Executive Business Briefing

Here is a look at more of Thursday's top business stories:

Cigna cuts 2,000 jobs

PHILADELPHIA, Jan. 10 (UPI) -- Cigna Corp., the nation's third largest health insurer, said it will eliminate 2,000 jobs, or 4.6 percent of its total workforce, and take a $65 million charge in the fourth quarter as it consolidates service operations in its employee health, life and disability benefits units.

Cigna, which employs 43,900, said it expects the restructuring to result in savings of about $45 million to $55 million in 2003.

The insurer also said it expects operating income for full-year 2001 and 2002 to be in line with previous guidance, excluding the restructuring charge and other one-time items.

The company has said it expects to post a profit in a range of $1.70 to $1.90 a share in the fourth quarter of 2001. Cigna expects to post earnings per share in a range of $7.00 to $7.20 for full-year 2001 and $7.50 to $7.80 for 2002.

The $65 million after-tax charge consists of about $33 million of severance costs and $32 million of facilities costs, Cigna said. The charge equals $100 million on a pre-tax basis.

Healthcare customers will be moved to new service platforms in nine primary service centers and several specialty service centers and existing health care service operations will be consolidated into regional centers, the company said.

"The actions that we announced are part of our strategic commitment to further improve service for our customers and members," said H. Edward Hanway, chairman and chief executive officer.

Cigna provides medical benefit plans to more than 14 million members and dental plans to more than 13 million members.

Equifax to meet earnings expectations, cuts 700 jobs

ATLANTA, Jan. 10 (UPI) -- Equifax Inc., the largest credit-reporting agency in the United States, said it expects to meet Wall Street expectations for the fourth quarter, excluding about $60 million in special charges.

Equifax also said it expects to cut about 700 jobs, primarily outside the United States.

The company said solid results from its North American consumer reporting business would lead the company to meet the consensus estimate of 32 cents a share.

The company said it expects to report 2002 operating earnings of $1.38 to $1.40 a share, including the impact of a new accounting rule that eliminates the amortization of goodwill.

Analysts on Wall Street are expecting earnings of $1.25 a share, according to Thomson Financial/First Call.

Equifax said it expects to report charges for restructuring and other items of about $60 million, or 25 cents a share, in the fourth quarter, more than half of which stems from employee severance and the closing of facilities.

In 2002, the company expects to save $20 million from the measures.

Equifax will report fourth quarter and year-end results on Jan. 24.

Sales slip 1.0 percent at Limited

COLUMBUS, Ohio, Jan. 10 (UPI) -- Limited Inc., the specialty apparel chain, said sales at its stores open at least one year slipped 1.0 percent in December.

The retailer also forecast that fourth quarter earnings would beat Wall Street estimates thanks to better-than-expected profit margins last month.

The retailer, which operates Express, Limited, Structure and Lerner New York stores, said total sales for the five weeks ended Jan. 5 fell to $1.74 billion from $1.89 billion during the same period a year earlier.

Excluding sales in 2000 from the Lane Bryant unit, which was sold off last August, overall sales fell 1 percent.

Limited said December sales and margin results were better than expected and, as a result, the company stated that it now expects to exceed the current First Call consensus estimate for the fourth quarter of 51 cents per share.

Despite the strength late in the holiday season, the company said it remains cautious in its outlook for both January and the spring season of 2002, as future customer traffic and spending levels are uncertain.

The company also anticipates that the overall economic environment will remain challenging. The Limited operates 2,046 specialty stores.

Gottschalks posts lower sales

FRESNO, Calif., Jan. 10 (UPI) -- Department store chain Gottschalks Inc. reported declines in same-store sales, or sales at stores open at least a year, for both December and the 2-month holiday season.

Gottschalks, operator of 74 department stores, mainly in California, said its same-store sales for December declined by 4.5 percent from the prior year due to the calendar shift of one holiday season week from December last year to November this year.

Total sales for December totaled $133.1 million, a 7.2 percent decrease from $143.4 million for the same month of the prior year.

For the holiday selling period including November and December, same store sales declined 0.2 percent from a year ago.

Total sales were $205.8 million, a 3.0 percent decline from $212.2 million for the same 2-month period in the prior year.

The company said its gross margin percentage for the 2-month period increased compared to last year, and its inventory at the end of December was 9 percent below last year in comparable stores.

"We are pleased with the overall results of the holiday selling season," said Jim Famalette, president and chief executive officer.

"Combining the months of November and December, our comparable store sales were nearly equal to last year's record level. More importantly, these results were achieved with an increase in gross margin percentage compared to last year," he added.