Sun Microsystems Inc. plans to take a $2.2 billion non-cash goodwill impairment charge if the value of its businesses doesn't recover by next April, The Financial Times reported, citing a filing with the Securities and Exchange Commission. The Santa Clara, Calif., computermaker is currently valued at $8.4 billion, down from $29.1 billion in April 2002. Sun also said a review found its net loss for fiscal 2002 $587 million was $41 million less than first reported.
A trade between electronics giants Motorola and Siemens that would take the latter out of the cellphone manufacturing business is under negotiation, The Financial Times reported. The newspaper said the projected terms of such a deal would give Motorola, the world's second-largest maker of cellphones, that area of Siemens's operation. In return, Motorola would transfer its wireless networking equipment business and an unspecified cash payment to the German consortium, The Financial Times said.
Ford and the Canadian Auto Workers Union reached tentative agreement on a new contract calling for wage increases of up to 13.5 percent over the next three years. The settlement averts a strike by 13,000 workers that could have begun at midnight Tuesday, but still must be ratified by union members. It also would guarantee that 900 workers at a truck plant in Oakville, Ontario, that was scheduled to close next year will be offered new jobs in another factory in the city that produces minivans.
Vanguard Airlines was preparing to liquidate assets unless a buyer is found by tomorrow's self-imposed deadline. That's unlikely, according to David Rescino, chief financial officer of the bankrupt discount carrier, despite ongoing talks with potential investors. Before its July 31 shutdown, Vanguard served 15 cities from its Kansas City, Mo., hub. It was founded in 1994 but never made an annual profit.