SBC Communications in downtown St. Louis
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SBC to Trim 10,000 Jobs
ST. LOUIS, (SLFP.com) November 9, 2004 - In a filing Friday with the Securities and Exchange Commission, SBC Communications said it would cut 10,000 jobs by end of next year.
SBC, based in San Antonio, stated the newly announced cuts - 6 percent of its work force - would come on top of its elimination of about 7,000 jobs in the past year primarily through "normal attrition."
"Based on a number of initiatives to improve efficiencies, we currently anticipate there will continue to be additional workforce reductions through attrition or involuntary programs that could exceed 10,000 by December 31, 2005," the company stated in the SEC filing.
On October 21, SBC Communications had reported strong third-quarter results driven by the continued success of its bundling strategy and by solid momentum in key growth products such as DSL and long distance.
SBC reported third-quarter 2004 earnings of $2.1 billion, or $0.63 per diluted share, and earnings from continuing operations of $1.2 billion, or $0.38 per diluted share. Reported revenues from continuing operations grew 1.4 percent, and revenues including proportionate results from Cingular Wireless grew 2.1 percent.
In an announcement, Edward E. Whitacre Jr., SBC chairman and chief executive officer, stated "Our strategic focus and our execution continue to produce solid results. We delivered our second consecutive quarter of positive revenue growth, with an operating margin above our full-year outlook. We accelerated DSL growth and are solidly on track to reach our target of more than 5 million DSL lines in service by year's end. And we continue to lead the industry in long distance growth, as we added 1.3 million or more long distance lines for the seventh quarter in a row.
"We have tremendous opportunities ahead - in nationwide wireless, the large-business market and next-generation consumer services such as video," Whitacre said. "The major steps we're taking today will be key to SBC's leadership in high-growth markets for years to come.
SBC employs about 9,250 workers in St. Louis, making it the area's 10th largest employer.
Construction continues on MetroLink Expansion just west of the Forest Park Station at DeBaliviere in the Central West End.
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CCC Files Counterclaim Against Metro for Termination of Contract
ST. LOUIS, (SLFP.com) November 7, 2004 - Cross County Collaborative (CCC) has filed a counterclaim against Bi-State/Metro for wrongful termination and breach of contract. CCC is seeking over $17 million owed by Metro on the two contracts that were terminated last August.
The estimated $550 million Cross County MetroLink Extension will connect additional communities by adding 8 miles to the existing rail system, which currently spans 38 miles from Scott Air Force Base and Shiloh, Illinois to Lambert-St. Louis International Airport.
Cross County includes a major redesign of the Forest Park station and the addition of nine new stations (two with Park-Ride lots): Skinker, University City-Big Bend, Forsyth, Clayton, Richmond Heights, Brentwood I-64, Maplewood - Manchester, Sunnen, and Shrewsbury - Lansdowne I-44.
According to Richard Hardcastle, attorney for the Cross County Collaborative, "For months we have not commented on Metro's actions in
this case and had hoped to resolve this dispute outside the Courts
given the expenses of litigation for the people of St. Louis and the CCC
Team. Unfortunately, resolution now appears unlikely and we must therefore argue our side forcefully to set the record straight."
The CCC is seeking over $17 million owed by Metro on the two contracts
that were terminated last August. As explained in the counterclaim, filed November 3, Metro terminated the contracts shortly after the CCC submitted 22
Proposed Change Requests totaling over $11 million for extra work that CCC had
completed at Metro's request. At the same time, Metro was approaching
CCC personnel to work directly for Metro on the project, in flagrant
violation of Metro's contract with the CCC.
The suit also documents how Metro directed and oversaw the Joint
Construction Management Team (JCMT) responsible for managing the construction work. In criticizing the construction management for the Project, Metro was actually being critical of much of its own staff including the Project Director, a Metro employee who had ultimate authority and set management and other procedures for the construction team. The suit claims that Metro now employs more people at greater taxpayer expense to perform the same tasks as were performed by the JCMT.
The CCC had been under contract with Metro since May 2000 for program management, design, construction management and start-up services for the 8-mile light rail alignment.
Larry Salci, Metro President and CEO said in an announcement last August, "Metro has only taken this critical step after substantial deliberation and planning. The CCC had multiple opportunities to remedy their unacceptable performance under their contracts. The termination is necessary in
order to protect the taxpayers' investment in the Cross County extension. Metro
believes that the project schedule and budget were at risk if the consultant team continued to manage the project. Metro is fully prepared to take on the management of this challenging project."
"This transition will have no negative impact on the productivity of contractor construction crews already at work," stated Salci. "All of the construction firms under contract with Metro continue to work uninterrupted. I am confident the MCG will deliver this important MetroLink addition to the St. Louis region. Metro is still committed to opening the Cross County extension in 2006," stated Salci.
Studios Expand Campaign to Prevent Film Piracy
ST. LOUIS, (PRNewswire) November 7, 2004 - The Motion Picture Association of America has announced its lawyers will expand the MPAA's campaign to prevent film piracy, working with its members and other film studios to file lawsuits against people who have illegally traded digital copies of movies over the Internet.
"Illegal movie trafficking represents the greatest threat to the economic basis of movie-making in its 110-year history," said MPAA President and CEO Dan Glickman, who was joined during the announcement by studio executives, union leaders, filmmakers and others. "People who have been stealing our movies believe they are anonymous on the Internet, and wouldn't be held responsible for their actions. They are wrong. We know who they are, and we will go after them, as these suits will prove."
The studio lawsuits were announced at the renowned School of Theater, Film and Television at the University of California, Los Angeles, one of the nation's great training grounds for future filmmakers, whose ability to pursue their careers is threatened by the impacts of piracy. As well, UCLA has been a leader nationwide in efforts to clamp down on improper use of campus resources, implementing forward-thinking policies and technologies that quarantine traders of illegally copied movies and music, restricting their Internet access until offending material is removed from their computers. The University of California system as a whole has partnered with the MPAA and its member studios, sharing information on illegal file-sharing trends and indicators, developing policy recommendations and testing pilot projects.
A recent federal interagency report estimates that counterfeit and pirated goods, including those of copyrighted works, cost the American economy $250 billion a year. In response to the report, the U.S. Justice Department and other federal agencies have committed to increased law-enforcement and prosecutorial efforts against pirated and counterfeit goods. The MPAA estimates "hard goods" movie piracy costs the film industry $3.5 billion a year. That total does not include losses from hundreds of thousands of illegal downloads swapped over the Internet each day.
"We all know that digital distribution is the wave of the future, and the studios have all supported legal download services in various ways," Glickman said. "But we cannot allow illegal trafficking to derail legitimate new technologies that provide consumers with affordable, convenient access to high-quality movies on the Web. Trading a digital file of a movie online without paying its owners is no different than walking into a store and shoplifting a DVD."
The creative industries - including book publishing, music, video, television and movies - are the single largest sector of the U.S. economy, generating more than 5 percent of American gross domestic product. The copyright industries also comprise the only U.S. industry sector to run a trade surplus with every other country in the world.
"Our members are the artists who conceive and create entertainment content consumed by millions of people around the globe," said Daniel Petrie Jr., president of the Writers Guild of America, West. "Online piracy takes income directly out of real people's pockets."
California Gov. Arnold Schwarzenegger, a member of both the Screen Actors Guild and the Directors Guild of America, endorsed the announcement, which meshes with his own recent initiatives against illegal file-swapping.
"I applaud the decision by the MPAA and its member companies to take strong action," Gov. Schwarzenegger said, "and I join the U.S. Department of Justice, the State of California, the recording industry and others in making sure that people use the great promise of the Internet responsibly and ethically, and that motion pictures remain an important part of California and the nation's economy in the decades to come."
The governor recently signed a bill making it a misdemeanor to swap movies or music online without revealing the trader's e-mail address. The governor also issued an executive order banning the use of state resources, including computers and Internet access, to illegally swap copyrighted material.
"The movie industry has contributed immeasurably to California's economic strength," said Schwarzenegger. "It has also helped many of my own dreams come true. We cannot let illegal movie piracy continue or it will cripple this important industry and seriously hurt California's economy. We must teach our children that the illegal downloading of movies and music is wrong, and that it has consequences."
Lawsuits will be filed against individual file-swappers across the country beginning Nov. 16 by MPAA member companies. The civil suits seek damages and injunctive relief. Under the Copyright Act, statutory damages can be as much as $30,000 for each separate motion picture illegally copied or distributed by an individual over the Internet, and as much as $150,000 per motion picture if such infringement is proven to be willful.
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