Business today

Compiled from Times wires

© St. Petersburg Times, published March 27, 2001

SYKES' PAY ON THE RISE: John Sykes, chief executive of troubled Sykes Enterprises Inc. of Tampa, received a salary of $550,000 last year, up 15 percent from 1999 and 82 percent from 1998. According to the call center company's annual proxy statement, Sykes, who held 42 percent of the public company's stock at year-end, also received a bonus of $130,185 that was based on his 1999 performance. Former president and CEO David Grimes, who left the company in November, took home $539,340 in salary and a $120,000 bonus.

TECH CUTBACKS: Conexant Systems Inc. is cutting 1,500 jobs, or 17.8 percent of its work force, as it tries to reduce costs due to the technology market slowdown. The semiconductor and Internet software company also said it expects a loss of 35 cents to 40 cents a share excluding the impact of one-time charges. Analysts had expected a per-share loss of 24 cents. Separately, PMC-Sierra Inc. said it plans to fire 230 workers, or 13 percent of its work force, citing canceled orders for communications chips. The company said it expects earnings of 2 cents to 3 cents a share, down from analysts' forecasts of 12 cents.

CHRYSLER RESTRUCTURES SALES STAFF: Chrysler Group restructured its sales and service organization to create five regional business centers in the United States, giving them power to make decisions in local markets. The centers are in Detroit, New York, Dallas, Los Angeles and Orlando. They'll employ a total of about 110 people, all shifted from existing offices. Chrysler, a unit of DaimlerChrysler AG, is trying to stem declining sales and return to profitability after losing $1.75-billion in the second half of 2000. Chrysler's 25 zone offices will continue to operate, although some zone employees will be moved to the new centers or to work more closely with dealers.

FIRST NATIONAL BANK CEO RETIRING: David Stone, a longtime Tampa Bay area banker and civic leader in Clearwater, is retiring as president and chief executive of First National Bank in Clearwater effective March 31. Stone, 58, ran the former Citizens Bank & Trust of Clearwater for 16 years before the company was bought by F.N.B. Corp. in 1998 and became First National Bank. A former chairman of the Clearwater Chamber of Commerce, among other roles, Stone was named "Mr. Clearwater" by the chamber in January. Stone will continue as chairman of the bank's community board. His duties will be assumed by Robert George, 57, First National's Pinellas County area president.

PILOTS UNION SEEKS PROTECTION: Pilots at American Airlines want assurances that their pay, pension benefits and other rights won't be diminished when the carrier purchases Trans World Airlines Inc. In a message for pilots recorded Friday, John Darrah, president of the Allied Pilots Association, said American's pilots are seeking the same protections United Airlines offered its pilots last year after announcing its proposed purchase of US Airways. The union representing American's 11,000 pilots wants to protect its members from losing seniority to TWA's 2,400 pilots. Seniority determines pilots' assignments and pay. Shares of American's parent company, AMR Corp., rose $2.16, or 6.5 percent, to $35.27.

XEROX FACES MORE BIAS CHARGES: For the second time this month, bias charges have been leveled against Xerox Corp. Ten black workers at the company's operations division in Texas have filed discrimination charges with the Equal Employment Opportunity Commission, alleging they have hit a "concrete ceiling" with little or no success at winning advancement and higher salaries. Several workers also said they were subjected to racially derogatory jokes that were compiled in a booklet distributed at Xerox. In mid-March, 15 Xerox salespeople from New Jersey and New York accused the company of discrimination.

REGULATORS SEEK ANSWERS ON FPL MERGER: A second utility regulatory panel said it wants to know whether Entergy Corp. intends to complete its $9-billion merger with FPL Group Inc. The utility committee of the New Orleans City Council told Entergy it will suspend consideration of the merger unless the city gets definitive word by Friday. The action is similar to one set earlier by the Louisiana Public Service Commission, which also issued a Friday deadline. On March 19, the two companies issued a brief statement saying issues had arisen over managing the combined company and the value of some assets. The companies have refused to say anything more about the statement, which has been viewed widely by Wall Street analysts as a sign the merger is in trouble.

TREASURY AUCTION: Interest rates on short-term Treasury securities fell in Monday's auction. The Treasury Department sold $9-billion in three-month bills at a discount rate of 4.200 percent, down from 4.370 percent last week. An additional $8-billion was sold in six-month bills at a rate of 4.120 percent, down from 4.220 percent. The new discount rates understate the actual return to investors: 4.305 percent for three-month bills and 4.266 percent for a six-month bill. In a separate report, the Federal Reserve said Monday that the average yield for one-year constant maturity Treasury bills fell to 4.17 percent last week.

Earnings

800 Travel Systems Inc.

The Tampa parent of LowAirfare.com and other travel Web sites and call centers cited increased investment costs and one-time items for its increased losses for the quarter ended Dec. 31.

Walgreen Co.

The Deerfield, Ill., drugstore chain credited increased prescription-drug sales and new stores for increased income in the fiscal quarter ended Feb. 28.

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