Survey: Companies cutting back on raises Dec 18, 2008
Clearly, many organizations and some industries are being negatively impacted by the economy, and short-term adjustments to reduce fixed costs are required to avoid pay freezes, layoffs, or in some cases, just to survive, Hewitt s practice leader, Ken Abosch, said in a statement. The automotive industry is expected to hand out the lowest raises in 2009, averaging just 1. (Atlanta Business Chronicle, GA)
Task force calls for consolidation at L-S Dec 17, 2008
It s just like any rational business would do in the private sector where you have two relatively modest organizations in terms of size, with identical missions, similar resources, high fixed costs and absolute inability to raise revenue, said Fuhrman. The BRTF further recommended that the Sudbury Board of Selectmen explore the regionalization of all school districts in Lincoln and Sudbury and the expansion of the regional high school to include Wayland, with a status report on each to be... (Lincoln Journal, MA)
Pros and cons of employee buyouts Dec 17, 2008
Cutting the payroll can be a quick way for companies to reduce their fixed costs when revenue dries up. Many firms have recently found themselves in emergency situations and didn't have the time or money for buyout packages. (AZCentral -- Business)
Former Chemtura chief gets $4m parachute Dec 17, 2008
Three days later, the company announced plans to cut at least 500 jobs as part of a cost-reduction program designed to slash fixed costs by about $50 million. Related Stories. (Republican-American)
ATRI Releases Analysis of Operational Costs of Trucking Dec 16, 2008
Fixed costs were not included since they are generally unaffected by system impacts such as congestion or external factors such as fuel price fluctuations. The research, which generated data from detailed carrier surveys and interviews, isolated dozens of cost centers for for-hire and private fleets. (PR Newswire)
Transcript: Syndication Roundtable 2008 Dec 15, 2008
Overhead as well as fixed costs that are just being eliminated. On the production side, you know, look, the last thing we want to do is produce a show that we arent proud of. (TVweek.com)
Charities struggle to help those in need Dec 13, 2008
"The need may be a variable but we have fixed costs like rent and insurance, and we hire staff for programs. If the Legislature meets in January and changes the amounts of the grants we have a problem.". The organization has received two federal grants in recent years that are administered by the state that total nearly $300,000. (Community News Weekly, NY)
Budget input: non-existent Dec 13, 2008
" Mr. Wellman then noted - to no avail - that the BOE was entering a challenging budget year, and that a student's cost of studying online had been placed at $300 a credit. The cost of taking a course in a classroom, he noted, had been computed at between $1,500 and $2,000 a credit. "I'm at a total loss [as to] why we're not totally embracing online education," he said. "My intent is not for everyone to take courses and stay home," he affirmed, adding that an attendance program could comprise... (New Milford Times, CT)
Chemtura not saying how many jobs in Middlebury at risk Dec 13, 2008
Middlebury-based Chemtura announced Thursday it will trim at least 500 jobs as part of a cost-reduction program intended to reduce the company's fixed costs by about $50 million. The cost-cutting initiative involves a worldwide reduction that would trim its professional and administrative staff, which currently stands at about 2,500 people, by about 20 percent, the company said. (Republican-American)
Maynard begins budget building Dec 13, 2008
According to Curran, this means that if a department s fixed costs go up in fiscal 2010, in may have to cut services in order to make due with the same amount it had in fiscal 2009 ... Though Curran is pleased the town has saved money by restructuring the Assessor s office and renegotiating Health Insurance plans with town employees, he said increases in fixed costs coupled with reductions in local receipts and state aid may make budget cuts a necessity ... It is projected, at this point, that... (Beacon Villager, MA)
Just to correct you there, Prime Minister Dec 12, 2008
It will come at an important time in 2009 when cash flows are expected to be tight, and small businesses will be struggling to hold employment levels and meet fixed costs,'' the chamber said in a statement. AAP. (Sydney Morning Herald -- Business)
EMCORE Corporation Announces Preliminary Unaudited Results for Its Fourth Quarter and Fiscal Year Ended September 30, 2008 Dec 11, 2008
7% which was primarily due to increased revenue which provided a greater base on which to allocate certain fixed costs, benefits associated from the use of contract manufacturers and better utilization of our China manufacturing facility. Gross margins also increased due to the implementation of certain cost reduction initiatives and improved efficiencies driven by facility consolidations. (PR Newswire)
* Economic slump pushes NFL to lay off employees Dec 11, 2008
But he noted that the league also has fixed costs X almost 60 percent of its total revenue will be paid to players this year, with an increase next season. Labor costs are one reason the NFL opted out of the labor contract, which will now expire after the 2010 season. (Taipei Times, Taiwan -- World)
BWAY ends year with a profit Dec 11, 2008
"During the year we took decisive action to position the company for a stronger future, said Ken Roessler, BWAY president and CEO, in an earnings release. We closed two operating plants thus reducing our manufacturing footprint and fixed costs, developed and began commercializing a family of new plastic products, and effectively managed through a volatile period of high raw material prices. In spite of solid achievements by management in increasing productivity and reducing costs, further... (Atlanta Business Chronicle, GA)
BWAY Holding Company Reports Higher Earnings and Free Cash Flow Dec 10, 2008
"We are pleased with the financial results we achieved and the overall management of the business during both the fiscal fourth quarter and full-year 2008, particularly in light of the general economic and housing-related headwinds we faced," said Ken Roessler, BWAY's President and CEO. "During the year we took decisive action to position the Company for a stronger future. We closed two operating plants thus reducing our manufacturing footprint and fixed costs, developed and began... (PR Newswire)
Fee may bring budget in line with Big Ten schools Dec 10, 2008
The fixed costs run a substantial amount because of the legal service the group runs, as well as the loan payback for the school's radio station. The UISG also pays for a newspaper readership program, which provides free newspapers to students, and covers the costs to bring speakers and performers to campus. (Daily Collegian, PA)
$73 an hour: Adding it up Dec 10, 2008
These are essentially fixed costs that have no relation to how many vehicles the companies make. But they are a real cost, so the companies add them into the mix dividing those costs by the total hours of the current work force, to get a figure of $15 or so and end up at roughly $70 an hour. (International Herald Tribune)
Valley ice-rink operator merges Dec 10, 2008
Berman, a former Los Angeles police officer, said the key to success is to keep the rinks open long enough to cover high fixed costs, such as keeping the ice frozen and the buildings cool. During the week, rinks are open about 18 hours a day, and they are open another two hours on weekends. (AZCentral -- Business)
Illinois Threat to Bank of America Is Dangerous, Critics Say Dec 9, 2008
The company faced the impossible position of not having the ability to further reduce fixed costs, coupled with severe constrictions in the capital debt markets and an unwillingness of the current debt holder to continue funding the operations, Republic said in the release. Workers and supporters, warmed by a fire roaring in a trash bin, kept a vigil last night at the plant on Chicagos north side. (Bloomberg)
Outside Pressure Grows for GM to Oust Wagoner Dec 8, 2008
Mr. Wagoner's backers on GM's board, including lead outside director George Fisher, credit the CEO with slashing fixed costs, pushing into emerging markets and working out major cost and health-care concessions with the UAW.. But he has also had a part in some of the missteps that have put GM in the position it faces today -- including the heavy use of incentives to drive sales, a heavy reliance on trucks, and a belated recognition of customer interest in hybrids and fuel-saving small cars. (Wall Street Journal)
How to make colleges twice as productive Dec 7, 2008
Simply by spreading the fixed costs of a campus over twice as many participants, you could make degrees meaningfully less expensive. More students could go to college and receive better educations. (Boston Globe)
King County office landlords are seeing a rise in valuations Dec 6, 2008
And while other expenses, such as janitorial or repair costs, can be reduced when there s empty office space, taxes and insurance are fixed costs. Randall Scott, owner of Bellevue-based Northwest Property Tax Consultants, said he s received more calls than normal this year for help with appeals as commercial property owners received notices of higher tax assessments. (Puget Sound Business Journal, WA)
Rheinmetall Will Cut Jobs, Extend Holiday Breaks on Slump in Auto Demand Dec 6, 2008
Dec. 5 (Bloomberg) -- , the German auto parts and weapons supplier, will eliminate 750 jobs, reduce fixed costs by 50 million euros ($63. 8 million) and extend Christmas production breaks because of slowing automotive demand. (Bloomberg -- Germany)
Patching the leaks Dec 6, 2008
Times-News: Magicvalley. to register or to login to your account. (Burley South Idaho Press, ID)
Caritas Christi financing put on hold; 160 face layoffs Dec 5, 2008
"Elective surgery is down across America, and the fixed costs in hospitals remain the same," said Bard. "The number of uninsured is up across America and the fixed costs remain. Most hospitals find themselves in a relatively overstaffed position."This is not mismanagement, or a sign of weakness at Caritas, this is just the world as we know it today," he added.Carty said the 160 layoffs would affect employees at all levels within the chain."We're going to try to make this as equitable as... (Boston Globe)
Starbucks to miss earnings estimates Dec 5, 2008
Analysts gathered at the meeting said they were looking for more clarity from Starbucks on plans to lower fixed costs and preserve profits as sales fall amid the biggest US financial crisis since the Great Depression. Starbucks is more focused than ever before on cutting costs "out of necessity," Alstead said. (Sydney Morning Herald -- Business)
Can the Qantas-BA deal fly? Dec 4, 2008
Michael West on the Qantas-British Airways merger. Welcome to The Sydney Morning Herald. (Sydney Morning Herald -- Business)
German automakers brace for downturn Dec 4, 2008
For a business that relies on long-term prospects to justify heavy fixed costs, that is a heavy burden, analysts said. Since Germany is in a sense Detroit writ large, the stakes could hardly be higher. (International Herald Tribune)
Highlights of Chrysler LLC Plan Submitted Today to the Senate Committee on Banking, Housing and Urban Affairs and the House Committee on Financial Services Dec 3, 2008
2 million units of capacity, or 30 percent; -- We reduced fixed costs by $2. 4 billion and, separated over 32,000 employees - including 5,000 on the Wednesday before Thanksgiving. (PR Newswire)
First cut what state spends on itself Dec 3, 2008
It seems sincere representatives would first review what the state spends on itself: Legislature, perks, vehicles, per diem, various bureaus, special offices and officers, personnel, salaries, fixed costs and so on. As a matter of fact, it is, without a doubt, the prime time to change to a unicameral legislature and reduce government costs, before axing programs for citizens elected officials are elected to protect. (Winona Daily News, MN)
School funding analogy was flawed Dec 3, 2008
We cannot make significant changes in our fixed costs (e. g., buildings and utilities). (Burley South Idaho Press, ID)
Deficits forcing wave of cuts in Ontario hospitals Dec 3, 2008
But health-care officials say that is not enough to pay fixed costs, including salaries, heating and electricity, which are climbing by 4 per cent to 5 per cent a year. While a physician's costs are covered by medicare, the country's universal health-care program, hospitals are on the hook for everything else. (Globe and Mail)
More of this story Dec 2, 2008
About 80 percent of the city budget is for personnel and fixed costs that, by contract, the city must pay. There is not a lot of discretionary spending, but what we have must be cut, Lavallee said. (Newport Daily News, RI)
Cruise lines slash prices to lure consumers Dec 2, 2008
Behind the discounts: Cruise lines have high fixed costs such as fuel, crew salaries and other operating expenses. The incremental cost of carrying each passenger a little food and drink, a few bed linens and towels is small. (The Palm Beach Post)
Carlisle faces third water rate hike in three years (32) Nov 29, 2008
Higher fixed costs and lower volume result in a price per unit of water treated increasing at a rate greater than the CPI, Hietsch explained. New tank. (Carlisle Sentinel, PA)
Federated States of Micronesia--2008 Article IV Consultation, Concluding Statement Nov 27, 2008
Part of the reason is the inherent risk of start-up lending, the high fixed costs associated with small business loans, and the difficulties in collecting on collateral ... Because of the high fixed costs of small commercial loans and the interest rate limit under the usury law, commercial banks are constrained from lending to small businesses. (IMF News)
Tough budget ahead for schools Nov 27, 2008
Walsh agreed, but cautioned that a 6 to 7 percent budget increase is needed just to maintain contract obligations and fixed costs. Items like textbooks, with the exception of new social studies texts at Deer Hill, would wait another year. (Cohasset Mariner, MA)
Maximum online traffic in Mumbai & Delhi: eBay Nov 26, 2008
The company sees its business growing in the current market scenario where customer sentiments have been affected due to the global slowdown as it brings down the fixed costs of the sellers. Over 2,427 cities had online transactions in 2007. (Economic Times)
GBL Inc. connects clients with in-house digital specialists Nov 26, 2008
When Show met with Tolley, he mentioned the trials with a startup and his concerns about committing to fixed costs like space and anticipating growth rate. GBL had additional space that wasn t well utilized, Tolley said, to the point that the agency had been kicking around finding new digs when its lease expired. (Pittsburgh Business Times, PA)
For the Philadelphia Orchestra, money isn't everything Nov 25, 2008
Fixed costs are led by salaries and wages, totaling $17. 8 million a year, according to tax records. (Philadelphia Business Journal, PA)
New Indiana budget could be tough on schools Nov 25, 2008
Mark Eastridge, superintendent of Crawford County Schools, said the district has many fixed costs like health insurance, salaries and utilities. "If we're going to cut, we unfortunately have to look at staffing," he said. (Rensselaer Republican, IN)
For Detroit, Chapter 11 would be a disaster Nov 25, 2008
So once a bankruptcy proceeding got started, the company's revenue would plummet, leading it to hemorrhage cash to cover its high fixed costs. That would thwart any attempt at reorganization, and the case would likely move inexorably toward liquidation under Chapter 7 of the federal bankruptcy code. (International Herald Tribune -- Ed/Op)
Glacier bound by tight budget Nov 24, 2008
Cartwright arrived this summer from the top post at Shenandoah National Park, where fixed costs payroll and utilities and such consumed a full 98 percent of the park's total budget ... And within a few years, Cartwright had created at least a little wiggle room with fixed costs reduced to 94 percent of the overall budget ... Fixed costs are a problem from the very top on down. (Missoulian, MT)
Macquarie slims down Nov 22, 2008
Macquarie's relentless expansion has embedded in the organisation high fixed costs. The cost to income ratio was 75. (Business Spectator)
When the wheels fell off Nov 21, 2008
" Nardelli said that with credit markets frozen, customers could not secure finance to buy or lease new cars, and dealers could not find finance to place orders, in turn drying up cash flow to the manufacturers, which were burdened with heavy fixed costs. Wagoner says the industry realised the "heady days" of a few years ago were driven by low-cost credit and unsustainable growth in home equity loans. Of the three, Ford is the only company assured of surviving next year without the bail-out... (Sydney Morning Herald -- Business)
NH gov proposing only limited cuts Nov 20, 2008
If that goal was achieved, the budget gap would shrink dramatically, but it won't happen without pain because rising energy and other fixed costs must be paid at the expense of other things. Agencies had asked for an additional $457 million just to continue existing programs in the next budget. (Concord Monitor)
Cruise lines set new sails in rough financial seas Nov 20, 2008
Megaships can be more profitable because they let cruise lines spread fixed costs across a larger base of customers and boast more ways to goose revenues from onboard restaurants and shops. "Even in today's climate, these ships are so economical they will produce a very healthy cash flow," CEO Fain insists. (MSNBC -- Politics)
Auto industry bailout bombs in TBJ poll Nov 20, 2008
Few industries have the pension fund and benefits requirements that the auto industry does, so maybe the question becomes how to subsidize these fixed costs rather than talk about a "bailout". Unfortunately, the overall economy of the US is intertwined with the auto industry. (Raleigh Triangle Business Journal, NC)
Inflation or deflation? Nov 19, 2008
Lower production volumes against which fixed costs can be amortized will also increase unit costs. The overall effect will be sharp upward pressure on prices - those continuing to sell at a loss to keep the factory at its most efficient output level and workers employed will be rapidly driven out of business. (Asia Times Online)
Oregon ranks No. 3 for hunger in U.S. Nov 19, 2008
"Food is your only flexibility left because you have set fixed costs you have to pay," said Joan Smith, executive director of Loaves and Fishes. With winter approaching, organizers say it will likely get worse before it gets better. (KGW Northwest NewsChannel 8, OR)
Has Abercrombie Lost Its Shirt? Nov 18, 2008
With such soft sales trends persisting, the company's business model is un-leveraging as fixed costs are eating away at margins. Store and distribution expenses as a percentage of sales increased 660 basis points. (MSNBC -- Business)
Moving 6th-graders Nov 16, 2008
"Inflationary costs have just eaten a hole in our budget. Utility costs have risen 10 to 15 percent. Fixed costs are outpacing the revenue stream from the state," Reed said. "If the state gives you a 0 or 1 percent budget increase and costs increase 10 to 15 percent, the only place that money can come from is the local taxpayers. That's the challenge at hand." In 2007, the public approved a 6 million levy, a 20 percent increase from the amount passed two years earlier. (Pocatello Idaho State Journal, ID)
Q+A with CP Rail's Fred Green Nov 15, 2008
It sounds a bit odd, but if you look at our industry's history in the 1980's, the 1990's, and even in the early 2000's, our existence was really a function of our ability to trim and manage and maintain costs and minimize fixed costs. It's really only in the last three or four years that we had to almost relearn the ability to grow and the kinds of skills and competencies to do that. (Financial Post)
Economic slump a drag Nov 15, 2008
In a conference call on Delta s financial results last month, he said the company is committed to cutting out fixed costs. Delta has pledged not to close any hubs or lay off any frontline employees as a result of the merger. (Atlanta Journal-Constitution -- Business)
Hammonds Industries, Inc. Reports Quarterly Results for the Three and Nine Months Ended September 30, 2008 Nov 15, 2008
Margins are anticipated to increase during the fourth quarter of 2008 as a percentage of revenues as a result of improved absorption of fixed costs over an increasing revenue base and manufacturing efficiencies resulting from new, more efficient equipment and production techniques. Selling and administrative expenses decreased to $1,102,374, or 61% of revenues, for the three months ended September 30, 2008, compared to $1,427,085, or 46% of revenues for the three months ended September 30, 2007. (Primezone Releases)
DHL continuing to pursue UPS deal Nov 14, 2008
It s an agreement based on volume as opposed to fixed costs. and that is a significant advantage, particularly in a down economy when volumes are declining. (Columbus Business First, OH)
LAB Research Announces its 2008 Third Quarter Financial Results - Record backlog, but studies delays and cancellations impact results Nov 13, 2008
The negative variances are explained by lower than anticipated revenues in all operating units as explained above since our sites operate which a high proportion of fixed costs. However, the decrease in gross margin in Canada was expected as we proceeded with the hiring and training of new employees required to perform studies in the expanded facility completed on September 30, 2008. (Canada Newswire)
Giant Interactive Announces Third Quarter 2008 Results Nov 13, 2008
Fixed costs, such as Internet data center rental fees, depreciation of game servers and compensation for customer service representatives, increased by approximately RMB4. 0 million sequentially. (PR Newswire)
Toyota Emergency Cost-Cut Committee Review Includes Labor, Capital Costs Nov 13, 2008
Production capacity upgrades over the past few years have pushed up fixed costs, and we think some automakers may have to alter their production structures. . (Bloomberg -- Japan)
Booking next hotel stay should be easy Nov 12, 2008
Once hotel managers see occupancy levels dip into the 50 percent range, they can be expected to cut rates to maintain occupancy levels and better cover fixed costs, Woodworth says. But even if prices stay flat, travelers would get a break. (Honolulu Advertiser)
Bad advice may cost county $30,000 Nov 12, 2008
Commissioner Scott Shackleton, however, argued that the additional costs could threaten future services because of the fixed costs associated with the increase. Shackleton was joined by commissioners Don Cooper, Jim Moore and Dick Timmer in defeating the proposal, while Postula's side was backed by Chairman Earl Kay and Commissioner Bernard LaJoie. (Sault Ste Marie Evening News, MI)
Starbucks Profit, Outlook Disappoint, Shares Fall Nov 11, 2008
The CEO said Starbucks was finished with a restructuring that lowered fixed costs and resulted in many in-store changes that should help the company deliver earnings growth in fiscal 2009, despite a tough economic environment with no immediate signs of improvement. "We appear to be more resilient than many other premium brands," said Shultz, who did not mention up-and-coming specialty coffee rival McDonald's Corp during the company's conference call with analysts. (ABC News -- Wire)
Triple whammy on taxes Nov 10, 2008
The economic woes of the NSW economy can be partly explained by the barriers and fixed costs imposed on residential construction. NSW is paying the price for an onerous and complex taxation and charging regime, which is not only sending more and more key workers interstate but bankrupting the state. (Sydney Morning Herald -- Opinion)
AutoCanada Income Fund releases financial results for the reporting period ended September 30, 2008 Nov 10, 2008
QUICK SEARCH BY ORGANIZATION. FREE SUBSCRIPTION SERVICES. (Canada Newswire)
MIKE'S LABOR PAINS Nov 10, 2008
Worse, though, the mayor is committing to ever-higher fixed costs even as we'll see a deflation in our tax revenues. With the financial industry so decimated that huge portions of it have gone bankrupt or fallen into government hands, the mayor's revised tax-revenue projections - a 7 percent decline this year and a 1. (New York Post -- Opinions)
