Merck posts flat earnings, to cut 4,400 jobs

[UpInArms]

http://cbs.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=3093&guid=%7B5C640EA3%2D54DE%2D4A69%2DBA07%2DA76EF0C6A84B%7D

NEW YORK, Oct 22 (Reuters) - Drugmaker Merck & Co. Inc. (MRK) on Wednesday posted roughly flat third-quarter earnings, falling short of expectations, and said it would cut 4,400 jobs to reduce costs.

Merck also announced a new drug distribution plan and said that the new plan and the cost of the job cuts would cause its full-year earnings to fall short of Wall Street estimates.

<snip>

Quarterly sales rose just 6 percent to $5.76 billion in the quarter, shy of the average forecast of $5.87 billion among analysts polled by Reuters Research, a unit of Reuters Group Plc.

In a move to reduce costs, Merck said plans to cut about 3,200 positions, or about 5 percent of its full-time work force, as well as 1,200 contract or temporary employees. The move comes as economic analysts are examining whether employers will hire more workers as part of an economic recovery that has so far lacked significant job growth.

...more...

[madrchsod]

1. i thought there was going

to be job growth with bush`s tax cuts? well there`s another 4000+ that need to be created. i guess if q sales rise just 6% you better cut employee`s to make those stockholders fat and happy....

[leftchick]

3. never fear, more tax cuts planned for the campaign rollout in 04!

Just think, we could lose millions more jobs before 2004 is out! The average joe/jill who vote repuke are insane!

[saigon68]

11. Don't worry because they will equate the next DEM with Gun Control

Hunting season is staring in Wisconsin, and the number of "Sportsmen for Bush 2004" bumper stickers is overwhelming. Don't take their guns away.
There were 800,000 deer tags sold last year. About 1/2 of these people should be Democrats because of labor,-- 90% of these people should be Democrats because of their economic interest. Every election they defect because some idiot espouses Sarah Brady's nonsense and the local REPUKES seize on it and scare these people.

[DrBB]

2. And the recovery rages on!

Can nothing stand in the way of this wild juggernaut? What a triumph it has been for conservative economics!

[John_H]

4. Oh no!!!! That's going to cost Nader millions!!!!!

Hopefully his wal-mart and viacom positions will pick up the slack.

[MetaTrope]

5. Well surprise, it's not like anyone can afford their prices anymore

:nopity:

[Catshrink]

6. This is bad

Now the "jobless recovery" is hitting what have been considered rock solid companies and industries. This is bad. I wonder if these jobs are going to India also?

This was my industry so I'm watching carefully. What will happen at Lilly, Abbott, Pfizer, etc.?

[Frangible]

7. err huh?

Their sales INCREASE and they fire people to get even more money? Does that seem dumb to anyone else?

[OrAnarch]

9. yep

First thing that stuck out to me in the article. And for me to think any profit is good. Ridiculous corporations. If they weren't so concerned about every penny of profits, perhaps they would be able to keep employees, who could then afford to buy the produce of other corporations, in a reciprocal fashion. But hey, what do I know. Deflation is better, eh? Greedy bastards.

[jayfish]

8. These Kinds Of Cuts Are Announced Everyday.

But because they are not huge pharmcos or telcoms we rarely hear about
them in the national media.

http://www.mlive.com/news/grpress/index.ssf?/base/news-0/1066833929289220.xml

-SNIP-
Montcalm County's largest employer announced it may send 2,700 production jobs to Mexico. Today workers, suppliers and business owners such as Edison are bracing for a suddenly uncertain future.
-SNIP-

-SNIP-
In addition to the immediate job loss, it is estimated another 2,160 jobs, ranging from restaurant workers to teachers, will evaporate, according to a projection by Calvin College sociology professor Evert VanDerHeide.
-SNIP-


Our area has been going through the death of a thousand paper cuts for the last 2 1/2 years. 200 jobs lost here, 500 there, throw in a grand for good measure. I'll give Dick Gephardt a shout on this one ... his protectionist policies sound better by the day.

Jay

[VolcanoJen]

10. Kick!

:dem: