IBM Corp. last week said profits rose 3 percent, less than expected, as the company's key services business fell short of sales goals and higher pension costs hurt the bottom line.
The company said net income rose to $1.4 billion, or 85 cents a share, compared with $1.36 billion or 79 cents a share a year ago. Analysts surveyed by Thomson Financial had expected IBM to earn 90 cents a share.
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While IBM sales "were on target" during January and February, the firm saw a "fall-off" across most of its business lines in March, Chief Financial Officer Mark Loughridge told analysts on a conference call after the results were announced.
The storage division ran into problems delivering new equipment, and was forced to substitute older storage equipment at steep discounts, Loughridge said. But revenue still grew by 5 percent, he said.
Sales of the firm's hardware totaled $6.7 billion, flat with a year ago or down 2 percent accounting for the effects of foreign currency conversions. The company, with hundreds of thousands of former workers, also was hurt by rising pension costs. Excluding the impact of pension expenses, the firm's earnings would have been up 20 percent from a year ago, Loughridge added.
Governor's Award goes to 12 Southern Arizona firms
Representatives of 38 companies that plan to create more than 12,000 jobs and make more than a half billion dollars in capital investments last week were honored in Phoenix with the Governor's Advantage Award from the Arizona Department of Commerce. All of the companies either located in the state or expanded their operations here during the last half of 2004.
Southern Arizona companies receiving the award included 10 from Tucson and two from Sierra Vista. The Tucson companies were: Bombardier Jet Services, Citi Cards, Cognis Corporation, DunnAir Business Jet Completion Center, IBM, OZ Optics, Plastic Technology West, Sion Power Corporation, Technology Development Research Institute, and Ventana Medical Systems Inc. The two Sierra Vista companies were: ISIS and Northrop Grumman Corp.
KUDOS
Emich wins Subaru certification
Emich Subaru, 6350 E. Grant Road, has been awarded Subaru's Stellar Performer Certification.
Subaru of America established the certification program, which focuses on improving overall quality and consistency for Subaru customers through six specific areas of customer impact identified as the foundation of dealer evaluation.
NEW IN TOWN
Third Wingstopopens in Tucson
A third Wingstop restaurant, and the chain's 227th, has opened at 3122 N. Campbell Ave.
Mike and Sherry Hill, owners of Wild West Wings, LLC, will open one more Tucson store as part of their franchise agreement. The Hills' other two stores are at 2500 N. Silverbell Road, and 7940 E. Broadway.
The restaurants have a nostalgic, aviation-themed atmosphere focusing on chicken wings in nine different flavors, along with side dishes.
MANUFACTURING
Hamilton Aerospace gets contract with BCI Aircraft
In a contract negotiated by parent company, Global Aircraft Solutions, Hamilton Aerospace Technologies in Tucson will be performing heavy maintenance and fleet integration work on a Boeing 737-200 aircraft owned by BCI Aircraft Leasing.
The contract is expected to be the first of several for the international commercial aircraft leasing company which serves commercial airlines in Europe, North and South America, Africa, Russia and Japan. Most of the maintenance work will be on Boeing 737 and Boeing 757 aircraft.
EDUCATION
UA Optical Sciences, Eller Collegeto offer dual graduate degree
The University of Arizona is offering a new dual-degree program leading to two degrees in two years: Master of Science in Optical Sciences and Master of Business Administration.
Called the MS + MBA, the program unites two of the university's top educational institutions - the Optical Sciences Center and the highly-ranked Eller College of Management. The goal of the program is to prepare students for leadership and/or entrepreneurial ventures in optical design and engineering, hardware design, medical technology, lasers and electro-optics, fiber optics, communications, electronics, and a number of other optical specialties.
Breault sponsors award at engineer's design day
Breault Research Organization will sponsor an engineering award at the April 28 Engineering Design Day, a showcase of work by senior-level undergraduates from all the disciplines within the University of Arizona's College of Engineering.
Breault Research will be presenting the "BRO Best Overall Optics Award" to the winning optical engineering team.
This is the third year for the event, which includes more than 60 senior design teams comprised of 300 students who will be graduating in May. Also participating will be local elementary and high school students, including the MESA program for underserved populations in math and science.
Their projects will be judged by more than 50 industry expects from local engineering and research companies, including Breault Research.
For more information call Michael Stevenson at Breault Research at (520) 721-0500, ext. 189.
UTILITIES
Fluor chosen to complete joint-venture power plant
Fluor Corp., an Aliso Viejo, Calif., engineering and construction company, has been selected by Tucson Electric Power Co., Phelps Dodge Energy Services and PNM Resources to finish the 570-megawatt Luna combined cycle power plant jointly owned by the three companies in Deming, N.M.
Construction of the power plant was 50 percent complete when work was suspended by the original owner in 2002. Under terms of the partnership's contract, Fluor will handle all engineering, procurement and construction work on the plant through commissioning in the summer of 2006.
FINANCE
Tucson think tanks says trust crucial to e-banking
A report by the Tucson-based Ponemon Institute has found that the level of trust people have in their bank is the single greatest predictor as to whether they will be willing to perform a variety of more complex online banking tasks.
The 2005 Privacy Trust Survey, sponsored by Watchfire of Waltham, Mass., said that trust in the security of online transactions is slow to establish, while even a single breach of bank security could result in a 57 percent drop in use of online banking services.
Ponemon Institute is a think tank dedicated to advancing information management practices in the public and private sectors. The institute also maintains offices in Michigan and Amsterdam.
More information is available at www.ponemon, org.
Fitch publishes warning on Tucson business parks
Tucson Airport Center and Oakridge Center, owned by American Southwest Financial Securities Corp., have been listed as "loans of concern" by Fitch Ratings Service, due to declines in net cash flow caused by declines in occupancy.
As of the third quarter of 2004, Tucson Airport Center was 60.6 percent occupied, with 24.4 percent of the net rentable area leased on a month-to-month basis. Oakridge Center was 46.8 percent occupied, with 43.5 percent of the space leased on a month-to-month basis.
HEALTH CARE
ImaRx Therapeutics treats patient with new stroke drug
Tucson-based ImaRx Therapeutics, Inc. recently announced that its new stroke drug, SonoLysis, has been used to treat the first patient in a new clinical trial evaluating its safety and effectiveness. SonoLysis combines external ultrasound and ImaRx's proprietary nanobubble, and is designed to clear blood clots quickly and without the use of invasive surgery or potentially dangerous lytic drugs.
The SonoLysis nanobubble is injected intravenously to accumulate at the site of a blood clot. With the application of ultrasound, the bubbles are designed to pulsate and break apart to destroy the clot. SonoLysis has the potential to clear clots more quickly than the current standard of care, which is important because faster treatment can help minimize the neurological damage and disability caused by strokes.
Dr. Weil named one of Time's 100 most influential people
Dr. Andrew Weil, University of Arizona professor and founder and director of the university's program in integrative medicine, was named to Time magazine's 100 most influential people list in its April 18 issue. Time's list includes profiles of the lives and ideas of the world's most influential people and is split into five categories: leaders & revolutionaries, builders and titans, artists and entertainers, heroes and icons, and scientists and thinkers. Dr. Weil appeared in the "scientist and thinkers" category.
GOVERNMENT
City begins remodeling of Golf Links Center
To ensure compliance with new security requirements issued by the U.S. Department of Homeland Security, the City of Tucson's General Services Department will be remodeling the front entrance of the Golf Links Municipal Center, 9640 E. Golf Links Road.
The Tucson-Pima Library's Miller-Golf Links Branch and Rincon Police Substation, will remain open during the construction.
Kolbe leads Jamaica, Central America tour
To learn more about proposals for assistance from the Millennium Challenge Corp. and the Central American Free Trade Agreement, Rep. Jim Kolbe led a delegation of five U.S. House members on a tour of Honduras, Nicaragua and Jamaica, last week.
Millennium Challenge Corporation was established on January 23, 2004 to administer a "new compact for global development", which links greater contributions from developed nations to greater responsibility from developing nations in human rights and economic freedom. Congress has provided nearly $2.5 billion in funding for fiscal 2004-2005. The President has requested $3 billion for fiscal 2006 and pledged to increase annual funding to $5 billion in the future.
Yuma businessman guilty of attempt to bribe IRS
Stephen "Buddy" Merten of Yuma, operator of B&B Amusements, pled guilty to attempting to bribe a revenue officer of the Internal Revenue Service. Merten offered the agent $20,000 to eliminate approximately $300,000 in delinquent payroll taxes.
He now faceS a maximum penalty of $900,000 or 15 year's imprisonment.
Sun Tran presents series of downtown concerts
Ronstadt Transit Center, at 215 E. Congress Street, is the site of a series of free Friday evening concerts, presented by Sun Tran, the City of Tucson Department of Transportation, and the city's Department of Parks & Recreation.
The 4:30-5:30 p.m. concert on April 22 will be Mariachi Monarca. It will be followed, on April 29, by Mariachi Milagro. Ballet Folklorico Mexica will perform May 6 and the Armory Park String-A-Longs will appear on May 13.
For further information on the Spring Concert Series, call Robin Landers at the Armory Park Senior Center at (520) 791-4865.
EVENTS
Date change for Chamber's sign code task force meeting
The next meeting of the Tucson Metropolitan Chamber of Commerce's Sign Code Task Force has been rescheduled for 7:30 a.m. May 5 (instead of April 22).
The change was prompted a change in the city's planned public hearing by Citizen Sign Code, which will now be May 2. The Chamber's task force meeting will review the public hearing and plan for the City Council's public hearing. The task force meeting will be in the Chamber offices, 465 W. St. Mary's Road. For information, contact Levi Jackson at (520) 792-2250, ext. 129.
PCC offers open house at Desert Vista Campus
Training for health occupations, business and office and food service careers will be the topic of a 10-11:30 a.m. open house Friday (April 22), in the Pueblo Building, Room B-111, at the Desert Vista Campus of Pima Community College, 5901 S. Calle Santa Cruz.
The informational meeting is sponsored by the Center for Training and Development at the campus. For further information or registration, call (520) 206-6500.
Pima offers orientation for aviation programs
Prospective students are being offered three orientation sessions during April and May to learn more about aviation airframe and power plant programs at Pima Community College's Aviation Technology Center.
The 10 n to 19-month program will be introduced by faculty and staff at 7 p.m., April 26, at the Aviation Technology Center campus, at 7211 S. Park Ave. The session will be repeated at 7 p.m., May 10 and May 24.
For further information, call (520) 206-5910.
Resort chef's menu to help raise money for special ed
Ron Moler, executive sous chef at Westward Look Resort, will prepare a three-course dinner to raise money for special education students at noon April 27 in the cafeteria at Cholla High Magnet School, 2001 W. Star Pass Blvd.
Moler's meal, which will be prepared entirely in the school cafeteria, will include peach bisque soup, tri-tip with rosemary jus, cilantro whipped potatoes, chef's choice vegetables and chocolate nachos for dessert. Entertainment will be provided by Cholla's mariachi group.
The event costs $10 per plate and all of the proceeds will benefit Cholla's Community Based Instruction, which immerses special education students into the community to teach them work and life skills.
ASBA to host labor law seminar
The Arizona Small Business Association is sponsoring a day-long seminar on labor laws on April 29. Subjects covered will include hiring; termination; health and safety; civil and other rights; and hours of work and payment of wages. The seminar is from 9 a.m. to 4 p.m. at the ASBA conference center at 4811 E. Grant Road, Suite 261. Costs: $60 for members and $75 for non-members; lunch is included. To register, call (520) 327-0222.
McMahon's Steakhouse hosts CODAC fundraiser
For the fourth year, Tucson horse racing fans are being invited to watch the Kentucky Derby at a fundraiser to benefit CODAC Behavioral Health Services. This year, "Run for the Roses" will be 2-5 p.m., May 7, at McMahon's Prime Steakhouse, 2959 N. Swan Road.
Tickets are $100 and are available by calling (520) 202-1746.
Rental property investors present May 13 meeting
Tucson chapter of the Independent Rental Owners Council will meet at 11:15 a.m., May 13, at the offices of Title Security Agency, at 6390 E. Tanque Verde Road. The meeting is sponsored by the Arizona Multihousing Association.
For further information or reservations, call (800) 326-6403.
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