Lockheed Martin Reveals Plan for 4,000 Layoffs
Lockheed Martin announced Thursday it will close three of its plants by the middle of 2015, cutting 2,000 jobs in the process, and also trim down several of its divisions to further reduce payroll by another 2,000 jobs. The cuts are just the latest by a major US defense contractor as the industry moves forward following the latest round of government defense spending cuts. The three plants that Lockheed plans to close are in Newtown, Pennsylvania, Goodyear, Arizona and Akron, Ohio. The divisions the company is downsizing are its Information Systems & Global Solutions business, its Mission System and Training unit and its Space Systems segment.
Twitter Stock Soars Nearly 75 Percent in IPO
Microblogging giant Twitter went public late Wednesday, pricing its shares at $26 apiece. The initial public offering raised about $2 billion for the company, giving it a public valuation of $18.34 billion. But that was Wednesday. When trading opened on the New York Stock Exchange Thursday morning, the shares had already up more than 75 percent at $45.10 per share. The stock, which trades under the ticker symbol TWTR, rose above the $50-per-share mark during Thursday's session, though it trailed off later in the session to finish at $45.41 per share. That represents a 74.65 percent first-day gain and gives the company a market cap of $24.46 billion.
AOL Posts Solid Third Quarter Despite Writedowns Related to Patch Business
AOL Inc issued its third quarter results Tuesday, posting a solid, 6 percent surge in revenue that CEO Tim Armstrong said underscores an emerging “mega-trend” within the online advertising space. The company benefited from an increase of over 13 percent in ad revenues, which helped offset a series of writedowns and restructuring costs related to its struggling Patch local news service, where earnings declined a staggering 90 percent since 2012's third quarter. Advertising sales, meanwhile, rose 13.5 percent year-over-year to $386 million, accounting for more than two-thirds of AOL's total third-quarter revenue of $561 million.