Shifts in Corporate Leadership and Industry Trends

Strategic Insights -

Peter Jennings' successor at ABC is still uncertain as the company waits and sees, while Robert S. Miller, CEO of auto parts supplier Delphi, warns of bankruptcy due to labor costs. Boston Scientific's Taxus stent has transformed the company into a cash-rich powerhouse, but it is heavily dependent on the product for over half its earnings. The Securities and Exchange Commission is investigating doctors who accept money to discuss clinical trial results. Meanwhile, Whirlpool raises its bid for Maytag to $20 a share, and regulators sue two former Citigroup executives for securities fraud. President Bush signs energy legislation, and the new law weakens limits on exports of highly enriched uranium.

Key Takeaways:

  • General Motors has found success with its $5,000 minivans that get 43 miles to the gallon in city driving, but the executive who led their development has left the company.
  • Peter Jennings' successor at ABC is still uncertain as the company waits and sees.
  • Robert S. Miller, CEO of Delphi, warns that the company may seek bankruptcy protection if it does not significantly reduce its labor costs.
  • Boston Scientific's Taxus stent has transformed the company into a cash-rich powerhouse, but it is heavily dependent on the product for over half its earnings.
  • The Securities and Exchange Commission is investigating doctors who accept money to discuss clinical trial results.
  • Whirlpool raises its bid for Maytag to $1.62 billion in cash and stock, or $20 a share.
  • Regulators sue two former Citigroup executives for securities fraud, accusing them of shortchanging mutual fund investors.
  • President Bush signs energy legislation that weakens limits on exports of highly enriched uranium and encourages increased domestic oil and gas production.
  • The new energy law creates incentives for alternative energy sources and requires modernization of the nation's electrical grid.
  • Concerns over Middle East supplies and refinery shutdowns push crude oil to a record $64 a barrel on the New York Mercantile Exchange.
  • The Mexican government is selling the two national airlines, Aeromexico and Mexicana, to create competition and authorize as many as five budget airlines.
  • Weight Watchers International is moving its corporate headquarters from Woodbury, N.Y., to the Flatiron district of Manhattan.
  • Delta Air Lines loses its chief lobbyist and treasurer.

Statistics:

  • 43 miles per gallon in city driving for G.M.'s $5,000 minivans.
  • $20 a share offered by Whirlpool for Maytag.
  • 0.2 percent decline of the Dow Jones industrial average.
  • 0.62 percent drop of the Nasdaq composite index.
  • 21.10-point decline of the Dow Jones industrial average.
  • 13.52-point drop of the Nasdaq composite index.
  • $64 a barrel: the record price of crude oil on the New York Mercantile Exchange.
  • 10,536.93: the close of the Dow Jones industrial average.
  • 2,164.39: the close of the Nasdaq composite index.
  • $1.62 billion: the amount of Whirlpool's bid for Maytag.
  • 40 years: the age of Weight Watchers International.

Sources:

  • Page A1: The New York Times.
  • Page C1: The New York Times.
  • Page C3: The New York Times.
  • Page A12: The New York Times.
  • Page C7: The New York Times.
  • Page C4: The New York Times.
  • Page B5: The New York Times.
  • Page C3: The New York Times.
  • June: $14.54 (Maytag share price).
  • July: $18.58 (Maytag share price).