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Newspaper
Lawrence Journal World
Location
Lawrence, Kansas, United States of America
Date
May 29, 2002
Page
6
Chuck Watson, Dynegy Inc. chief executive and co founder, resigns amid an SEC investigation of trading practices. Dynegy stock rose 45 cents to $9.75 after the announcement. He is the second major U S energy trader to quit in a week.
A Kansas City based carrier seeking 60 million in loan guarantees to fund operations to 18 cities had the application rejected by the Air Transportation Stabilization Board. The panel cited insufficient assurance of repayment and said the carrier would pursue private financing and revise the plan. The board oversees post September 11 airline industry bailout funds.
Atchison Casting Corp promoted Tom Armstrong from chief operating officer to chairman president and CEO. He succeeds Hugh Aiken who remains as vice president for European operations and board member. ACC makes iron steel and nonferrous castings for diverse markets.
Deutsche Telekom plans to reduce its global workforce by 22,000 by end-2004 as a cost cut measure and to reduce debt. CEO Ron Sommer told shareholders in Cologne that overall positions would fall from 245,000 to about 223,000 while hires would offset some losses. The move includes shedding real estate and the remaining cable stake, with the state owning 43 percent. The company posted a $3 billion loss in 2001 following VoiceStream acquisition and heavy mobile investments.
The Conference Board said its Consumer Confidence Index rose to 109.8 in May, while consumer spending climbed 0.5 percent in April and existing home sales jumped 7 percent to 5.79 million. Wall Street marked declines as investors weighed the data.
Pattye Moore becomes Sonic Corp president, guiding the Oklahoma City headquarters and a nationwide chain famed for carhop service and 1950s style. Sonic, started in 1953 in Shawnee, now operates 30 states and Mexico with plans for 190 new drive-ins as analysts predict continued expansion and steady sales. Moore, a Oklahoma native, emphasizes store visits for ideas and highlights the brand’s playful, non serious culture.
In southern Kansas drought areas, Kiowa and Barber Harper county elevators expect a paltry winter wheat harvest. Managers say yields may run 15 to 35 bushels per acre with about 20 percent of acres abandoned. Remaining crop will constrain income and storage space as process shifts to salvaging last year’s wheat.
Dozens of union members demonstrated at Walt Disney World's Swan and Dolphin hotels in Buena Vista Florida as workers from housekeeping laundry seamstress and public area roles considered a strike. The hotels said all workers planned to work and operations continued while management sought unilateral contract terms after last week's rejection by 400 of 2 000 employees.
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