Here is a look at Tuesday's top business stories:
Tokyo stocks fall for fifth day
TOKYO, Jan. 15 (UPI) -- Stock prices on the Tokyo Stock Exchange ended lower for a fifth day Tuesday, pressured by weakness in technology blue chips following Monday's slide on Wall Street.
Stocks also lost ground in Hong Kong, Seoul, South Korea, Taipei, Taiwan and Sydney, Australia.
Japan's blue-chip Nikkei Stock Average of 225 selective issues, which lost 96.84 points on Friday, fell another 233.54 points, or 2.24 percent, to 10,208.05. Japanese markets were closed Monday for a national holiday.
The broader Topix index fell 19.62 points, or 2.0 percent, to 980.32 -- its lowest close since October 1998, when it set hovered at 980.11.
Declines swamped advances 1,072 to 298, while another 120 issues settled unchanged.
Analysts said major technology and bank issues retreated following the Nasdaq's fall and the yen's gain against the U.S. dollar.
The yen rose against the dollar after a Chinese central bank official said the yen's continued slide may hurt other Asian nations by causing a devaluation throughout the region.
The yen's strength hurt export-oriented technology companies that had enjoyed hefty gains in recent sessions, buoyed by expectations of a recovery in the U.S. economy. Such hopes started ebbing, however, on fresh concerns over U.S. corporate earnings.
In trading, Japan's technology bellwether Sony Corp. sank 5.5 percent, Hitachi lost 4.4 percent and NEC Corp. dropped 4.5 percent.
Analysts said another slew of corporate failures also prompted investors to step up selling of some banks that faced rising credit risks.
An already fragile market suffered another blow after home builder Shokusan Jutaku Sogo filed for court protection from creditors with debts of $102.4 million. Its shares settled at 1 yen, down 97 percent from the previous close.
The news triggered heavy selling in banks as investors feared the country's deteriorating economy would lead to more bankruptcies, consequently increasing unrecoverable loans among lenders. Such fears also were highlighted by rising speculation that debt-ridden supermarket chain operator Daiei might seek some debt-forgiveness.
Mizuho Holdings, the world's biggest banking group, lost 0.7 percent, Asahi Bank fell 1.3 percent but UFJ Holdings settled unchanged.
Elsewhere in Asia, prices on the Hong Kong Stock Exchange ended sharply lower, as a gloomy outlook for the U.S. economy and corporate profits continued to eat away at the market.
The blue-chip Hang Seng Index fell 195.84 points, or 1.75 percent, to 11,013.59. The broader All Ordinaries Index lost 78.19 points to 4,764.76.
Analysts said remarks from U.S. Federal Reserve Chief Alan Greenspan last week that risks for the U.S. economy still may be skewed to the downside turned market sentiment defensive.
In trading, Citic Pacific plunged 9.44 percent following a flurry of analyst downgrades. Conglomerate Hutchison Whampoa dropped 1.7 percent, China Mobile lost 1.8 percent and China Unicom lost 1.2 percent.
Meanwhile, prices ended lower on the South Korean Stock Exchange as investors, particularly foreign investors, took profits on recent gains.
The Korea Composite Stock Price Index, or Kospi, fell 25.39 points, or 3.41 percent, to 718.64 -- its lowest close so far this year.
Declines hammered advances 643 to 168, while another 41 issues settled unchanged. Twelve stocks rose by their daily limit and four fell by their limit.
Analysts said investors took profits in nearly all sectors, but semiconductors stocks were hit particularly hard following their sharp rise on Monday.
In trading, Samsung Electronics fell 5.45 percent following a published report its fourth quarter net profit would be sharply lower than a year ago.
Hynix Semiconductor fell 10.9 percent, Good Morning Securities fell 5.18 percent, Samsung Securities lost 4.56 percent and semiconductor-parts maker Mirae dropped 8.2 percent.
Prices also ended lower on the Taiwan Stock Exchange. The Weighted Index slipped 19.12 points, or 0.34 percent, to 5,592.74 as investors moved to lock in gains in chipmakers after the key index soared more than 70 percent since early October to a nine-month intraday high last Friday.
Market heavyweight Taiwan Semiconductor Manufacturing eased 0.6 percent and United Microelectronics dropped 2.9 percent.
Elsewhere in the Pacific region, prices ended slightly lower on the Australian Stock Exchange. The blue-chip All Ordinaries Index eased 1.70 points, or 0.05 percent, to 3,348.70.
Volume leader Telstra Corp. lost 0.9 percent while Westfield America Trust gained 2.8 percent.
Tyco results rise 17 percent, warns about next quarter
PEMBROKE, Bermuda, Jan. 15 (UPI) -- Conglomerate Tyco International Ltd. said its first quarter net income rose 17 percent before special items because of acquisitions, cost reductions and growth in existing businesses.
Tyco also warned its current quarterly earnings would fall below Wall Street consensus estimates.
Tyco, a maker of ADT burglar alarms, trash bags, electronics and medical supplies, said its first quarter net income rose to $1.47 billion, or 74 cents a share, from $997 million, or 64 cents a diluted share during the same period a year earlier.
Analysts on Wall Street had expected the company to post a net income of 73 cents a share, according to Thomson Financial/First Call. Revenues rose 25 percent to $10.07 billion.
"Tyco once again produced strong results despite a very difficult economic environment. Strong demand worldwide for our fire and security products and services offerings, coupled with the stability of our healthcare and Tyco Capital businesses, contributed greatly to the results for the quarter," said L. Dennis Kozlowski, chairman and chief executive officer.
Looking ahead, for the second quarter, the company anticipates earnings per share of 80 to 82 cents a share, shy of the 86 cents expected by analysts.
Tyco said the earnings estimate reflects continued uncertainty about the near-term outlook for the electronics end markets. Free cash flow, including spending on the TyCom Global Network, is expected at $800 million to $1 billion in the second quarter of fiscal 2002 and $4 billion for the full fiscal year.
Stolt-Nielsen Transportation cuts 10 percent of staff
GREENWICH, Conn., Jan. 15 (UPI) -- Stolt-Nielsen Transportation Group Ltd., a subsidiary of Stolt-Nielsen S.A., said it plans to cut approximately 10 percent, or 90 staffers, as part of a cost reduction program.
Stolt-Nielsen Transportation Group, which currently employs some 900 workers, estimates the restructuring will enable annual cost savings of $10 million by 2003 by consolidating operations in key regional centers, eliminating some unnecessary management levels.
The program will result in a one-time charge of approximately $10 million in 2002.
CEO Reginald J.R. Lee said, "The consolidation of our customer base in the chemical industry and the resulting needs for improved and more-cost-effective services has required new strategic initiatives to improve our returns, which despite recent improvement, have been less than satisfactory in recent years.
"In early 2001, Stolt-Nielsen Transportation embarked upon a major strategic initiative to improve the utilization of our assets, divest non-core assets, and reduce our cost base," he said.
Lee said, "We have previously announced several aspects of this initiative including combined service agreements with other parcel tanker operators to reduce operating costs and improve utilization; the sale of non-strategic terminals in Perth Amboy and Chicago; and the construction of a new storage terminal in Braithwaite, LA and expansion of terminals in other key ports to increase the synergy between our ships and storage terminals. We are confident that these steps will enable us to better provide cost-effective services to our customers, maintain our leadership position in the industry, and improve shareholder returns."
