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BUSINESS A25
Saturday 5 March 2016
HP Enterprise shares surge 14 percent after strong report
BRANDON BAILEY come more profitable after creased after adjusting for from that segment in future the results provide “con-
Associated Press spinning off from the old currency fluctuations and quarters, as CEO Meg Whit- tinuing evidence” of a turn-
SAN FRANCISCO (AP) — Hewlett-Packard last fall. one-time costs. All told, man carries out previously around for the company,
Hewlett Packard Enter- Hewlett Packard Enterprise computer hardware con- announced plans to cut after several years in which
prise’s stock rose nearly Co. sells commercial tech tributed more than half of staffing and move some the old Hewlett-Packard
14 percent on Friday, a products and services, the company’s $12.7 billion jobs overseas. The results struggled with internal
day after the commercial while another spin-off, HP in revenue for the quarter show “operating margins problems and changes in
technology vendor report- Inc., is focused on personal that ended Jan. 31. improved and we believe tech industry buying pat-
ed solid earnings in its first computers and printers. The company also report- it will likely continue, due to terns. HP Inc., the other
quarter as an independent While total sales were down ed revenue from technol- improved (an)business mix spinoff, disappointed inves-
company. 3 percent from a year ago, ogy services was flat, after as well as restructuring ben- tors last week by report-
Analysts said the results HP Enterprise said revenue excluding the effects of a efits,” said Wells Fargo ana- ing a 12 percent revenue
were better than expected, from computer servers, strong dollar. But analysts lyst Maynard Um in a note drop amid signs that PC
showing the new company data storage systems and said the company should to clients Friday. and printer sales are still
can increase sales and be- networking gear all in- be able to increase profits Credit Suisse analysts said sluggish.q
Wanda’s AMC theater chain to buy Carmike for $1.1 billion
RYAN NAKASHIMA cent higher than the $25.11 A patron walks into a Carmike Cinemas movie theater, in Atlanta. AMC Entertainment, the movie
AP Business Writer Carmike shares closed at theater chain bought by Chinese conglomerate Dalian Wanda Group in 2012, is acquiring rival
LOS ANGELES (AP) — AMC Thursday. chain Carmike Cinemas for $1.1 billion including debt.
Entertainment is acquiring The acquisition will boost
rival Carmike Cinemas to AMC’s theater locations (AP Photo/David Goldman)
create the world’s largest by more than 70 percent
movie theater chain. to well over 600 and in- percent of AMC, was sup- ater closures would “de- Carmike is in smaller mar-
AMC, which Chinese con- crease its screen count by portive of the deal, but he pend on a conversation
glomerate Dalian Wanda half to nearly 8,400. Regal declined to speak on be- with the Justice Depart- kets.
Group bought in 2012, said Entertainment Group, the half of Wanda. ment.”
this week it is paying $1.1 current leader, runs nearly “Clearly, they are support- He noted there are only AMC Entertainment
billion including debt for 7,400 screens in about 570 ive of what AMC is doing, a few markets where the
Carmike. theaters. and what AMC is doing companies’ theaters over- Holdings Inc. is based in
The combined company The boards of both com- is we’re growing our busi- lap and where closures
will be the dominant the- panies approved the deal, ness,” Aron said. might occur. AMC is fo- Leawood, Kansas, which
ater chain in North Ameri- which is expected to close Aron said any possible the- cused on larger cities while
can and signals Wanda’s by the end of the year fol- will be the combined com-
further expansion into the lowing a review by govern-
entertainment industry. ment competition authori- pany’s new headquarters.
Just two months ago, it said ties.
it would spend $3.5 billion AMC CEO Adam Aron said Carmike Cinemas Inc. is
to acquire mid-level studio he hopes the combina-
Legendary Entertainment, tion will boost profits in 2017 headquartered in Colum-
the co-financier of block- and enable about $35 mil-
busters like “Jurassic World” lion in annual savings, while bus, Georgia.q
and “The Dark Knight.” bringing upscale amenities
Wanda is also behind a like alcohol service, reclin-
multibillion-dollar studio ing chairs, and expanded
complex being built in east- food offerings to more ven-
ern China that was used to ues.
shoot the upcoming mov- He said the cost of upgrad-
ie, “The Great Wall.” ing would be “reasonable”
AMC will pay $30 in cash and profitable. He also said
per share, about 19 per- Wanda, which owns 75
Costco hikes entry level wages for first time since 2007
A. D’INNOCENZIO $13.50 per hour, up from a over two years in its work- timates that the turnover profits.
JOSEPH PISANI minimum of $11.50 or $12 force that also includes rate— the percentage Costco Chief Financial Of-
AP Business Writers per hour. The move will better training. Entry-level of part-time workers who ficer Richard Galanti said
NEW YORK (AP) — Costco squeeze profits for the third Wal-Mart workers now get leave within a year— is now that the increase will hurt
is raising entry-level wages quarter and beyond. paid at least $10 per hour. 67 percent for the retail in- its earnings for the cur-
for its hourly workers for the The steps come as other In its first round of wage in- dustry. That’s up from 50 rent quarter by a penny
first time since 2007 as the major retailers have been creases, implemented last percent during the reces- per share, and 2 cents per
warehouse club operator increasing the minimum year, Wal-Mart raised entry sion.Wal-Mart has already share each quarter for the
fights to compete in a tight- wages for their entry-level level wages to $9 per hour. seen sales perk up in its following three quarters.
er labor market. workers. With an improving econo- U.S. business as customer Galanti said he wants to of-
The company told inves- Wal-Mart Stores Inc., the my, it’s becoming tougher experience improves in the fer top salaries at all levels,
tors this week that it will pay nation’s largest private em- to hold on to workers who store. But those investments noting that Costco pays
workers $1.50 more per hour ployer, increased wages can easily jump to another are also squeezing prof- premium wages at the top
in the U.S. and Canada ef- last month for more than job. Craig Rowley, global its. Kohl’s last month also of the scale. For entry-level
fective this month. Workers 1.2 million workers. It’s part leader of consultancy Hay referred to its increase in workers, he described the
will now earn at least $13 or of a $2.7 billion investment Group’s retail practice, es- wages putting pressure on work as tough. q
