales in the U.S., jumped 7 percent to HK$38.30 in Hong Kong. Honda Motor Co., a carmaker that gets more than 80 percent of its revenue abroad, gained 3.2 percent to 2,690 yen in Tokyo. Hyundai Motor Co., South Korea’s largest automaker, jumped 5.1 percent to 144,500 won. LIG Investment & Securities Co. raised its estimate on the automaker’s share price by 20 percent. Nissan , Japan’s third-biggest carmaker, surged 6.2 percent to 671 yen. Goldman Sachs Group Inc. raised its rating on the company to “buy” from “neutral.” Cnooc advanced 4.7 percent to HK$13.50 this week after HSBC Holdings Plc boosted the company to “overweight” from “neutral.” Nintendo , the world’s biggest maker of video-game machines, soared 16 percent to 28,380 yen this week after the company unveiled a handheld player that shows 3-D images without special glasses. UBS AG boosted its recommendation on the stock to “buy” from “neutral.” To contact the reporters for this story: Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net .

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BroadSoft Prices Initial Offering at Bottom of Forecast Range Shares Drop

June 16, 2010

By Lee Spears and Inyoung Hwang June 16 (Bloomberg) — BroadSoft Inc. raised $67.5 million in an initial public offering, becoming the second U.S. company to price an IPO within its forecast range this week. The shares retreated 7.8 percent in their first day of trading. The Gaithersburg, Maryland-based maker of software enabling businesses to use voice services over the Internet sold 7.5 million shares at $9 each yesterday after offering them for $9 to $11, according to a company statement and a filing with the Securities and Exchange Commission. BroadSoft’s deal came after CBOE Holdings Inc. priced a $339 million offering at the top of the forecast range on June 14 and the Standard & Poor’s 500 Index erased its loss for the year. At least 34 companies worldwide had postponed or withdrawn IPOs since the beginning of May as the European debt crisis sent the S&P 500 down as much as 14 percent from its 2010 high. “The short-term stabilization of the markets which has occurred in the last two weeks has opened a window for IPOs,” said Lawrence Creatura , a Rochester, New York-based fund manager at Federated Investors Inc., which oversees $350 billion. “People seeking equity capital have to be conscious that this window may close at any time. So it’s no surprise that they’re eager to get deals done.” BroadSoft slid 70 cents to $8.30 as of 4:05 p.m. New York time in Nasdaq Stock Market trading. Goldman Sachs Group Inc. and Jefferies Group Inc. of New York managed the IPO. Oasis Petroleum Oasis Petroleum Inc. will lead four sales scheduled for today, data compiled by Bloomberg show. The Houston-based drilling and exploration company with oilfields in North Dakota and Montana is seeking $725 million including its overallotment option, in what would be the largest U.S. IPO this year. Morgan Stanley of New York and Zurich-based UBS AG are managing the sale. Oasis Petroleum is backed by EnCap Investments LP, a Houston-based private-equity firm. Oasis Petroleum focuses on developing and extracting “unconventional” oil- and natural-gas deposits from the ground, according to a filing with the SEC. It owns rights to 292,000 acres of land in North Dakota and Montana, 85 percent of which has not been developed, the filing showed. The company plans to spend $220 million on drilling and supporting activities in 2010, more than double the $89 million in 2009. Oasis Petroleum will try to access deposits through horizontal-drilling techniques, it said in the filing. ‘Systemic Risk’ The IPO comes eight weeks after a rig leased by London- based BP Plc exploded in the Gulf of Mexico, triggering the worst oil spill in U.S. history. President Barack Obama on May 27 extended a moratorium on deepwater offshore drilling permits, while BP has tentatively agreed to put about $20 billion into a fund to pay damages, people familiar with the talks said today. “Investors will be obviously looking for onshore options,” said Josef Schuster , the Chicago-based founder of IPOX Capital Management LLC and manager of the Direxion Long/Short Global IPO Fund. “The potential systemic risk coming from BP is not there with Oasis.” Schuster said any boost won’t be enough to spur him to buy shares of Oasis Petroleum, citing the performance of the IPOs of oil-exploration companies such as Athabasca Oil Sands Corp. this year. Calgary-based oil-sands developer Athabasca has tumbled 38 percent since raising C$1.35 billion ($1.32 billion) in March. Relative Value At the midpoint price of $14 a share, Oasis is valued at 2.19 times net tangible book value, a measure of shareholder equity that excludes assets that can’t be sold in liquidation. That’s 53 percent higher than the median ratio of 1.43 for 61 oil refining and marketing companies worldwide, data compiled by Bloomberg show. Higher One Holdings Inc. in New Haven, Connecticut; Bellevue, Washington-based Motricity Inc., and China Intelligent Lighting & Electronics Inc. of Guangdong, China, are also scheduled to sell stock today, according to Bloomberg data. Goldman Sachs is leading Higher One’s offering, while Goldman and JPMorgan Chase & Co. in New York are handling Motricity’s sale. New York-based Rodman & Renshaw LLC and WestPark Capital Inc. of Los Angeles were hired to run China Intelligent’s deal. To contact the reporters on this story: Lee Spears in New York at lspears3@bloomberg.net ; Inyoung Hwang in New York at ihwang7@bloomberg.net .

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Stocks, Commodities Rise as Yen Weakens on U.S. Sentiment Data

June 14, 2010

By Will McSheehy June 14 (Bloomberg) — Asian stocks climbed for a third day and commodities gained after a report showed U.S. consumer sentiment rose to its highest since January 2008. The yen weakened on signs the global recovery is gaining momentum. The MSCI Asia Pacific Index rose 1.4 percent to 113.97 as of 4:10 p.m. in Tokyo, with seven times as many shares advancing as declining. The Stoxx Europe 600 increased 0.9 percent to 251.76 at 8:10 a.m. in London. Futures on the Standard & Poor’s 500 Index rose 0.6 percent. Copper gained for a fifth day. Markets in China and Australia are closed today for holidays. “Investors have been concerned about a double-dip recession in the U.S. later this year,” said Tomochika Kitaoka , a senior strategist at Mizuho Securities Co. in Tokyo. “The report on consumer sentiment showed it is less likely to be the case as the economy continues to recover.” Americans are gaining confidence in the economy even as Europe’s debt crisis roils investors, according to the Thomson Reuters/University of Michigan index of consumer sentiment . The benchmark increased to 75.5, beating the median forecast of 65 economists polled by Bloomberg News, from 73.6 in May. Euro zone industrial output expanded 0.5 percent in April from March, according to a separate economist survey before the European Union publishes data today. Japan’s Nikkei 225 Stock Average climbed 1.7 percent, the biggest increase among equity benchmarks in Asia-Pacific, followed by Taiwan’s Taiex Index, with a gain of 1.2 percent. U.S. Sales Sony Corp ., the electronics maker that gets 21 percent of revenue from the U.S., climbed 1.6 percent in Tokyo. Posco, Asia’s third-biggest steelmaker, advanced 2.6 percent after the Seoul Economic Daily said the company plans to boost steel- product prices next month. Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard, advanced 2.1 percent after it received a $568 million order. Taiwan Semiconductor Manufacturing Co., the world’s largest custom-chip maker, advanced 1 percent on expectations a trade agreement with China will boost earnings. Three-month copper on the London Metal Exchange added 1.7 percent to $6,589 a metric ton. Copper in London capped its best week since April last week after government reports showed China’s exports jumped 48.5 percent in May from a year ago, surpassing all 32 estimates in a Bloomberg News survey of economists. Currency Forwards The South Korean won strengthened the most in a week after policy makers said they will give banks time to meet a new ceiling on forward contracts, holding off from imposing controls on capital flows. The won climbed 1.9 percent to 1,223.05 per dollar, while the Malaysian ringgit strengthened 0.6 percent to 3.2655. Singapore may report higher retail sales and exports this week, according to a Bloomberg News survey. “The data out of Asia is quite strong, including Singapore this week, and that encourages some fund inflows to the region,” said Akira Banno , a treasury adviser at Bank of Tokyo- Mitsubishi UFJ Bhd. in Kuala Lumpur. Japan’s currency weakened to as low as 111.90 per euro in Tokyo from 111 in New York on June 11 as demand for the currency as a safe haven diminished. The yen was at 91.88 per dollar from 91.65. The euro climbed to as much as $1.2208, the highest level since June 4. Energy Demand Crude oil advanced in New York for the fourth time in five days, rising 1.2 percent to $74.67 a barrel, on speculation sustained growth in the U.S. will boost fuel demand from the world’s biggest energy consumer. “Fundamentals are getting better and the euro is also driving the crude market,” said Ken Hasegawa , a commodity derivative sales manager at Newedge Group in Tokyo. Treasuries extended last week’s decline on diminished demand for the relative safety of government debt. The yield on the benchmark 10-year note rose 3 basis points to 3.26 percent in Tokyo, according to BGCantor Market Data. The cost of insuring Asian bonds with credit-default swaps declined, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 6.5 basis points to 139 basis points in Singapore, RBS prices show. To contact the reporter on this story: Will McSheehy in Singapore at wmcsheehy@bloomberg.net

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Stocks, U.S. Futures, Commodities Advance on Economic Outlook Yen Weakens

June 14, 2010

By Will McSheehy June 14 (Bloomberg) — Asian stocks climbed for a third day and commodities gained after a report showed U.S. consumer sentiment rose to its highest since January 2008. The yen weakened on signs the global recovery is gaining momentum. The MSCI Asia Pacific Index rose 1.4 percent to 113.97 as of 4:10 p.m. in Tokyo, with seven times as many shares advancing as declining. The Stoxx Europe 600 increased 0.9 percent to 251.76 at 8:10 a.m. in London. Futures on the Standard & Poor’s 500 Index rose 0.6 percent. Copper gained for a fifth day. Markets in China and Australia are closed today for holidays. “Investors have been concerned about a double-dip recession in the U.S. later this year,” said Tomochika Kitaoka , a senior strategist at Mizuho Securities Co. in Tokyo. “The report on consumer sentiment showed it is less likely to be the case as the economy continues to recover.” Americans are gaining confidence in the economy even as Europe’s debt crisis roils investors, according to the Thomson Reuters/University of Michigan index of consumer sentiment . The benchmark increased to 75.5, beating the median forecast of 65 economists polled by Bloomberg News, from 73.6 in May. Euro zone industrial output expanded 0.5 percent in April from March, according to a separate economist survey before the European Union publishes data today. Japan’s Nikkei 225 Stock Average climbed 1.7 percent, the biggest increase among equity benchmarks in Asia-Pacific, followed by Taiwan’s Taiex Index, with a gain of 1.2 percent. U.S. Sales Sony Corp ., the electronics maker that gets 21 percent of revenue from the U.S., climbed 1.6 percent in Tokyo. Posco, Asia’s third-biggest steelmaker, advanced 2.6 percent after the Seoul Economic Daily said the company plans to boost steel- product prices next month. Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard, advanced 2.1 percent after it received a $568 million order. Taiwan Semiconductor Manufacturing Co., the world’s largest custom-chip maker, advanced 1 percent on expectations a trade agreement with China will boost earnings. Three-month copper on the London Metal Exchange added 1.7 percent to $6,589 a metric ton. Copper in London capped its best week since April last week after government reports showed China’s exports jumped 48.5 percent in May from a year ago, surpassing all 32 estimates in a Bloomberg News survey of economists. Currency Forwards The South Korean won strengthened the most in a week after policy makers said they will give banks time to meet a new ceiling on forward contracts, holding off from imposing controls on capital flows. The won climbed 1.9 percent to 1,223.05 per dollar, while the Malaysian ringgit strengthened 0.6 percent to 3.2655. Singapore may report higher retail sales and exports this week, according to a Bloomberg News survey. “The data out of Asia is quite strong, including Singapore this week, and that encourages some fund inflows to the region,” said Akira Banno , a treasury adviser at Bank of Tokyo- Mitsubishi UFJ Bhd. in Kuala Lumpur. Japan’s currency weakened to as low as 111.90 per euro in Tokyo from 111 in New York on June 11 as demand for the currency as a safe haven diminished. The yen was at 91.88 per dollar from 91.65. The euro climbed to as much as $1.2208, the highest level since June 4. Energy Demand Crude oil advanced in New York for the fourth time in five days, rising 1.2 percent to $74.67 a barrel, on speculation sustained growth in the U.S. will boost fuel demand from the world’s biggest energy consumer. “Fundamentals are getting better and the euro is also driving the crude market,” said Ken Hasegawa , a commodity derivative sales manager at Newedge Group in Tokyo. Treasuries extended last week’s decline on diminished demand for the relative safety of government debt. The yield on the benchmark 10-year note rose 3 basis points to 3.26 percent in Tokyo, according to BGCantor Market Data. The cost of insuring Asian bonds with credit-default swaps declined, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 6.5 basis points to 139 basis points in Singapore, RBS prices show. To contact the reporter on this story: Will McSheehy in Singapore at wmcsheehy@bloomberg.net

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Stocks Rise in Europe, Asia on Economic Recovery Signs Bond Risk Declines

June 11, 2010

By Nicolas Johnson and Anna Kitanaka June 11 (Bloomberg) — Asian stocks rose to a one-week high on an increased estimate of technology spending and a gauge of bond risk declined after the European Central Bank said it will extend measures to battle the region’s debt crisis. The MSCI Asia Pacific Index of equities climbed 1.3 percent to 112.43 at 4 p.m. in Tokyo. The Stoxx Europe 600 increased 0.5 percent to 249.73. The cost of protecting Asia-Pacific corporate and government bonds from non-payment fell the most since May 27. Standard & Poor’s 500 futures were little changed. The euro strengthened, heading for its first weekly gain in three. Computer-related companies led stocks higher after Acer Inc. , the world’s largest vendor of laptop computers, said May sales jumped 45 percent and Taiwan Semiconductor Manufacturing Co., the biggest maker of custom chips, said it’s optimistic about the chip industry and the global economy for the second half of 2010. Asian markets extended a worldwide rally after the ECB raised its economic growth forecast and said it will continue to offer unlimited cash and buy government bonds. “We’re very much on track in terms of Europe getting through its issues,” said Tim Schroeders , who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. “Overall the signs are encouraging. Investors generally are prepared to take more risk today.” Advancing stocks beat decliners 8 to 1 in the MSCI Asia Pacific Index, with information-technology companies rising the most among the measure’s 10 industry groups. Japan’s Nikkei 225 Stock Average jumped 1.7 percent, the biggest increase among equity gauges in Asia. Investor Optimism “People are now optimistic about the global economy,” said Juichi Wako , a senior strategist at Tokyo-based Nomura Holdings Inc. “Investors who had avoided risk assets have started buying them.” Acer climbed 3.1 percent to NT$79.2 in Taipei, its highest level in a week. Taiwan Semi gained 1.9 percent to NT$60.5. Chairman Morris Chang said he is upbeat about the chip industry and the global economy in the second half of this year. The chip market is “still very good,” he said yesterday. Samsung Electronics Co. , Asia’s biggest chipmaker, advanced 3.1 percent to 797,000 won in Seoul. Global sales of microchips will rise 28 percent to $290.5 billion this year, boosted by demand in China and India, compared with a November forecast of 10 percent growth, the Semiconductor Industry Association said yesterday in the U.S. Commodity Shares Gain BHP Billiton Ltd., the world’s largest mining company and Australia’s No. 1 oil producer, advanced 2.6 percent to A$38.58 in Sydney and was the biggest contributor to the MSCI Asia Pacific Index. Aluminum Corp. of China Ltd. climbed 3.9 percent for the steepest increase on Hong Kong’s Hang Seng Index. Crude oil jumped 1.4 percent to $75.48 yesterday in New York, its highest settlement in four weeks, and was at $75.28 today. The London Metal Exchange Index climbed yesterday for a third consecutive day. The S&P 500 surged 3 percent yesterday on reports of accelerating growth from China, Japan and Australia. S&P futures were little changed before a report today that may show sales at U.S. retailers rose in May at the slowest pace of the year. Purchases increased 0.2 percent following a 0.4 percent April gain, according to the median estimate of 76 economists surveyed by Bloomberg News. Treasuries rose, trimming a weekly decline. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 9 basis points to 142 basis points, on course for its biggest daily drop since May 27, according to Royal Bank of Scotland Group Plc and CMA DataVision in New York. ‘Panic Scenario Eliminated’ The euro strengthened to $1.2103 and 110.78 yen, bringing its gain for the week against the dollar to 1.2 percent following two weeks of losses. Against the yen, it’s set to rise 0.9 percent, snapping a six-week decline that was the longest since the euro’s introduction in 1999. The ECB is buying state debt and pumping unlimited funds into the banking system to support the 16-nation currency. The MSCI World Index tumbled 8 percent and the euro weakened 15 percent against the dollar this year on concern countries from Greece to Spain will struggle to cut deficits and repay debt. Earlier this week, Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank will act as needed to aid financial stability and economic growth after restarting emergency currency-swaps to help contain Europe’s debt crisis. “The panic scenario has been eliminated for now and the euro may grind higher,” said Phil Burke , chief dealer for foreign-exchange trading at JPMorgan Chase & Co. in Sydney. “There should be a slightly bullish bias short term.” To contact the reporters for this story: Nicolas Johnson in Tokyo at nicojohnson@bloomberg.net ; Anna Kitanaka in Tokyo at akitanaka@bloomberg.net .

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Asian Stocks Rise to One-Week High on Signs of Recovery Bond Risk Drops

June 10, 2010

By Nicolas Johnson and Anna Kitanaka June 11 (Bloomberg) — Asian stocks rose to a one-week high on an increased estimate of technology spending and a measure of bond risk declined after the European Central Bank said it will extend measures to battle the region’s debt crisis. The MSCI Asia Pacific Index of equities climbed 1.3 percent to 112.51 at 2:04 p.m. in Tokyo. The cost of protecting Asia- Pacific corporate and government bonds from non-payment fell the most since May 25, according to traders of credit-default swaps. Standard & Poor’s 500 Index futures were little changed. The euro strengthened, heading for its first weekly gain in three. Computer-related companies led stocks higher after Acer Inc. , the world’s largest vendor of laptop computers, said May sales jumped 45 percent and Taiwan Semiconductor Manufacturing Co., the biggest maker of custom chips, said its optimistic about the chip industry and the global economy for the second half of 2010. Asian markets extended a worldwide rally after the ECB raised its economic growth forecast and said it will continue to offer unlimited cash and buy government bonds. “We’re very much on track in terms of Europe getting through its issues,” said Tim Schroeders , who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. “Overall the signs are encouraging. Investors generally are prepared to take more risk today.” Almost eight times as many stocks advanced as declined in the MSCI Asia Pacific Index, with information-technology companies rising the most among the measure’s 10 industry groups. Japan’s Nikkei 225 Stock Average jumped 1.8 percent, the biggest increase among equity gauges in Asia. Investor Optimism “People are now optimistic about the global economy,” said Juichi Wako , a senior strategist at Tokyo-based Nomura Holdings Inc. “Investors who had avoided risk assets have started buying them.” Acer climbed 3.1 percent to NT$79.2 in Taipei, its highest level in a week. Hon Hai Precision Industry Co. , the manufacturer for the Apple Inc.’s iPhone and iPad, increased 1.3 percent to NT$119, after saying May revenue rose 78 percent from a year earlier. Taiwan Semi gained 1.3 percent to NT$60.2. Chairman Morris Chang said he is upbeat about the chip industry and the global economy in the second half of this year. The chip market is “still very good,” he said yesterday. Global sales of microchips will rise 28 percent to $290.5 billion this year, boosted by demand in China and India, compared with a November forecast of 10 percent growth, the Semiconductor Industry Association said yesterday in the U.S. Growing Industry Tokyo Electron Ltd., the world’s second-largest maker of equipment to manufacture semiconductors, climbed 3.2 percent to 5,500 yen. Samsung Electronics Co. , Asia’s biggest chipmaker, advanced 2.5 percent to 792,000 won in Seoul. The S&P 500 surged 3 percent yesterday on reports of accelerating growth from China, Japan and Australia. S&P futures were little changed before a report today that may show sales at U.S. retailers rose in May at the slowest pace of the year. Purchases increased 0.2 percent following a 0.4 percent April gain, according to the median estimate of 76 economists surveyed by Bloomberg News. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 9 basis points to 142 basis points, on course for its biggest daily drop since May 27, according to Royal Bank of Scotland Group Plc and CMA DataVision in New York. The euro strengthened to $1.2106 and 110.85 yen, bringing its gain for the week against the dollar to 1.2 percent following two weeks of losses. Against the yen, it’s set to rise 0.9 percent, snapping a six-week decline that was the longest since the euro’s introduction in 1999. European Aid The ECB is buying state debt and pumping unlimited funds into the banking system to support the 16-nation currency. The MSCI World Index tumbled 8 percent and the euro weakened 15 percent against the dollar this year on concern countries from Greece to Spain will struggle to cut deficits and repay debt. Earlier this week, Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank will act as needed to aid financial stability and economic growth after restarting emergency currency-swaps to help contain Europe’s debt crisis. “The panic scenario has been eliminated for now and the euro may grind higher,” said Phil Burke , chief dealer for foreign-exchange trading at JPMorgan Chase & Co. in Sydney. “There should be a slightly bullish bias short term.” Goldman Sachs Group Inc. yesterday reversed a forecast for the euro to rise, saying it will fall to a seven- year low of $1.15 as the concerns about sovereign debt and political uncertainty spur investors to sell the currency. Crude oil traded at $75.28, near a one-month high. Treasuries rose, trimming a weekly decline, before a U.S. report that economists said will show sales at retailers increased in May at the slowest pace of the year. To contact the reporters for this story: Nicolas Johnson in Tokyo at nicojohnson@bloomberg.net ; Anna Kitanaka in Tokyo at akitanaka@bloomberg.net .

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Asian Stocks Rise on Speculation Global Recovery Still Intact Canon Gains

June 10, 2010

By Anna Kitanaka June 11 (Bloomberg) — Asian stocks advanced for a second straight day as investor appetite for riskier assets rose on speculation Europe’s debt crisis won’t derail global growth. Canon Inc. , which receives 31 percent of its sales from Europe, gained 2.5 percent in Tokyo after the European Central Bank raised its euro-region economic growth forecast for this year. Samsung Electronics Co. increased 2.2 percent in Seoul after an industry group forecast chip sales to rise. BHP Billiton Ltd. , the world’s biggest mining company, jumped 2 percent after commodity prices advanced yesterday. The MSCI Asia Pacific Index rose 1.4 percent to 112.55 as of 11:58 a.m. in Tokyo, paring its drop this week to 0.8 percent. The gauge has retreated 13 percent from this year’s high on April 15 on concern debt problems in Europe and Chinese measures to curb property prices will hurt global growth. The gauge’s stocks are trading near the cheapest levels in 18 months. “Perhaps people have been too pessimistic in estimating the impact of the European debt crisis on global growth,” said Tim Schroeders , who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. “Overall the signs are encouraging. Investors generally are prepared to take more risk today.” Japan’s Nikkei 225 Stock Average advanced 2 percent while Australia’s S&P/ASX 200 Index increased 1.3 percent. South Korea’s Kospi Index gained 0.9 percent. China’s Shanghai Composite Index rose 0.5 percent and Hong Kong’s Hang Seng Index gained 1.2 percent after government reports showed Chinese industrial output, retail sales and fixed-asset investment climbed. ECB Projections Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The gauge gained 3 percent yesterday as economic reports from China, Japan and Australia boosted optimism about growth worldwide. The ECB yesterday raised its euro-region growth forecast for this year and cut it for 2011. The central bank expects the economy will expand around 1 percent this year compared with a previous forecast of around 0.8 percent. It will grow about 1.2 percent in 2011, lower than an earlier projection of around 1.5 percent because of weaker domestic demand, European Central Bank president Jean-Claude Trichet said. Canon , which counts Europe as its biggest market, gained 2.5 percent to 3,735 yen in Tokyo. Fanuc Ltd. , a maker of industrial robots that got 17 percent of its revenue in Europe in its last fiscal year, rose 2.2 percent to 10,450 yen. Japanese exporters also rose as the euro strengthened to as much as 111.28 yen today from as low as 108.98 yesterday, boosting the value of sales from the region when repatriated. The euro traded near a one-week high against the dollar. Commodity Prices Samsung Electronics, which receives 24 percent of its revenue from Europe, advanced 2.2 percent to 790,000 won. Elpida Memory Inc. gained 1.6 percent to 1,726 yen in Tokyo. Chip-related stocks climbed after the Semiconductor Industry Association raised its forecast for global microchip sales this year to 28 percent, up from a November forecast of 10 percent growth. China, India and other emerging markets are fueling demand for semiconductors, the association said. Taiwan Semiconductor Manufacturing Co. ’s Chairman Morris Chang said the European crisis has had a limited impact on the chip industry, the Central News Agency reported yesterday. TSMC shares climbed 1.4 percent to NT$60.20 after the company reported a 38 percent jump in May revenue from a year earlier. “People are now optimistic about the global economy,” said Juichi Wako , a senior strategist at Tokyo-based Nomura Holdings Inc. “Investors who had avoided risk assets have started buying them.” Growth Hopes Optimism over economic growth has put the MSCI Asia Pacific Index on course for its highest close since June 4. Government reports yesterday showed Australian employers hired more people in May than economists predicted, while Japan’s economy grew faster than estimated in the three months ended March 31. The slide in the MSCI Asia Pacific Index since April has dragged the price of stocks in the gauge to 14.4 times estimated earnings on average, near the lowest level since January 2009. “Valuations are looking attractive following recent declines,” said Monika Yang , who helps oversee $2 billion at Hamon Asset Management Ltd. in Hong Kong. “Investors are waiting to see how earnings will pan out later this year.” In Taipei, Hon Hai Precision Industry Co. , the maker of Apple Inc. iPhones, advanced 2.1 percent to NT$120 after the company said May revenue surged 78 percent from a year earlier. Bond Risk Declines A gauge of raw-materials producers rose 1.6 percent, the second-biggest advance of the MSCI Asia Pacific Index’s 10 industry groups after technology. The London Metal Exchange Index of six metals including copper and zinc rose 0.9 percent yesterday to the highest since June 3. Crude oil for July delivery rose 1.5 percent in New York yesterday, the highest level in four weeks. BHP Billiton increased 2 percent to A$38.36 in Sydney. Mitsubishi Corp. , which gets about 40 percent of sales from commodities, added 0.4 percent to 1,893 yen in Tokyo. Posco, Asia’s third-biggest steelmaker, advanced 2.2 percent to 458,500 won in Seoul. Financial shares were the biggest contributor to the MSCI Asia Pacific Index’s gain today as the cost of protecting Asia- Pacific corporate and sovereign bonds from default declined. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 9 basis points to 142 basis points. Mitsubishi UFJ Financial Group Inc. , Japan’s biggest bank by market value, which increased 3.4 percent to 430 yen. Commonwealth Bank of Australia , the country’s largest lender, gained 1.7 percent to A$52.24 in Sydney and Westpac Banking Corp., Australia’s second-biggest lender, rose 2.3 percent to A$23.15. To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net .

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Bank of Korea’s Tilt Toward Rate Increase May Be Thwarted by Government

June 8, 2010

By William Sim and Michael Munoz June 9 (Bloomberg) — The Bank of Korea may keep the benchmark interest rate at a record low for a 16th month after its signal that higher borrowing costs may be coming was snubbed by government warnings about the impact of Europe’s crisis. Governor Kim Choong Soo will leave the seven-day repurchase rate at a record-low 2 percent tomorrow, according to all 12 economists surveyed by Bloomberg News. While the meeting will be the first without a government representative attending the vote, Finance Minister Yoon Jeung Hyun made clear his expectation for the outcome last week, saying the bank should wait for second- quarter economic data before any move. “This suggests that political pressures are still a constraint in Bank of Korea decision-making,” said Kevin Grice , an economist at Capital Economics Ltd. in London. Governor Kim “has been signaling to markets that inflation is set to rise and that gross domestic product growth should stay at trend pace, which suggest that rates need to move to more ‘normal’ levels.” Asia’s central banks are weighing the need to avert overheating by raising rates from world-recession levels against the potential impact of Europe’s debt crisis on the global recovery. South Korea has so far sided with China and Indonesia in standing pat, while Malaysia and India are projected to keep boosting borrowing costs after already moving in recent months. New Zealand’s central bank will probably raise its benchmark rate tomorrow to 2.75 percent from a record-low 2.5 percent, the first increase in almost three years, according to 13 of 15 economists in a Bloomberg survey. Two expect no change. August Move Grice said the Bank of Korea is likely to hold the rate tomorrow to gauge the impact on the global recovery of spending cuts by European nations struggling to reduce budget deficits. He expects borrowing costs to be boosted in August and the rate increased to 3 percent by the end of the year. South Korea’s expansion is being driven by exports, which surged 41.9 percent last month. Samsung Electronics Co. , Asia’s biggest maker of semiconductors, flat screens and mobile phones, posted a seven-fold jump in profit in the first quarter as rising demand drove up prices. Hyundai Motor Co. , South Korea’s largest automaker, reported a record profit in the same period by boosting sales in the U.S. and China. South Korea’s $929 billion economy grew 2.1 percent in the first quarter from the previous three months, compared with an April estimate of 1.8 percent, the central bank said last week. North Korea Tension The won, which plunged to a 10-month low on May 25 on escalating tensions with North Korea, tumbled 8.4 percent in May, its worst performance since February 2009, as Europe’s fiscal woes prompted investors to sell riskier assets and buy dollars. The benchmark Kospi stock index dropped 5.8 percent. A North Korean diplomat said last week that war on the Korean peninsula could begin “at any moment” over South Korean accusations that the government in Pyongyang ordered the March sinking of a warship that killed 46 sailors. Also last week, President Lee Myung Bak ’s party suffered a defeat in provincial elections, with the opposition Democratic Party winning seven of 16 races. Lee’s party, which held 11 of the 16 mayoral and gubernatorial posts, secured six. The government is likely to focus more on supporting the middle class after the loss, Kwon Goohoon , an economist at Goldman Sachs Group Inc. in Seoul, said after the result. “Inflation and jobs growth are likely to get renewed focus while the currency’s competitiveness could get relatively less priority on concerns about its inflationary implications.” Inflation Accelerates Consumer prices rose 2.7 percent in May, quickening from a 2.6 percent gain a month earlier, as the cost of food and oil increased. That’s within the central bank’s target range of between 2 percent and 4 percent. Central banks in Australia, Indonesia, the Philippines and Thailand last week kept borrowing costs unchanged amid concern Europe’s sovereign-risk woes could damage the global recovery. The Bank of Korea’s monetary board signaled May 12 that rates may move, saying it will “maintain the accommodative policy,” while dropping a reference to keeping that stance “for the time being.” A month earlier, one board member called for a pre-emptive increase in borrowing costs and two wanted to signal the policy may change, according to minutes of the April meeting. The central bank “should wait and check the second-quarter economic data before deciding on the next rate move,” Finance Minister Yoon said in an interview with the Maeil Business newspaper published last week. The data could be disappointing because of Europe’s debt crisis, cold weather and a poor jobs market, he said. To contact the reporters on this story: William Sim in Seoul at wsim2@bloomberg.net ; Michael J. Munoz in Hong Kong at mjmunoz@bloomberg.net

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Elpida Plans China, Taiwan Plants as It Heads for Record Profit, CEO Says

June 6, 2010

By Jason Clenfield and Mikako Nakajima June 7 (Bloomberg) — Elpida Memory Inc. , Japan’s sole maker of computer-memory chips, plans to build factories in Taiwan and China to meet demand and reduce tax payments, President Yukio Sakamoto said. The company will “definitely go into” China with a Taiwanese chipmaker by as early as 2012 and seek support from the Chinese government, Sakamoto said in a June 4 interview. Elpida is also accelerating plans to add a second manufacturing plant at its Taiwanese unit, Rexchip Electronics Corp. , he said. “Products that are going to be consumed in China probably have to be made in China,” Sakamoto, 62, said at the company’s Tokyo headquarters. Elpida expects record profit and sales this fiscal year as computer sales rebound and mobile devices require more memory to process programs, Sakamoto said. Samsung Electronics Co. announced last month plans to invest $8.9 billion on chips and Hynix Semiconductor Inc. raised its spending budget. Global sales of dynamic random access memory, chips that serve as short-term memory inside computers or smartphones such as Apple Inc.’s iPhone, will surge 78 percent this year, Stamford, Connecticut-based Gartner Inc. said last week. That’s more than double the 27 percent growth the research firm estimates for the overall semiconductor industry. “Demand is increasing for high performance DRAM,” Sakamoto said. “The amount of DRAM used in an iPhone will probably double next year.” Elpida fell 2.9 percent to 1,694 yen at the midday trading break on the Tokyo Stock Exchange, while the benchmark Nikkei 225 Stock Average dropped 4 percent. Shares of the chipmaker have risen 12 percent this year. Record Profit If chip prices remain at current levels, Elpida will post operating profit of more than 160 billion yen ($1.8 billion) on sales of about 700 billion yen in the year ending March 2011, Sakamoto said. Those projections exceed the average of analyst estimates compiled by Bloomberg. While Elpida’s rivals are increasing investment this year, Sakamoto said he doesn’t plan to boost the company’s capital spending budget from 115 billion yen this fiscal year. Instead, the company will focus on shrinking the circuitry of its chips to 45 nanometers from 65 nanometers to boost production, he said. Suwon, South Korea-based Samsung , the world’s biggest maker of computer memory, said last month it will spend 11 trillion won ($8.9 billion) to increase its chip manufacturing capacity. Two weeks later, Hynix, the second-largest maker of computer- memory chips, raised its 2010 investment plan more than 30 percent to 3.05 trillion won. Chip Prices The price of the benchmark 1-gigabit DRAM chip fell as much as 15 percent as Samsung’s capital spending plan raised concern rivals will follow suit and flood the market with chips. DRAM prices more than tripled last year after tumbling 62 percent to a record in 2008, according to prices at Taipei-based DrameXchange Technology Inc. Elpida will start construction on its first Chinese factory by as early as 2012, Sakamoto said. Rising demand in the market, which is poised this year to pass Japan as the world’s No. 2 economy, tariffs and currency risks make manufacturing in China a necessity, he said. Sakamoto said he would look to limit Elpida’s investment in the project. The company, which has lost money in the last two years, had about 600 billion yen in liabilities as of March 31. Sakamoto said Elpida will decide on China by December and draw up a plan within the next four months to build a second Rexchip factory in Taiwan. The plant would cost about $1.8 billion and “we’d like to get as much as half of the funding from our customers,” said Sakamoto. Sakamoto also said the company aims to begin mass production of NAND flash memory chips next year, Sakamoto said. The company began tests two months ago at Elpida’s Hiroshima factory using technology bought in March from bankrupt chipmaker Spansion Inc. To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net ; Mikako Nakajima in Tokyo at mikako@bloomberg.net

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Susan E. Topel-Samek Named CFO of IEC Electronics

June 3, 2010

NEWARK, NY–(Marketwire – June 3, 2010) –  IEC Electronics Corp. ( NYSE Amex : IEC ) has announced the appointment of Susan E. Topel-Samek as Vice President and Chief Financial Officer, effective immediately. She will report directly to W. Barry Gilbert, Chief Executive Officer of IEC Electronics. Ms. Topel-Samek replaces Mike Schlehr, who has resigned to pursue other endeavors.

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Apple’s Jobs Says Company Is Probing `Troubling’ Challenges Foxconn Faces

June 1, 2010

By Connie Guglielmo and Joseph Galante June 1 (Bloomberg) — Apple Inc. Chief Executive Officer Steve Jobs said his company is taking pains to understand the challenges facing Foxconn Technology Group, a maker of Apple products that has been plagued by suicides. “It’s very troubling,” Jobs said during an on-stage interview at a technology conference in Los Angeles. “We’re all over this.” At least 10 people have died this year at Foxconn’s Chinese operations. Apple said last week that it is investigating practices at the company, also known as Hon Hai Group, which makes iPhones and other electronics. Jobs also defended the manufacturer. Foxconn “is not a sweatshop,” Jobs said. Apple “does one of the best jobs” inspecting suppliers, he said. During the conference, Jobs took jabs at Adobe Systems Inc.’s Flash online video software, saying the technology is on the wane. Flash looks as though “it’s had its day,” Jobs said. “The way we’ve succeeded is by choosing which horses to ride, technically,” he said. Jobs added that “if you choose wisely, you can save yourself an enormous amount of work.” Jobs is in the midst of a public dispute with Adobe over which software is best for making video run smoothly on his company’s mobile devices. Apple has faulted Flash as slow, power hungry and unsuitable for some of Apple’s products. Apple recently overtook Microsoft Corp. to become the world’s most valuable technology company. The gain in Apple’s share price is “surreal,” Jobs said. To contact the reporters on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net ; Joseph Galante in San Francisco at jgalante3@bloomberg.net .

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U.S. Stocks Drop on Report Lebanon Fired on Israeli Warplanes

June 1, 2010

By Elizabeth Stanton and Nikolaj Gammeltoft June 1 (Bloomberg) — U.S. stocks fell, adding to losses from the Dow Jones Industrial Average’s worst May since 1940, as BP Plc ’s failure to plug a leaking oil well dragged down energy producers and AFP reported Lebanon fired on Israeli warplanes. Transocean Ltd ., Anadarko Petroleum Corp . and Halliburton Co . fell more than 11 percent after BP gave up trying to plug the worst oil spill in U.S. history any sooner than August. Benchmark indexes erased earlier gains triggered by growth in construction spending and manufacturing after a senior Israeli security official told AFP that the nation’s aircraft were targeted by Lebanese anti-aircraft guns. The Standard & Poor’s 500 Index decreased 1.7 percent to 1,070.71 at 4 p.m. in New York. The S&P 500 lost 8.2 percent in May, its worst month since February 2009, on concern Europe’s debt crisis will hamper the global economic recovery and China will take more steps to cool its economy. The Dow lost 112.61 points, or 1.1 percent, to 10,024.02 today. “The nervousness about the global economic recovery continues,” said Giri Cherukuri , portfolio manager and head trader at Oakbrook Investments in Lisle, Illinois, which manages $2.2 billion. “Also, political tension across the world is making investors more cautious.” The S&P 500 has fallen 12 percent from a 19-month high on April 23 on concern that widening budget deficits in Europe could derail global growth. The five-week slide is consistent with a temporary pullback within a bull market, said Thomas J. Lee , the chief U.S. equity strategist at JPMorgan Chase & Co. ‘Pretty Normal’ “It is a pretty normal correction in a bull market,” Lee said today in a Bloomberg Television interview. “It pays up to be a slow buyer here. If you start to get enough positive headlines to offset the negatives, that would be a way to build confidence. Investors are seeing good opportunities to buy.” Stocks fell to the lowest levels of the day after AFP said Lebanon’s military fired at Israeli planes as they flew over its airspace, according to a senior Israeli security official. The report came a day after nine people were killed in an Israeli commando raid on boats carrying pro-Palestinian activists to the Gaza Strip. Israeli forces killed two Palestinians who tried to infiltrate from the enclave today and another three who tried to fire a rocket, according to an army statement. Energy companies extended losses after Attorney General Eric Holder said the U.S. Justice Department is investigating whether any criminal or civil laws were violated in the BP oil spill in the Gulf of Mexico. ‘A Tragedy’ “We will prosecute to the fullest extent of the law anyone who has violated the law,” Holder said. “This disaster is nothing less than a tragedy.” BP plunged 15 percent in New York, its largest retreat since at least 1980. Transocean , owner of the Deepwater Horizon rig that exploded April 20, declined 9.4 percent to $51.45. Halliburton, which provided oilfield services on the well, dropped 13 percent to $21.72. Anadarko Petroleum Corp. , which owns a 25 percent stake in the well, lost 16 percent to $43.99 for the biggest drop in the S&P 500. Tenet Healthcare Corp. fell 15 percent to $4.89 for the second-biggest drop in the S&P 500. The third-largest publicly held U.S. hospital chain said it is discussing a potential acquisition of Healthscope Ltd., the second-largest private hospital company in Australia. China, Europe Slowdown Concern that economic growth in China and Europe will slow also weighed on equities. China’s Purchasing Managers’ Index slid to 53.9 from 55.7 in April, the Federation of Logistics and Purchasing said today. That was less than the median 54.5 estimate in a Bloomberg News survey of 18 economists. Readings above 50 indicate expansion in manufacturing. China is the world’s biggest consumer of industrial metals including copper and zinc, and the second-biggest consumer of crude oil after the U.S. Emerging markets such as China are driving the global economy, which the Organization for Economic Cooperation and Development estimates will expand 4.6 percent this year. Excluding emerging countries, the forecast is 2.7 percent. The euro touched a four-year low against the U.S. dollar after the European Union’s statistics office said the jobless rate in the 16-nation currency zone increased to 10.1 percent in April, the highest since June 1998. The currency has lost 14 percent of its value against the dollar this year as the ability of countries such as Greece, Spain and Portugal to avoid debt restructuring has discouraged investment in the region. ISM, Construction Spending U.S. benchmark indexes temporarily recovered from their lows of the day after the Institute for Supply Management’s factory index came in at 59.7 for May, topping the reading of 59 in a Bloomberg survey of economists. Commerce Department figures showed construction spending rose 2.7 in April after a gain of 0.2 percent the prior month. That exceeded economists’ estimates that it would remain even. Manufacturing has been a leader in the U.S. economic recovery as demand from abroad strengthened and firms picked up production and spending to meet demand after a record drawdown in inventories last year. “The underpinning of the economic recovery in the U.S. and emerging markets appear to be sustainable despite what’s going on in Europe,” said Jason Pride , director of investment strategy at Glenmede in Philadelphia, which manages $18 billion. “This is not a crystal-clear resolution that we’ll have enduring growth, because the debt bogeyman can peak around the corner and surprise anyone at almost any time.” RadioShack rose 2.8 percent to $21.01 for the biggest advance in the S&P 500. The New York Post reported that Blackstone Group LP is a leading bidder for the electronics chain and said KKR & Co., Bain Capital LLC and TPG are also likely to be involved in the bidding. Hershey Co. increased 2.6 percent to $48. The candy maker said it may cut 500 to 600 jobs in a plan to modernize its manufacturing. Ev3 Inc. rallied 17 percent to $22.22 for the second- biggest advance in Russell 2000 Index. Covidien Plc, the medical-device company spun off from Tyco International Ltd., agreed to buy ev3 for $2.6 billion to add treatments for heart disease. To contact the reporters on this story: Elizabeth Stanton in New York at estanton@bloomberg.net ; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net .

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U.S. Stocks Fluctuate as Economic Reports Offset Slump in Energy Producers

June 1, 2010

By Elizabeth Stanton June 1 (Bloomberg) — U.S. stocks fluctuated as higher- than-estimated growth in construction spending and manufacturing offset a drop in energy shares. Wal-Mart Stores Inc. and AT&T Inc. led gains in the Dow Jones Industrial Average as the 30-stock gauge rebounded from a 98-point drop in early trading. Transocean Ltd. and Halliburton Co. fell more than 9 percent to help lead losses in energy shares after BP Plc failed to halt the flow of oil from a leaking Gulf of Mexico well. RadioShack Corp. rose on a report naming several private-equity firms as bidders for the company. The Standard & Poor’s 500 Index decreased 0.2 percent to 1,086.82 at 2:01 p.m. in New York. The S&P 500 lost 8.2 percent in May, its worst month since February 2009, on concern Europe’s debt crisis will hamper the global economic recovery and China will take more steps to cool its economy. The Dow rose 23.2 points, or 0.2 percent, to 10,159.83 today. “The manufacturing sector is still showing some good growth despite the headlines from Europe and the perceived slowdown from China,” said Chris Hensen , part of a group that manages $3 billion of U.S. stocks at MFC Global Investment Management in Toronto. “If you get major selloffs on that I’d see it as an opportunity, because we’re getting down to valuation levels that are attractive.” ‘Normal Correction’ The S&P 500 has fallen 11 percent from a 19-month high on April 23 on concern that widening budget deficits in Europe could derail global growth. The five-week slide is consistent with a temporary pullback within a bull market, said Thomas J. Lee , the chief U.S. equity strategist at JPMorgan Chase & Co. “It is a pretty normal correction in a bull market,” Lee said today in a Bloomberg Television interview. “It pays up to be a slow buyer here. If you start to get enough positive headlines to offset the negatives, that would be a way to build confidence. Investors are seeing good opportunities to buy, and that could be as a sign of potential capitulation as well.” Early losses in stocks came after China’s Purchasing Managers’ Index slid to 53.9 from 55.7 in April, the Federation of Logistics and Purchasing said today. That was less than the median 54.5 estimate in a Bloomberg News survey of 18 economists. Readings above 50 indicate an expansion. China, the world’s third-largest economy, is the world’s biggest consumer of industrial metals including copper and zinc, and the second-biggest consumer of crude oil after the U.S. Emerging economies such as China are driving the global economy, which the Organization for Economic Cooperation and Development estimates will expand 4.6 percent this year. Excluding those economies, the forecast is 2.7 percent. Euro’s 4-Year Low Also damping demand for equities in early trading, the euro touched a four-year low against the U.S. dollar after the European Union’s statistics office said the jobless rate in the 16-nation currency zone increased to 10.1 percent in April, the highest since June 1998. The currency has lost 14 percent of its value against the dollar this year as the ability of countries such as Greece, Spain and Portugal to avoid debt restructuring has discouraged investment in the region. U.S. benchmark indexes reversed losses after the Institute for Supply Management’s factory index came in at 59.7 for May, topping the reading of 59 in a Bloomberg survey of economists. Commerce Department figures showed construction spending rose 2.7 in April after a gain of 0.2 percent the prior month. That exceeded economists’ estimates that it would remain even. Manufacturing has been a leader in the U.S. economic recovery as demand from abroad strengthened and firms picked up production and spending to meet demand after a record drawdown in inventories last year. Recovery ‘Sustainable’ “The underpinning of the economic recovery in the U.S. and emerging markets appear to be sustainable despite what’s going on in Europe,” said Jason Pride , director of investment strategy at Glenmede in Philadelphia, which manages $18 billion. “This is not a crystal-clear resolution that we’ll have enduring growth, because the debt bogeyman can peak around the corner and surprise anyone at almost any time.” BP Plc of the U.K. plunged 13 percent in London, the biggest drop since 1992, after a failed attempt to plug the leaking well in the Gulf of Mexico. Transocean , owner of the Deepwater Horizon rig that exploded April 20, beginning what has become the biggest-ever U.S. oil spill, declined 9.4 percent to $51.43. Halliburton, which provided oilfield services on the well, dropped 11 percent to $22.01. Anadarko Petroleum Corp. , which owns a 25 percent stake in the well, lost 14 percent to $44.76 for the second- biggest drop in the S&P 500. RadioShack rose 4.5 percent to $21.36 for the biggest advance in the S&P 500. The New York Post reported that Blackstone Group LP is a leading bidder for the electronics chain and said KKR & Co., Bain Capital LLC and TPG are also likely to be involved in the bidding. To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

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Korean Won, Stocks Drop on Report Kim Ordered Combat Readiness Last Week

May 24, 2010

By Bob Chen and Frances Yoon May 25 (Bloomberg) — South Korea’s won plunged to a 10- month low and the nation’s stocks slumped following a report by a defector group that North Korean leader Kim Jong Il ordered military bodies to prepare for conflict. Kim ordered armed forces to get ready for “combat” in a message broadcast on May 20, the North Korea Intellectuals Solidarity group reported on its website, citing a person in the communist country. The U.S. yesterday announced plans to conduct joint anti-submarine exercises with South Korea after the sinking of one of the South’s warships cost 46 lives. “Tensions between the North and South heightened today, with widespread panic, coupled with weaker equity markets driving massive dollar buying interest,” said Bernard Yeung , head of foreign-exchange trading at National Australia Bank Ltd. in Hong Kong. “We saw the won touch 1,270 before possible intervention from the Bank of Korea.” The won fell 3.4 percent to 1,255.15 per dollar as of 11:31 a.m. in Seoul, according to data compiled by Bloomberg. It touched 1,272.45, the weakest level since July 16 last year. The Kospi index sank 2.8 percent to 1,559.44 on the Korea Exchange, 11 percent lower than the high of 1,752.20 on April 26. The message was broadcast by O Kuk Ryol, vice chairman of the National Defense Commission, according to the Seoul-based group run by defectors. Yonhap News agency reported on the group’s posting earlier today. Officials at South Korea’s Defense Ministry weren’t immediately reachable for comment. ‘Herd Behavior’ While Kim doesn’t want war, North Korea is ready to counter any attacks from South Korea, O said in the message, according to the group, which cited an unidentified person in the country. Intellectuals Solidarity was one of the agencies to first report on North Korea’s currency revaluation late last year. South Korea is “closely watching” the won’s move for “herd behavior” in the currency market, according to a finance ministry official, who declined to be identified. The Korea tensions will affect the won more than stocks, Morgan Stanley said in a note today. Stocks and the won also fell as rising borrowing costs stoked concern Europe’s debt crisis will stall the global economic recovery. “Increasing tensions on the Korean peninsula, coupled with deepening concern about sovereign debt risks in Europe, seem to be affecting investors’ sentiment,” said Kim Young Joon , a fund manager at NH-CA Asset Management in Seoul, which manages the equivalent to $9.7 billion in assets. “Still, much of North Korea’s comments appear to be bluffing, and I don’t think another disastrous event will happen.” ‘Main Enemy’ The South has resumed propaganda broadcasts across its border with the North after a six-year moratorium, prompting Kim’s regime to threaten to shell loudspeakers used for “psychological warfare.” Mounting tensions with North Korea further pressured South Korea’s won and the Kospi index, which have declined 7.3 percent and 7.5 percent this year respectively. Hankook Tire Co. , South Korea’s biggest tiremaker that had 22 percent of revenue in Europe last year, retreated 5.5 percent to 24,000 won. Samsung Electronics Co. , which derived 21.5 percent of revenue in Europe last year, lost 1.9 percent to 744,000 won. South Korean defense-related stocks rallied. Speco Co. , a military installation parts developer, rose 12 percent to 5,380 won, while Victek Co. , which makes electronic warfare equipment, advanced 8.8 percent to 4,460 won. “The conflict is definitely negative for the Korean won and stocks, especially as international markets are already under pressure from the European crisis,” said Ho Woei Chen , a regional economist at United Overseas Bank Ltd. in Singapore. “Politically, everyone will want a better ending than a war.” To contact the reporters on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net ; Frances Yoon in Hong Kong at fyoon2@bloomberg.net

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Korean Won, Stocks Drop on Report Kim Ordered Combat Readiness Last Week

May 24, 2010

By Bob Chen and Frances Yoon May 25 (Bloomberg) — South Korea’s won plunged to a 10- month low and the nation’s stocks slumped following a report by a defector group that North Korean leader Kim Jong Il ordered military bodies to prepare for conflict. Kim ordered armed forces to get ready for “combat” in a message broadcast on May 20, the North Korea Intellectuals Solidarity group reported on its website, citing a person in the communist country. The U.S. yesterday announced plans to conduct joint anti-submarine exercises with South Korea after the sinking of one of the South’s warships cost 46 lives. “Tensions between the North and South heightened today, with widespread panic, coupled with weaker equity markets driving massive dollar buying interest,” said Bernard Yeung , head of foreign-exchange trading at National Australia Bank Ltd. in Hong Kong. “We saw the won touch 1,270 before possible intervention from the Bank of Korea.” The won fell 3.4 percent to 1,255.15 per dollar as of 11:31 a.m. in Seoul, according to data compiled by Bloomberg. It touched 1,272.45, the weakest level since July 16 last year. The Kospi index sank 2.8 percent to 1,559.44 on the Korea Exchange, 11 percent lower than the high of 1,752.20 on April 26. The message was broadcast by O Kuk Ryol, vice chairman of the National Defense Commission, according to the Seoul-based group run by defectors. Yonhap News agency reported on the group’s posting earlier today. Officials at South Korea’s Defense Ministry weren’t immediately reachable for comment. ‘Herd Behavior’ While Kim doesn’t want war, North Korea is ready to counter any attacks from South Korea, O said in the message, according to the group, which cited an unidentified person in the country. Intellectuals Solidarity was one of the agencies to first report on North Korea’s currency revaluation late last year. South Korea is “closely watching” the won’s move for “herd behavior” in the currency market, according to a finance ministry official, who declined to be identified. The Korea tensions will affect the won more than stocks, Morgan Stanley said in a note today. Stocks and the won also fell as rising borrowing costs stoked concern Europe’s debt crisis will stall the global economic recovery. “Increasing tensions on the Korean peninsula, coupled with deepening concern about sovereign debt risks in Europe, seem to be affecting investors’ sentiment,” said Kim Young Joon , a fund manager at NH-CA Asset Management in Seoul, which manages the equivalent to $9.7 billion in assets. “Still, much of North Korea’s comments appear to be bluffing, and I don’t think another disastrous event will happen.” ‘Main Enemy’ The South has resumed propaganda broadcasts across its border with the North after a six-year moratorium, prompting Kim’s regime to threaten to shell loudspeakers used for “psychological warfare.” Mounting tensions with North Korea further pressured South Korea’s won and the Kospi index, which have declined 7.3 percent and 7.5 percent this year respectively. Hankook Tire Co. , South Korea’s biggest tiremaker that had 22 percent of revenue in Europe last year, retreated 5.5 percent to 24,000 won. Samsung Electronics Co. , which derived 21.5 percent of revenue in Europe last year, lost 1.9 percent to 744,000 won. South Korean defense-related stocks rallied. Speco Co. , a military installation parts developer, rose 12 percent to 5,380 won, while Victek Co. , which makes electronic warfare equipment, advanced 8.8 percent to 4,460 won. “The conflict is definitely negative for the Korean won and stocks, especially as international markets are already under pressure from the European crisis,” said Ho Woei Chen , a regional economist at United Overseas Bank Ltd. in Singapore. “Politically, everyone will want a better ending than a war.” To contact the reporters on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net ; Frances Yoon in Hong Kong at fyoon2@bloomberg.net

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Samsung May Become `Uncatchable’ With $15.6 Billion Capital-Spending Plan

May 17, 2010

By Kevin Cho May 18 (Bloomberg) — Samsung Electronics Co. ’s record 18 trillion won ($15.6 billion) capital spending plan may widen its lead in the memory-chip and flat-screen industries to the extent rivals can’t catch up, investors and analysts said. Samsung will invest 11 trillion won this year expanding its capacity to manufacture chips, 5 trillion won on liquid-crystal displays and 2 trillion won on televisions and mobile-phones, the Suwon, South Korea-based company said yesterday. Combined with research and development, spending will increase to 26 trillion won, 67 percent more than in 2009. Samsung, which posted record profit last quarter, may avoid accelerating the typical shortage-to-glut cycles in the chip and LCD industries as competitors can’t afford boosting outlays, analysts at Meritz Securities Co. and NH Investment & Securities Co. said. The investments may push spending in the memory-chip industry to the highest since 2007, a boon for equipment manufacturers such as Applied Materials Inc. “Who can catch up to Samsung? No one,” said Choi Min Jai , a fund manager at Seoul-based KTB Asset Management Co., which manages about $9.3 billion in assets, including Samsung shares. “If others invest together, then the industry may fall apart but there’s no one able to race with Samsung right now.” Samsung fell 3.2 percent to close at 784,000 won on the Korea Exchange yesterday, compared with the benchmark Kospi index’s 2.6 percent decline. The company’s investment budget, the largest in the technology industry, exceeds those of Intel Corp., International Business Machines Corp. and Sony Corp. combined. Have Difficulty Smaller rivals will have difficulty in keeping up with Samsung, which had about 20 trillion won in cash , equivalents and short-term investments at the end of March, because they are still recovering from the industry’s three-year slump, said Lee Sun Tae , a Seoul-based analyst at Meritz. The computer-memory chip industry posted losses for 10 consecutive quarters before returning to a profit last year, El Segundo, California-based researcher ISuppli Corp. said this month. The global slump prompted manufacturers to cut production and investment plans, helping ease the industry glut. “The benefits of the current up-cycle will be distributed unevenly as the gap between first tiers and second tiers has widened, in terms of both capability to add capacity and technology,” Chung Chang Won , an analyst at Nomura Holdings Inc., wrote in a report last month. DRAM Leader Samsung had a 32.3 percent share of the global dynamic random access memory market in the first quarter, compared with second-ranked Hynix’s 21.5 percent, according to Dramexchange Technology Inc., operator of Asia’s biggest spot market for semiconductors. Japan’s Elpida Memory Inc. had a 17.4 percent share, while Micron Technology Inc. had 14.1 percent. While investments by memory chipmakers will more than double to $18.8 billion this year, it’s still 41 percent less than that of 2007, according to Merrill Lynch & Co. “Previously, when Samsung increased its investment others followed, but under current circumstances, they don’t have the potential and may be conservative in their spending plans,” said Seo Won Seok , an analyst at NH Investment. Global revenue for DRAM, which temporarily holds data and helps computer processors run multiple programs simultaneously, will probably climb 40 percent to $31.9 billion this year, ISuppli said in February. Flat Screens Samsung, the world’s largest LCD maker, is also boosting spending on flat screens to meet rising demand. LG Display Co. , the second-largest, last month raised its budget by about 38 percent to 5.5 trillion won for 2010. Global shipments of LCD TVs may rise 24 percent to more than 180 million units in 2010, Austin, Texas-based DisplaySearch said in March. Analysts predict Samsung’s earnings growth will probably extend until the third quarter, and higher memory-chip and flat- panel prices will help the company post record profit in 2010. “This massive amount of spending during tough times will cement Samsung’s leadership,” said Kim Young Joon , who oversees $932 million of stocks at NH-CA Asset Management in Seoul as head of equity investment. “The investments could pressure competitors to follow suit, which could be a burden for smaller rivals that aren’t as financially strong as Samsung.” To contact the reporters on this story: Kevin Cho in Seoul at kcho2@bloomberg.net

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Apple’s Jobs Asked Gizmodo to Return `Stolen’ IPhone, Court Documents Show

May 15, 2010

By Connie Guglielmo and Joel Rosenblatt May 15 (Bloomberg) — Steve Jobs asked technology blog Gizmodo.com to return a secret iPhone prototype that Apple Inc. says was stolen after a company engineer lost it in a bar, according to court documents released yesterday. The lost iPhone is being investigated as a possible trade- secret theft, according to California state court documents made public after media organizations including Bloomberg News asked that they be unsealed. Apple reported the phone stolen in April. The legal wrangling is over a product that, at $13 billion, accounted for more than 30 percent of 2009 sales for Apple, which closely guards details about unreleased products. An Apple lawyer said publicity about the “invaluable” prototype was “immensely damaging to Apple” because it would hinder iPhone sales, according to an April 23 affidavit by Detective Matthew Broad of the San Mateo County Sherriff’s Office. “I want to get this phone back to you ASAP and I want to not hurt your sales when the products themselves deserve love,” Gizmodo editor Brian Lam said in an e-mail to Jobs, Apple’s chief executive officer. “But I have to get this story of the missing prototype out and how it was returned to Apple with some acknowledgment it is Apple’s.” Lam sent the e-mail after Jobs contacted Gizmodo on about April 19 seeking return of the prototype after the blog dissected it and posted pictures and video detailing its features. Lam said he would return the phone only if Apple provided him with confirmation that it belonged to the company, according to Broad’s affidavit. “Gimzodo lives and dies like many small companies do,” Lam said in his April 19 e-mail. “When we get a chance to break a story, we have to go with it or we perish.” Sales ‘Hurt’ “By publishing details about the phone and its features, sales of current Apple products are hurt,” Broad said, recounting a conversation with Apple lawyer George Riley of O’Melveny & Myers LLP. “Riley could not provide an estimated loss, but he believed it was huge. I asked Riley what the value of the missing iPhone was. He stated that it was invaluable.” Gizmodo posted a copy of a letter from Apple’s General Counsel Bruce Sewell , dated April 19, asking for return of “a device that belongs to Apple.” Gizmodo said it gave back the prototype to Cupertino, California-based Apple that day. Sewell picked up the prototype at the home of Gizmodo editor Jason Chen , according to Broad. Gizmodo, which is owned by Gawker Media, said it purchased the phone for $5,000 after it was found at Gourmet Haus Stadt, a German beer hall in the San Francisco suburb of Redwood City. The phone was lost on March 25 by Apple engineer Gray Powell, according to the affidavit. Revealed by Roommate Apple and law enforcement learned the identity of the man who sold the iPhone to Gizmodo, 21-year-old college student Brian Hogan, after his roommate contacted Apple, concerned that she might be implicated in the theft because Hogan had hooked up the prototype to her computer and it might be traced to her, Broad said in his affidavit. The roommate, Katherine Martinson, said Hogan reached out to several publications and websites “in an attempt to start bidding for the iPhone prototype,” according to Broad. “Martinson said Hogan understood that he possessed a valuable piece of technology and that people would be interested in buying it.” Martinson said she and other friends tried to talk Hogan out of selling the prototype, arguing it would ruin the career of the Apple engineer who lost it, Broad said in the affidavit. “Hogan’s response to her was that it ‘Sucks for him. He lost his phone. Shouldn’t have lost his phone.’” Gizmodo Bonus Hogan was to receive a cash bonus from Gizmodo in July if and when Apple makes an official product announcement about the new iPhone, Martinson said, according to Broad’s affidavit. Hogan’s lawyer, Jeffrey Bornstein , said his client continues to cooperate with authorities and has provided evidence to help them. In a phone interview yesterday, Bornstein repeated an earlier statement that while Hogan regrets he didn’t do more to return the phone to its owner, he believed that Gizmodo was compensating him so the blog could review the phone and that there was nothing wrong with sharing the phone with the press. Apple has released a new iPhone every summer since its debut in June 2007. Charlie Wolf , an analyst at Needham & Co., expects Jobs to unveil a new model at Apple’s Worldwide Developers Conference on June 7 and to put it on sale starting in July. New IPhones Based on Apple’s claim that the iPhone prototype was stolen, the county’s computer crimes task force, the Rapid Enforcement Allied Computer Team, last month broke down the front door of Chen’s home and seized computers and other electronics, court filings show. Gawker Media is challenging the taking of Chen’s equipment, citing laws that protect online journalists from having newsroom equipment seized. “The goal of the investigation is to find out every single person who came in contact with that phone from the moment it left the restaurant and ended up back in the hands of Apple, and to find out every person who handled it, what they knew and in the course of that if there was any crime committed,” Deputy District Attorney Steve Wagstaffe said in a May 13 phone interview. Broad said in his affidavit seeking a judge’s permission to search Chen’s home that there was reason to believe a crime was committed. ‘Evidence of the Theft’ “I believe that evidence of the theft of the iPhone prototype, the vandalism of the iPhone prototype and the sale of its associated trade secrets will be found in” Chen’s home, Broad wrote in the document. Chen’s lawyer, Thomas Nolan , didn’t immediately return a call seeking comment. The search warrant affidavit indicates that the iPhone 4G prototype was disguised to look like an iPhone 3GS, the latest- generation model available in retail stores. Apple fell $4.54 to $253.82 yesterday in Nasdaq Stock Market trading. The shares have more than doubled in the past year. According to Broad’s statement, Hogan, with the help of another roommate, packed up his computer and other equipment and moved it out of his home before law enforcement officials arrived. Hogan and some of the equipment were discovered at his father’s home in Redwood City, according to Broad’s affidavit. A Hewlett-Packard Co. desktop computer belonging to Hogan was found at a nearby church, while two portable storage devices were located “in a bush” in Redwood City, according to a search warrant made public yesterday. Judge’s Ruling Judge Clifford V. Cretan in Redwood City ruled yesterday against the San Mateo County District Attorney’s office, which argued that unsealing the documents will reveal identities of potential witnesses and compromise the investigation. Media organizations argued they should have access to the documents based on constitutionally protected free-speech rights. “It’s a great victory for the people’s right to know about the evidence and information that was available to law enforcement and the court when a search warrant was issued to search the house and seize the computer of a journalist,” Roger Myers, a lawyer for the media organizations, said in an interview after yesterday’s court hearing. Media organizations sought to have the documents unsealed to determine whether the county had a legal basis for the warrant used to break into Chen’s home. “Otherwise, there is no way for the public to serve as a check on the conduct of law enforcement officers, the prosecutors and the courts in this case,” the organizations argued in court filings. No Special Influence Chris Feasal, a San Mateo County deputy district attorney, said he’s disappointed with the ruling though he respects the judge’s decision. He declined to discuss the contents of the warrant documents or any names contained in them. Apple had no special influence in the investigation or getting it started, he said. “We are investigating it just as we are any other criminal investigation,” he said. “We are looking for evidence of criminal behavior.” Feasal said he’s not sure whether release of the warrant documents will impede the investigation. “We are just going to have to wait and see,” he said. Myers represents the First Amendment Coalition , a San Rafael, California-based group, and six media organizations, including Bloomberg News, CBS Corp.’s CNet News and the Los Angeles Times. Apple declined to comment, spokeswoman Amy Bessette said. The case is In Re Sealed Search Warrant Records, 2010-0034, San Mateo County Superior Court (Redwood City, California). To contact the reporters on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net ; Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net .

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Euro Weakens for Third Day as Deficit Concern Lingers; Oil Falls Below $75

May 13, 2010

By David Merritt May 13 (Bloomberg) — The euro weakened on concern governments may not cut budget deficits fast enough after the European Union announced a near $1 trillion bailout for indebted nations. Oil and gold fell. The euro slid 0.2 percent to $1.2591 as of 11:39 a.m. in London. The 16-nation currency also declined versus the yen and headed toward a record low against the Swiss franc. Crude oil retreated for a third day, falling below $75 a barrel. The Stoxx Europe 600 Index rose 0.4 percent, paring an earlier gain of 0.8 percent, while futures on the Standard & Poor’s 500 Index slipped 0.1 percent. The EU announced the unprecedented rescue package for the region on May 9, including bond purchases by the European Central Bank, after borrowing costs surged in countries such as Greece and Portugal. Central bank demand for euros fell today, according to Stuart Thomson , who helps manage the equivalent of about $100 billion at Ignis Asset Management in Glasgow. “The ECB is on its way to quantitative easing, its reputation was damaged over the weekend, and the support it had been getting from central banks wasn’t spotted this morning,” Thomson said. “Central banks are normally in supporting the euro, but they haven’t been seen today.” The MSCI World Index of 23 developed nations’ stocks rose 0.2 percent. SAP AG , the world’s biggest maker of business- management software, slipped 2.3 percent in Frankfurt after agreeing to buy Sybase Inc. for $5.8 billion. J Sainsbury Plc rallied 2.7 percent in London after posting an 18 percent rise in pretax profit. BT Group Plc surged 10 percent, the most since July, after reporting operating profit that beat forecasts, helped by job cuts. U.S. Stock Futures The decline in U.S. futures indicated the S&P 500 may pare some of yesterday’s 1.4 percent rally, when it wiped out losses from a plunge on May 6. Cisco Systems Inc. dropped 2.5 percent in early New York trading after the biggest maker of networking equipment said its sales forecast failed to live up to investors’ optimism for a recovery in technology stocks. Sybase rallied 15 percent. A government report may show claims for jobless insurance declined last week. Initial claims for unemployment insurance fell to 440,000 last week from 444,000, according to a Bloomberg News survey of economists before the Labor Department report set for 8:30 a.m. in Washington. That would be the lowest level since February. Oil, Gold Retreat Crude oil retreated 1.1 percent to $74.76 a barrel in New York trading. Copper for delivery in three months was little changed at $7,033 a metric ton on the London Metal Exchange, paring an earlier advance of as much as 1.3 percent. Gold for immediate delivery fell 0.5 percent to $1,233.22 an ounce, having reached a record $1,248.82 yesterday. “The key driver for sentiment is uncertainty regarding growth in Europe and possible implications for world growth,” said Christophe Barret , an analyst with Credit Agricole CIB in London. “Crude stocks are pretty high. A range around $70 would be reasonable, given the economic outlook.” The MSCI Asia Pacific Index surged 1.8 percent, its biggest gain in two months. Tokyo Electron Ltd., the world’s second- largest maker of semiconductor equipment, jumped 7 percent after forecasting a return to profit. Samsung Electronics Co. , Asia’s biggest chipmaker, rose 3 percent in Seoul. Hyundai Motor Co., South Korea’s largest automaker, climbed to a record after Goldman Sachs Group Inc. boosted its rating on the stock. Italian, Portuguese Bonds Italian bonds rose after the government sold five- and 15- year securities at lower yields than existing debt. Italian 15- year bond yields dropped five basis points to 4.47 percent as of 10:29 a.m. in London. Italian five-year note yields dropped four basis points to 2.68 percent. Portuguese notes also advanced, sending the two-year note yield eight basis points lower to 2.72 percent after the Treasury got more demand at an auction yesterday than at its two previous sales. “The recent 750 billion-euro package and even more the European Union central banks’ repurchase program have proved extremely supportive for periphery,” Chiara Cremonesi , a strategist at UniCredit in London, wrote in a report today. The cost of protecting against a default by Greece fell, with credit-default swaps tied to the nation’s debt declining 8 basis points to 491, according to CMA DataVision prices. Technology shares in the MSCI Emerging Markets Index jumped 2.8 percent as a group, heading for the biggest surge in eight months, after the Sybase deal and a forecast from International Business Machines Corp. that earnings per share may nearly double by 2015 boosted confidence in the industry. Indian software services provider Infosys Technologies Ltd. rose for a second day, while South Korea’s won strengthened 1.4 percent against the dollar to lead gains in emerging-market currencies. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net

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Film Studios Allowed by U.S. to Use Anti-Piracy Technology on TV Equipment

May 10, 2010

By Todd Shields May 8 (Bloomberg) — Movie studios won U.S. permission to disable features on television equipment to prevent copying of films, clearing the way to send first-run films to consumers in their homes. Temporarily restricting TVs and the set-top boxes used for cable service will “enable a new business model” that wouldn’t develop without such anti-piracy protection, the Federal Communications Commission said yesterday in an order . Home viewing of recently released movies over cable and satellite systems would provide revenue for studios such as Viacom Inc. ’s Paramount Pictures and Sony Corp. ’s film division, which have seen DVD sales drop as more people get films through Internet, mail-order and kiosk rental services. The advocacy group Public Knowledge is among opponents who say the plan interferes with viewer choice. The FCC order “‘will allow the big firms for the first time to take control of a consumer’s TV set or set-top box, blocking viewing of a TV program or motion picture,” Gigi Sohn , president of Washington-based Public Knowledge, said in a statement. The Consumer Electronics Association, the Arlington, Virginia-based trade group for manufacturers including LG Electronics USA and Samsung Electronics , said that studios’ wish for a new business “does not mean that functioning products should be disabled by them.” The Motion Picture Association of America in 2008 sought an FCC waiver from rules against disabling video outputs so that its members could send movies over cable and satellite services using “secure and protected digital outputs,” according to the trade group’s petition at the agency. ‘Important Victory’ “This action is an important victory for consumers who will now have far greater access to see recent high-definition movies in their homes,” Bob Pisano , president and interim chief executive officer of the MPAA, said yesterday in a statement. “It is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand.” The FCC yesterday said companies could block outputs for a film for 90 days, and said it would review use of the technology after two years. The Washington-based MPAA represents Paramount Pictures, Sony’s film unit, News Corp. ’s Twentieth Century Fox, General Electric Co. ’s NBC Universal, Walt Disney Co. and Time Warner Inc. ’s Warner Bros. Pictures. To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net

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Nokia Shareholders Lose Patience in Third Year Without Response to IPhone

May 6, 2010

By Diana ben-Aaron May 6 (Bloomberg) — Nokia Oyj has had three years to come up with a rival to the iPhone. Investors say that’s long enough. Chief Executive Olli-Pekka Kallasvuo tried to convince shareholders today at the Finnish company’s annual meeting that Nokia, the world’s largest mobile-phone maker, will have new smartphones this year that will “help close the gap” with Apple Inc. , Research In Motion Ltd.’s BlackBerry and devices based on Google Inc.’s Android software. “Patience is running out and people are starting to worry about eroding brand value,” said Max Jul Pedersen , who helps manage $95 billion at Danske Capital in Copenhagen and is considering selling his Nokia shares. “Nokia has very little to show for their big research and development budget.” Nokia, based in Espoo, Finland, spent almost six times as much as Apple on R&D last year, yet has failed to develop a device with the same mass appeal as the multi-application iPhone. The company’s shares have tumbled about 20 percent in the two weeks since it reported first-quarter earnings that missed analysts’ estimates, wiping out 8.2 billion euros ($10.5 billion) in market value. Now 34 billion euros, or $44 billion, the company’s market capitalization compares with Cupertino, California-based Apple’s $230 billion, and is a shadow of its 1999 peak of 203 billion euros, the highest of any European company. Scattered Ownership Nokia came in 43rd in a brand-ranking study released last week by Millward Brown Optimor , tumbling 30 places in a year. It lost 58 percent of its brand value, the biggest plunge in the top 100 brands, according to the study. Nokia fell as much as 1.3 percent to 8.97 euros and was down 0.2 percent as of 4:36 p.m. in Helsinki. Ownership in Finland’s largest company is scattered around the globe. The company had 156,000 shareholders at the end of 2009, with 38 percent of shares owned in the U.S., where investors see few Nokia phones on store shelves alongside Apple and other competitors. In a push to defend market share, Nokia slashed prices and sold cheaper models, sacrificing profit as the average smartphone price fell 18 percent in the last nine months. Even with the price cuts, its share of the global handset market fell almost 2 percentage points in the first quarter to 36.6 percent, International Data Corp. said April 30. Nokia’s sinking fortunes have prompted some investors to call for management changes. Kallasvuo’s Task “If there were new management, depending on who it was, people could be impressed and it could be a positive catalyst,” said Leon Cappaert , who helps manage 360 million euros of investments at KBC Asset Management in Brussels and sold his Nokia shares a few days after the results. Nokia Chairman Jorma Ollila said at the AGM today that while shareholders have reason to be dissatisfied, the board supports the company’s management on its current strategy, which he said will show results this year. Kallasvuo, who over a span of 30 years has held a multitude of posts at Nokia including general counsel and chief financial officer, became CEO in 2006. Nokia’s downward trajectory began on his watch, soon after Apple unveiled the iPhone in 2007. Last month, Kallasvuo, 56 vowed to fight back with products that are “more intuitive, fun and faster.” “We are working hard to reclaim leadership in high-end smartphones and mobile computers,” he said today. “It’s critical that we improve the customer experience with the usability of both our devices and our services.” ‘May Be Too Late’ Nokia on April 27 announced the N8, its first phone using a rewritten software platform designed to improve usability. The touchscreen phone will be shipped in the third quarter. Yesterday, Nokia and Microsoft Corp. released the first software component from their partnership, seeking to challenge RIM, the Canadian maker of BlackBerry handsets. Still, Nokia will have to be swifter and more nimble to keep up with rivals, investors said. Nokia’s annual R&D budget of about $7.7 billion is 14 percent of revenue, compared with Apple’s spending of $1.3 billion, or 3 percent of sales. Nokia’s expenditure also includes figures for its networks division. “The high-end user they’ve lost to the iPhone has signed up for iTunes and put their information on Apple; Nokia won’t get them back or not without an enormous amount of pain,” said Stuart O’Gorman of Henderson Investors Ltd. in Edinburgh, who sold his shares the day Nokia announced first-quarter results. “You have to run so fast to stay still in this market. It may be too late.” Dividend Payout Nokia’s average selling price for all models has plummeted 44 percent in the last five years to 62 euros. Nokia charged, on average, 155 euros in the first quarter for a smartphone, down from 190 euros nine months ago. “Nokia is cutting prices because it’s the only way they can keep market share,” said Francisco Jeronimo , a London-based analyst at IDC. He expects the company’s share of global shipments and profits to decline further, and says Nokia may lose its European market leadership to Samsung Electronics Co. as early as this year. “The best way to leverage Nokia’s strengths is to be a mass producer of cheaper, good quality products, which would rapidly lower their R&D costs,” said Pedersen. One thing Nokia still offers investors is a dividend. The company plans to pay 40 cents per share for 2009, the same as in 2008 even though earnings fell 78 percent. Apple CEO Steve Jobs hasn’t paid a dividend since 1996, preferring to preserve money. Apple had $23 billion in cash and short-term investments as of the end of March compared to Nokia’s $12.4 billion. Analysts question how long Nokia can maintain a dividend of the current size. Listening to Investors Nokia replaced its finance chief last year after posting the first loss since the company began reporting quarterly in 1996. Sales chief Timo Ihamuotila took over from Rick Simonson , who now runs the low-end phone unit. Kallasvuo was selected by previous CEO Ollila . “If they change the CEO or something, that could be a trigger to the stock price performance,” said Niklas Lund , a fund manager at Alandsbanken Asset Management in Helsinki. “That’s not likely. He was handpicked by the chairman and you would have to change them both. Investors don’t really get heard on the board.” To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net

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Bill Werner Joins DLi as Vice President of Engineering

May 6, 2010

AUSTIN, TX–(Marketwire – May 6, 2010) –  Digital Light Innovations, a global leader in high speed custom applications for DLP ® spatial light modulators from Texas Instruments, is very pleased to announce that Bill Werner has joined the company in the role of Vice President of Engineering. Mr. Werner brings with him over 28 years of experience in the US and international electronics markets. During his tenure at Texas Instruments, he focused on high end DLP applications and led development of the electronics for what became TI’s DLP Cinema ® technology, subsequently serving as Program Manager. Mr. Werner’s role will be to lead DLi’s engineering team to serve the increasing demand for embedded DLP solutions.

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Stocks Slide, Led by Banks on Goldman Probe; Euro Gains on Greece Bailout

April 30, 2010

By Rita Nazareth and David Merritt April 30 (Bloomberg) — The euro strengthened and oil rose on speculation European aid for Greece is imminent. European stocks fell as Barclays Plc reported a drop in investment- banking revenue, while U.S. equities fluctuated as prosecutors started scrutinizing Goldman Sachs Group Inc. The euro strengthened against 13 of its 16 most-traded counterparts at 10 a.m. in New York. and crude and nickel climbed at least 0.8 percent to lead gains in commodities. The Stoxx Europe 600 Index lost 0.8 percent and the Standard & Poor’s 500 Index drifted between a gain of 0.1 percent and drop of 0.1 percent as Goldman Sachs slid 5.9 percent. The cost of credit-default swaps to protect against a Greek default fell 49 basis points to 621.2, after jumping to a record this week, according to CMA DataVision prices.     “The market appears willing to give Europe’s policymakers, at least for now, the benefit of the doubt over the aid package to be offered to Greece,” said Stuart Bennett , a senior foreign-exchange strategist at Credit Agricole Corporate and Investment Bank in London. “A failure to iron out the details of the plan by early next week could provide a catalyst for another move lower” for the euro, he said. European Commission President Jose Barroso said today that he is confident a rescue package for the Greek government will be completed “in days,” easing investor concern that the nation may default. The Commerce Department said the U.S. economy expanded 3.2 percent in the first quarter, compared with a median economist estimate of 3.3 percent in a Bloomberg News survey. Federal prosecutors are investigating transactions by Goldman Sachs, according to two people familiar with the matter. Euro Gains The euro rose for the third consecutive day against the dollar and the yen, climbing 0.8 percent to $1.3332 and 1 percent to 125.7 yen. The Japanese currency dropped against 15 of its 16 of its most-traded peers. D.R. Horton Inc. and Newell Rubbermaid Inc. rose at least 5 percent for the biggest gains in the S&P 500 after posting better-than-estimated earnings. About three-quarters of companies in the S&P 500 that reported first-quarter results beat analysts’ estimates for per-share earnings, according to Bloomberg data. The MSCI World Index of 23 developed nations’ stocks rose 0.2 percent. National Bank of Greece SA, the nation’s largest lender, rallied 2.6 percent in Athens, extending yesterday’s 18 percent surge. Banco Comercial Portugues SA climbed 1.7 percent in Lisbon. Gains were limited as Barclays Plc, the U.K.’s third- biggest bank by assets, slumped 5.6 percent in London after investment banking revenue dropped more than forecast. Greek Bonds The yield on the Greek 10-year bond dropped 18 basis points to 8.51 percent, extending yesterday’s decline. Credit-default swaps tied to Spain’s government bonds fell 9 basis points to 160.7, Portugal dropped 29 basis points to 269.4, CMA prices show. A decline in the price of the contracts signals an improvement in investor perceptions of credit quality. Prime Minister George Papandreou is starting his sales pitch to the Greek people as unions denounce “unjust” budget cuts linked to a potential $159 billion European Union-led bailout. Greek officials aim to reach an agreement with the EU and the International Monetary Fund in coming days on budget cuts that may be worth 24 billion euros ($32 billion). Crude added as much as 1.2 percent to $86.17 a barrel in New York trading, for a third consecutive advance. Copper for delivery in three months rose 0.4 percent to $7,386 a metric ton on the London Metal Exchange. Aluminum gained for a third day, adding 0.7 percent to $2,215 a ton. Nickel and zinc also rose. Gold for immediate delivery jumped as much as 1.2 percent to $1,180.63 an ounce, the highest since December. Asian Stocks The MSCI Asia Pacific Index climbed 0.9 percent, its first gain in four days. Samsung Electronics Co. Ltd. added 2.9 percent in Seoul after reporting record net income. Baoshan Iron & Steel Co. Ltd., China’s largest publicly traded steelmaker, gained 6 percent in Shanghai after saying its profit may surge 10-fold. Macquarie Group Ltd., Australia’s largest investment bank, rose 4 percent as earnings doubled. The MSCI Emerging Markets Index climbed 0.8 percent, led by a 1.1 percent jump in Poland’s benchmark WIG20 Index as insurer PZU SA raised 8.1 billion-zloty ($2.7 billion) in Europe’s biggest initial public offering since 2007. Emerging-market equity funds attracted $1.5 billion of net inflows in a week, taking year-to-date gains to $15.2 billion, EPFR Global said. To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net ; David Merritt in London on dmerritt1@bloomberg.net .

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Samsung Electronics Profit Rises Seven-Fold to $3.6 Billion on Chip Prices

April 29, 2010

By Kevin Cho April 30 (Bloomberg) — Samsung Electronics Co. , Asia’s biggest maker of semiconductors, flat screens and mobile phones, reported record profit after rebounding demand for personal computers drove up chip prices. First-quarter net income rose almost seven-fold to 3.99 trillion won ($3.6 billion) in the three months ended March 31, from 582.2 billion won a year earlier, the Suwon, South Korea- based company said in a statement today. Sales, including those of overseas affiliates, increased 21 percent to 34.64 trillion won. Samsung said it expects to boost spending and earnings growth to extend into this quarter, joining technology companies including Intel Corp. and Apple Inc. in signaling a revival in demand for electronics ranging from televisions to PCs. Analysts predict Samsung’s earnings growth will probably extend until the third quarter, while higher memory-chip and flat-panel prices will help the company post record profit this year. The likelihood of increased spending “reflects a confidence in demand,” said Chang In Whan , president of Seoul- based KTB Asset Management Co., which manages the equivalent to $10 billion in assets. “I think overall the company will post stronger earnings than we previously anticipated.” Samsung , which climbed 77 percent last year, rose 1.6 percent to 838,000 won at 10:58 a.m. in Seoul trading, while the benchmark Kospi index gained 0.8 percent. The shares have climbed 4.9 percent this year, compared with the 3.6 percent advance by the Kospi. Cautiously Optimistic The company said it’s “cautiously optimistic” second- quarter earnings will rise, citing demand for products across all of Samsung’s major product categories. Samsung also expects capital spending this year to be substantially higher than it projected, though the electronics maker can’t currently disclose specific figures, said Robert Yi , head of investor relations. “We will continue to widen the gap with competitors in the memory business, improve profitability in the LCD business, and strengthen our competiveness and market dominance in the handset and TV businesses,” Yi said. Operating profit, or sales minus the cost of goods sold and administrative expenses, jumped to a record 4.41 trillion won from 593 billion won, Samsung said. The year-earlier results were revised following Samsung’s adoption of International Financial Reporting Standards from this year, the company said. Chip Division First-quarter profit at Samsung’s semiconductor division was 1.96 trillion won, compared with a loss a year earlier, as prices rose. Micron Technology Inc. and Hynix Semiconductor Inc. , which compete against Samsung in computer memory, both reported quarterly profit that beat analysts’ estimates. Intel , the biggest chipmaker, this month forecast record profit margins for 2010 and said sales will rise this quarter. Samsung, the world’s largest maker of computer-memory chips, said last month it expects prices to remain “stable” in the second half of the year, buoyed by strong demand. The company said in January it plans to spend 5.5 trillion won in capital investment on semiconductors this year, compared with 4.5 trillion won in 2009. Kwon Oh-Hyun , head of Samsung’s chip division, said March 16 a decision on raising capital spending for chips will be taken in the second quarter. Flat-Screen TV Demand At the flat-screen business, Samsung reported a profit of about 490 billion won, compared with a year-earlier loss, driven by higher TV demand. LG Display Co. , the second-largest liquid- crystal display maker after Samsung, last week reported its fourth straight quarterly profit after prices increased. Prices of most panels used in computer monitors, notebooks and TVs rose in the second half of March from a year earlier, according to Taipei-based researcher WitsView Technology Corp. Panel prices will probably remain flat in the current period and rebound in the third quarter, James Kim , an analyst at Nomura Holdings Inc., wrote in a report this month. A shortage of components for LCDs will continue throughout this year, which will help limit supply growth, he wrote. Samsung’s digital media division, which makes TVs, posted a profit of about 520 billion won from 470 billion won, as the company increased sales of more expensive models using light- emitting diodes as screen backlights. Global shipments of LCD TVs may rise 24 percent to more than 180 million units in 2010, Austin, Texas-based DisplaySearch said last month. Samsung, the world’s largest TV maker, said in January it expects to sell 35 million LCD sets this year. Mobile Phones LG Electronics Inc. , the second-ranked TV maker, this week posted a quarterly profit compared with a year-earlier loss, helped by sales of TVs and appliances. LG said its first-quarter LCD TV shipments increased 62 percent to 5.2 million sets. Samsung, also the world’s second-largest mobile-phone maker, said profit from the telecommunications division fell to 1.1 trillion won from 1.12 trillion won. First-quarter handset shipments climbed 40 percent to 64.3 million, Samsung said. The company said in February its handset shipments may grow 19 percent to more than 270 million units, helped by demand for smartphones. Samsung has said it plans to triple shipments of the devices this year from 6 million in 2009. Nokia, Apple Nokia Oyj , the world’s biggest maker of mobile phones, last week cut its margin forecast and posted profit that missed analysts’ estimates because of competition from Apple’s iPhone. Apple said last week its second-quarter iPhone sales more than doubled and profit increased 90 percent. LG Electronics, the world’s third-largest handset maker, this week said earnings from its mobile phones fell 89 percent as the company fell behind in introducing new models in the smartphone market, the fastest growing segment. Worldwide sales of smartphones will increase 36 percent to 247 million in 2010 and expand 30 percent next year, ISuppli said last month. The total mobile-phone industry shipments will probably rise 11 percent to 1.28 billion units this year, according to ISuppli. To contact the reporters on this story: Kevin Cho in Seoul at kcho2@bloomberg.net

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