Economic & Business Real Estate News Summary
1st Quarter 2008
Rochester Housing – Despite the national decrease in housing industry, Rochester’s sales remains steady. (12/11)
Corning Tropel Corp.- Corning Tropel Corporation received $172,000 in tax breaks to aid the expansion at their Perinton facility. The expansion project will cost about $2.75 million and will create 55 jobs over the next 3 years. (12/19)
Rural Metro - COMIDA approved a $57,600 sales tax exemption for the purchase of 12 new ambulances. Rural Metro is expected to create 12 new jobs in Monroe County. (12/19)
Graham Corp. – Graham Corp. closed 2007 at $52.40, up from $13.12 and the end of 2006, approximately a 300% increase. The company hopes to add 17 workers, to their list of 290 current employees. The company projects $80-85 million in revenue for 2008. (1/2)
University of Rochester – The University of Rochester will receive $1 million as a result of state official’s decision to allocate funds for medical institution stem-cell research experiments. (1/8)
Energy East – Iberdrola do not anticipate major changes at Energy East, the parent company of Rochester Gas & Electric, with their anticipated 2nd quarter takeover. Iberdrola plans to invest $13 billion in renewable energy, along with $7 billion to the US markets, equaling a 1,000 megawatt increase annually. (1/10)
Remax – The 18,000 sq. ft. Re-Max office building was completed recently. Re-Max will use 8,000 sq. ft., the remaining section of the building will be used for professional office space. The building was purchased for $1 million last year, an additional $500,000 was used for renovation. (1/11/08)
University of Rochester - The University of Rochester plans on investing $500 million over the next 5 -10 years in construction, hiring and expanding research to reach their goal of entering the 20 academic medical centers in the country. URMC plans on creating 771 permanent jobs at the medical center by 2015. The job growth could spawn 1,000 additional permanent jobs in the community according to the Center for Governmental Research. (1/18)
Bausch & Lomb – B&L reports that revenue was up 6% in 2007. In addition B&L will purchase Eyetonics Inc., who specializes in prosthetic lens. The terms of the deal were undisclosed. Deal will close by the end of March. (1/21)
Bausch & Lomb - Effective immediately, Gerald Ostrov will replace Ronald Zarella as the new CEO of Bausch & Lomb. (1/24)
Xerox – Xerox ends 2007 with an 8% stock rise. Total revenue from the fourth quarter is $4.9 billion, up from 4.4 billion in 2006. The company netted $382 million, up from $214 million the previous year. The company intends on buying back more of its stock as profits increase. (1/25)
Kodak – Kodak is now the third largest company if Rochester, trailing behind the University of Rochester and Wegmans. At their peak Kodak employed more than 60,000 people. As of 2007, Kodak employed 9,200 full time employees, which is the lowest local work force since before the 1920s.(1/31)
Kodak – Sales for Kodak were up 4%, totaling $3.2 billion for the fourth quarter. Total sales for 2007 were $10.3 billion, down from $10.6 billion in 2006. Despite the revenue decrease for 2007, Kodak is believe to be headed in the right direction in terms of bouncing back from the 2006 restructuring phase. (3/31)
4th Quarter 2007
Xerox – Xerox is trying to purchase Advectis Inc., a privately held electronic filing company, for $32 million in cash (9/13). The CEO of Xerox is expecting profits to grow, and will begin paying their dividend again for the first time in about six years (11/20). Xerox has signed a $70 million contract with the University of Pittsburgh Medical Center for office equipment and support services. The medical center covers 19 hospitals and employs about 45,000 people (11/22).
Housing - Sales of existing homes increased 7% in
August, and the median selling price rose 4% over the same period
in the previous year (9/18). New-home sales plunged in August, hitting
a seven year low. The median new-home sale price fell by 7.5 percent
to $225,700 (9/28). The housing slump deepens in the U.S., with sales
of existing homes down in 46 states in the July-September quarter.
The median sale price for Rochester in October was $114,500, down
from 116,000 in October 2006. Rochester-area sales volume so far is
essentially flat, with 10,763 closings through October, compared with
10,813 for the same period the previous year (11/22).
Jobs – Private sector positions are at the highest level for August in six years. For the month, there were 437,700 people with non-government jobs in the five-county metropolitan statistical area, up 1,400 from a year earlier, and the most since 2001. Total employment was up as well, and the unemployment rate was flat at 4.2%. (9/21) Employers in the region continue to add jobs, creating an eight month stretch of gains. This is the longest string of employment gains since 2005. The nine-county region had 515,700 non-farm jobs last month, up 1,000 from a year earlier. About 85% of those were private sector jobs, with the other 15% being government positions. The unemployment rate in the region was 4.2% in September, up slightly from 4.1% a year earlier. (10/16) The rise in jobs has come to an end in October, with Rochester experiencing a net loss of about 600 jobs. (11/11)
Delphi - Kodak has plans to sell 330 acres of its 390-acre Kodak Park South to Acquest Development LLC of Amherst. Included in this are Building 605, a climate controlled warehouse over 2.1 million square feet in size, and Building 502, a 200,000-square-foot receiving warehouse. (9/27) Delphi Corp. can pay its employees up to a total $37.6 million in bonuses. (9/28)
Corning – Corning Inc. said that it will move its laboratory glassware business from its Big Flats plant to Monterrey, Mexico. About 50 of the 70 union employees working at the Big Flats location will be affected. (9/27)
Pentagon grants – If President Bush approves, millions of dollars could be given to local companies for research projects. Among other businesses in the Rochester region, Delphi Corp. would receive $2.75 million for research into the range of uses for fuel cells. Rochester Institute of Technology would receive $2 million for research into possible Pentagon technology upgrades. Integrated Nano-Technologies in Henrietta would receive $2.4 million for the development of hand-held units that detect biological-warfare chemicals. Impact Technologies in Rochester would receive $4 million to develop more sophisticated monitoring systems in unmanned air or land vehicles. (11/11)
Energy East – Investors in Energy East Corp. have overwhelmingly approved the sale of the corporation to Iberdrola, a Spanish utility company, for $4.5 billion. The deal still needs to be approved by federal and state regulators. Energy East stockholders would receive $28.50 per share from Iberdrola. Energy East’s stock closed Nov. 20 at $27.51, up 6 cents for the day. (11/21)
UR – The U.S. Department of Energy’s National Nuclear Security Administration has renewed its commitment to fund the University of Rochester’s Laboratory for Laser Energetics for another five years. (11/21)
University of Rochester – A $2 million gift from John H. Bruning will fund the creation of three labs that will make up the University of Rochester Robert E. Hopkins Center for Optical Design. The center is slated to be ready in the spring of 2008.(11/22) The University of Rochester’s Center for Electronic Imaging Systems, a state and industry-funded organization, had a $120 million economic impact on New York’s last fiscal year. This makes five straight years of increased economic impact for the center, which had $114 million in impact last year, and $92 million the year before. In the past five fiscal years, the center has had a total economic impact of $426 million. (11/23)
3rd Quarter 2007
RIT – Construction has started on the unofficially named Collegetown, which includes construct a 300 apartment housing complex, a retail store and a new bookstore on the 67 acres. The project in expected to be completed in 2008. (5/1)
Local Images – Local Images signed a 3 year agreement, with the South Carolina Department of Health and Environmental Control, that will give 65 hospitals in that area access to VisualDx, a disease recognition system. The VisualDx system gives physicians pictorial descriptions of diseases and provide statewide alerts in the case of an outbreak. Terms of the contract were not released. (5/1)
Carestream - The Carestream deal is complete. Carestream would create 500 new jobs, most of the new hires would be ex-Kodak employees. The company plans to spend $12 million renovating both the 403,000 sq. ft. building on Veron St. and the 345,000 sq. ft. building at Kodak Park on Ridge. (5/2)
PEATEC - PAETEC reports a 38% increase in revenue, totaling $197 million, this quarter compared to a year ago. The company also posted a $5.8 million net loss, which included a $9.8 million debt write off. The stock closed at $11.43, up 0.43% in Nasdaq trading. Also, the company reported a $19 million free-cash flow. (5/10)
Kodak - Kodak will sell 20 buildings, land-use rights and public utility equipment to Xaimen Land Development Co. of China for $40 million. Xaimen will then lease back properties to Kodak. The deal will close by June 30. (5/3) Commercial real estate firm CB Richard Ellis is offering the 330 acre site near Ridgeway Avenue and Lee Road for sale through sealed bids. The two building, 2.23 million sq. ft. of space should sell for around $22 million, according to Kodak’s prices, per sq. ft., for the other buildings. Bids are due by July 17. (5/8) Buildings 9 and 23 are scheduled for demolition this weekend. The implosion Building 9 a 752,000 sq. ft. building and Building 23 a 487,000 sq. ft building marks the first time Kodak has used explosives to level a building. By the end of 2007, there will be 104 buildings remaining, compared to 212 buildings in the 1990’s. (6/29)
Summit – The Summit Federal Credit Union has merged with First Link Federal Union, adding 1,300 members to its establishment. Beginning July 1 the First Link Federal Union will assume the Summit name for doing business. (5/11)
Bausch & Lomb – NYC private investment firm owner, Warburg Pincus bid 4.5 billion in cash and debt to acquire Bausch & Lomb. The purchase would move the company to the private sector, therefore ending 154 years of local control over one of Rochester’s best known companies. The deal must be approved by B&L shareholders and regulators. (5/17) - B&L rejected the $75 per share in cash and stocks offer from Advanced Medical Optics, Inc. B&L is waiting for confirmation of the shareholders votes. B&L is requesting all cash from Advanced Medical. More job cuts are projected if Advanced Medical purchases the company. (7/25) The Board of B&L recommended that the company accepts the buyout offer from Warburg Pincus, LLC of $65 a share in cash, verses the reported $75 per share in cash and stocks from Advanced Medical Optics, Inc. (7/31)
GE MDS – GE MDS purchased 3.23 acres of land to GE MDS for expansion of its manufacturing facility. The $3 million, 25,000 sq. ft. expansion is expected to create 50 jobs and retain 290. GE MDS is also applying to become Empire Zone Certified. If approved, the company would qualify for a $250,000 grant from Empire Zone. (5/28)
Bausch & Lomb – In the quarter ending in March 2007, B&L reported earnings of $19.2 million, up from 11.8 million during the same period, in 2006. Also B&L reported a revenue increase of 6%, or $578.9 million, in this year’s first quarter report., compared to $546 million in 2006. Attributing to the 2006 deficit was the Renu with MoistureLoc solution recall, which cost B&L $19.1 million during 2006 first quarter. The company’s final first quarter earning reports is expected in June. (5/31)
University of Rochester – The U of R continues to be a major contributor to Rochester’s economy. The universtty’s employees, visitors as well as spending on construction accounted for $1.4 billion in 2006. The university and Strong Health provide more than 35,000 jobs. With the expansion of Strong Wilmot Cancer Center, an additional 1,000 jobs are expected over the next few years. (6/6)
DDS Cos. – Since April, DDS Cos. has added 27 jobs, bringing its local employment count to 145. DDS invested $2 million to renovate and equip a 22,000 sq. ft. facility at 240 Commerce Drive to accommodate the work increase. (6/22)
Kodak - City records indicate that the valuation of Kodak Park’s city location has fallen by 60%, or more than $100 million in less than a decade. In 1998 Kodak’s assessments was $178 million, in 2007 the assessment is $72 million. Demolition is a contributing factor to the reduced value. (6/25)
RG&E - Iderdrola, a major Spanish utility company, has agreed to purchase Energy East Corp., the parent company of RGE for $4.5 billion. Iderdrola will invest $4.2 billion in renewable energy over the next 3 years world wide. This strategic plan could assist New York state reach a self imposed goal to obtain 25% of its energy needs from renewable resources by 2013. (6/27)
Local Housing - A housing market study predicts Rochester can absorb 1725 new rentals and owner-occupied units annual if the right housing types are available. The study, the first in 20 years, provides a guide for strategies to improve neighborhoods and to measure progress and regression. The study also highlights the potential housing market in places such as downtown, the High Falls district, South Wedge, North & South Marketview Heights and the Plymouth-Exchange neighborhoods. (5/3) Housing sales fell by 9.5 % in June, compared to June 2006. The median price form homes increased to $121,250, compared to $117,000 a year earlier. (7/12)
Frontier –Two local centers are scheduled to close September 30, as a result 95 positions will be terminated. Nationally, 14 Frontier call centers has been reduced to 4. (7/18)
Rochester Area Employment – According to the Department of Labor, Rochester’s employment has increased for the 5th consecutive month. In private sectors, 700 more jobs were added since June of 2006. Non-farm jobs as a whole increased by 1,900 since 2006. (7/20)
University of Rochester - The University of Rochester will merge with Rochester General Hospital’s neurology department in an effort to compete with the nation’s top medical centers. (7/20)
Xerox - For the quarter ending June, Xerox reported a net income of $266 million, total revenue 4.2 billion. Analyst predicted a quarterly earning of $254 million, total revenue 4.19 billion. Xerox earnings were up 2.3% in the second quarter. (7/26)
Bausch & Lomb – Advanced Medical Optics Inc. needs more time to gauge whether they had enough shareholder backing to purchase B&L. Warburg Pincus is also trying to buy B&L. Advanced Medical was offering $75 a share in a mix of cash and its own stock, while Warburg Pincus is offering $65 a share in cash (8/1). Advanced Medical Optics Inc. withdrew its offer when denied more time to provide proof of shareholder support. Warburg was able to purchase B&L for about $3.67 billion. The purchase still needs approval from B&L shareholders, and approval is expected (8/2). B&L reported higher sales and profit for the second quarter of 2007, which ended June 30. Overall sales were $649.5 million for the quarter, up more than 13% from a year earlier. Earnings hit $15 million, or 27 cents per share, for the quarter; last year they lost $15.1 million, or 28 cents per share, in the same quarter. Shareholders will vote Sept. 21 on the decision to sell B&L to Warburg. For the first half of the year, B&L reported sales of $1.23 billion, up 10% from the same period in 2006, and earnings of $33.5 million, compared to a loss of $3.3 million last year. B&L’s stock closed Aug. 1 at $62.36, down 18 cents (8/9).
Jobs – Companies failing to meet their goals for job creation or financial investment under the state’s Empire Zone program will get letters warning them to make progress in order to continue to receive benefits. These warnings were mailed to 3,000 companies statewide, with 134 in the nine-county Rochester region. Those getting letters failed to meet at least 60% of their goal (8/1).
Delphi – A bankruptcy court agreed to allow Appaloosa Management LP and other investors to give $2.5 billion in funding to Delphi, who entered bankruptcy protection in Oct. 2005. They recently secured concessions from its largest union to cut wages from $27 per hour to a range of $14 to $18.50 per hour. Delphi employs about 1,600 people in two facilities near Rochester. Appaloosa and its partners have agreed to buy $800 million in convertible preferred shares and around $175 million of Delphi’s common stock. The group also agreed to purchase any leftover shares after a $1.6 billion rights offering to existing common shareholders (8/3). Delphi lost $1.46 per share in the second quarter, which is much better than its loss of $4.05 per share a year ago. They plan to operate one fourth of the plants that it had when it went into bankruptcy in Oct. 2005 (8/9).
Kodak – Eastman Kodak reported an extremely profitable second quarter, with $592 million in earnings on revenue of $2.5 billion. The company is in the final year of its four year restructuring (8/3). Kodak reported a second quarter profit of $592 million, compared to a loss of $282 million in the same period a year ago. It was only the second profitable quarter since 2004. Kodak shares rose more than 5% to $26.93. Without the sale of its health group to a Canadian company called Onex Corp., Kodak would have lost $135 million for the quarter. Worldwide sales for the quarter were $2.51 billion, down 7% from the $2.69 billion in the same period last year. (8/3)
Home Properties, Inc. – The real estate investment trust has a good report for the quarter ending on June 30. The funds from their operations are 85 cents per share, up 1 cent from the second quarter of 2006. Revenue from its core properties, which include more than 33,000 apartment units, was up 4% year-over-year. (8/3)
Harris – The end of the fourth quarter for Harris on June 29 marked a revenue gain of 22% over the fourth quarter of 2006, hitting $1.2 billion. Their revenue totaled $4.2 billion, also up 22% from 2006. Profit for the quarter was $87.6 million, or 63 cents a share, up from $85.1 million, or 61 cents a share, last year. Earnings for the fiscal year were $480.4 million, compared to $237.9 million from 2006. Cash dividends per share were 11 cents, compared to last year’s 8 cents. Revenue hit $326 million, a 34% increase over the same quarter a year ago, and 7% better than the third quarter. (8/8)
Housing – The housing market is favoring buyers, as sales of existing homes has slipped 1.9% in the month of July compared to a year ago. The inventory of houses on the market, however, continues to climb, and is up 2.9%. The median sale price across the region in July was $126,000, which is up compared to $124,000 from last year. For July, 1,323 sales were closed in the region, compared to 1,349 in 2006. There were 2,284 homes for sale, up from the 2,220 last year in July. (8/10)
Mortgage firm fails – American Home laid off almost all of its workers on Aug. 3, following a housing market turnaround. The company specialized in giving mortgages to home buyers and then selling the mortgages to various banks. When the market turned around and monthly payments on mortgages rose, more and more of their customers had trouble paying. This hadn’t been a concern as recently as 2006, when American Home had grown to be the tenth largest residential mortgage lender nationwide, with 7,400 employees, $59 billion in loan originations and 550 loan production offices. (8/16)
Canandaigua National Bank – Canandaigua National Bank and Trust Co. plans to take over Genesee Valley and Trust Co. With the purchase, Genesee Valley will gain additional services such as personal mortgages. The combination of the two corporations will have more than $1.5 billion in the trust and investment assets that they manage. Genesee Valley will operate as a wholly owned subsidiary, but it will keep its name. (8/28)
Xerox – Xerox has produced its first batch of emulsion aggregate toner, and the $20 million output of the toner is being tested to make sure it’s ready for the marketplace. Full production is supposed to start next month. The chemical process to manufacture EA toner is more energy efficient, and the uniform particle sizes mean that printers use 40 to 50 percent less toner while printing. The mostly automated plant is employing 40 people to start and will run three shifts five days a week. (8/29)
Perinton – Mark Sperandio and his wife Joan have started Sperandio Properties LLC and purchased two office buildings at the Cedarwood Office Park in Perinton totaling 30,000 sq. ft. feet for $3.9 million in July. (9/12)
1st Quarter 2007
Fast Ferry – City of Rochester officials stated that they were very close to having a deal for the high-speed ferry and that the ship could leave by the end of the week to get to another port before the St. Lawrence seaway closes on Dec. 29. (12/19) Mayor Duffy announced that Euroferries LTD. had resolved matters with its financier, clearing the hurdle for the $29.8 million sale of the ferry. City officials also confirmed a contingency plan to move the ship to the Port of Halifax, Nova Scotia, should the deal not close before the seaway. (12/21) Although the ferry project was one of the most anticipated projects in Rochester’s recent history, the venture ultimately drove one operator our of business and lost the city more than 10 million in 10 months last year. Euroferries has agreed to pay the city $100,000 for cost of moving the ship. (12/22) The ferry is in Halifax, where it will remain for a few weeks before leaving for its final destination. The city is anxious to sell vessel, as the taxpayers continue to pick up the tab. The city is expected to send a contingent of city officials to Europe in hopes of speeding up selling process. (12/27)
Paychex – An 18 percent increase in earnings accompanied the largest profit that Paychex Inc. has ever posted in a quarter at $132.7 million, or 35 cents a share, up from $112.6 million, or 30 cents a share, a year earlier. (12/21)
Local Jobs - Rochester adds 500 jobs between November 2005 and November 2006, therefore decreasing the number of unemployed people in this region. More hiring by small and medium size companies is one of the factors adding to the improvement. The education sector has also added 3,800 jobs over the past year. (12/22)
Housing Market - Rochester-area real estate market slows down, transforming into buyer’s market. For the past 4 months the number of closings has been down about 6 percent compared to 2005. Rochester housing market may see price edge up by 4.5 percent in 2007, making the area the seventh best for real estate. Prices have remained stable overall, rising in Penfield and Chili, falling in Mendon and Wayne counties, and staying flat in Brighton and Henrietta. (12/27) Home sales dropped 14.1 percent in December, the market is still favoring the buyers. The houses in good condition in the hot areas are still selling quickly. The market expected to pick up this year, especially since the mortgages rates have stayed low. (1/11)
Bonadio Expands – Rochester’s largest accounting and business consulting firm, The Bonadio Group, agrees to merge with Loguidece and Kamide. This deal adds 12 people to the firm based in Syracuse. Bonadio plans to expand to Albany soon, helping to manifest his vision of adding at least 400 people and an annual revenue of $50 million in about 7 years. (1/3)
Friendly Employers– Wegmans placed 3rd this year among the 100 best US companies to work for by Fortune Magazine. This is Wegmans fourth year making the list in the top 10, although this placing is down from #1 in 2005. Paychex places 70 among the 100 best US companies to work for per Fortune Magazine. Nixon Peabody ranked 49th. (1/9)
Kodak - Eastman Kodak decides to sell its $2.6 billion health group to Onex Healthcare Holdings Inc., based in Toronto. Onex agrees to keep Kodak’s health group and its 8,100 global employees. Onex will pay $2.35 billion to Kodak, with a chance of the price increasing by $200 million if specific stipulations are met by Kodak. Kodak plans to discuss how to apply $1 billion of the proceeds with investors. (1/11)
4th Quarter 2006
Fast Ferry – Euroferries Ltd., the British company that agreed to purchase the ferry, has yet to secure the funds needed to close the $29.8 million deal, and storage of the boat has amassed a $1.5 million bill this year. The city is still open to other potential buyers with the funds to make a deal.(9/21) Mayor Duffy announced that the city may have to continue housing the ferry through the winter, due to bidders not coming up with the necessary financing to close a deal. (11/14)
Housing Rental Rates – The average rental rates downtown rose more than 20 percent from $655 to $802 in 2006, even as the vacancy rate is rising. The average rent for Monroe County fell 6 percent from $594 last year to $560 this year. Downtown market-rate rental units make up approximately 4 percent of the total in Monroe County. Nationally, the vacancy rates for the rental housing market are falling, but in downtown Rochester they have risen from 5.2 percent in 2005 to 5.7 in 2006. (9/22)
Paychex – First quarter earnings for Paychex grew 17% to $135.1 million as compared to the $115 million reported for the same time last year. Total revenue was $459.4 million, up from the 2006 1st fiscal quarter revenue of $403.7 million. Paychex employs 12,000 nationally, and around 3,000 locally. (9/27)
Home Properties – Home Properties Inc. has reached an agreement to sell its apartment holdings in upstate New York, including more than 4,500 apartments in 18 buildings. The unidentified buyers are a team of three unaffiliated regional property owners and developers. Home Properties is making a move to purchase apartment complexes in high-growth areas along the East Coast, but will keep it’s headquarters in Rochester. (10/3) Home Properties Inc. has closed on the sale of 18 properties in upstate NY, for the amount of $252 million. The regional property management companies involved in the purchase were Dawn Homes Management, and Tri-City Rentals (based in Albany), and Morgan Management in Rochester. After paying off mortgage and other fees, Home Properties will net $171 million from the deal. (12/14)
Constellation – Constellation Brands Inc. showed second quarter profits had dropped 18 percent, although net sales had a 19 percent gain from a year ago. The decline in income from 82.4 million to 68.4 million is attributed to the restructuring costs associated with the recent acquisition of Vincor and other joint ventures. The Perinton based company is the world’s largest winemaker, employing around 600 in the Rochester area and 10,000 worldwide. (10/6)
RenSquare – A collaboration of the county, city, Rochester Genesee Regional Transportation Authority and MCC, Renaissance Square is a $230 million project intended to reinvigorate downtown Rochester, and trigger other redevelopment. The current plan is for construction on East Main St. between North Clinton Ave. and St. Paul to begin next summer and be completed in 2010. (10/12)
Xerox – Xerox Corp. shares closed at 16.47, a 52-week high, beating Wall Street expectations for the second straight quarter. Even though the financial news is good, with third quarter revenue up 2 percent to $3.84 billion, the company continues to cut jobs. (10/24)
Port of Rochester – Plans for the future of the Port of Rochester in Charlotte have raised various objections from area residents including, skepticism of it’s success, concerns with how it will be funded, and interference with the view of the lake. (10/27)
Eastman Kodak – Rochester’s second-largest employer, Kodak, reported a third quarter adjusted earnings of $127 million, or 44 cents a share, topping Wall Street’s estimates and last year’s results by 25 cents a share. They also reflected the eighth consecutive net loss of $37 million, or 13 cents a share. Revenue just over $3.2 billion, was down 10 percent from the third quarter of 2005. Kodak’s restructuring has reduced their Rochester work force by one-third, to 14,000, with about 5,000 more cuts expected by the end of 2007. (11/1)
Strong Memorial Hospital – Posting record finances in the 2006 fiscal year, Strong’s operating margin was up 22 percent form the year before, to $44.4 million. Expenses rose 8.6 percent, while operating revenue was up about 9 percent. Net income, which included non-operating revenue and expenses, was $35.7 million. These results show a continuing trend of Rochester hospitals being among the strongest in the state. (11/3)
Tops – The Netherlands based company, Ahold NV, is selling its entire chain of Tops stores. The local markets are hoping for a buyer to retain the supermarket leases, as well as approximately 2,600 employees. (11/7) The parent company of the Price Chopper supermarket chain, Schenectady-based Golub Corp., is researching the possible purchase of the Tops store chain. (11/12)
Midtown Plaza – Mayor Robert Duffy and his administration announced that they are exploring the option of purchasing Midtown for $6 million. The 6-building complex on 8.6 acres of East Main Street has experienced a steady decline over the past decade, and is considered to be a critical piece in the revitalization of downtown Rochester. The Duffy administration states that they are not interested in long-term ownership of the property, but to leverage financial support and guide Midtown’s redevelopment by the private sector. (11/10) Many local developers are expressing interest in participating in the redevelopment of Midtown, including Laurence Glazer of Buckingham Properties LLC, Wayne LeChase of LeChase Construction Services LLC, and Anthony DiMarzo of Mark IV Construction Co. Inc. One of the main topics under consideration is how much of the property, if any, should be demolished. A study by the Urban Land Institute last spring suggested tearing down most of Midtown Plaza, but leaving the nearby Euclid Building and underground parking garage, which the city already owns. Full demolition would cost an estimated $25 to $28 million, and while it may be the easiest way to revamp the area, is not considered the best or in any way the cheapest option. City Council voted to approve the $250,000 option to purchase, which gives the city sole purchase rights to the property through February. This time will be used to conduct a condition analysis of the property and look at possible development alternatives. Should the city decide to move forward with a purchase, the price is set at $6 million, which is substantially below the assessed value of $13.69 million. (11/17)
Housing Prices – Residential real estate sales last month were down from a year ago, but the median prices have risen. Sales for existing homes in our region fell 6.2 percent in October from a year ago. The residential market is seeing price increases mainly due to rising construction costs. (11/17)
City Demolition – 160 properties have been town down since Mayor Duffy’s announcement in April that the city would spend $5.8 million to demolish at least 342 vacant and deteriorated structures. (12/5)
Home Sales – The Greater Rochester Association of Realtors reports home sales in the Rochester region fell 5.6 percent in November, the second month with a sizable decline. Sales in the region were down 2.9 percent for the first 11 months of 2006, compared with the same period of 2005. (12/12)
3rd Quarter 2006
Housing Prices – A study by National City Corp. and consulting firm Global Insight concluded that houses in the Rochester area are among the most under-valued in the nation, priced 9 percent below what the market could bear. (6/14)
Finger Lakes – Excitement surrounding the opening of New York Wine & Culinary center has Canandaigua area businesses preparing for what they hope to be a banner tourism season. Other upgrades in the area include The Inn on the Lake spending $2.5 million on renovations, and the performing arts center undergoing a facelift to the tune of $13 million. Visitors to the 14-county Finger Lakes region number about 24 million each year, and the new wine and culinary center has a goal to raise that by 5 percent over the next 5 years. Partnering in the project are Constellation Brands Inc., Wegmans Food Markets, RIT, and the New York Wine & Grape Foundation. (6/16)
RenSquare – The largest downtown development project in Rochester history is on budget and schedule with the $230 million project set to begin demolition of the existing site in mid-2007. Planners hope to have a draft environmental review report later this year. Included in the plan are a bus terminal, performing arts center and MCC campus on E. Main St. between N. Clinton and St. Paul. (6/29)
Delphi Corp. – Employer of more than 2,100 in the area, Delphi Corp. reported a loss of $2.4 billion in 2005, having filed bankruptcy in October. (7/12) In the first half of 2006, Delphi reported a loss of $2.6 billion, more than 3 times the loss in the first half of 2005. About 12,500 workers have signed up for early retirement, which accounts for about $1.9 billion of the losses. (8/16)
Port of Rochester – A final draft of the plan for the Port has doubled the size of the marina in place of the housing that would have risen next to Ontario Beach Park. Details regarding estimated cost, population density, housing mix and development have not yet been finalized. (7/17) Consultants say that redeveloping the port will cost $110 million if work starts now, but will rise to nearly $140 million if delayed. Three fourths of the expense would be covered by private developers, leaving the rest to public sources. (7/18) The standalone parking garage has been removed from proposed revisions to the final Port plan, replaced by underground parking. The revised parking plan would look much nicer, but cost substantially more. (8/17)
Housing Sales – Data released by the Greater Rochester Association of Realtors shows sales of single-family homes in the 11-county greater Rochester region were up slightly from January to June over last year. The average sale price also rose by 5 percent, however there were indications that there may be a slow down on the horizon. (7/18)
Constellation – The largest wine company in the world, located in Perinton, NY, has signed with Grupo Modelo, Mexico’s leading brewer, to become solely responsible for importing Corona, Negra Modelo and other popular foreign-made beers in the U.S. and Guam. The 10-year agreement, beginning Jan. 2, 2007, has undisclosed financial terms, referred to as being significant in dollar value. (7/18) The joint venture, headed by Bill Hackett, president of Constellation’s Barton Beers, will be based in Chicago. Constellation chairman and CEO, Richard Sands, expects the deal to strengthen the company’s competitive ability with both domestic and imported beers. (7/19) Upon recording second quarter costs of $42 million, Constellation is looking to streamline operations through downsizing, consolidating and selling assets in the U.K. and Australia. The company closed at $24.90, up 49 cents, but stock dropped by 5.1 percent this year, after six years of gains. The cost-cutting is intended to be an integration program to bring all of their acquisitions together. (8/3)
Current Communications – A communications company employing more than 200 people in Henrietta, received $130 million in venture funding, the largest venture capital deal in the US during the second quarter this year. Based in Germantown MD, Current received the venture money from TXU Corp. (7/25)
Xerox – The second quarter for Xerox Corp. included income and revenue growth. Beating Wall Street estimates by 3 cents a share, Rochester’s fourth largest employer reported net income of $260 million, or 26 cents a share on revenue of $3.98 billion. Local employment by Xerox was 8,250 at the end of the quarter, up 130 from the first quarter of 2006, but down 200 from the same quarter of last year. (7/26)
Birds Eye – Penfield-based Birds Eye Foods Inc. has to decided to sop making non-branded products, resulting in the cut of 400 local jobs. The company will close or sell 2 to 3 local plants, and the restructuring will take about 12 to 18 months to complete. (7/26)
Element K – Brighton based employer of 480 local workers has been purchased by NIIT Limited, based in New Delhi, India. The buyout is intended to grow and expand the business both locally and globally. (7/28)
Home Properties Inc. – Analysts expect the REIT, Home Properties Inc., to sell approximately 17 properties in the lagging Upstate New York market. (7/28) CB Richard Ellis has been hired to sell upstate NY properties for Home Properties Inc. The company reported second-quarter earnings of $40.5 million, or 85 cents a share. (8/3)
Kodak – Rochester’s second largest employer reported 2nd quarter loss of $282 million, or 98 cents a share, and announced 2,000 more layoffs. Kodak stock dropped to $19.20, a 28-year low. Despite posting this seventh consecutive loss, officials say they are optimistic about the company’s digital progress. (8/2)
Fast Ferry – Mayor Robert Duffy, who shut down the operation of the ferry shortly after taking office in January, has called upon county, state and federal authorities to initiate or renew investigation into the dealings of CATS with the city and state. He also announced authorization of the city’s legal counsel to use any reasonable means to break the controversial 40 year lease of the ferry terminal to Maplestar Development for $1 per year. The city is in the process of selling the ferry, and estimated taxpayer debt of $28 million, including interest, would be repaid over the next 15 years. (8/3) A state Comptroller’s Office audit indicated that city officials were so determined to make the fast ferry work that they did not demand a solid plan and ignored warnings. The report made recommendations on how the city reviews and executes financial agreements, and the new administration states that it is already taking a number of these steps. (8/3)
Xerox – Fitch Ratings Ltd. changed the credit rating for Xerox Corp. back to investment grade for the first time since 2001, due to improved financial performance and outlook. The increase shows Xerox as less of a credit risk, and will allow them to borrow funds at lower interest rates. Xerox stock closed at $14.70, up 42 cents a share. (8/9)
Kodak – Eastman Kodak Co. has been hired by 4 U.S. newspapers to convert part of their printing to digital imaging. (8/11)
PAETEC – A merger between Perinton-based PAETEC Communications Inc. and Charlotte, NC based US LEC Corp. will create a new billion-dollar business in Rochester. The new company will use the PAETEC name, but trade on the Nasdaq exchange under US LEC’s symbol, CLEC. The transaction is expected to close in the fourth quarter. (8/15)
Housing Growth – The Rochester area added more than 12,000 new houses and apartments between 2000 and 2005, despite a lack of population growth. Ontario County was the fastest-growing with an increase of 5 percent. Monroe County housing grew by 2 percent. (8/22)
Nothnagle – After 15 years as chief executive of the region’s largest residential real estate company, Phil Nothnagle has stepped down and passed this CEO title to current president, Armand D’Alfonso. Phil Nothnagle will retain the title of chairman and will remain an owner of the company, along with his children Daniel and Christine. (8/25)
Kodak – J.D. Power and Associates ranked Kodak digital cameras No. 1 in the $200 - $399 category for the third year in a row. More than half of digital camera sales in the U.S. are in that price range. Kodak placed third in the $199 and below segment, and fifth in the $400 to $599 category. (8/25)
Housing Slowdown – Price increases in the housing market have slowed more than at any time since 1975, nationwide with the exception of the Rochester area. In Rochester, housing prices are growing ahead of the national average consistently this year. (9/6)
Xerox – A month after Xerox Corp. announced that it would use proceeds from a $450 million tax settlement toward restructuring, it has begun offering buyout packages to employees. The offer was made to both union and nonunion workers, and no estimate was made as to how many might take the offer. (9/8)
Kodak – By the end of the fourth quarter, Eastman Kodak Co. plans to pay back about $800 million of its $3.5 billion in debt, or 23 percent. This stage of a restructuring process is expected to greatly improve the company’s credit rating. (9/8)
Concentrix – Pittsford-based marketing services
company, Concentrix Corp., has been purchased by CA based Synnex Corp.
The deal will result in the addition of about 200 new jobs over the
next 12 to 18 months. (9/15)
2nd Quarter 2006
Monroe County – In 2005, the population of Monroe County dropped more than it had in 15 years. The only upstate NY County to lose more than our 6,620 residents was Erie County. Regardless of the drop for last year, the overall population has maintained since 1993 due to peaks and valleys. (3/17)
Paychex – Paychex Inc. missed Wall Street expectations by 1 cent in the 2006 fiscal third quarter, reporting record net income of $114.5 million. Total revenue of $430.6 million was up 15.2 percent from the same quarter 2005. Expectations for the close of the fiscal year at the end of May are growth of between 14 and 16 percent in revenue and growth of 24 to 26 percent in net income. (3/29)
RenSquare – One square block on East Main St. between North Clinton Ave. and St. Paul St. will become the largest and most expensive development initiative in Rochester history. Although construction won’t begin until late 2007, nearly all the public money needed to start has been secured. The facility could open in late 2009, and would include an MCC campus, a performing arts center for traveling Broadway shows, a separate theater for community groups, and a bus terminal. At the time of this article, the county was accepting proposals for a consultant to lead a private fundraising drive to add to the project’s current $193 million in funds, and had not yet laid out the details of who will run the facility or handle operating costs. (3/30)
Constellation – The Perinton-based company purchased Vincor International, Canada’s largest wine company, expecting to see sales growth both locally and internationally. Quarter total sales were up 1%, net wine sales were down 3%, and imported beer net sales were up 20%. (4/7)
Housing Sales – Although the first 2 months of the year showed signs of house sales slowing down, March numbers have Rochester moving ahead of 2005. Prices were up 3 percent in March over the same month last year. (4/14)
Port of Rochester – A plan is in the works to reuse the terminal building that once serviced the Fast Ferry, for the Lake Ontario Natural Resource Center. The proposal would include a research and educational center, aquarium, restaurant and retail tenants, as well as keeping accessibility for a future ferry or other passenger ships. Current estimates reflect a required investment of $175 million and approximately 15 years of development. (4/21) Plans for a 30-acre development surrounding the terminal building, show various structures such as townhouses, apartments, park space, restaurant, retail, office, and a parking garage. (4/27) One of the developers involved in the project, Mark IV Construction, estimates the total cost of developing the port area at $120 million, and is extremely optimistic about the possibilities. (4/28) Rochester Business Journal refers to a final master plan for development of the Charlotte port expected by the end of May. Everyone involved would like to find a way to make the most use of both water and land to draw people to the area. Commercial appraiser, Kevin Bruckner, stated that it is a great area, but currently underdeveloped. The refined master plan includes 545 residential units, 30,000 square feet of retail space and over 1,500 parking spaces. One challenge faced is the lease of the resource center building to Maplestar for 40 years at $1 per year. The city is looking for a way to change the lease and make it a better deal for the citizens. (5/19)
M&T Bank – Citibank’s 21 branches in upstate New York have been acquired by M&T Bank Corp., making them the market share leader in Rochester and Buffalo. (4/26)
Fast Ferry – The Spirit of Ontario was purchased by Euroferries Ltd. for $29.8 million. Money borrowed from city insurance reserves will be repaid in the amount of $7.5 million, debt of $40 million will be repaid to Australian lender EFIC, and the city will be left with a debt of just under $20 million. (5/4)
Housing Sales – Compared with last year, April housing sales were flat. Observers say that inventory is high and demand is strong regardless of rising interest rates. In March, the Rochester market still did better than the nation as a whole. (5/11)
Eastman Kodak – In the market for digital cameras, Kodak dropped to third in the U.S., for the first time since 2004. The drop was somewhat expected, since the company announced in Jan. that it would focus on digital imaging. Kodak chairman/CEO, Antonio Perez states that they are on track to complete the transition to digital photography next year. (5/11)
Housing Prices – The quarterly National Association of Home Builders/Wells Fargo Housing Opportunity Index has Rochester ranked 15th among the top 20 most affordable housing markets in the US. (5/18)
Nothnagle – The area’s largest residential real estate company, Nothnagle Realtors, has acquired Coachman Properties of Greece. (6/1)
Xerox – Xerox Corp. has won a contract to provide document management services to the nation’s largest manager of prescription drug benefit programs, Medco Health Solutions Inc. Financial terms of the seven year deal were not disclosed. (6/12)
1st Quarter 2006
Paychex – Second quarter earnings for Paychex grew 30% to $112.6 million as compared to the $86.9 million reported for the same time last year. Total revenue was $339.8 million, up from the 2005 2nd fiscal quarter revenue of $347.3 million. Paychex credited its fastest growing product, Paychex Premiere Human Resource service, which grew 66% to $12.8 million. Paychex employs 10,000 nationally, and around 2,400 locally. (12/22)
University of Rochester - The University of Rochester became the No. 1 employer for the Rochester area with a total of 14,300 full-time employees. Local employment at Kodak came in at 2nd place with 14,100 full-time employees. Wegman’s Food Markets, which was 4th last year, came in 3rd with 10,160 full-time employees. It is the first time that Kodak hasn’t been the largest employer with employment numbers the lowest in 70 years. Xerox slipped to 4th place with a total of 8,100 employees, locally. (1/31)
Eastman Kodak – Kodak’s year-end, fourth quarter financial results show a net loss of $52 million as compared to last year’s $59 million with revenue up 12% to $4.2 billion. Sales were strong in digital photography and commercial printing, with digital products and services making up 54% of the companies sales. Kodak is half-way through their restructuring campaign and over the next 24 months will focus on returns from the growing digital portfolio. (1/31)
Fast Ferry – With just a few weeks in office, the new Mayor of Rochester announced the shut-down of the Fast Ferry service from Rochester to Toronto. The decision to halt the ferry service was based upon the accruing debt and financial loss the ferry has endured. Over the last 10 months, the ferry lost $10 million, with a projected loss of $2.7 million for 2006. Plans now include selling the ferry and repaying $30 million once the ship is sold. Reserve funds will be used to pay for $9.5 million to cover year-end operating costs. (1/11)
Eastman Kodak – For 2005, Kodak was again the #1 with 7.1 million digital cameras shipped to U.S. retailers, up 44% from 2004 figures of 5 million cameras. Kodak beat Canon Corp. by more than 2 million cameras, but took second in sales to Canon, with 3.1 million cameras sold. The success of Kodak’s digital camera is attributed to its user friendly features, reasonable price and bundle packages with home printers. (2/20)
Independence Air – After just 18 months, the low-cost carrier, Independence Air, is shutting down its services. Independence Air shuttled between the Greater Rochester International Airport and Washington Dulles International Airport three times, daily. The airline has filed for bankruptcy protection and could cease all operation if they are unable to find a major investor or buyer. The shut-down will not affect the Rochester airport financially or the availability of low-cost airfares to Washington, D.C. (1/3)
Constellation Brands – The 3rd quarter for Constellation Brands Inc reported a 12% increase in profit to $109 million, as compared to last years figure of $97 million. Net sales were up 17% from last year with $1.3 billion. Sales growth was strong from its imported beer distribution, and the branded wines from Mondavi and Ruffino. The Mexican brands of beer were out front with 16% increase in sales. (1/9)
Wegman’s – The magazine, Fortune 500, listed Wegman’s Food Markets Inc. as the 2nd best out of the “100 Best Companies to Work For.” This is the 9th consecutive year Wegman’s has made the list and the 4th year in the top 10. Wegman’s ranked #1 in 2005, but was upset by a biotech company from California for 2006, but did rank #1 for companies with 10,000 or more employees. Attributes listed in Wegman’s favor were health care benefits for employees with 20 hours per week and flying employees to Rochester for orientation. (1/10)
Xerox – Xerox’s local employment figures dropped in 2005 to 8,100, down 360 from the same time last year. Worldwide, Xerox employment numbers dropped 2,800 to 55,200 for 2005. In their fourth quarter report, profit rose 18%, as expenses were reined in and the numbers showed strong sales of its color products. Xerox is the third largest employer in the Rochester area and does not have plans for restructuring or layoffs. (1/26)
Xerox - In their reported fourth-quarter earnings for 2005, Xerox posted earnings of $282 million, up from $240 million for the same time last year. Sales of lower-end copiers and printers were strong, but at the same time, competition forced prices to dip, which led to lower revenue. Revenue fell 2% from last year’s figure to $4.25 billion. Xerox expects sales trends to gain relying on strong sales of toner, paper and service contracts, while maintaining control of operating expenses. (1/26)
Renaissance Square – Groundbreaking of the Renaissance Square is projected for 2007 once $230 million of funding is in place. So far, $157.5 million in federal monies have been secured, along with another $34 million from the State. A campaign to raise the remaining $38.5 million will begin in the private sector. Renaissance Square would include a performing arts center, a downtown MCC campus and a transit center on East Main Street. (1/27)
Office Space – Office space located in the suburbs of Rochester surpassed downtown’s figures in square footage for the first time. A reported 8 million square feet of office space is located in the local suburbs, while the city boasts 7.2 million square feet. Vacancies in Class A space in the city and suburbs were about even, with a 14.5% rate. The recent trend downtown is the redevelopment of obsolete office space into apartments, loft space or entertainment businesses. (2/3)
Homes Sales – For 2005, homes sales set records
for the second year in a row. Sales of existing single family homes
were up 4.3% to 13,312, breaking the record set in 2003. A total of
$1.8 billion in sales set another record and was 9.3% higher than
last year. The median price rose 4.8% to $135,330.00.(1/10) Meanwhile,
sales of single-family homes in the 11-county region fell 5.9% in
January, 2006, as the number of listings increased by 95% from December,
2005 and up 28% from the same time last year. There were 2,020 houses
listed for sale in January which may have been attributed to the mild
weather. Median sales price for the month was up 3.9% to $106,000.
(2/7)
Sales of single-family homes declined in the first part of 2006, while
house sales in the City of Rochester were up 9.2%. There were 663
closings in February for the region, up 3.1% from the same time last
year, but 12.6% less than January, 2006. The median sale price of
a single-family home for January and February was $105,200. (3/8)
Rochester – In less than 10 years, out of
state investors have bought more than 8 million square feet of commercial
space in the Rochester area. Higher yields on returns have attracted
the attention of the investors to this area, as opposed to a larger
market, such as Washington, D.C. or Boston. Demand for well-occupied,
high-grade properties has sky-rocketed as the annual return on the
investment is higher in Rochester than the national average. Analysis’s
expect the trend to continue as investors look to diversify their
portfolios. (3/12)
4th Quarter 2005
Paychex - Paychex first fiscal quarter for 2006 which ended August 31st had record net income of $115 million up 31% from the same quarter last year. Total revenue was $404 million up from $345 million in the first quarter Officials of Paychex noted the strong economy and higher interest rates for the success. Paychex noted an increase in the number of checks paid by its clients as companies hired more workers. Paychex also offers a HR consulting and management service that grew by 35% to $21.5 million. (9/28)
Chase Pitkin - Unable to compete with the large home improvement franchises such as Home Depot and Lowe's, Wegman's Food Market Inc. announced its intention to close all 14 Chase Pitkin stores after the first of the year. The closings will allow the grocery chain to focus directly on its extremely successful food business, with 69 stores in 5 states. Sales last year for Chase Pitkin were $200 million, down from 1996 sales of $225 million before Home Depot and Lowe's entered the Rochester market. There are currently seven Home Depots' and four Lowe's in the Rochester area, with more Lowe's planned. Chase Pitkin employs 395 full-time workers and 1,253 part-time. Workers will be given the opportunity to work at the grocery stores or receive a severance package. (10/5)
Constellation Brands - In their second quarter report, Constellation Brands Inc. reported a net income of $82.4 million compared with $80.6 million for the same quarter last year. Net sales were $1.2 billion, up 15% from a year earlier, with imported beer sales up 9% and distinguished wine sales up 35%. The wine company focused on introducing new products to the market and extensive consumer research and being active in acquisitions and mergers. Currently, Constellation is in pursuit of Canada's fourth largest winery, Vincor International. (10/7)
Eastman Kodak - In their third quarter report, Kodak reported a $1 billion loss largely caused by an accounting rule for deferred funds for financial losses. Kodak has reported a loss for four consecutive quarters and the rule requires a reserve account for deferred tax credits. The digital revenue for Kodak grew 47% to $1.9 billion in the third quarter, exceeding film revenue for the first time. Digital imaging earned $10 million, up from the same time last year when Kodak reported a $6 million revenue. This was the first time Kodak announced its earnings from its digital division. (10/20)
Xerox - Third quarter earnings reported by Xerox Corp. posted a net income of $49 million, down from last year's figure of $149 million. Figures included charges for restructuring, litigation and insurance expenses related to Hurricane Katrina. Color products and services reported revenues up 22% from the same time last year and expect continued growth. Updated employment figures as of September 30th, Xerox employs 8,330 workers locally, down 282 from the same quarter last year, and employs 56,300 worldwide, down 1,000 from 2005 second quarter. (10/22)
Bausch & Lomb - In their 3rd quarter earnings report, B&L's earnings fell, ending 14 straight record earning quarters that beat Wall Street estimates. Wall Street analysts' had anticipated a 91 cent per share earning, but due to an investigation of improper conduct at a Brazilian subsidiary, B&L reported a 32 cent per share earning, or a net income of $18 million. B&L reserved $22 million to pay taxes and penalties levied on the subsidiary that cut 35 cents per share off 3rd quarter earnings. Contact lens sales grew 10%, totaling $188 million for the quarter. B&L employs 1,500 locally and 12,400 worldwide. (10/27)
Eastman Kodak - Kodak was able to keep its #1 position during the third quarter by shipping more digital cameras to retailers than Sony or Canon. Kodak shipped 1.25 million cameras while both Canon and Sony shipped 1 million each during July, August and September. The market share of digital cameras for Kodak was up from last year's 19.8% to 21.3%. Both Sony and Canon had a 17.7% of the market. During the fourth quarter and holiday season, Kodak expects to produce fewer digital cameras in anticipation of a slow down and market saturation. (11/11)
Home Sales - Reported sales of single-family homes in the 11-county Rochester area was down in September with 1,261 closings as compared to August with 1,633 closings. Almost 10,000 homes have been sold in 2005, up 5% from a year ago. House prices rose slightly with a median sale price of $120,000 up from $119,000 in August. Analysts believe the market is changing from a seller's market to a buyer's market as prices dip and the inventory of houses for sale builds up. (10/12)
Sales of existing homes and the number of homes listed for sale continue to increase while fewer purchase offers were accepted from October 2004 to October 2005. Closings for the 11-county region were 4.4% ahead of last year's numbers, with 11,100 closings so far in 2005. Listings increased to 1,895, a 16% increase over last year, but purchase offers decline to 750, down 3.6%. Total volume of sales in the 11-county area is $1.5 billion this year, a 9.9% increase from the same time last year. (11/10)
Fast Ferry - The first detailed financial report issued by the Fast Ferry shows a loss of $4.2 million, far exceeding the projected $725,000 income for its first year. The $8 million reserve set aside for the first 2-3 years of operation has been depleted to less than $2.5 million, officials said. The report is from February 28th, when the ferry was purchased, to August 31st. Ridership between July and August had strong numbers with 45,811 passengers, up 74%, yet revenue was only $2.8 million while expenses incurred were $5 million. There were additional start up costs of $2 million with engine upgrades and other expenses. In September, scheduled trips were cut because of gas prices and low ridership. Another detailed report is expected at the end of December. (10/27)
In a survey conducted by the Fast Ferry operator, Rochester Ferry Co., 69% of the travelers were leaving Rochester as Toronto for their destination, while only 22% were coming to Rochester and the Finger Lakes region. Initially, ferry officials estimated that about half the passengers would be traveling from Canada. Also provided in the survey were the rider ship reports showing September with 25,935, passengers, the lowest numbers so far. Financial shortfalls also continued through August as ticket revenue at $1.7 million, while budgeted for $5.5 million; fuel cost $2.1 million and was budgeted for $1.6 million; and pilotage fees were budgeted for $2,500, but cost $375,450. A full financial disclosure is expected in December. (11/15) In its final 2005 expense tally, ferry operators lost $10 million, emptying their reserve account and putting themselves $2 million in debt. Numbers for ticket sales and riders were less than half of what was projected with 113,000 riders in June through December, but needed 276,400. City officials are requesting the ferry operator, Rochester Ferry Co., to sell municipal bonds in order to get money. Service was ended three weeks early and for next season, the ferry plans to run from March 31st through October 29th, 2006. (12/15)
3rd Quarter 2005
Eastman Kodak - In a public news release, Kodak announced another plan to cut its traditional film enterprise by up to 66% in manufacturing and jobs. Originally conceived to eliminate 12,000 to 15,000 jobs worldwide over the next 3 years, Kodak announced it will reduce its manufacturing from $2.9 billion to $1 billion and will cut an additional 10,000 from its workforce by 2007. In its 2nd quarter, Kodak posted a disappointing net loss of $146 million; revenues grew 6% to $3.7 billions, fueled by a 43% increase in digital sales. Digital and film imaging also fell with sales totaling $2.15 million, down 12%. (7/22)
Paychex - In their fiscal fourth-quarter earnings report, Paychex posted a record $101.4 million net income, up from $61.4 million for the same time last year. For the year, Paychex earned a net income of $368.8 million, compared to $303 million in 2004. This was the 15th consecutive quarter of record revenue and earnings for the Penfield based payroll service provider. (6/28)
Constellation Brands - Constellation Brands reported a $75.7 million net income for their fiscal first quarter, up from $51.3 million for the same time last year. Net sales were $1.1 billion, up 18% from 2004 earnings of $927.3 million. The world's largest wine maker, Constellation Brands attributed part of its growth to the acquisition of the Mondavi wines. (7/1)
Xerox - In their second quarter report, Xerox reacted with a 4.4 workforce cutback worldwide and dropped expectations of the revenue projections. Sales of the higher-end office copiers and presses were lower than expected. 2,600 jobs in technical service and manufacturing were eliminated worldwide. Xerox currently employs 8,450 in Monroe County, down 183 from the same time last year. (7/12)
Bausch & Lomb - The second quarter postings for B&L reported earnings of $45 million and worldwide earnings of $608 million, 7% increase over the same time last year. B&L's success is due partly to the revenue growth in Latin America, Asia and Europe, with a 12.7% increase in sales. The eye care company has increased its projected revenue for fiscal 2005 as a result of its successful 2nd quarter. (7/28)
Home Sales - Homes sales for the month of June rose just 0.6% over the same time last year for the 11-county greater Rochester area. There were 1,342 closings, up slightly from June 2004; median sales price for single-family homes was up 3.2% to $114,000. Year-to-date sales are up 4.3% to 5,669. For July, sales continued to grow with 1,362 properties sold, up from 1,255 homes sold in July of 2004. The median sales price for July, 2005 was $120,000. In August, sales were 19.9% higher than in July with 1,633 homes sold. The market has been favorable to homes under the $200,000 price range, while it has slowed for higher priced homes in the area. (7/15; 8/9; 9/14)
Eastman Kodak - One year after its announcement to shed one-third of its assets, Kodak has successfully demolished 19 buildings, revitalized 17, and have 8 buildings for sale. The 4-year revitalization plan expects to reduce Kodak Park by 12%; equivalent to 7 million square feet of space. Costs for the overall reduction will be more than $600 million. The company expects cost savings of $800 million to $1 billion at the end of the project in 2007. Kodak Park is the oldest and largest of the companies manufacturing facilities and the largest photographic manufacturing facility in the world. The Kodak Park complex covers 1,300 acres, spreading from the city to Greece, stretching nearly 4 miles. (7/1)
Rochester - Eastman Kodak has decided to consolidate paper production to its factories in Colorado and England and will close its facilities here in Rochester resulting in the loss of more than 450 jobs. The layoffs are part of Kodak's plan to shift its focus towards digital imaging. As of the second quarter, Kodak has eliminated 13,000 jobs around the world and plans to reduce its workforce by a total of 25,000 by 2007. (8/26)
Monroe County - In a detailed report, Monroe County showed a strong economic recovery for the first half of 2005. Loans, grants and other incentives were provided to 82 projects with $273 million in investments. Monroe County was able to help create 2,841 new jobs and retain 7,370 in the area. Developing projects include a new research laboratory at Bausch & Lomb, a storage warehouse for CooperVision and Xerox is building a new factory for manufacturing toner. (7/19)
Corning Glass - Corning, Inc. posted a 53% increase in second-quarter profits, earning $165 million, compared to last years second quarter earnings of $108 million. The success was attributed to the high demand for its ultra-thin glass used in flat screen, high definition computers and televisions. Corning's display technologies sales also rose 50% to a record $415 million in revenue as they try to keep up with the demand for liquid crystal display glass. (7/27)
Rochester Institute of Technology - With a campus 2 miles away from anything, RIT has decided to develop a 90-acre parcel on the northeast corner into its own college town. The $50 million project includes retail space, upscale housing and wetlands for trailways. Plans are for 90,000 square feet of retail and townhouses and apartments for 800 residents. Approval for the project needs to come from the DEC and the Henrietta Town Board. (8/12)
Eastman Kodak - Sales of its digital camera bested its rivals for the third straight quarter as Kodak secured 24% of the market. According to market research, 1.25 million Kodak cameras were shipped in the second quarter. The Kodak EasyShare was also ranked first in customer satisfaction for cameras in the $200 to $399 market. (8/17)
Fast Ferry - The Mayors of both Rochester and Toronto officially opened the International Marine Passenger Terminal at the Port of Toronto after a short ceremony. The new $8.9 million terminal is a two-story, 38,244 square foot building where passengers will be screened by the Canadian Border Services. The new terminal is part of a long-range plan spanning the next 30 years and $17 billion in lakefront development. For now, the terminal is used by five to seven other ships which peruse the Great Lakes. (6/28)
Fast Ferry - Passenger numbers on the Rochester Fast Ferry have doubled since the re-startup in June. Weekend riders have averaged 700 plus passengers which has a capacity of 785. Operation managers, Bay Ferries, has submitted a request to the ferry board to reduce the number of trips to offset the rising gas prices, along with other changes. Any change needs the consensus of the ferry's executive committee. (8/30)
JP Morgan Chase - JP Morgan Chase announced that it will be cutting 300 jobs from its downtown home equity office this year. Rochester will remain one of Chase's home equity center's, servicing 3,000 mortgage loan officers and home direct sales nationally. The Chase office is located in the Seneca Building of Midtown Plaza. Even with the cuts, Chase will remain the largest financial employer in the area with more than 1,000 workers. (7/19)
Renaissance Square - A conceptual design was introduced to city leaders by lead designer Moshe Safdie. The biggest change in the plan was the relocation of the bus terminal, originally set to be built underground. The bus terminal would a glass structure at ground level and located off of East Main Street, north of the MCC campus and performing arts center. The MCC campus and arts center would be along East Main Street with a combinations courtyards, retail space and gardens. The project is satiated to cost $230 million, with $160 million all ready secured. (9/8)
2nd Quarter 2005
Eastman Kodak - Eastman Kodak Co. has taken the No. 3 position away from Olympus Corp in the world-wide digital camera sales contest. Kodak ranked 5th in 2002 and 4th in 2003 and became the first U.S. company to be in the top three worldwide. Shipments jumped 50.5% last year as Kodak narrows in on the two leaders, Sony Corp. and Canon, Inc. 8.6 million cameras were shipped by Kodak in 2004, Sony Corp. shipped 12.3 million cameras and Canon was 2nd with 12.5 million cameras shipped. (4/15)
Eastman Kodak - Kodak lost its ranking as the largest employer in the area as its local employment fell 21% in 2004. The University of Rochester/Strong Health surpassed Kodak with a total of 16,565 employees. In 2003, Kodak employed 64,000 worldwide, 54,800 in 2004. Locally, Kodak ranks 2nd with 16,300 workers, down from 20,600 in 2003. The peak employment for Kodak was in 1982 when 60,400 were employed locally. (4/8)
Constellation Brands - The fiscal year end net income for the Fairport Wine company reached $4.09 billion, a 15% increase from last year. The fiscal fourth quarter net income dropped to $47.5 million which reflected the costs of purchasing of Robert Mondavi Corp. Constellation became the largest wine company in the U.S. after acquiring Mondavi, surpassing E & J Gallo, Inc. Net sales totalled $794.7 million in their 4th quarter, up 26% from the same time last year. (4/14)
Bausch & Lomb - The first quarter results were better than expected for the local eye-care company. Figures were up 47% from the same time last year as Bausch & Lomb recorded earnings of $34.5 million. B&L also announced that it will increase its spending for research and development by 12% to 15%. The company has plans on hiring researchers locally and around the world. Another 100 jobs will resume production of the PureVision contact lens at its optics center on North Goodman Street. in May. (4/20)
Renaissance Square - The architect has been chosen for the Renaissance Square project by local officials. Internationally known architect and urban planner, Moshe Safdie, was picked as lead designer. The Renaissance Square project will combine a bus terminal, performing arts center and a satellite campus for Monroe Community College. The facility is planned to be built on East Main Street and cost $230 million. It is the largest project undertaken in the history of the City. (3/24)
Fast Ferry - The Fast Ferry will begin sailing again on June 17th, one year to the day from its official inauguration in 2004. After a $2.8 million engine overhaul, the ferry service to Toronto will begin with one round trip per day. A new name has also been adopted by the City and the ferry will now be known as "The Cat." Ticket prices have not been set, but will be comparable to previous prices. (5/5)
Homes Sales - Area homes sales increased slightly in April with 936 houses sold, a slight increase from the same time last year. Homes selling above the $200,000 market are not selling as quickly as the homes listed at the $150,000 range. The median sales price for a single family was $104,000, up $200 from March and up $8,100 from April, 2004. (5/13)
Bausch & Lomb - B&L announced that they will be expanding research & development and invest $35 million into its optic center on North Goodman Street. A 73,000 square foot addition will be added to the North Goodman Street facility with new laboratories and office space. The existing research facility will also be renovated and updated with new equipment and machines. B&L expects to add up to 200 new research jobs. Construction will begin in July and be completed in 2007. One of the reasons Rochester was chosen over other sites is because of the research relationship B&L has with U of R and RIT. (6/10)
Genesee County - In a study of economic development in small communities across the country, Batavia was listed 7th as for its economic efforts. Last year, Genesee County listed 37 economic development projects totaling $48 in capital investments. Over the last 2 years, there have been 80 projects totaling $80 million in investments and creating 1,100 jobs. (3/18)
Monroe County - A number of multi-billion dollar real estate transactions took place in 2004 in Monroe County from out of state buyers. The biggest real estate sale was the $2.33 billion acquisition of Wilmorite Properties by Macerich Partnership of California. Macerich bought Wilmorite's 11 regional malls in 5 states, including Eastview Mall and Marketplace. DDR of Ohio bought up 18.8 million square feet of retail space from Benderson Development Corp. for $2.3 billion, which included 1.5 million square feet in Monroe County. DDR now owns Culver-Ridge Place, Panorama Plaza and West Gate Plaza. (3/25)
Renaissance Square - Funding for the Renaissance Square has been 60% secured with $140.9 million. $12 million was included in the New York State budget and another $12.5 million is coming from the Genesee Transportation Council. Monroe Community College has secured $55.6 million from the SUNY and the county. $67.4 million has been allocated for an underground transit center. The remaining $17.9 million will be put towards the $106 million performing arts center. On an average, 80% of funding comes from federal money, 10% from the state and another 10% from local funding. Anticipated costs for the project is $230 million. (6/3)
Fast Ferry - The June 17th launch date for the high-speed ferry to Toronto has been canceled and a new start-up date has not been determined. Problems with the computer software that maneuver the ship were found and repairs were being made. The boat is currently docked at Welland Canal in Ontario, Canada for engine upgrades and is expected to return to Rochester by June 10th. (6/2)
Downtown - The Urban Land Institute completed a study for the Rochester Downtown Development Corp. outlining their recommendations for downtown. The $110,000 outline included plans to demolish Midtown Tower for a public park; rehab Sibley Tower into apartments; move Midtown mall tenants to both sides of Main Street with storefronts facing the street; and building the bus station at street level instead of underground as planned for the Renaissance Square project. The report nixed the casino idea for the Sibley building as suggested last year. As recommended by the study, two groups will form to evaluate the recommendations of the study. One group will focus on specific "re-creation" concepts, while the second group will explore creative financial alternatives. The groups will meet again in September. (6/11)
Home Sales - Figures released for May for homes sale in the 11-county Rochester area show a 5.5% increase over last years figures. Real estate closings were up 12.8% from May of last year with 1,098 closings taking place, and up 17.3% from April of this year. A total of 4,328 homes have been sold since the beginning of 2005 which is up 5.5% from last years tally. The median sales price in May was $106,500 and for the year is $125,476. (6/14)
1st Quarter 2005
Wegmans - In their February issue, Fortune Magazine rated Wegmans Food Markets Inc. as the top "100 Best Companies to Work For." Questionnaires were used to compile data; policies and culture were evaluated to meet Fortune's criteria. In their magazine article, Fortune noted that Wegmans environment lends itself to a family atmosphere and offers employees numerous benefits including its college scholarship program. (1/11)
Eastman Kodak - Kodak announced it will spend $45 million to build a new factory in Kodak Park next year. The factory will manufacture a special dye-transfer ribbon for digital printers. The new facility will be the largest single capital investment at Kodak Park in 5 years. The new factory will open in mid-2006 and employ 50 workers. (12/21)
St. John Fisher College - Chief executive of Wegmans Food Markets, Inc., Robert Wegman, announced his intention to donate $5 million to St. John Fisher College to start the first school of pharmacy in the Rochester area. Construction of the new Wegmans School of Pharmacy will begin this fall. Classes are expected to start in the fall of 2006. The 6 year program will offer a doctor of pharmacy degree and would require hiring about 20 additional faculty. (1/19)
Constellation Brands, Inc. - Constellation Brands reported its second consecutive billion dollar sales quarter and showed a 10% increase in net sales from the 3rd quarter in 2003 of $1.09 billion. Wine sales increased 14% to $773.8 million. Earnings for the 4th quarter were up 6%, or 85 cents a share, as compared to the same time last year. (1/7)
Bausch & Lomb - B & L will be adding 100 permanent production jobs to make their Pure Vision contact lens. In 2002, a federal judge ruled that B&L infringed on a Ciba Vision patent and was ordered to stop making the contact lenses. Ciba & B&L reached a settlement which will allow B&L to resume production. B&L spent 10 years and $60 million in research before introducing the Pure Vision lens in 1999 that can be worn for 30 days. As part of the settlement, B&L will pay Ciba royalties on net sales until 2014. (1/12)
Fast Ferry - City Council approved to create a non-profit corporation to buy the Fast Ferry at the scheduled February 28th foreclosure auction. Under the new plan, an 11-member board of directors will be appointed to the non-profit entity, forming a corporation which will own and operate the ferry. $40 million would be financed for the ferry purchase through EFIC, the same corporation that has all ready financed $22.5 million in the ferry project. The new corporation would pay back the money from operating revenue over 15 years. (12/22)
Fast Ferry - The minimum bid of $22.5 million was set by a U.S. Magistrate for the foreclosure auction of the fast ferry. Two appraisals were conducted that found the vessel to be worth between $25 and $30 million. The ship was worth $47.5 million in February 2004 before it sailed. CATS bought the ferry for $42.5 million. The judge has ordered the proceeds from the auction to pay CATS creditors. (1/6)
Fast Ferry - At the federal foreclosure auction of the fast ferry, the City of Rochester placed the winning bid of $32 million. The auction lasted less than one minute, with only one other bid from mortgage holder, Export Finance & Insurance Corp. of Australia, of $29,635.400. Idle since early September, 2004, the city hopes to restart service to Toronto by Memorial Day. (3/1)
Fast Ferry - The Rochester Ferry Co. has hired a company from Canada to run the high-speed ferry service from Rochester to Toronto. Bay Ferries signed a 3-year deal and will receive $1.3 million per year to run the Spirit of Ontario. Bay Ferries will be responsible for managing the service and be required to meet performance standards set out in the contract. Estimates from Bay Ferries show that Rochester Ferry Co. will earn about $3 million in its first year. (3/9)
Delphi Corp. - The world's largest automotive supplier posted a fourth-quarter loss of $102 million. The loss includes a $15 million charge for restructuring and a $265 million charge for revaluing assets. The charges were offset by a tax release of $165 million. Delphi employs 2,300 workers at a plant in Rochester and Henrietta. (1/21)
Pactiv Corp. - Pactiv Corp, which makes Hefty bags, posted a loss in its fourth quarter. Net income of $47 million was down from $54 million for the same quarter in 2003. Net income for the year was $155 million, down from last year's income of $183 million. Pactiv employs about 1,000 workers at its Canandaigua plant. (1/26)
Bausch & Lomb - B&L posted its 12th consecutive earnings quarter with net sales of $606.6 million, a 10% increase from the same time last year. Net income was up 4% to $51.4 million for the quarter. For the year, net income was $159.6 million, up from $126.5 million. (1/28)
Constellation Brands - Shareholders of the world-renowned Napa Valley winery, Mondavi, approved a $1 billion buyout by the Perinton alcoholic beverage company, Constellation Brands. The purchase has made Constellation Brands the single-largest wine company in the United States. Mondavi had faced tough competition and planned to revitalize the company by selling off its expensive wine brands that typically sell for $125 per bottle. Now, Constellation will be acquiring all of the outstanding shares of stock and assume Mondavi's $325 million debt load. (12/23)
Paychex, Inc. - Net income for their 2nd quarter rose to $86.9 million, or 23 center a share, compared to the same time last year, the company posted a $80.7 million net income. Paychex makes money on the funds it temporarily holds for clients in interest bearing accounts. Locally, Paychex is looking to expand its operations as hiring has increased among its clients and interest rates rise. (12/22)
Wegman Food Markets - Two family members were promoted at Wegman's Food Market, Inc. and three generations are now in charge of the giant grocery chain. Eighty-six year old Robert Wegman will remain Chairman, his son, Danny Wegman becomes the new CEO, and Danny's daughter, Colleen, will be the new president. (2/05)
Area Exports - After 4 years of declines, area exports increased in 2004, according the Rochester Business Alliance. RBA estimates that goods and services exported for 2004 in the 9-county region will be $12 billion. Goods and services exported in 2004 were $11.5 billion. The record high was $15 billion exported in 1997. (12/17)
Xerox Corp. - Xerox reported earnings of $240 million, or 24 cents a share, for their 4th quarter, ending December 31st. The company's growth in digital office, digital production and services accounted for 76% of the 4th quarter revenue. Revenue from color products and services rose 21% compared with a year ago. For the full year, Xerox reported a net income of $859 million on revenue of $15.72 billion up from a net income of $360 million on revenue of $15.70 billion in 2003. (1/26)
Eastman Kodak - Kodak's digital camera business became the No. 1 supplier in the United States upseating the longtime favorite, Sony Corp. In 2004, Kodak sold the most digital cameras in the U.S., more than any other manufacturer. Kodak digital camera's accounted for 21.9% of shipments to retailers last year. Competitive products and prices are what the company is attributing to its success. The company also has the No. 1 digital camera status in Australia, Argentina, Peru and Chile. (2/3)
Home Sales - 2004 Home sales in the Rochester 5-county region were down 12,768, less than 1% from 12,884 in 2003. Dollar volume of home sales was $1.64 million. Median sales price in 2004 was $106,000, up 3.9% from 2003 median sales price of $102,000. Figures for January, 2005, show sales and prices were up 9.3% from the same time last year. The median sales price was also up 7% to $127,705. (1/21 & 2/17)
Fibertech - A Brighton company that builds fiber-optic networks, Fibertech Networks, turned a profit for the first time and set a sales record in 2004. The company experienced $91 million in contract sales for 2004 compared to $45 million in 2003. Fibertech employs 78 people locally, and 85 nationwide. (/20)
Corning Inc. - Corning Inc. expects to invest nearly $1 billion into its ultra-thin glass business this year. The glass is used in flat-screen computers and televisions and has become their most profitable business. Fourth quarter sales of $311 million were up 56% from last year, helped by an increase of revenues from the liquid-crystal-display glass. (2/6)
Renaissance Square - More money was secured for the funding of downtown's largest development project in its history, as another $8.5 million was committed. So far, $120 million has been committed to the project. Monroe County Executive Maggie Brooks and City Mayor Bill Johnson had traveled to Washington, D.C. to lobby legislators for more money. Planners of Renaissance Square are expect to announce a firm to design the $230 million downtown upgrade. The plans include a performing arts center, a MCC campus and transit center. (3/6)
4th Quarter 2004
Eastman Kodak - In their 3rd quarter results, Kodak showed strong sales in its digital imaging products but had a significant decline in their traditional photographic film and paper. Digital products grew 39%, or $345 million, during the third quarter over the same time last year. Sales of the traditional products fell 13%, or $326 million. Kodak announced in January its intention of focusing on and investing in digital imaging and is expected to cut its workforce by 12,000 to 15,000 by 2007. (10/21)
Eastman Kodak - Work is scheduled to begin on the first phase of the demolition and raising of 18 buildings in Kodak Park, which would reduce annual tax payments to County, City and Schools by $466,000. The project will cost $200 million and be done in 3 phases in 3 years. The demolition of Kodak property located in the City could reduce the taxes Kodak pays by 10.1%. Kodak currently has $83.7 million of property on the tax rolls. The first phase would eliminate $8.4 million of taxable property. Kodak is working with officials from Greece and the city as the project gets underway. All parties want new businesses to move into the sites, which will include parks and landscaped areas. (10/8)
Eastman Kodak - Kodak's digital camera sales are running a close second to Sony in camera shipments. One million digital cameras were delivered by Sony in the 3rd quarter, only 10,000 more than Kodak. Canon Inc. ranked 3rd, Olympus was 4th, followed by other camera makers, Fuji, HP and Nikon. It is estimated that 24 million digital cameras will be sold in the U.S. this year, with sales near $8 billion. (11/21)
Paychex - At its annual shareholders meeting, Paychex celebrated its 14th record year of gross revenues and earnings. Sales totaled $1.3 billion for their 2004 fiscal year, which ran from June 1, 2003 to May 31, 2004. Paychex also reported record earnings for the first quarter of 2005. Net income was $87 million, or 23 cents a share, up from $80.3 million, or 21 cents a share, for the same period last year. Total revenue grew to $345 million, with payroll services increasing 10% to $280.4 million. (9/22 & 10/7)
Paychex - Founder and president of Paychex, B. Thomas Golisano announced he will be stepping down as president and CEO of the company. IBM executive, Jonathan J. Judge, has been tapped as his successor. Mr. Golisano founded Paychex in 1971 with a $3000 investment. Today, Paychex is now one of the biggest payroll providers with 505,000 clients, employing approximately 9,600 workers, 2000 in the Rochester area. (10/4)
Xerox - Xerox posted its 10th consecutive profitable quarter in its 3rd quarter report. Profits were $163 million up from $117 million for the same time last year. Brisk sales of color printers and service contracts were attributed to the success of the quarter. Sales from color products grew 18% form last year and are 24% of Xerox's total sales. As of the end of September, Xerox employees 59,300 worldwide, down 700 from last year, and 8,612 locally, down 300 from 2003. (10/22)
Bausch & Lomb - Bausch & Lomb posted a 3rd quarter profit and earned $43.3 million up from $32.3 million, or 34%, for the same quarter last year. This is the 3rd straight quarter that B & L has posted double digit growth in its contact lenses, eye-care and vision correction products. (10/20)
Jobless Rate - Monthly unemployment figures for the six-county Rochester area fell to its lowest level in August since October 2001. Unemployment was 5.1%, down from July's figure of 5.4%and 5.3% in August 2003. Figures show that 29,100 people are without jobs in Rochester, the lowest number since October 2001, but the area's workforce is smaller. There are 574,400 workers in the area, down from August 2003 numbers of 585,400. Manufacturing employs 79,900 works in the Rochester area in August, down from the August 2003 figure of 86,000. Educational and health service jobs continue to grow with 95,900 employed last month, compared to 94,800 employed in August 2003. (9/24)
Fast Ferry - In an ongoing saga to reinstate service to the Fast Ferry, U.S. Bureau of Customs and Border Protection will now allow commercial trucks on the ferry under certain conditions. Trucks that have been certified with FAST and C-TPAT, two programs that investigate applicants and speed border inspection, will be allowed on the Ferry. The inability to carry commercial vehicles is one of the reasons the Ferry operator, CATS, ceased operating. The company estimated it could make up to $18,000 a day if trucks were allowed aboard. (9/24)
Fast Ferry - Ferry operators, CATS, has found new investors who will submit a proposal to the company's two primary lenders to get the boat back in service. The proposal is expected to include new ownership, management, a new board of directors and an advisory board. Negotiations are still being worked on and hopes are to have the ferry service reinstated by spring. (10/18)
Fast Ferry - In another attempt to save face, city officials have announced a proposal to buy the Fast Ferry from CATS through a government-backed bond purchase. The initial cost would be about $40 million. The goal is to have The Breeze in operation by spring and sail year round. (11/18)
Fast Ferry - Officials at the Australian government that financed the $22.5 million loan for the ferry started foreclosure proceedings, hoping to recover their money invested in the ship. The City's effort to buy the ship from CATS eventually fell apart and the $42.5 million vessel could be sold at a court-ordered auction. In Toronto, the Port Authority announced it would halt construction of its ferry terminal, and build another building for other purposes, if the service doesn't resume. (12/7)
Monro Muffler - Monro Muffler ended its second quarter with record sales reaching $88.4 million, 19% greater that the same time last year. The reported net income of $6.7 million is 13% ahead of last years figures. Expansion plans remain in the Northeast and mid-Atlantic states, with the most recent 5 stores being purchased in Baltimore. Twenty-five Mr. Tire stores were purchased by Monro Muffler earlier this year. (10/15)
Constellation Brands - In an unsolicited bid, Constellation Brands offered to pay $1.3 billion for the California luxury wine maker, Mondavi. The offer includes $970 million in cash to purchase Mondavi's stock and the assumption of a $333 million debt. The acquisition would make Constellation Brands to largest wine company in the country. Mondavi had hoped to sell its premier wine labels but had not received any offers. (10/18)
Delphi Corp. - One of Rochester's largest employer's posted a 3rd quarter loss of $114 million. Delphi Corp. is the world's largest auto parts supplier and employs 2,300 workers at its Rochester plant. The loss amounted to 20 cents per share, but was far less than the loss posted in the same quarter last year of $356 million, or 63 cents per share. Delphi is expected to cut its workforce by 6,000 nationwide by year's end. (10/19)
Pactiv Corp. - After beginning this year restructuring, Pactiv reported a 9% increase in sales for its 3rd quarter. Pactiv produces packaging for food service such as Burger King, Taco Bell and Hefty. Sales for the quarter were $2.5 billion, up from $2.32 million over the same period last year. (10/21)
Homes Sales - October home sales were 12% lower than in September, and 1.7% lower than October, 2003. 2004 still remains 6% ahead of last year's record pace. The number of homes listed in October fell slightly, while remaining 3.8% ahead of 2003's pace. (11/10)
Eastman Kodak - Kodak announced that it will be closing a manufacturing plant in Toronto in mid-2005. The factory manufactures inkjet photo paper and employs 360 workers. Kodak has also closed factories in Australia, England, France and Mexico. The closings are another part of the plan of down-size its operations by one-third worldwide by 2006. (12/10)
Paetec Park - Excavation and site preparation of the future downtown soccer stadium began as crews began work on the 15 acre parcel. After a few years of setbacks, the $23 million stadium is scheduled to open late next summer. The stadium is owned by the Rochester Rhinos, an A-league soccer team. (9/23)
Xerox Corp. - Xerox Corp. has offered an estimated 1500 local unionized workers voluntary severance packages. Many of the employees work in manufacturing at the Webster plant and have until December 30th to accept. The current labor contract protects union workers from involuntary cuts, but Xerox could make the cuts and pay through then end of the contract, which expires in March, 2005. Xerox is the region's third largest employer, with 8,600 workers. (11/5)
3rd Quarter 2004
Eastman Kodak - Rochester's largest employer reported a 2nd quarter profit of $154 million, or 54 cents a share up from 2003 profit of $112 million and 39 cents a share. Consumers almost doubled their purchases of Kodak's digital cameras during the 2nd quarter, the busiest season for picture taking. A larger than expected decline in film sales will force sooner than expected job cuts. Kodak initially projected a 7 to 9% drop in film sales worldwide, but is actually seeing a 10 to 12% decline this year. Operating profits totaled $230 million up from last years figure of $119 million. Health imaging sales rose 11% to $672 million, while commercial printing sales fell 3% to $193 million. (7/22)
Paychex - Paychex ended its fiscal year May 31st with another record despite the 4th quarter 4-cent charge. Revenue was up from $1.1 billion for 2003 to $1.3 billion and earnings of $303 million for 2004 was up from 2003 figures of $293.5 million. For the 4th quarter, a net income of $61.4 million down from $71.3 million from the same period last year. Quarterly earnings were affected by a decision to increase its legal reserves from $10.8 million at the end of the 3rd quarter to $26.6 million. There are 22 lawsuits currently pending against Paychex. A jury awarded $6.4 million to a Texas payroll processor that sued Paychex over licensing agreements. Paychex has about 505,000 business customers in the U.S. up from 375,000 three years ago. (6/25)
Home Sales - Sales of single-family homes rose 37.1% in June from May and 22.6% from June of last year. The median sales price was $110,000, up from last year's figure of $106,000. Sales volume for the first six months was $663.3 million, up 8.4% from the same period last year. (7/14)
Constellation Brands - The alcohol beverage company beat Wall Street estimates for its first quarter, ending 5/31, posting earnings of $51 million, or 45 center per share, up 31% from last year. Strong sales in all of its product categories and a stable grape industry in California contributed to the record earnings. Net sales for the quarter were $927 million, up 20% from last year. (7/1)
Ultralife - Ultralife's Batteries Inc. second quarter results showed a net income of $3.2 million, earning 22 cents a share as compared to last years postings of 16 cents per share. The military has been responsible for much of Ultralife's growth, with numbers likely to increase in the future. Defense sales make up some 60^ of the company's revenues. A five-year contract for rechargeable batteries is up for renewal with the Department of Defense that would be a significant income for the battery company. The company currently produces 37,000 batteries a day, up from 4,900 a year ago. Last year, Ultralife had 40 battery products and now has 114. (7/23)
Bausch & Lomb - B&L sales for the second quarter of 2004 were up 46% from the same time last year boosting income to $41.4 million. Contact lens sales grew 12%, sales of refractive surgery products increased 17%, lens care products were up 7% and pharmaceutical sales grew 11%. Earnings per share were 76 cents as compared to last year's 2nd quarter of 53 cents. Wall Street had estimated a 64 centers a share. (7/30)
Ultralife Batteries, Inc. - The Wayne County battery manufacturer posted a 2nd quarter revenue of $28.4 million, up 41% from the same time last year, but because of a $4 million charge, the company reported a loss of $372,000. The company expects a 2004 revenue of $106 million, even though they expect military orders to slow in the 2nd half of the year. Ultralife employs more than 800 in the Rochester area. (7/29)
Cooper Companies - Cooper Companies Inc. has bought Ocular Sciences Inc. for $1.2 billion, which will make Cooper the world's third largest contact lens maker. The lens-manufacturing division, Cooper Vision Inc., is headquartered in Perinton, employs around 1,100 and 200 more jobs will be added in the next two years. Cooper makes specialty lenses and concentrates on the professional optometric customer. The estimated 2004 fiscal revenue for Cooper Vision is $385 million. (7/29)
Greater Rochester Airport - Air traffic in July was the highest in at least 15 years with 127,957 passengers flying out of Rochester. The report from Monroe County showed a 7% increase from the same time last year, and 12% higher than June, 2004. Airport officials believe fewer travelers are flying out of Buffalo because of cheaper airfares. Three low-fare carriers have been added to the Rochester Airport in the last 4 years: JetBlue, AirTran and Independence Air. Thirty percent of the passengers for the first 7 months of 2004 used the low-fare airways. (9/2)
Fast Ferry - After three months of service, the highspeed ferry was docked indefinitely because of mounting debt and administrative conflicts. The Ferry's company, CATS, has accrued a debt of $1.7 million since service started on June 18th of this year. Unexpected and expensive bills, higher than expected fuel costs and U.S. Customs not allowing commercial vehicles are among the problems which led to the Ferry being docked. Officials from Austal Ships, the ship builder, and its financial backer, AEFIC will meet with CATS and Rochester officials to discuss the future of the ferry. (9/8 & 9/14)
2nd Quarter 2004
Area Employment - The unemployment rate for April was 6.1%, down from 6.4% in March, 2004. Fewer were unemployed, but there are fewer numbers in the workforce in the Rochester area. The number of people with jobs dropped from 532,900 in March to 531,000 in April. Statewide, the job count jumped by 49,200 in the last year and the unemployment rate dropped 0.7% to 6.0%. The figures are 557,000 people without jobs, 69,000 fewer than in March. (5/21)
Bausch & Lomb - Increased sales of contact lenses, pharmaceuticals and refractive surgery equipment led Bausch & Lomb to a 50% net income for the first quarter in 2004. Net earnings per share for the quarter rose from last years 31 cents to 43 cents. Net income was $23.5 million, up from the $15.6 million last year. Worldwide, Bausch & Lomb reported a net income of $510.3 million up 14% from $448 million last year. (4/22)
Paychex - Paychex Inc. set another financial record for its fiscal third quarter as $80.5 million was made in 3 months ending February 29th. The equates to 21 cents per share, an 11% increase over the same period last year. Revenue increase 19% to $342.6 million. This is the third straight quarterly record for Paychex. The company's client base topped 500,000, 10,000 over the second quarter of fiscal 2004. Paychex projection for revenue growth this fiscal year was increased about 1% to 16 to 18%, and profit growth remains at 8 to 10%. (3/19)
Construction - In the six-county Rochester area, construction contracts increased 179% in February, as compared with the same time last year. The figures went from $30.54 million in February, 2003 to $85.22 million in February, 2004, up 101% from the January, 2004 figure of $27.5 million. The increase is due to the demand for nonresidential building, such as commercial and industrial construction. Residential construction contracts were up 14% to $29.85 million. (3/24)
Sutherland Global Services - Sutherland Global Services received a $30 million equity investment enabling them to expand business in the U.S., Canada and India. The Rochester area-based outsourcing company expects to increase its workforce by one-third in the near future. Much of the expansion will occur in India, revenue from Sutherland's U.S. operation should grow 15% this year. The company has more than 3 dozen major clients, including Xerox, Amazon.com and Hewlett-Packard. Sutherland employs about 1,500 people in the Rochester area. (3/24)
Pactiv Corp. - Ontario County's largest employer, Pactiv Corp., announced plans to consolidate manufacturing facilities in Europe and North America as part of a $45 million savings plan. Nearly 1,100 workers in Ontario County make Hefty products at Pactiv. Of their 80 facilities around the world, the majority of the plan would affect molded fiber facilities. The savings would be reinvested into marketing and new development initiatives. In another announcement, Pactiv will eliminate or relocate about 85 jobs from the Canandaigua plant as part of its restructuring. 25 to 30 engineering jobs from its Canandaigua tech center will be transferred, while 50 to 55 jobs will be eliminated from manufacturing by May 30th. Pactive employs a little over 1000 in the Canandaigua area. (3/16 & 4/2)
Corning - Corning Inc. plans to build a second factory in Taiwan to manufacture liquid crystal display glass. In February, 2004, the company said it was investing $600 million over the next 2 years in the production of the ultra thin glass in Taiwan and Japan. Last year, Corning Inc. spent $180 million in expanding those plants. The glass is used in flat-screened computer monitors and televisions. Corning expects LCD glass volume to increase 30% to 50% a year over the next several years. In a surge of sales for the first quarter of 2004, the company posted a strong $55 million profit. (5/2)
Charter One - A $10.5 billion transaction purchased Charter One Financial Inc. making the bank one of the ten largest in the country. The Royal Bank of Scotland Brou acted through a subsidiary Citizens Financial Group Inc. in the purchase. Citizens will grow to $128.8 billion in assets, 24,000 employees and more than 1,400 branches in 13 states. (5/6)
Constellation Brands - Constellation Brands is powering up its high-end wines by entering into an agreement with Domaines Barons de Rothchild of Paris and Huneeus Vintners of Napa Valley, California. Constellation will provide $81.2 million in assets and cash and become the largest stockholder of the yet to be named company. Its key contribution will be its own Oakville vineyard in Napa Valley. Rothchilds will invest $61.37 million and Huneeus will add another $68 million in cash and assets. The Rothchilds name among vintners is listed as one of the highest levels for French wine which sell for several hundred dollars per bottle. (5/18)
Eastman Kodak - Kodak has purchased Scitex Digital Printing for $237 million. Scitex is a design and manufacturer of commercial printing machines in Israel. The company will be renamed Kodak Versamark Inc. and will operate wholly as a Kodak subsidiary with headquarters in Dayton, Ohio. (1/26)
Eastman Kodak - Eastman Kodak Co. announced that it would add about 60 manufacturing jobs at its Windsor, Colorado facility instead of adding the jobs in Rochester. Demand has increased for a popular home printer and a line of store-based self-serving imaging kiosks. The ribbons used to help convert the images to prints has been manufactured in Colorado and expansion seemed logical. Rochester makes the special paper used in the printer and kiosks and demand for that has also been growing. Kodak has placed about 50,000 PictureMaker kiosks worldwide. (3/23)
Eastman Kodak - An agreement has Medis Technologies, Inc. of New York City and Kodak working together to formulate groundbreaking technology of liquid fuel cells. Kodak has agreed to help develop chemicals and refueling cartridges for the advancement of Medis' fuel-cell products. Medis' product objective is to provide a cheaper and more efficient electricity for the consumer and military uses. (5/26)
Eastman Kodak - As announced in January, Kodak will be reducing its assets by one-third worldwide in the next few years. Kodak Park is expected to shrink as well as some buildings will be demolished and others sold. Demolition of 24 structures, including buildings and sheds, are planned. About 60 buildings have been removed in the last ten years. (6/2)
Infotonics - A ribbon cutting ceremony officially opened the Infotonics Technology Center in Canandaigua. The lab aims to create "spin-off" companies and thousands of jobs for the region in optics and micro-electronics. Supported by public and private funds, the tech center includes a state of the art "clean" room for researching and creating new devices used in sensors, microscopic mirrors and computer processors. Officials say that the lab qualifies as the premier research facility east of the Mississippi. Eastman Kodak, Xerox and Corning, Inc. were among the contributors to the development of the tech center. (5/11)
Monroe Muffler - Monro Muffler Brake Inc. reported a record sales and earning for the fiscal year which ended March 29th. Even though net income fell 12% in the 4th quarter, the Rochester chain states that it is on its way to more record revenue and profit. The company earned $2.2 million for the fourth quarter and sales jumped 9.4% to $67.2 million. The chain has 596 stores and plan to open 25 new stores in 2005, including 20 in BJ's Wholesale Club. (5/21)
Manufacturing Jobs - The Rochester area lost nearly 4,000 manufacturing jobs in 2003 bringing totals to almost 34,000 since 1993. From December 2002 to December 2003, the six county Rochester area lost 4.4%, or 3,900 jobs. Rochester lost a total of 5,000 jobs in 2003. Statewide, New York lost 31,900 manufacturing jobs in 2003. The cause of the manufacturing job loss stem from a number of factors, including the economy, productivity improvement and outsourcing. (3/12)
Rochester Gas & Electric - Profits dropped 41%, or $20 million, and 364 jobs were cut for Rochester Gas & Electric in 2003. The company partly blames a rate order by the Public Service Commission which reduced its earnings by $30 million. RG&E net income was $29.64 million for 2003, down from the $50 million earned in 2002. Operating revenues were $1.02 billion for 2003, up slightly from 2002 $992 million. (3/19)
Rochester Gas & Electric - RG&E has has sold the Robert E. Ginna nuclear power plant to Constellation Generation Group of Baltimore for $408 million. Constellation then plans to transfer ownership to a subsidiary called R.E. Ginna Nuclear Power Plant. RG&E has said that the $110 million in proceeds from the sale will be sent out in refunds to eligible electric customers. Constellation plans on spending $40 million in renovations to increase the amount of electricity produced. The 440 employees of Ginna were offered employment at the plant with Constellation. (6/11)
Fast Ferry - The fast ferry, The Spirit of Ontario, arrived at its new home at the Port of Rochester after a 15,500 nautical mile trip from western Australia. Nicknamed "The Breeze," the $42.5 million ship is one of the most anticipated projects in Rochester history. The ship will travel between Rochester and Toronto two times daily, at first, and then three times daily after May 28th. Ship features include a restaurant, bars, internet, small theaters, business class, a duty-free shop, a children's play area and an arcade. The ship can haul 774 passengers and 238 automobiles. One-way tickets range from $28 for adults without a car, with a car the adult ticket is $20 and the fee for the car is $40. (4/28)
Biotechnology - A national business magazine has ranked the Rochester area as 26th on a list of top 40 areas for biotechnology. There are more than 70 biotechnology and life science companies employing 7,500 people in the Rochester region. Greater Rochester Enterprise conducted the survey and will include the survey in its presentation at BIO 2004, the largest gathering of biotechnology leaders in the world. GRE is a privately led organization focused on economic development. Rochester ranked higher than Tampa, FL (#27), Portland, OR (#30) and Austin, TX (#37). Buffalo-Niagara Falls metro area placed 40th. (4/30)
Home Sales - Rochester area house sales were up 18.5% from March, 2003 and up 11.5% from April, 2003. For the first four months of 2004, sales were up 1.7% over 2003, and there were 9.5% more homes listed for sale in April 2004 than in April 2003. Sales in the city of Rochester were up 5.3% over last year, Wayne County sales were up 14.1% and Ontario County up 7.7% from last years record pace. The median price for a home through April was $95,000, same as last year. Nationwide, new single-family home sales increased 8.9% in March, an increase of 21.8% over March 2003. (5/7)
Home Sales - In May, Rochester area home sales were just 1% lower than May of 2003 and 4.7% higher than April, 2004. The median sales price remained unchanged at $97,000 and dollar volume was up 1.5% to $486 million. (6/10)
Home Ownership - A new analysis suggests that home ownership for low and moderate income families has declined since the late 1970's. The data, in part, suggests that the families income has not kept pace with the soaring housing prices, sighting a need for government to promote construction of affordable homes. Over the past few decades, builders have been developing bigger homes in the $250,000-$400,000 range geared toward higher income people. (5/18)
Farmland - The U.S. Department of Agriculture latest census report shows that Monroe County is continuing to lose farmland to development. According to the report, Monroe County is losing farmland three times faster than the national and state average. Agriculture is one of the areas largest industries. One third of the state's agricultural produce comes from the Rochester area. Monroe County lost 6,517 acres of farmland from 1997 to 2002, when the census was taken. The number of farms now totals 631 in Monroe County, up from 603 in 1997, although the farms have gotten smaller. (6/4)
Nursing Homes - Most counties across the State of New York are debating whether or not to stay in the nursing home business. The dilemma is whether to continue a long-held tradition as a long-term care provider or face an increasingly dim financial outlook. The State has not upped basic Medicaid rates since 1983 and nursing homes can only get a new rate if costly substantial renovations take place or by changing their governing bodies. The 12-county Genesee region's aging population is expected to need 3,200 new beds by 2030. (3/26)
Empire Zone - The Rochester area was among the lowest for tax breaks through the Empire Zone program in 2001. Created to spur development in depressed areas of the state, studies are showing that in the eight upstate zones, ¼ met their job projections, ½ added jobs and a ¼ lost jobs. The funding for Empire Zone is up for renewal in Albany as it expires in July. The issues is whether the program is too generous and how much it will cost in the future. (5/10)
1st Quarter 2004
Bausch & Lomb-- Bausch & Lomb Inc. expects 2004 to exceed the 2003 sales through continued growth in sales of their contact lenses, vitamins and several new products. Earnings for the three months were 83 cents per share, up 38% from 2002 and beat Wall Street estimates of 79 cents per share. B&L announced net sales for 2003 were $2.02 billion, up 202.8 million from 2002. Net income of $49.4 million was reported for the fourth quarter. Also announced by B&L was the continued development of its drug-delivery implant called Retisert. The company promoted the implant as a major new product for treatment of several eye diseases. (1/30)
Constellation Brands-- Shares of Constellation Brands Inc. fell 9% after the company downgraded its fiscal year forecast. Constellation expects to earn $2.43 to $2.53 per share for the year that ends Feb. 28, 2005. The company said the earning forecast is lower than expected because of an increase in the number of shares outstanding. It sold shares in July to buy BRL Hardy of Australia. The purchase made Constellation Brands the world's largest wine company. Net income increased $18 million, or 42%, to a mere $91.2 million. Sales were up 34% to $987.2 million. The third quarter has been exceptional for the wine baron. Net sales from the wine division were up 47%, $680.5 million, an increase of $218.2 million. The increase of net sales has been influenced greatly by the acquisition of an Australian wine company, BRL Hardy. Net sale in the beer and spirits division grew 11% to $307 million. After flatlining for the last few years, hard alcohol is making a comeback industry wide. (2/26)
Eastman Kodak-- In a worldwide announcement, Kodak will eliminate 12,000 to 15,000 jobs, 20% of its workforce, over the next three years. The company expects to close, or sell, about a third of what it now occupies in office space, manufacturing and other functions. At the same time, Kodak will attempt to begin a new future by making big investments in digital photography, printing and consumer electronics. In an effort in cutting costs of up to $1 billion, Kodak will pay out $700 to $900 million in severance packages and $600 to $800 million for the disposal of buildings and equipment.
Eastman Kodak Company Dividend-- Eastman Kodak Company announced that employees will receive a Wage Dividend payment equal to 4.3% of their 2003 pay. The Wage Dividend, estimated at $50 million, will be paid in April to approximately 27,300 employees in the United States. In the Rochester area, approximately 20,500 employees will share in an estimated Wage Dividend payment. Last year, Kodak paid a $84 million Wage Dividend , equal to 7% of 2002 wages and salaries. (1/27)
Eastman Kodak-- Despite a solid fourth quarter, 2003 yearly earnings fell short as film sales dramatically declined. In recent years, film was Kodak's most profitable product. An operating profit of 70 cents a share during October, November and December showed in increase of 7% over the 4th quarter of 2002. Kodak reported a net profit of $19 million, or 7cents a share for the fourth quarter. These numbers are down from the same period last year from $113 million or 39 cents a share. For 2003, Kodak earned $265 million, or 92 cents a share, down from 2002 figures of $770 million or $2.64 a share. There was a significant increase in sales of digital products, such as the EasyShare camera sales jumped 87 percent and digital radiology products grew 26 percent. (1/22)
Eastman Kodak-- Kodak has purchased a business that designs and manufactures commercial printing machines for $237 million. Scitex Digital Printing, a subsidiary of Scitex Corp. Ltd of Israel, will be renamed Kodak Versamark Inc. and will be operated from its headquarters in Dayton, Ohio. The purchase is part of a strategy by Kodak to survive the switch from photographic film to digital imaging.
Eastman Kodak-- Kodak announced in agreement to sell its Remote Sensing Systems unit, including a Colorado Software company, to ITT Industries for $725 million. ITT plans to base a division specializing in space-based sensors and image processing in Rochester. Instead of layoffs, the 1800 employees in Rochester and other parts of the country will transfer to ITT Industries. Headquarters in White Plains, Westchester County, ITT described Kodak's remote sensing unit as "the world's leading supplier of high-resolution satellite imaging systems and image information processing services." (2/10)
Eastman Kodak-- After announcing plans to cut costs, Kodak will sell its operations located its Riverwood site in Henrietta. The 400 employees who work at the site will be relocated to nearby Kodak facilities. Kodak has occupied 4545 East River Road since 1971. The move is part of the plan to reduce worldwide facilities square footage by one-third. The Riverwood site has three buildings with 381,000 square feet on 140 acres. (2/14)
Eastman Kodak-- Kodak plans to tear down nine buildings and two sheds at its 2,200 acre complex. About 60 Kodak Park buildings have been demolished in the last decade eliminating outdated buildings and approximately 1.8 million square feet. This year, only 450,000 square feet is set to be demolished. The company has set into motion a plan to reduce its physical assets by 1/3 worldwide. (2/23)
Home Sales-- The National Association of Realtors reported a record breaking year for home sales in 2003. Sales totaled 6.1 million, a 9.6% increase from 2002 sales of $5.57 million. In December, existing-home sales jumped by 6.9% from the month before. Mortgage rates have been the lowest annual average since tracking began in 1971. The average rate for a 30 year, fix rate mortgage for all of 2003 was 5.83%. The median price of an existing home rose 7.5% to $169,900 from the 2002 median price of $158,100.00. Home sales for the local 11 county area in February dropped 7.6% from January, but the figures rose 13.3% when compared with the same month last year. Cold weather was blamed for the dip in February's figures. The median home price as down 8.8% from January to $93,000. (1/27 & 3/11)
Monro Muffler-- The Rochester based automotive repair and service chain, Monro Muffler, reported third quarter gains and a record fiscal third quarter. Sales reported were $64.5 million for the quarter ending December 27th. Last years third quarter reported $60.7 million. Net income was $3 million, or 21 cents per share, compared to last years $2.4 million and 17 cents per share. Recent shop openings at 10 BJ's Wholesale locations had better than expected results for the company. The firm plans to open at 25 more BJ's by the end of this fiscal year. Despite the news, the Monroe stock slipped at $23.45, off 86 cents.
J.P. Morgan Chase & Co.-- A deal that would create the second largest U.S. banking company was announced as J.P. Morgan Chase & Co. and Bank One Corp. plan to merge. The merged company will have assets of $1.1 trillion with 2,300 branches in 17 states. The new bank will retain the name, J.P. Morgan Chase & Co. (01/12)
ViaHealth-- After years of multi-million dollar losses, ViaHealth is in its strongest financial shape in years. Rochester General and Newark-Wayne Community made money in 2003 and ended with a $6.3 million bottom line. This is the first time ViaHealth has been in the black since the late 1990's. Rochester General made $8.8 million from operations and made had a net income of $9.8 million. Newark-Wayne Community closed the year with a bottom line of $765,744. ViaHealth will use the extra money to upgrade equipment and facilities. ViaHealth is the areas fifth largest employer with 5,600 full time employees. (2/25)
Xerox-- Xerox announced its follow-up to its digital publishing systems with the unveiling of DocuTech 100 and 120. The machines are designed to incorporate major advances in software, hardware and printing technologies. The new DocuTech includes a CD/DVD which enables printing directly from a compact disc. Xerox is also announcing a new color office printer costing less than $1000.00, two new black-and-white laser printers and a number of new document management services. (1/29)
Xerox-- Xerox Corp. closed 2003 with an unexpected strong financial finish. A profit of $222 million, or 22 cents a share for the quarter, was up from last years $19 million, or a penny a share. Xerox stock closed at $15.15, up $1.20, the highest shares have traded since October 2000. Revenues increased 1% to $4.3 billion, the first increase in seven quarters. For the full year, Xerox reported a $289 million profit, 38 cents per share and paid down debt by $3 million. Xerox also posted its employment numbers at the end of 2003. The company had 8,600 local workers, down 1,450 from the previous year. (1/28)
Xerox & Eastman Kodak-- Both Eastman Kodak Co. and a Xerox Corp. subsidiary have signed technology development agreements with Dell Inc., the world's second largest maker of personal computers. Just what exactly the two Rochester giants are going to do for Dell Inc. has not been makde public. Xerox views the alliance as a huge plus financially, which will have access to potential customers, revenue and profit from Dell. Dell ranked high as the most trusted technology brand and has become a household, and universally respected name. (01/09)
New York State-- New York state has the most ski resorts in the country and those numbers are growing. In the last 8 years, the state's largest ski resorts have increased their lift capacity by 17% and added 24% more trails on average. An adult 8-hour pass has also increased by 30%. Natural snow is preferred, although machine-made snow is now of higher quality and easier to make. Chair lifts are able to travel to the top much quicker and loading and unloading has become easier. Bristol Mountain, which ranks 10th-largest ski area in the state, has increased lift capacity 44% since 1996 and increased its annual number of skiers by more than 34%. (01/09)
Arts Center-- Hoping for an endorsement of the planned performing arts center from Gov. Pataki, local officials wait anxiously for his State of the State address. After months of revision, a $65 million plan for the arts center depends on getting state aid. If Gov. Pataki does endorse the project, state funding will not be far behind. The performing arts center, and the downtown transit center along with an expansion of Monroe Community College has taken shape into one of the largest projects in the city's history. How much money the state would endorse would be determined by budget negotiations. Private investment and local government money will also be required. The Rochester Genesee Regional Transportation Authority has secured $42 million in federal funds for the $58 million terminal. Monroe Community College has also received $16 million of state aid to build a $66 million high-tech facility in downtown, although the college has not committed to a downtown site. The plan, which did receive its endorsement from Gov. Pataki, has the bus terminal built underground, the arts center and MCC campus would be built above it. Because the pieces are planned together the project will be cheaper than doing them separately as originally proposed.
Job Outlook-- The nationwide Manpower Employment Outlook survey reports that the job outlook in Rochester will likely improve. 60 percent of Rochester companies plan to hire over the next few months. 20 percent of businesses interviewed are keeping staff levels as they are, and 20 percent were unsure of their plans and none expected to downsize. The survey interviewed 16,000 companies nationwide while 1,000 companies were interviewed locally.
Exports-- In a preliminary results of an annual survey, area export sales for 2003 are expected to fall below 2002's level of $12.3 billion. Nationally, trade in October was slow. The U.S. posted a $41.8 billion trade deficit in goods and services, almost online with Septembers figures of $41.3 billion. For Rochester, China remains the hot market. Other top markets are Canada, the United Kingdom, German, Japan and Mexico. Eastman Kodak, Rochester's largest exporter, this year closed two major operations, moving a huge portion of its work to Mexico. Loss of manufacturing jobs to China and other nations is among the top concerns from the survey.
New Homes-- A new record was set for spending in November for U.S. construction of new homes. For the fifth straight month, to $934.5 billion, builders started work on houses at the fastest pace ever. The 1.2% increase in home building is fueled by a strengthening economy and low mortgage rates. Home-building accounts for 5% of the economy. Through the first 11 months of 2003, construction spending totaled $828.1 billion, nationally. This figure is 4.1% higher than the same period last year. (1/21)
Unemployment-- The six-county Rochester region unemployment rate stood at 5.8% in December, compared with 6% a year ago. Statewide, the rate was 6.1% and nationwide was 5.4%. the Rochester area lost a reported 5,000 jobs from December 2002 to December 2003. (1/20)
U.S. Cities-- In an annual survey by Expansion Management, Rochester ranked 33rd upon 50 of the top U.S. cities for corporate expansion. The magazine asked 70 site consultants which cities their clients found most attractive for expansion or relocation in 2003. Atlanta, Georgia ranked No. 1, and Buffalo-Niagara Falls ranked No. 38. This is the first time in the survey's six years that Rochester placed in the top 50. (1/20)
Local Economy-- The Rochester Business Alliance, a committee of economists, planners and others, predict that the local economy will take a tiny step forward in 2004. Hiring at small to medium sized companies will only slightly exceed ongoing cutbacks. The unemployment rate will fall to 5.5%, down a tenth of a percent, and wages will rise about 1.6 percent. The forecast is cautiously optimistic for the third year in a row. If trends continue, 2005 will mark a good year of growth. Exporting, education and health care are strong segments, whereas manufacturing remains a weak spot. (01/10)
Airport-- The Greater Rochester International Airport posted a 5-year high of airport passenger traffic. The statistics show 2.5 million passengers used the airport in 2003, while 2.4 million passengers were counted a year earlier. The low-fare carriers, Jet Blue and AirTrain are credited for the increase of passengers. 15.5 of passengers used Jet Blue, 13.4% used AirTran, while 22.7 percent of the travelers used US Airways. A $10.3 million project is underway to make airport security more efficient. Completion is expected in November, 2004. (1/30)
Kodak-- Rochester and Colorado are competing for an expansion of Eastman Kodak's digital imaging business, even though nothing has been officially announced. By the end of March, Kodak will decide whether to locate the new business in Rochester, or in Windsor, north of Denver. The 30 year old plant in Windsor all ready develops paper and ribbon for digital photo kiosks, motion picture film and medical imaging products. (3/12)
Jobs-- Nearly 4000 manufacturing jobs were lost in the Rochester region in 2003, bring the total to 34,000 since 1993. The numbers fell from 118,500 in 1993 to around 85,000 in 2003. Statewide, New York lost 31,900 manufacturing positions. In a survey across the nation, 35% of respondents had moved production activity outside of the U.S. in 2003. Labor costs was the No. 1 reason in the survey. (3/9)
4th Quarter 2003
Eastman Kodak Company-- Officials reported third quarter net income totaled 42-cents per share and that sales rose 3% compared with last year's figures. Excluding the impact of previously announced focused cost reductions and a one-time charitable donation, earnings from continuing operations were 88-cents/share. Kodak stock steadied just below $25 a share and has moved up from a twenty-year low of $20.49. Analysts expect Kodak to announce the 57-cent earnings, down 45% from last year. In the next two years, the company focus will be on cutting costs and strengthening the commercial, consumer and health market segments.
Eastman Kodak Company-- Jobs from related offices in Fremont, Calif. and Allendale, New Jersey will be moved to the Rochester in hopes of consolidating its health care information operations. Kodak paid $42.5 million for Algotec Systems Ltd. of Israel a software company that writes high speed programs that power the x-ray imaging networks. The purchase is viewed as a way to enhance research and development and sees no major boost to earnings. With this shift of resources, along with acquisitions and consolidations, Kodak intends to increase spending on research and development for health care information systems next year, more than any other product group. Hospitals need help in linking the x-ray images to other hospital systems, and to be able to distribute these images via the internet . Roughly 60% of U.S. hospitals intend to purchase such a system in the next 3 years at a cost of $500,000 to $3 million each.
Xerox-- Officials at the copy company announced second quarter earnings of 9 cents per share including a 5 cent previously announced charge for the remaining unamortized fees associated with its terminated 2002 credit facility. According to Anne Mulcahy, total revenue from the company's targeted growth areas - office digital, production digital and value-added services - grew 10 percent and now represents about 70 percent of the company's revenue. Xerox is looking to be the fore-runner into the industry's leading digital player with black and white and color digital systems integrated with robust portfolios of services at lower cost. Second quarter net income of $86 million or 9 cents per diluted share included a $45 million after-tax loss, compared with the same quarter in 2002, with net income of $87 million or 11 centers per diluted share. (6/30)
Eastman Kodak Company-- IBM Corp has been enlisted to provide, among other things, computer storage for Kodak's picture archiving and communications systems. Kodak is targeting health care information technology for one area of growth as doctors and hospitals change to a film-less x-ray. The company has recently signed contracts for installing such systems at the National Institutes of Health and similar facilities in Italy and France.
Eastman Kodak Company-- In partnership with Rochester General Hospital, Kodak will help the hospital convert its radiology to digital imaging. The new Kodak machines capture and store medical images which are networked and linked to physician reports and other data electronically. Aimed at improving patient care, Kodak hopes to bring health care institutions from around the world to witness its products in use. Also, Rochester General will be asked by Kodak to test its products and offer feedback and insights. This is just one example of Kodak shifting its focus from chemical to computerized imaging. Kodak is exploring new products and services as it watches its film sales and earnings decline steadily as digital cameras storm the market. (9/15)
Xerox-- Xerox reported a third-quarter profit of $117 million, or 11 cents per share, up from $99 million, or 4 cents a share, from last year's figures. Effective cost-cutting and upbeat sales of color equipment have Xerox poised to record a second profitable year in a row. Layoffs increase as Xerox might consider outsourcing some of its operations.
Xerox-- Xerox will end its sponsor partnership with the Olympics after the summer games in 2004 . One of 11 companies that paid for the right to use the well known Olympic rings in marketing, Xerox officials decided not to extend this 40 year relationship. Xerox first became a sponsor in 1964, and then expanded its support in 1994, having provided both financial contributions and services, including document systems, daily schedules, ranking and scores. Such top level sponsorships cost $55 million or more over a four year period. The sponsors find the best marketing use if they sell goods to the consumer and Xerox is now wanting to promote its professional and consulting services.
Albany-- According to a study by Cornell University and Brookings Institute, 425,000 acres of rural land was converted to urbanized development between the years 1982 and 1997. More acres are devoted to housing subdivisions, large housing lots and commercial strip malls while there's less crop land and fewer pastures in upstate New York. The population figures show a lessening of density from 4.94 people per urban acre in 1982 to 4.24 people per acre in 1997. The population also become more dispersed in other upstate areas during this 15 year period. According to the study, when people spread out, so do businesses. The researchers found that upstate cities lost 2,200 business establishments during the 15 year period, while non-city gained 2,800. Vacant office space, malls and housing are prevalent in cities, the study said.
Paychex-- Paychex Inc. announced first quarter income of $80.3 million, an increase from last year's $75.9 million. The company acquired two more payroll companies in the past year, which contributed to the growth in income.
Bausch & Lomb-- Bausch & Lomb reported that favorable exchange rates and active sales of new products helped more than triple its third-quarter earnings. Sales rose 9% to $508.8 million compared to $466.7 million in last years third quarter. Up 60 cents a share, net income was $32.3 million, up from the 17 cents and $9.4 million in the same quarter a year ago. B&L employs 11,500 people worldwide, including 1,300 in Rochester. 40 to 50 scientists expect to be added to the North Goodman plant as the company increases research. New product sales increased 20% in the quarter.
Bausch & Lomb-- Bausch & Lomb Inc.'s refractive-surgery business fell 5% in the third quarter to $28.5 million as compared to last year's $30.2 million. Still, the company expects to post a 10% increase in the fourth quarter with the launch of the Zyoptix system for personalized vision correction last month. B&L expect to market the system to consumers directly through television advertising in the new year. Skeptical analyst's are keeping a wary eye on the refractive-surgery forecast citing unrealistic expectations for such a competitive market. In other ventures, B&L is launching its daily disposable lens in Japan. The Lens care revenues for the third quarter grew 8% to $131.2 million. Bausch & Lomb posted a 13% increase in its pharmaceuticals to $116.7 million. In the cataract surgery business, B&L reported a 6% increase of $77.5 million from last year. Products for cataract surgery are expected to be released in Europe and Asia in the next few month.
Bank of America-- Bank of America paid $47 million for the purchase of Fleet Boston Financial Corp. The acquisition will create an institution reaching from California through the South to New England. The new company will have around 5,700 branches and close to 180,000 employees. The combined company would have an annualized revenue of $27.9 billion, with 33 million customers, 16,551 ATMs and be the No. 1 banking institution in the United States.
Corning, Inc.-- Corning, Inc. plans to cut jobs in its Charleston, S.C. and North Brookfield, Mass. plants and move them to Upstate New York. The closings will cost 135 people their jobs. Corning will move its manufacturing of crystal lenses to Canton, while the finishing operations of the lenses will move to Perinton. The plan will create about 70 new jobs between the two areas. The Corning lenses are used in sophisticated assemblies for the production of computer chips.
Global Crossing-- After reporting losses in 2000 and 2001 of $25.7 billion, Global Crossing Ltd. secured a net income in 2002 of $635 billion on revenue of $3.12 billion. The company is selling 61.5 percent interest to Singapore Technologies Telemedia Pte., an investor owned by the republic. The Global Crossing workforce was cut by half and is trying to sell more services to rebound from its falling value due to its fiber-optic sales slump. The company employs around 700 in the Rochester area.
University of Rochester-- University of Rochester was chosen by the National Institutes of Health as one of three new cooperative research centers to develop ways that will prevent and treat muscular dystrophy, a genetic disease. U of R will receive $5 million over the next 5 years from NIH and the Muscular Dystrophy Association will add $1.5 million more. The U of R team will work closely with the other research centers located at the University of Pittsburgh and University of Washington in Seattle.
Rochester, Gas & Electric-- Through negotiations and red-tape, Rochester Gas & Electric closed its bidding for potential buyers of the 490-mega-watt Ginna nuclear power station located in Ontario, Wayne County. The sale is contingent upon the Nuclear Regulatory Agency extending Ginna's operating license to 2029. RG&E has asked the Public Service Commission for permission to raise electric rates 15% and its natural gas rates 7.4%.
Verizon Wireless-- Verizon Wireless will hire 320 employees to handle calls from the expanding numbers of cellular customers. One of the largest U.S. cellular providers, Verizon Wireless is expanding to handle significant growth in its customer base. Locally, Verizon employs 700 people in the Rochester area, including 400 at its call center. That number has doubled in the last two years and the operation handles more that 35,000 customer service calls each month. The company is expected to refit its buildings to handle the expansion but knows that it may need larger quarters if there is another round of hiring.
House Sales-- House sales increased 1% ahead of 2002's pace in the 11 county region. The first part of 2003, sales in the city were 4.2% ahead of last year as the median sales price continues to grow. Total sales for November were $1.35 billion with a median price of $102,000. House listings were up 3.3% fueled by mild weather and steady interest rates.
Unemployment Rate-- In August, the Rochester area had a half-percent drop in the unemployment rate. Experts are reasoning the drop was mostly due to seasonal employment. In the 6-county area, unemployment was 5.4 percent compared to July's 5.9 percent. Unemployment in Monroe County dropped to 5.5 percent from 6 percent in July. The City's unemployment rate went from10.5 percent in July to 9.8 percent. All of New York State fell to 6 percent, but was higher than the August 2002 rate of 5.9 percent. As of October, new applications for unemployment dipped below 400,000 for three straight weeks. Economists hope this will be viewed as a turnaround for the job market and that companies are easing the pace of layoffs.
Jobs-- $17 million will be invested and more than 500 jobs will be created as two technology companies plan operate out of the Henrietta area. A start-up company, Current Link, which develops and manufactures broadband power line communications equipment and networks will open in the Henrietta business park creating 400 jobs over the next five years. Current Link, of Maryland, is planning to hire 25 people immediately as it prepares to open operations in its 11,000 square foot space. Another company, Integrated Nano-Technologies, plans to invest $15 million and add 105 to its workforce within the next three years. INT is expanding from research to manufacturing their system, called Bio-Detect. The Bio-Detect is an electronic detection system of DNA binding to a computer chip. The results can be used to detect biological warfare agents or to monitor air for disease-carrying bacteria or viruses.
Taxes-- The biggest tax increase in 19 years was approved by a Republican 16 to 13 party-line vote. Democrats were not in chambers when the vote was taken. A bipartisan coalition did not occur as the Democrats couldn't come up with a plan of their own. The budget would raise the property tax rate 13.3 percent, an increase of $107 for a $100,000 home. Cuts include several county departments and county funding for school nurse programs in city schools. A $41.7 million budget gap was closed by making steep budget cuts and transferring some county costs to localities. Forcing the tax increase is partly due to the rising costs of mandated services, such as Medicaid.
3rd Quarter 2003
Eastman Kodak Company-- Officials reported second quarter net income totaled 39 cents per share and sales were unchanged compared with the same period a year ago. Excluding the impact of previously announced focused cost reductions and other non-operational items, earnings from continuing operations were 60 cents per share, higher than the forecast of 25 cents to 35 cents per share the company issued in June. Better than expected performance from joint ventures and a lower than expected tax rate contributed to the difference between actual and forecasted results. (7/23)
Eastman Kodak Company-- The photograph company announced that it will help users of Nokia Corp. camera phones in Europe convert images on their handsets to photographic prints. Under the deal, Nokia's wireless customers will be able to upload pictures to a Kodak-operated web site where they may pick their favorites and order prints in a variety of sizes. Nokia and Kodak will work together to develop printing services for wireless customers using self-service digital imaging kiosks. The deal with Nokia is just one money-making venture, as they also plan to allow cell phone users to transfer their pictures wirelessly to self-service digital imaging kiosks that are linked to fast-moving printers. Kodak sold 50 kiosks to The Cellphone Warehouse of Great Britain for retail stores in three European countries. (6/17)
Xerox-- Officials at the copy company announced second quarter earnings of 9 cents per share including a 5 cent previously announced charge for the remaining unamortized fees associated with its terminated 2002 credit facility. According to Anne Mulcahy, total revenue from the company's targeted growth areas - office digital, production digital and value-added services - grew 10 percent and now represents about 70 percent of the company's revenue. Xerox is looking to be the fore-runner into the industry's leading digital player with black and white and color digital systems integrated with robust portfolios of services at lower cost. Second quarter net income of $86 million or 9 cents per diluted share included a $45 million after-tax loss, compared with the same quarter in 2002, with net income of $87 million or 11 centers per diluted share. (6/30)
Xerox-- Xerox Corp's board of directors declared quarterly dividends on the company's preferred stock, payable October 1, 2003, to shareholders of record September 12, 2003. Payment on the Series B convertible preferred stock issued in connection with the Xerox employee stock ownership program will be $1.5625 per share. Payment will be $1.6667 per share on the outstanding 6.25 percent Series C mandatory convertible preferred stock. Ordinarily, the dividend rate for the third quarter would be $1.5625, however, the first dividend also covers the period from June 25, when the Seies C stock was issued, to June 30, 2003. (8/26)
Xerox-- According to their press release, the company accelerated funding to the company's U.S. pension plans by contributing $450 million this morning to its plans, representing an increase of $325 million from what was initially scheduled for 2003. Xerox's strong operating cash flow for the first half of the year -- $841 million - and the success of its recent $3.6 billion re-capitalization including the sale of stock and notes, provided the company with financial flexibility to accelerate its pension funding. Xerox reported that its U.S. pension plans for the most recently completed plan year are now well over 100 percent funded on the current liability basis under government funding rules. (9/15)
Xerox-- Xerox is vacating buildings in Faiport, Brighton, East Rochester, Webster and downtown as part of an effort to save about $23 million a year in rent, according to company officials. The strategy is to better organize workers around Rochester and continue to look at their base of leased space and consolidate where feasible. According to company officials, Xerox is about two-thirds of the way through a process of shrinking its local real estate holdings from 10.3 million sq.ft. to 7.9 million, shedding nearly all the space it rents here - roughly 6 percent of the rentable commercial property in Rochester metro area. Spaces the company has left are the Atrium/Gateway 110,000 sq.ft. office space, one 25,000 sq.ft. floor at City Center building, 250,000 sq.ft. of warehouse space at Publishers Parkway, one 50,000 sq.ft. building at Canal View Office Park, various buildings in Linden Oaks, three buildings with 50,000 sq.ft. at Woodcliff and Techniplex Mall vacating 170,000 sq.ft. total. These moves will put significant amounts of office space on the market at a time when Rochester already faces a glut of vancant commercial space, driving down prices and forcing landlords to be more aggressive at finding new tenants. (8/31)
Paychex-- Officials at the payroll company announced net income of $71.3 million, or 19 cents diluted earnings per share, for the quarter ended May 31, 2003, a 4 percent increase over net income of $68.7 million or 18 cents diluted earnings per share for the same period last year. Total revenues were $289.8, a 19 percent increase over $244.3 million for the fourth quarter last year. For the twelve months ended May 31, 2003, the company reported record net income of $293.5 million, or 78 cents diluted earnings per share, a 7 percent increase over $274.5 million or 73 cents diluted earnings per share for the same period last year. Total revenues were $1,099.1 million, an increase of 15% over $954.9 million for the same period last year. Advantage and InterPay, two companies Paychex acquired within the last year, contributed $26.5 million in combined revenues. (6/24)
Bausch & Lomb-- The company reported earnings per share of 53 cents for the quarter ending June 28, 2003, representing a 33 percent increase over the 40 cents per share in the prior-year period. Worldwide sales of $512.5 million grew 12 percent over the $458.4 million reported in 2002. Company officials reported these financial results were slightly ahead of expectations on a currency-neutral basis and they expect full-year 2003 sales growth and earnings per share to be higher than previously communicated. The lens company declared a regular quarterly dividend of 13 cents per share on the Common stock of the company, payable October 1, 2003, to shareholders of record at the close of business on September 2, 2003. (7/24, 8/13)
Area Bankruptcy Filings-- Cases filed in US Bankruptcy Court in Rochester jumped 18 percent in June 2003, reporting 466 filings compared with 395 for the same period a year ago. Through the first six months of this year, 2,644 filings were recorded, compared with 2,543 last year. (7/10)
Area Home Sales-- The median price of Rochester area single family houses could break $100,000 this year for the first time in at least 14 years. Through August, the median sale price of an existing single-family house for the 11- county area was $100,950, rising 5.7 percent since the beginning of the year and 16 percent since January 2001, according to The Realtors. Although median sale prices increased, sales volume dropped a slight 3.7 percent in August compared with the same month in 2002 and 3.4 percent compared to July - still beating pace of 2002. Through August, $961.1 million worth of houses sold, 4.7 percent better than the same period in 2002, when a sales volume record was set. (9/10)
Area Unemployment-- According to Employment in NYS, a monthly economic publication, In May 2003, New York's seasonally adjusted unemployment rate was 6.1 percent, unchanged from April - equal with the national unemployment rate. Monroe County's unemployment rate decreased from 5.7 percent in May of 2002 to 5.6 percent reported this May. The introduction of the North American Industry Classification (SIC) system in January, offers a valuable opportunity to re-examine the Western NY region in light of the new structure by which its business establishments are categorized. Despite adjustments made by this changed, manufacturing remains a vital component of the economy, for reasons ranging from the relatively high wages of blue-collar workers without college credentials to the way in which industries engaged in the manufacturing process. Using numbers from the 2000 census, the White House Officeof Management and Budget in June issued the new definition, under which the Rochester Metropolitan statistical area no longer includes Genesee County. Genesee and Batavia county are now grouped under "micropolitan". The new statistical areas impact population, economy and employment reports. (7/03)
Perinton-- Xelus Inc., a Perinton-based company, has landed a contract to provide maintenance software at a military facility in San Antonio run by Lockheed Martin Corp. and General Electric Co. Under the deal, Xelus will provide software that tracks parts for aircraft such as the C-5 Galaxy and C-130 Herrcules cargo aircraft at Kelly Aviation Center. Xelus specializes in software that tracks inventory, such as landing gear and engine parts, using probability calculations to predict when supplies could run low or become over-stocked. With this deal, 20 percent of the company's total sales would come from military and aviation clients. The company did not disclose financial details, but officials did comment it was a multi-million-dollar contract. (8/5)
Rochester-- Three quarters into the government's fiscal year, loans in the agency's 504 loan program are up 56 percent, compared with a 22 percent increase nationally. The 504 program is for existing businesses seeking to expand or move to a new location. The loan, which can be up to $1 million, is split three ways: The bank puts up 50 percent of the loan, the SBA, 40 percent and the borrower 10 percent. For every $35,000 the SBA lends a business using a 504 loan, the company must create one new job. Loans in the 7a - which are for working capital and debt payment - are up 8 percent locally and 37 percent nationally. Mike Sisson, chairman of the Rochester Business Alliance's Small Business Council says the results are not surprising because a lot of people starting out need some kind of assistance and this is a great option. Sisson added the increase in use of government loans is not an indication of economy only that people are taking advantage of various loaning options, other than the traditional bank loans. (7/24)
2nd Quarter 2003
Eastman Kodak Company-- As a continuing focused cost-reduction effort, the company announced its intentions to reduce headcount by 2,300 to 2,900 during 2003, of which 500 to 700 are remaining actions from the fourth quarter 2002. The company reported first quarter net income of $12 million, or 4 cents per share, compared with $39 million, or 13 cents per share for the same quarter last year. Net earnings were reported as $12 million, or 4 cents per diluted share, representing a decrease of $27 million. The company's Board of Directors declared a semi-annual cash dividend of 90 cents per share on the outstanding common stock of the company, payable on July 16, 2003 to shareholders of record at the close of business on June 2, 2003. (4/23)
Eastman Kodak Company-- The company's Capture software will be integrated into JP Morgan Chase Bank's I-Vault product, the companies announced. The combined product will help businesses to use Kodak scanners and software to scan documents at high-speed and load the images in the I-Vault archive and retrieval service. (4/6)
Eastman Kodak-- The company's semiannual cash dividend is safe for another six months. Rochester's largest employer, which pays a dividend every six months, declared a payment of 90 cents a share, payable to shareholders of record at the close of business June 2. Kodak's dividend, at closing, provided a return of 5.68 percent (4/16)
Eastman Kodak Company-- The company's credit rating has been placed under review by one major rating service following the company's tepid first-quarter financial results. Fitch Ratings Inc. said that is was placing Kodak's long- and short-term debt on a rating watch negative, primarily because of ongoing economic challenges and continued pressure from digital photography. Kodak's debt is still considered investment grade, but a downgrade could increase borrowing costs. (5/12)
Eastman Kodak Company-- Eastman Kodak is demolishing another Kodak Park building made obsolete by changing business conditions and more modern manufacturing. Demolition of building 58 - once used to finish rolls of motion picture film - has started. Rochester's largest employer has torn down about 50 buildings since 1995. (6/11)
Xerox-- The company announced a first-quarter loss of 10 cents per share, including a previously announced 25 cent-per-share or $183 million after-tax charge related to the Berger v. Retirement Income Guarantee Plan - a case against the company's primary U.S. pension plan for salaried employees. (4/23)
Xerox-- A top executive warned the company's main and Canadian sales force that a small round of further layoffs is likely. The memo was issued a day after the company announced its 12th consecutive quarter of declining sales and was confirmed by officials the total number of layoffs would be less than 260 within the north American Solutions Group. The cuts include roles such as administration, operations and human resources, according to Xerox spokeswoman, Christa Carone. (5/2)
Xerox-- The company announced plans for a $3.1 million refinancing deal to strengthen its balance sheet, including new common stock, mandatory convertible preferred securities, senior unsecured notes and a $1 billion credit line from several banks. As part of the deal, the company will record a $70 million pre-tax charge in the second quarter. Xerox continues to expect second-quarter earnings will be 9 to 12 cents per share. (6/12)
Paychex-- The company announced net income of $71.5 million, or 19 cents diluted earnings per share for the quarter ended February 28, 2003, a 7 percent increase over net income of $67 million or 18 cents diluted earnings per share for the same period last year. Total revenues were $287.8 million, a 19 percent increase over $242.8 million for the third quarter last year. For the nine months ended February 2003, the company reported net income of $222.1 million, or 59 cents diluted earnings per share, an 8 percent increase over $205.9 million, or 54 cents diluted earnings per share for the same period last year. (3/20)
Paychex-- On March 17, 2003 the company announced it entered into an agreement to acquire InterPay Inc., a wholly owned subsidiary of FleetBoston Financial Corporation ("Fleet"). The purchase price is $155 million, cash. Interpay is a national payroll and human resource administrative services provider that serves more than 30,000 small - to - medium sized businesses throughout the U.S. The acquisition closed in early April 2003 for $182 million, $27 million more than previously announced. Rochester's payroll and human resource outsourcing company also acquired Advantage Payroll Services in September 2002. (3/20).
Paychex-- Paychex has made offers to acquire two German payroll services firms and were unable to land the deals. This is not stopping Chairman and Chief Executive B. Thomas Golisano who said Paychex might build a new business in Europe from the ground up and, "there's a lot of advantages to doing that". Golisano also said the same model to expand Paychex into a national company would be used in Europe. Paychex spent over $400 million to buy Advantage and InterPay and expects to exceed $1 billion in sales for the first time this year. A European operation would not contribute to the company's bottom line for three to five years. (5/23)
Bausch & Lomb-- The company announced first quarter worldwide sales of $448 million, an increase of $33.8 million or 8 percent over the prior year. A 7 percent benefit from the strengthening of foreign currencies against the U.S. dollar augmented underlying fundamental growth in the company's lines of contact lenses, pharmaceuticals and cataract surgery products. Reported net earnings of $16.5 million, or 31 cents per share, an increase of 29 percent over the comparable basis prior-year amount of 24 cents per share. (4/24)
Pay Rates-- As reported by Mercer Human Resource Consulting's 2003 Geographic Salary Differentials Survey, most large upstate NY cities had employees salaries that were above the national average. According to the survey, an average salary of $30,000 would be worth $31,170 in Rochester or 3.9 above the national average and higher than Albany, Syracuse and Buffalo. (4/6)
Area Unemployment-- According to Unemployment in NYS, published 12 times a year, Monroe County's rate remained unchanged at 5.8 percent for the year-to-year statistics, both reported in January. Monroe County reporting the lowest unemployment rates in the report's Finger Lakes area region. In January, NYS's seasonally adjusted unemployment rate was 6.3 percent, up in comparison to the nation's rate of 5.7 percent. The economic recovery has yet to reach the factory floors. U.S. manufacturers laid off 95,000 workers in April - the 33rd consecutive month of decline and the largest drop in 15 months. Since July 2000, manufacturing has lost 2.2 million jobs, those being among the highest-skilled, best-paying jobs in our economy. According to a new study from the United States Conference of Mayors, Rochester ranked 19th nationally in jobs lost during 2002, losing 15,600 jobs in 2002 . (4/02, 5/06, 6/14)
Population-- The distant suburbs of NYC account for most of the state's growth, while the state's largest county, Erie, and 15 other upstate counties continue to shrink. You would have thought the suburbs had moved too far out, that people were too far from their jobs. In fact, jobs are moving to the suburbs as fast as people are, according to John Logan, a SUNY Albany demographer. As reported by the Census Bureau, the state gained 73,182 people and had 19,157,532 residents as of July 2002. Here is how the population of Rochester-area counties changed from July 2001 to July 2002, according to the Census Bureau. (4/17)
| County |
2002 Population |
Growth |
Percentage Change |
| Genesee |
58,799 |
-168 |
-0.3% |
| Livingston |
64,824 |
114 |
0.2 |
| Monroe |
738,422 |
2,207 |
0.3 |
| Ontario |
101,567 |
669 |
0.7 |
| Orleans |
43,891 |
-49 |
-0.1 |
| Seneca |
34,976 |
131 |
0.4 |
| Steuben |
99,313 |
117 |
0.1 |
| Wayne |
94,078 |
176 |
0.2 |
| Wyoming |
43,165 |
95 |
0.2 |
| Yates |
24,523 |
-2 |
0 |
Area Car Sales-- Car and truck sales in Monroe County dipped 2.7 percent in April, compared with a year ago, according to statistics from the Rochester Automobile Dealers Association Inc. New vehicles - sold at retail - registered by Monroe County dealers fell 3.6 percent to 3.724 compared with April 2002. Used vehicles dipped 1.1 percent to 2,094. (5/19)
Area Tourism-- The Greater Rochester Visitors Association Inc. reported 1.47 million visitors in 2002, up 4.6 percent from 1.41 million visitors in 2001. Total expenditures for visitors amounted to $231 million, up 2.2 percent from $226 million in 2001. (5/19)
BlueTie-- Software developer, BlueTie announced plans to expand its Rochester headquarters, hiring 22 employees by June and an additional 20 by the end of the year, mainly in sales and engineering. The company specializes in e-mail and collaboration sofware for small and medium-size companies and recently moved to Goodway Drive in Henrietta. Currently, the company employs 30 in Rochester and some sales staff in other parts of the country. (4/29)
Energy East-- The company announced that about 245 jobs at RG&E and 260 at NYSEG were eliminated as a result of early retirement programs and layoffs. The energy company expects more job reductions early next year. (5/1)
Kraft Foods Inc.-- A strong 2002 at Kraft Foods in their Avon plant resulted in a 10 percent increase in employment. Kraft, Livingston County's largest private-sector employer saw an 80.3 percent rise in net earnings for the year hitting $3.4 billion on sales of $29.7 billion. Earnings per share were up 67.5 percent. The food company employs 550 people, up 50 from 2002 in its Avon facility. The local plant produces Oscar Mayer Lunchables and is home to the only Cool Whip whipped-topping manufacturing operation in the U.S. and Canada. Kraft set up shop in Avon in the mid-1980s when the food giant acquired General Foods Corp. The biggest concern analysts foresee now is Kraft's parent company, Altria, being hit with a $10.1 billion judgment in March against its tobacco subsidiary, Philip Morris USA Inc. and resulted in Altria's credit rating being put on watch. New products are expected to generate roughly $1 billion in sales - a recent acquisition of the Stollwerk chocolate business in Russia and Poland is an example. (5/2)
1st Quarter 2003
Eastman Kodak Company-- The company eliminated 7,000 positions in 2002 shrinking its work force to 70,000 people and is anticipating to cut another 1,800 to 2,200 globally. The latest cuts were announced as the company posted fourth quarter profits of $113 million, or 39 cents per share, in contrast to a loss of $206 million or 71 cents per share reported a year earlier. While the economy constrained sales, profit rose as the company cut costs and improved productivity. According to reports, the company estimates 2003 per-share earnings to range between $2.35 and $2.95. This forecast, according to Kodak Chairman and CEO Daniel A. Carp, reflects expectations that economic conditions will remain weak, compounded by political tensions. The company continues to explore focused actions to increase competitiveness and reduce costs in order to deliver better returns to their shareholders when the economy recovers. While shareholders await the recovering economy, U.S. employees of the company will receive a Wage Dividend payment equal to 7.15% of their 2002 pay. The dividend is estimated at $100 million to approximately 28,600 employees in the U.S. and $84 million to approximately 21,700 employees in the Rochester area. Daniel Carp said the work of the employees enabled the company to meet and exceed expectations and he is pleased this payout helps recognize their contributions. (1/22)
Eastman Kodak Company-- According to reports, the company will pay some $62 million for an Indiana-based independent professional photo-imaging lab business, Burrell Colour Inc. Kodak plans to sell BCI to a third party as soon as practical, rather than hold and operate their national network of labs as part of Kodak Professional. (1/10)
Eastman Kodak-- Company officials announced the donation of a 106-acre parcel of land located in "Canal Ponds", an area west of Route 390 along the Erie Canal near Lexington Ave to Infotonics Technology Center Inc. The donation is part of state, federal and other contributions to support the project involving a cooperative laboratory to develop new technologies and spin-off companies. Planned subsequent to the formation of the Center in early 2001, the state's funding has been released and other planned resources are in process. (12/24)
Eastman Kodak Company-- A trade consortium won approval last week to move forward on a process for speeding the transfer of digital images wirelessly based on technology of the company's research labs. WiMedia Alliance, launched last year by Kodak, comprised of nine other companies hope to ready a final blueprint for the technology by May. Upon approval, WilMedia Alliance would work on ways to commercialize the technology by promoting it to software developers for incorporation into digital cameras and other devices. It is Kodak's point of view the technology will allow someone to go to a kiosk and beam a photograph right into that kiosk from their two-way directional camera. (1/10)
Eastman Kodak Company-- Kodak scientists received 694 patents last year, down 3.5 percent from 2001, this being the third consecutive decline for Rochester's largest employer. Kodak trailed its competitor, Fuji Photo Film Co. Inc. of Japan, which received 695 patents. (1/14)
Xerox-- The company announced fourth quarter earnings of 1 cent per share, including restructuring charges of 34 cents per share and a one-time tax benefit of 11 cents per share related to the completion of a tax audit. For 2002, the company delivered a return to full-year profitability - evidence of Xerox's aggressive efforts in transforming its business model, according to company chairman and CEO, Anne M. Mulcahy. (1/28)
Xerox-- The company ranked 19th on the list of companies with the most patents in 2002, winning 701 U.S. patents, according to IFI Claims Patent Service in Wilmington, Delaware. With its research partner, FujiXerox, the company won 889 patents, raising it two notches in the ranking for 2002. (1/14)
Paychex-- The Board of Directors announced net income of $74.7 million, or 20 cents diluted earnings per share for the quarter ending November 30, 2002, a 9 percent increase over the same period last year. For the six-month period, the company reported record net income of $160.6 million, or 40 cents diluted earnings per share an 8 percent increase for the same period last year. The acquisition of Advantage Paryoll Services in September provided the Rochester payroll company with 49,000 new clients. (12/20)
Paychex-- The company is offering a new payroll product - a plastic bank card. The Paychex Access Visa card is an alternative to paper checks whereas employers can electronically deposit an employee's pay onto a Visa payroll card. This offered as an option for those who have no checking or savings accounts. (1/10)
Bausch & Lomb Inc.-- The company released fourth quarter reported net earnings of $32.4 million, or 60 cents per share, compared to a reported net loss of $8.0 million, or 15 cents per share in 2001. Results reported for the full-year, net earnings were $72.5 million, or $1.34 per share, compared to $21.2 million or 39 cents per share in 2001. Chairman and CEO, Ronald L. Zerella was pleased to report 2002 was a year of improving operational execution and the beginning of a turnaround for the company, as they promised it would be. (1/30)
Bausch & Lomb Inc.-- A court ruling hurt the company's future plans to market and manufacture its PureVision extended-wear lens in the U.S, according to reports. The eye-care company lost its appeal on a patent infringement suit brought by competitor, CIB Vision Corp, the eye-care unit of Novartis AG. Had B&L prevailed, the company would have resumed its manufacturing at its Goodman Street facility. (2/14)
Area Auto Sales-- According to the Rochester Automobile Dealers' Association, Monroe County new and used auto dealers realized a 14.8 percent jump in sales in December. December sales were 2,969 and 1,425 for new and used vehicles respectively, compared with 2,384 new and 1,444 used sales in the same month last year. For the year, dealers sold 64,703 vehicles, compared with 64,815 in 2001. (1/17)
Area Bankruptcy Filings-- Bankruptcy totals in the nine-county Rochester region of the Western District were up 3.3 percent - a record high -- compared with 2001 filings, as figures compiled by the U.S. Bankruptcy Court show. A total of 5,090 Rochester area individuals and businesses filed bankruptcies last year, more than ever filed before according to Bankruptcy Court Clerk Paul Warren. The 2002 total compares with 4,929 in 2001. (1/10)
Area Exports-- Despite economic slumps abroad and at home, Rochester companies that do business overseas fared better than expected in 2002, according to a preliminary verdict from the International Business Council, of the newly formed Rochester Business Alliance. With survey results from 97 of its ore than 2,000 members, the council is projecting that businesses exported $12.3 billion in goods last year, down from $13 billion in 2001. Given the economy and world events, Charles Goodwin, Alliance Vice President for International Trade is pleased with these numbers. (1/14)
Area Home Sales-- While U.S. mortgage rates hit record lows, dropping to below 6 percent for a 30 year mortgage, Rochester area home sales for 2002 was 160 shy of a record-breaking year, nearing 1999's sales of 12,004 existing single-family homes. However, sales are surging into 2003. According to the Genesee Region Real Estate Information Service, a division of The Realtors Association, 913 houses were sold in December, up 5.9 percent from one year ago. The dollar volume of sales increased 6.4 percent reaching $1,403,484,534 - the largest recorded volume since the association began tracking in 1989. Closings are up slightly from November when 903 homes sold. Both the number of mortgages and deeds filed with the Monroe County Clerk's office rose in December with a total of 4,544 mortgages and 1,968 deeds filed in December, up from November. 135 single family building permits were issued in November up from 106 for the same month last year. On a year-to-date basis, 1,668 building permits were issued through November 2002. (1/10, 1/21, 2/7)
Area Unemployment-- Area jobless rates hit a 20-year high despite gains in the service sector which were dominated by continued losses in manufacturing. New data from the NYS Labor Department suggests unemployment in the Rochester area rose in December to 5.6 percent from 5.4 percent in November and 5.3 percent in December 2001. The rate reflects 31,400 people in the area out of work, again below Buffalo rate of 5.8 percent. Monroe County's jobless rate remained unchanged from November but up from 4.9 percent in December 2001. The Rochester area lost 6,700 jobs between December 2001 and December 2002, according to the Department of Labor. (1/24)
Nothnagle-- The area's largest residential real estate company, Nothnagle, has reported the company's highest sales volume in 2002. During the past year, the real estate company had transactions worth $913 million up 6 percent from 2001. Nothnagle is a Brighton based firm with 20 branches in seven counties. (1/21)
M&T Bank-- FThe bank with headquarters in Buffalo, plans to add an undetermined number of jobs in the Rochester Region over the next 18 months. The bank anticipates 557 back-office jobs to be added in Buffalo and maybe some of those in other upstate branches as well, according to a company spokesman. (1/16)
Monroe County-- Monroe County's credit rating was lowered from A+ to BBB+, dropping the county's rating five notches since August 2001. Rating agencies Fitch Ratings, Moody's Investors Service and Standar & Poor's Rating Services have all dropped the county's credit rating over the past year in light of deficits of recent years and its uncertain outlook in troubled economic times. Although the rating has been reduced, Fitch analyst Jessalynn Moro considers the county to still be of "good credit quality" - the new rating reflects a negative outlook. James Smith, spokesman for County Executive Jack Doyle stated the rating reflects Fitch's unhappiness that Doyle has not sought a big tax increase. (1/16)
Air Fares-- Rochester's air fares are coming in for a landing and area travelers are feeling significant relief, national statistics show. The latest figures released by the U.S. Department of Transportation show that beetween April and June 2002, the Greater Rochester International Airport had the 16th most expensive air fares among 79 U.S. cities - a significant improvement from fifth place for the same period in 2001. According to Terry Slaybaugh, airport director, Rochester has ranked in the top five most expensive on the DOT's Domestic Airline Fares Consumer Report for the past six years and he credits the dropping ticket prices to the arrival of low-fare carriers JetBlue Airways and AirTran Airways. (1/7)
4th Quarter 2002
Eastman Kodak Company-- The company confirmed its conservative financial strategy while alerting Wall Street to the better-than-anticipated performance the last three months, however, the company continues to predict lackluster sales for 2002. The photo company is executing their plan to restore their earnings growth this year as promised according to Kodak Chairman and CEO, Daniel A. Carp. The company reported third quarter net income of $334 million, or $1.15 per share, compared with $96 million or 33 cents per share in the same quarter 2001. According to company officials, Kodak's pension plan may sell its holding of Kodak stock as a result of a recommendation from a consultant, Wilshire Associates. The only block of stock that qualifies is 7.4 million shares of Kodak that the company contributed to the plan in 1995. Kodak was expected to buy the shares over a period of days in November and Wilshire found that their plan is fully funded and will not require new cash contributions for at least five years. (10/18) (11/11)
Eastman Kodak Company-- Essie Calhoun, a Kodak Vice President said it's important for the company to be supportive of the city. To show their support, the company handed out over $91,000 in neighborhood grants as part of the company's five-year effort to support the city's urban revitalization initiative. The company has pledged to hand out $500,000 over five years in support of the city's Renaissance 2010 plan. This is the third year the grants have been handed out. The grants are given directly to the neighborhood groups and not the city. (11/22)
Eastman Kodak & Xerox-- According to company officials, annual health costs will increase $40 million in 2003. Depending on what plan they subscribe to, some employees can expect anywhere from a 14% to 36% cost increase. Those who subscribe to Kodak's Blue Advantage and Preferred Care EPOs, and individual members of its Preferred Care POS Max Plan will incur no increase. Employees subscribing to Kodak's ViaHealth EPO Plan and Kmed will see the increases ranging from 15% to 36% and those couples and families in the Kodak Preferred POS Max will incur a 14% increase. (12/23)
Eastman Kodak Company-- While net income surged for the period, and the company produced more with less, plans are still in the works to cut 1,300 to 1,700 more jobs, most by the end of the year according to reports. This is the fourth time in six years the company has cut employment to improve finances. County officials were informed the company will close the single-use camera facility on Lee Road, affecting approximately 400 jobs. No time line has been provided of when a shutdown would occur. Kodak will still manufacture the single-use camera but by workers in either Xiamen, China or Guadalajara, Mexico where pay rates are lower. Kodak's competitor, Fuji still manufactures single-use cameras in the U.S. (10/23) (11/12) (11/13)
Xerox-- The company announced another strong quarter of operating cash flow and earnings driven by improved margins and increased product demand in key growth markets, reporting third quarter earnings of 5 cents per share including restructuring charges of 6 cents per share. These results are a 10 cent improvement from the third quarter of last year, reflecting the company's strategy to strengthen its business. Xerox and General Electric Vendor Financial Services announced an eight-year agreement for GE to become the primary equipment financing provider for the document company's customers in the U.S. through monthly advances against Xerox's new U.S. lease originations. The agreement takes effect immediately. (10/21) (10/23)
Xerox-- According to reports, a company document was sent to employees indicating they can no longer afford to provide the rich level of retirement benefits currently available. As a result, major changes are being made to employee benefits that will affect 40,800 workers and about 6,000 retirees. This step is expected to save the company money and some employees could receive more retirement benefits over time, if they manage their accounts well. Some of the money the company saves will be shifted to a new 401(k) program in which the company will match employee contributions, up to 6 percent of their total pay. Health coverage will also change, as employees in Rochester will pay an additional $100 next year for plans administered by Preferred Care and Blue Cross/Blue Shield of the Rochester area. Annual premiums will range from $1,523 to $2,259 a year depending on the plan and the employees can continue to apply their "benefits allowance" to health insurance benefit costs. The health benefit cost for retirees is being revisited to help ease the burden of these costs for retirees. An open enrollment period will be added in December for retirees. (11/1) (11/22)
Xerox-- Continuing an effort to reduce their workforce and increase productivity, the document company announced in early November 750 company-wide administrative positions will be cut; late November announced 915 jobs in North America will be cut by March and 165 additional cuts were announced in mid-December. Approximately 1,045 employees in Monroe County will be affected by the cuts. This move will shrink Xerox employment to below 10,000 - a level not seen since 1999. (11/6) (11/20) (12/12)
Paychex-- The Board of Directors of Paychex, Inc. has declared a regular quarterly dividend of 11 cents per share, payable November 15 and a net income of $75.9 million, or 20 cents diluted earnings per share for the quarter ended August 31, 2002. This is an 8% increase over net income of $70.2 million or 19 cents diluted earnings per share for the same period last year. The company also announced for the first time they will surpass the $1 billion in sales mark during the current fiscal year. According to CEO, Thomas Golisano, they will be a billion dollar company in 2003. (9/18) (10/25)
Paychex-- The payroll and human resource outsourcing company announced it entered into an agreement to acquire Advantage Payroll Services, Inc. for an approximate purchase price of $240 million in cash. Expected to contribute an estimated $75 million in revenue over the next 12 months, Advantage was founded in 1967 with a client base of small to mid-sized businesses located throughout the U.S. In addition to acquiring Advantage, Thomas Golisano said they are close to acquiring a small payroll processor in either France or Germany. (9/18) (10/18)
Bausch & Lomb Inc.-- The company announced third quarter net earnings of $9.4 million and earnings per share of 17 cents compared to prior-year reported earnings of $23.3 million or 43 cents per share. Sales of $466.7 million, up 11% from the same quarter last year but restructuring charges cut into that profit. Restructuring costs included severance packages and relocation of manufacturing for Pure Vision contact lenses from Rochester to Ireland. (10/17) (10/18)
Area Bankruptcy Filings-- Figures compiled by the U.S. Western District Bankruptcy Court Clerk show bankruptcy filings have remained virtually steady for the three months in the third quarter. In August, 446 area individuals and businesses filed for bankruptcy petitions, less than 1% increase over the 425 filed in the same month last year. Area totals of 3,400 filings for the first eight months of this year also show a 1% increase over 2001. (9/20)
Area Home Sales-- Year-to-date sales are 2% ahead of 2001's pace in the 11-county Rochester area, according to figures from The Realtors association. Sales in the city are 12.6 ahead of the same period in 2001, while Monroe county as a whole is 0.8% ahead of 2001's pace for the 10-month period. Sales are closing in on the 1999 record but its too soon to say that mark can be eclipsed with 2002 sales falling short thus far by 1,528. Year end sales would have to reach 12,004 to break the record. John Piper, chief executive of the Realtors, a local trade group, said its been a great year and the low interest rates have been a driving force behind the lofty levels of sales. (11/16) (12/13)
Area Unemployment-- As reported by NYS Department of Labor, NYS's seasonally adjusted unemployment rate was 5.6%, down from 5.9% in August. Monroe county figures were 5.7% as compared to 5.0% for the same period in 2001. Although manufacturing jobs in New York have dwindled quickly, they remain the anchor for the upstate economy, accounting for 50% of upstate's nongovernment work force, according to reports. While rates were down in Buffalo, NYC and statewide, Rochester bucked the trend with an increase in unemployment rates from 5.4% to 5.7%, totaling some 30,700 unemployed people in the Rochester area. According to reports, Kodak and Xerox have quite an impact on the numbers this quarter and year.(9/18) (10/18) (11/02)
Area Economy-- Two of the area's leading economic forecasters say there is reason to be optimistic about the national and local economies in 2003. Charles I. Plosser, dean of the University of Rochester's William E. Simon Graduate School of Business Administration and Marc M. Goloven, senior regional economist for JP Morgan Chase told 450 people of area businesses at a luncheon we should expect more sunshine in 2003 as the forecast is based on expected improvements nationwide. 60% of area small businesses are considering expanding within the next six months according to a survey by the Open Small Business Network. More than 25% of small business owners as reported plan to add three full-time workers. (10/28) (12/12)
Brighton-- First American Real Estate Tax Services, which provides tax reporting, redemption and disbursement services to banks and mortgage companies across the country, is investing more than $660,000 in machinery and equipment to expand it's Brighton office. First American currently employs 60 people and completion of the project will result in the creation of 100 new jobs. In consideration of the company's investment, they are eligible for a $150,000 capital grant from Empire State Development. A date was not given for the expansion. (11/6)
Buffalo-- M&T Bank has agreed to purchase the Maryland-based portion of Allied Irish Banks in a deal worth $3.1 billion, creating the 18th largest bank in the United States with combined assets of $49 billion. There will be more than 700 branches in six states including more than 30 in the Rochester area. The sale has been in the works for nearly a year due to Allied's alleged involvement in a criminal investigation for fraud related activity. M&T CEO, Robert Wilmers expects no problems digesting the acquisition and believes the merger will be a smooth one. No date was reported for the merger to take place. (9/27)
3rd Quarter 2002
Eastman Kodak Company-- The company took in less money from customers across the board due to the slumping economy, but delivered unexpectedly strong profits for the second quarter using big-ticket cost cutting. Excluding one time charges, the company's second quarter net earnings of $248 million or 85 cents per share compares with operational net earnings in the same period for 2001 of $325 million or $1.12 per share, including goodwill amortization. The company had forecasted earnings for the second quarter to be much lower - 60 to 70 cents per share. While this is good news, revenue was down more than expected and will most likely be lower for the full year than in 2001. CEO Daniel Carp said the company would continue to be fiscally conservative by paying down debt, streamlining factories, reducing inventories and capital investments. He also added they would save money wherever possible. One positive for Rochester is the company is not talking about more job cuts according to reports. Currently the company's local workforce totals 23,700. (7/02)
Eastman Kodak Company-- The lawsuit over a $30 million loan dispute between Kodak and Wachovia Bank, N.A. has been transferred by the Virginia bank from a Monroe County State Supreme Court to U.S. District Court in Rochester. Kodak sued the bank over loans Kodak made to Wolf Camera Inc., a Georgia-based photo supplies dealer. (8/21)
Eastman Kodak & Xerox-- Both companies are included in the Fortune magazine's list of best places for minorities to work, according to reports. Xerox ranks 14th and Kodak, 43rd out of 50. While making the ranks for employing minorities, ironically, both companies are also facing a number of federal discrimination lawsuits. (8/02)
Xerox-- The company announced a $93 million or 12 cents a share profit for the three months ended June 30 - its first profit in five quarters - despite declining sales. The company also expects all of 2002 to be profitable. Profit in the second half of the year will be 9 cents to 13 cents per share, Chairman and CEO Anne M. Mulcahy said. One of the ways the company has cut costs is by cutting employment-eliminating 2,200 jobs worldwide in the second quarter, bringing employment in Monroe County to 10,300-the lowest level since 1969. Sales fell to $3.95 billion, compared with $4.28 billion in the same period a year ago. (7/02)
Xerox-- The company corrected its financial reports for 2001 twice in one day, saying it misallocated $16 million in 2001 interest expenses. Adjusting this mistake increased the company's net income for the first quarter of 2001 by $5 million. (8/02)
Paychex-- Paychex announced net income of $75.9 million or 20 cents diluted earnings per share for the quarter ended August 31, 2002, and 8% incarease over net income of $70.2 million or 19 cents diluted earnings per share for the same period last year. (7/02)
Paychex-- Paychex Inc. will pay a regular quarterly dividend of 11 cents a share on August 15 to stockholders of record on August 1. (7/02)
Paychex-- The payroll company announced in its quarterly report it has entered into an agreement to acquire Advantage Payroll Services, Inc. The purchase price will total about $240 million in cash and Paychex will expend about $75 million in cash for the redemption of preferred stock and the repayment of outstanding loan agreements. Thomas Golisano, president and CEO reported the merger with Advantage will provide the company with 49,000 new clients and to expand the company's geographic coverage into areas previously not served by Paychex. Advantage is expected to contribute approximately $75 million in revenue over the next 12 months to the fiscal year ended May 31, 2003. (7/02)
Bausch & Lomb Inc.-- The company announced second quarter net earnings of $21.8 million and earnings per share of 40 cents, compared to prior year reported earnings of $6.8 million or 13 cents per share. They also reflect new rules for accounting for goodwill amortization. (7/02)
Empire Zone-- The state has approved revisions to the City of Rochester's Empire Zone that could create 4,200 jobs and attract $166.7 million in new investment. (7/11)
Area Home Sales-- Sales of existing single-family houses were up 5.3 percent from July 2001 and 25.8 percent from June, according to the Realtors Association. CEO John Piper states the opportunities for consumers are the best since the 1960s. The median sale price reached $107,500 in July, up 2.4 percent from a year ago. The average median price for the year is $94,000. (8/7)
Area Bankruptcy Filings-- The Western District U.S. Bankruptcy Court reports area bankruptcy filings in the first six months of this year are even with 2001. Figures released show filings as of June 30 totaled 2,543, identical to a year ago. (7/12)
Area Job Openings-- As reported by the Rochester Resource Alliance, area job openings dropped 70 percent over the last year. Companies participating in the survey reported 1,444 job openings as of June 1, down from 4,866 last year. More than 43 percent of the openings were in health care and some 18 percent were in manufacturing. (9/6)
Area Unemployment-- The unemployment rate for Monroe County in June was 5.6 percent, up from 4.3 a year ago, according to the NYS Department of Labor's report Employment in New York, published 12 times a year. (9/02)
Area Rents-- Figures from the U.S. Census Bureau show 45.5 percent of renters in the Rochester area spent at least 30 percent of their incomes on rent and utilities in 2000-only five of the nation's 100 largest metropolitan areas did a larger percentage of households spend as much of their income on rent. The Census Bureau also reported Rochester is the 40th most expensive city to live in, again among the nation's 100 largest metropolitan areas. (8/02)
Canandaigua-- First Niagara Financial Group, Inc. is planning to merge with Savings Bank of the Finger Lakes next year in a deal worth $67 million. According to a press release on June 30, for each outstanding share of Finger Lakes Bancorp Inc., a holding company for the Savings Bank, the Lockport-based bank will pay $20. The purchase price reflects 171 percent of book value, the press release said. Some management support and administrative positions at Finger Lakes will be eliminated, however severance and opportunities to post for positions with First Niagara will be offered. The acquisition is expected to finalize in the first quarter of 2003. (7/02)
Rochester-- Arthur Andersen LLP, one of the areas top accounting firms, has closed its doors and disconnected their telephones according to reports. Former audit and tax partners, Stanley Konopko and Thomas Bruckel respectively have joined Pricewaterhouse Cooper LLC, taking with them two dozen former Andersen audit and tax staffers. (7/12)
2nd Quarter 2002
Eastman Kodak Company-- Eastman Kodak Company reported first-quarter net income of $39 million, or 13 cents a share, compared with net income of $150 million, or 52 cents per share, in the first quarter of 2001. Sales totaled $2.707 billion, a decline of 9% from $2.975 billion in the first quarter of 2001. Operating cash flow in the quarter was a negative $48 million, an improvement of $504 million from the first quarter of 2001, when operating cash flow was a negative $552 million. Due to a previously announced change in the timing of Kodak's dividend payments, the first-quarter 2002 cash flow did not include a dividend payment, while $128 million was paid in the first quarter of 2001. Total costs declined by approximately 4% in the quarter, indicative of the company's continued effort to contain costs. (4/25)
Xerox Corporation Labor Deal-- Xerox Corp.'s new contract with Rochester-area union workers guarantees jobs for the document company's 1,955 local union employees. Terms of the three-year agreement, approved in a March 28 vote, guarantee jobs for all workers employed on March 18 or earlier. Workers hired after that date can be laid off. (4/12)
Paychex Inc.-- Paychex Inc. announced net income of $68.7 million, or $.18 diluted earnings per share, for the quarter ended May 31, 2002, an 1% increase over net income of $67.8 million, or $.18 diluted earnings per share, for the same period last year. Total revenues were $244.3 million, a 7% increase over $228.6 million for the fourth quarter last year. For the twelve months ended May 31, 2002, the Company reported record net income of $274.5 million, or $.73 diluted earnings per share, an 8% increase over $254.9 million, or $.68 diluted earnings per share, for the same period last year. Total revenues were $954.9 million, an increase of 10% over $869.9 million for the same period last year. (6/25)
Bausch & Lomb Inc.-- Bausch & Lomb reported first quarter net sales during the period were $414.2 million, up 3% from the $402.6 million reported in the first quarter of 2001. For the first quarter, the Company reported net earnings of $8.8 million, or 16 cents per share, compared to a net loss of $1.0 million, or 2 cents per share, in the prior year period. In the current quarter, the Company recorded restructuring charges and asset write-offs totaling $15.4 million. The company had planned to slash some 700 jobs worldwide to reduce operating costs. The number has risen to 800 staffers. (4/25) Bausch & Lomb announced a reduction in its quarterly dividend from $0.26 to $0.13 per share in order to better align its dividend pay out with its own financial objectives and the pay out rates of its industry peers. (4/25)
Area Donation-- Paychex Inc. CEO Thomas Golisano has donated $14 million to the Strong Children's Hospital. According to UR officials, the 122-bed pediatric unit of the University of Rochester's Strong Memorial Hospital now will be known as Golisano Children's Hospital. The Golisano gift is the largest to the school by a living donor. (4/8)
Area Unemployment-- According to the state Labor Department, the Rochester area's unemployment rate was 6.1% in March, down from 6.6% in February. The statewide unemployment rate was 5.9%, unchanged from February. (4/18)
Area Tourism-- According to the Greater Rochester Visitors Association the total number of visitors in the Rochester area in 2001 was 1.4 million, down 10% from 1.56 million in 2000. Spending fell from $241 million in 2000 to $226 million in 2001, a decline of 6.2%. (5/24)
Urban Housing Update-- According to data released by city officials, more than $56.3 million worth of high-end housing projects have either been completed in the last two years or are proposed for the next few years in downtown Rochester. More than 427 units have been built in the last three years or are planned. Rents range from $850 to $1,700 or more a month. The downtown housing market surge began two years ago with the $3.3 million conversion of the Knowlton Building in the Cascade District into lofts and the construction of the $9.1 million Chevy Place apartments in the East End. (6/1)
Area Home Sales-- According to The Realtors association (formerly the Greater Rochester Association of Realtors) Rochester-area house sales in April were up 11.4% compared with a year ago. In April, 887 houses sold, up from 691 in March and 796 in April 2001. Listings were down 7.9% in April compared with April 2001. According to statistics, 4,058 houses were sold from January through May of this year, up from 3,844 houses during those five months last year. May sales were up 9.9% from a year ago. In May 2000, 10,979 houses were listed for sale; in May 2001, 8,721 houses were listed for sale, a drop of more than 20%. Sales in Rochester, where values are traditionally lower, are up 13.5% this year compared with the same five months of 2001. The median sale price so far this year has fallen 6.2% from a year ago. (5/3, 6/7)
Area New Construction-- Data from the Rochester Home Builders' Association Inc. shows that in Monroe County, the number of single-family, town-house and apartment building permits has increased by 6% over the 10-year period, from 1,840 in 1991 to 1,949 in 2001. Webster led the way in 2001 with 387 units built; including 227 homes and 114 apartment units. The second highest number of units in Monroe County came from Greece with 323 units, followed by Henrietta with 210 units. The top local home builder, based on the total number of units built in 2001, is Ryan Homes of New York, which built 270 homes last year, down from 280 a year earlier. (3/29)
Area Bankruptcy Filings-- According to figures compiled by the U.S. Western Bankruptcy Court clerk, Rochester-area bankruptcy filings increase 3% in April compared with the same month in 2001. In April, 503 individuals and businesses filed bankruptcy petitions, compared with 477 filings in 2001. Of Aprils filings, 399 were Chapter 7 petitions to liquidate assets, and 104 were Chapter 13 petitions seeking to reorganize. (5/7)
1st Quarter 2002
Eastman Kodak Company-- Eastman Kodak Company reported fourth-quarter operating earnings of $36 million, or 12 cents a share, down from 68 cents a share a year ago. Including special charges, Kodak lost $206 million, or 71 cents a share; a year ago, it earned 66 cents a share. Sales totaled $3.359 billion, a decline of 6%. Kodak generated $468 million in cash flow after dividends in the fourth quarter and $740 million for the full year. (1/24)
Eastman Kodak Company Dividend-- Eastman Kodak Company announced that employees will receive a Wage Dividend payment equal to 2% of their 2001 pay. The Wage Dividend, estimated at $32 million, will be paid on April 5 to approximately 29,800 employees in the United States. In the Rochester area, approximately 24,000 employees will share in an estimated Wage Dividend payment of $26 million. Last year, Kodak paid a $55 million Wage Dividend to 32,800 employees. The payment was equal to 3.5% of 2000 wages and salaries. (1/24)
Xerox Corporation-- Xerox Corporation reported fourth-quarter revenue of $4.3 billion, 13% lower than fourth-quarter 2000, including a 26% revenue decline in its developing markets operations. Fourth-quarter earnings were 15 cents per share, excluding restructuring charges. For the year, Xerox reported a 2001 net loss of 43 cents per share of $293 million. Revenues in 2001 were $16.5 billion, compared with $18.7 billion in 2000. (1/28)
Xerox Corporation Employment-- Xerox Corporation announced it will eliminate some 500 jobs in Monroe County by March. It will cut approximately 300 salaried workers by March 24, and eliminate 230 union jobs by March 17. The local reductions are part of an ongoing more than $1 billion restructuring begun last October. (1/24)
Bausch & Lomb Inc.-- Bausch & Lomb reported fourth quarter net sales during the period were $452 million, down from $465.1 million reported in the fourth quarter of 2000. Full year 2001 reported revenues were $1,711.9 million, down 3% from the 1,772.4 million reported in 2000. The company reported a net loss of $8 million, or 15 cents per share, compared to a net loss of $5 million, or 9 cents per share, in the prior year's fourth quarter. Full year 2001 reported net earnings were $21.2 million, or 39 cents per share, compared to $83.4 million, or $1.52 per share, in 2000. Reported earnings from continuing operations were $13.1 million, or 24 cents per share in the fourth quarter of 2001 compared to a net loss from continuing operations of $6.4 million, or 12 cents per share, in the prior year. For the full year, reported earnings from continuing operations were $42 million, or 78 cents per share, as compared to $82 million, or $1.49 per share, in the prior year. (1/24)
Paychex Inc.-- Paychex Inc. announced net income of $67 million, or $.18 diluted earnings per share, for the quarter ended February 28, 2002, an 1% increase over net income of $66.4 million, or $.18 diluted earnings per share, for the same period last year. Total revenues were $242.8 million, a 6% increase over $229.3 million for the third quarter last year. For the nine months ended February 28, 2002, the Company reported record net income of $205.9 million, or $.54 diluted earnings per share, a 10% increase over $187.1 million, or $.50 diluted earnings per share, for the same period last year. Total revenues were $710.6 million, an increase of 11% over $641.2 million for the same period last year. (3/19)
Area Unemployment-- According to the state Labor Department, the Rochester area's unemployment rate was 5.3% in December, up from 5% in November and 3.7% in December of 2000. The 5.3% for December translates to 30,100 jobless people in the six-county region. The number of people employed in the Rochester metropolitan area in December of 2001 was 532,300. The statewide unemployment rate in December was 5.8%. The Rochester area lost 12,400 jobs - or 2.3% - between January 2001 and January 2002. The area unemployment rate in January was 6.3%, up from 4.5% in January 2000. According to state figures, Rochester lost an estimated 7,600 manufacturing jobs as well as 3,400 jobs in the service industries. (1/18, 3/6) Monroe County's traditional Big Three, Eastman Kodak Co., Xerox Corp. and Bausch & Lomb Inc. dropped 3,050 employees from their local payrolls in 2001. The three companies were responsible for most local layoffs in 2001. As of December 31, Kodak had 23,600 local employees, down from 24,600 the previous year. Xerox's local staffing fell 13,350 to 11,500 in 2001. Bausch & Lomb's local workers totaled 1,300 at the end of 2001, down from 1,500 the previous year. Losses at the Big Three were offset by the addition of 301 local employees at several area businesses. (3/15)
Area Airline Travel-- AirTran Airways, the nation's second largest low-fare air carrier, will start service from the Greater Rochester International Airport in March of 2002. AirTran Airways will serve 19 of the 25 top U.S. destinations for Rochester with 324 flights a day to 36 cities throughout the eastern United States. New York state will provide $2 million for infrastructure and other capital improvements at the airport. In addition, the Greater Rochester Metro Chamber of Commerce worked to secure passenger commitments from local businesses to spend between $2 million and $3 million on AirTran service in the coming year. (1/23)
Area Senior Housing Update-- Local developers plan to start building more than 1,000 senior-living housing units in the local market within the next year or so, at an estimated cost of more than $118 million. The new projects are in addition to more than 600 units that have been built over the last year or are being finished. The new projects include: $21 million Baywinde Senior Living Community in Penfield, the proposed 430-unit St. Ann's Community in Webster, $9 million Episcopal Senior Life Communities project in Gates, $12 million Legacy at Park Crescent in Greece and the proposed 172-unit Cloverwood project in Pittsford. The US Census Bureau expects that by 2025 the elderly population in the United States will jump nearly 80%, compared with a 15% growth of working-age adults and children. (3/22)
Area Home Sales-- According to the Greater Rochester Association of Realtors, single-family home sales rose 3.1% in December compared with a year ago. The median price of a house in 2001 jumped 9% to $94,000. The volume of house sales in the region was $1.32 billion in 2001, up from $1.28 billion in 2000. According to the association, the number of houses listed for sale in January was 1,799, a 49% increase from 878 in December. The number of accepted purchase offers rose 7.5% between January 2001 and January 2002. The median price of a house in January was $89,000, up 2.3% from January 2000. The association expects a 3% increase in sales in 2002. Single-family home sales rose 24% in February compared with a year ago. Homes listed for sale, however, fell 18% from January and 10% compared with February 2001. Year-to-date closings were up 5% from last year. (1/5, 2/14, 3/15)
Area New Construction-- According to the Rochester Building and Construction Trades Council, last year the area spent $957.4 million on construction projects, 15% less than the $1.13 billion spent in 2000. Nonresidential construction in Monroe, Livingston, Wayne, Ontario, Orleans and Genesee counties was down 23%. (1/25)
Area New Vehicle Sales-- According to the Rochester Automobile Dealers Association, November 2001 sales of new vehicles in Monroe County were up 6% from a year earlier and used-vehicles sales rose 23%. New-vehicle sales were 37% less in November than in October and used-vehicle sales were off 6%. Car sales were affected by zero-percent financing deals, which began in September. Area dealers sold 3,095 new and 2,013 used vehicles in November. (1/9)
Area Exports-- Based on preliminary results of an annual survey conducted by the Greater Rochester Metro Chamber of Commerce Inc., the Rochester area is expected to record a 9% to 11% decline in export volume for 2001. The year end total for 2001 is estimated to be in the range of $13.2 billion to $13.5 billion, down from $14.8 billion in 2000. Rochester's nine-county region has more than 4,000 exporting firms. Some 85% employ fewer than 200 people. Rochester's top markets in 2001 were Canada, Germany, Japan and Mexico. (1/18) According to survey results, international sales were $13 billion, a decrease of more than 12%. The top market last year was Canada. (3/16)
Area Bankruptcy Filings-- Rochester-area bankruptcy filings increase 26% between 2000 and 2001. During 2001, 4,929 petitions were filed in the U.S. Bankruptcy Court for the Western District of New York, a 21% increase from 3,899 in 2000. There were 3,965 Chapter 7 filings in 2001, 140 of which were businesses. Under Chapter 7, the property of an individual or business is liquidated and the money is used to help pay debts. Federal legislation to reform bankruptcy laws is still pending. (1/15) go to top
4th Quarter 2001
Eastman Kodak Company-- Eastman Kodak Company announced it will offer its employees an opportunity to exchange current stock options for proportionately fewer new options. These new options will be priced based on the company's stock price at the time they are issued in the third quarter of 2002. The company will hold a special meeting of shareholders early next year to approve the program. If approved by shareholders, employees will receive an enrollment package with details about the voluntary exchange. The option exchange applies to all outstanding options held by employees, including the two all-employee grants made in 1998 and 2000, with respective grant prices of $65.91 and $53.94. The six highest-ranking officers of the company, however, are excluded from participating in the exchange program. About 61,000 current employees hold about 33 million options. (11/30)
Home Properties of New York Inc.-- Home Properties announced that it has sold two apartment communities with a total of 364 units located in northern New Jersey and downstate New York. The sales price of $23.7 million equates to approximately $65,200 per apartment unit. The net proceeds were used to reduce short-term debt previously incurred to fund value-added acquisitions. The properties sold included the 137-unit Towers Apartments located in Passaic, New Jersey, and the 227-unit Mountainside Apartments located in Garnerville, New York. The total gain on sale, to be reported in the fourth quarter, will be approximately $7.0 million based on book value. (The price exceeds the undepreciated cost basis by $5.3 million, or 22%.) The sales price equates to a capitalization rate of approximately 9.2% based on the properties' 2001 budgeted net operating income (after allocating 3% of rental revenues for management and overhead expenses and before normalized capital expenditures). (11/8)
Paychex Inc.-- Paychex Inc. announced net income of $68.7 million, or $.18 diluted earnings per share, for the quarter ended November 30, 2001, an 11% increase over net income of $62.1 million, or $.16 diluted earnings per share, for the same period last year. Total revenues were $233 million, a 12% increase over $208.1 million for the second quarter last year. For the six months ended November 30, 2001, the Company reported record net income of $138.9 million, or $.37 diluted earnings per share, a 15% increase over $120.8 million, or $.32 diluted earnings per share, for the same period last year. Total revenues were $467.8 million, an increase of 14% over $412 million for the same period last year. (12/19)
Employment Growth-- According to a new report from the Buffalo Branch of the Federal Reserve Bank of New York a shift from manufacturing to service jobs has placed the Rochester region in good position for further growth. The Federal report analyzed census data only through 1997. It therefore excludes further growth in the late 1990s as well as job cuts over the past year. Smaller technology-based service companies have grown as the region's manufacturing giants have downsized. According to the report, between 1969 and 1997 Monroe County lost more than 30,000 manufacturing jobs. In the same period, the county added more than 82,000 jobs in the producer and consumer services sectors, a gain of 172%. Producer services are industries such as financial, computer and data-processing services. Consumer services include health care and education. Employment in the communications sector was up 35% during the same time period. Computer and data-processing, nursing home, hospital and education sectors each posted gains of more than 30%. (11/27)
Area Employment Reductions-- According to a state Labor Department report, the Rochester region lost 8,300 jobs between October 2000 and October 2001. Over the same one-year period, the state lost 107,000 jobs. The October unemployment rate for the six-county Rochester region was at 4.6%, down slightly from 4.7% in September. Statewide, the unemployment rate hit 5%. The report showed that the region lost 9,000 private-sector jobs over the past year, more than 15% of the total for the state. In October, there were 106,100 jobs in manufacturing, off 7,400 from October 2000. The region lost more than 2,400 service jobs; job cuts at temporary agencies and software firms were a major cause. Helping to offset the losses were employment gains in the education and government sectors. (11/16) go to top
3rd Quarter 2001
Xerox Corporation-- Xerox Corporation announced a third-quarter loss of 24 cents per share, excluding restructuring charges of 5 cents per share. The loss includes 5 cents from unhedged currency exposure, 3 cents from an adjustment to the underlying tax rate on the 2001 first-half loss, and 1 cent from a $10 million property insurance loss related to the Sept. 11 tragedy. Xerox's liquidity position continued to improve. The company had $2.4 billion in cash as of Sept. 30 compared to $2.2 billion at the end of June. Xerox's net debt is down $3.4 billion since the end of September 2000, a 20% reduction. The company said that it has recently initiated discussions with its agent banks to refinance a portion of its $7 billion revolving line of credit and extend its maturity from October 2002. Third-quarter revenue was $3.9 billion, 13% lower than the third quarter of last year. Pre-currency revenue declined 12%. In October of last year, Xerox announced plans to reduce $1 billion in costs by the close of 2001. Today the company reported that it has implemented actions that will achieve the entire $1 billion target, including the reduction of close to 11,000 positions worldwide through the combination of early retirement and voluntary leave programs, attrition and layoffs. (10/23)
Eastman Kodak Company-- Eastman Kodak Company reported third quarter revenues were $3,308 billion, down 8% from the previous year. Third quarter earnings per share of $0.33 were impacted by one-time items, totaling $84 million, or $19 per share, bringing operational earnings for the quarter to $.52 per share. Kodak has largely completed the restructuring program announced in the second quarter. Restructuring charges recorded in the third quarter include approximately $7 million for employee severance coverings approximately 300 worldwide positions, bringing total employment reductions from second and third quarter severance actions to 2,700. Kodak intends to implement a series of additional cost reduction actions beginning in the fourth quarter, 2001 to deal with the impact of prolonged economic weakness in the U.S. and abroad. It is anticipated that these actions will reduce employment by approximately 3,500 to 4,000 jobs worldwide. The anticipated fourth quarter severance charge is expected to total approximately $200 million. (10/23)
Bausch & Lomb Inc.-- Bausch & Lomb reported operational revenues for the third quarter, which ended September 29, 2001 were $433.6 million down 2% from $443.2 million reported in the third quarter of 2000. Reported net earnings were $23.3 million, or $.43 per share, for the quarter compared to $14.7 million, or $.27 per share, in the same period last year. For the first nine months of 2001, revenues were $1,259.9 million, down 4% from the $1,307.2 million reported for the same period in 2000. (10/18)
Home Properties of New York Inc.-- Home Properties has sold two apartment complexes in Irondequoit, Hill Court South on East Ridge Road and Ivy Ridge on Hudson Avenue to Kemp-Miller Properties of Pittsford for $9.2 million. The sale is the third for Home Properties in the last two months. This sale puts the company about halfway toward the lowest level of its goal to sell between $100 million and $200 million worth of "underperforming" properties it owns. (7/19)
Paychex Inc.-- Paychex Inc. announced record net income of $70.2 million, or $.19 diluted earnings per share, for the quarter ended August 31, 2001, a 20% increase over net income of $58.6 million, or $.16 diluted earnings per share for the same period last year. Total revenue services were $234.8 million, a 15% increase over $203.9 million for the first quarter last year. For the quarter ended August 31, 2001, service revenue increased 15% to $189.4 million from $164.5 million for the prior year first quarter. (9/15)
Overall Area Employment-- According to the Center for Governmental Research, the six-county Rochester area lost more than 2,500 jobs, or 0.5% of its employment between the second quarter of 2000 and June 30. Since the end of the first quarter, the region has lost jobs at an escalated annual rate of 2.7%. As of June 30, Rochester had 109,113 manufacturing jobs, down 4% from 113,716 a year ago. During the quarter, manufacturing jobs decline at an 8% annual rate, caused partly by the downsizing at Xerox Corp. Service jobs - traditionally lower paying than those in manufacturing - grew by approximately 2,500, or 1.4% for the year. In the communication sector, the Rochester area gained 894 jobs, a 4.7% increase. Area construction and mining jobs gained 2.5%, to 20,509 for the year. Finance, insurance and real estate employment slipped 1.6% to 21,088. Trade (retail and wholesale) was off 0.2% to 118,250. (8/2)
Area Unemployment-- The state Labor Department reported that 25,100 people in the metro area were out of work in July, resulting in an unemployment rate of 4.4%. That's up from 20,700 jobless and a 3.6% unemployment rate in July 2000. The total number of jobs in Rochester fell last month by approximately 4,700, or 0.8%. The state's jobless rate in July was 4.4%, identical to the rate in June & July of 2000. According to the state Labor Department, there were 7,250,200 full- and part-time private-sector jobs in New York in July, 68,200 higher than in July 2000. (8/7)
Area Home Sales-- According to the Greater Rochester Association of Realtors, area home sales in June fell by 12% compared with a year ago. The dollar volume of sales dipped by 12.3%. The homes listed for sale rose 4.5% to 2,054 in June compared with June 2000. Closings dropped from 1,193 homes a year ago to 1,050 last month. Dollar volume dropped from $134 million to $117.6 million. Year-to-date sales are down 3.5% compared with a year ago. The number of listings for the first six months was down nearly 9%. (7/10) Sales of existing single-family houses for July 2001 were 1,252, a decrease of 6.2% compared with 1,335 in July 2000. Home sales did increase 19.2% from June. The median sale price of a house jumped to $105,000 in July, up more than 11% from June. For the year so far, home sales are down 3.8% and number of houses listed for sale is down 7.8% from 2000. (8/9)
Area New Vehicle Sales-- According to the Rochester Automobile Dealers Association, dealers sold 4,195 new vehicles vs. 4,519 for the same month a year ago. It was the second straight monthly high, but new vehicle sales for 2001 still trail last year's sales. (8/9) go to top
2nd Quarter 2001
Xerox Corporation-- Xerox Corporation announced its exit from the small office/home office (SOHO) business segment in a move that sharpens the company's focus and supports its turnaround strategy. Over the next six months, Xerox will discontinue its line of personal inkjet and xerographic products sold primarily through retail channels. However, the company will continue to provide service, support and supplies for its customers who own SOHO products. In the first quarter of 2001, the company recorded a $82 million pre-tax loss in its SOHO business. Revenues for SOHO were $139 million, representing 3% of total first-quarter revenues. Xerox intends to sell its current inventory of SOHO products through existing retail and other channels worldwide. (6/14) The Board of Directors of Xerox Corporation decided to eliminate the payment of dividends on its common stock. The decision was made in line with the company's turnaround objective to strengthen Xerox's liquidity and to restore long-term value to shareholders and bondholders. Previously the company had paid a quarterly dividend of 5 cents per share. The elimination will reduce the company's cash requirement by approximately $140 million on an annualized basis. (7/9)
Eastman Kodak Company-- Eastman Kodak Co. reported second quarter revenues of $3.592 billion, down 4% compared with $3.749 billion in the second quarter of 2000. Net earnings were $36 million, or 12 cents per share, compared with $506 million, or $1.62 per share, in the second quarter of 2000. On an operational basis, excluding restructuring and other charges totaling $1.00 per share, second-quarter gross profits as a percentage of sales rose to 39.1%, up from 36.2% in the first quarter. The second-quarter restructuring charge primarily covers severance for approximately 2,400 employees and write-downs associated with asset impairments and business exits. For the first two quarters of 2001, sales were $6.567 billion, down 4% compared with $6.844 for the first two quarters of 2000, and down 1% excluding foreign exchange. Net earnings totaled $186 million, or 64 cents per share, compared with $795 million, or $2.55 per share in the first two quarters of 2000. Excluding one-time charges, earnings were $482 million, or $1.66 per share, in the first half of 2001, in the first half of 2001, compared with $810 million, or $2.60 per share, in the same period of 2000. (7/17)
Bausch & Lomb-- Bausch & Lomb announced net sales for the second quarter were $414 million, down 9% from the $455.2 million reported in the second quarter of 2000. Net earnings were $6.8 million, or $0.13 per share, compared to $34.6 million, or $0.64 per share, reported for the second quarter of 2000. For the first half of 2001, revenues were $826.2 million, down 4% from the $864 million reported for the same period in 2000. Excluding the impact of charges, write-offs and non-recurring gains recorded in both years, net earnings were $13.1 million, or $0.24 per share, through the first two quarters of 2001, compared to $64 million, or $1.15 per share in the same period in 2000. Contact lens sales for the second quarter were down 8% from last year, sales of lens care products declined 26% while pharmaceutical sales increased 22% over last year. (7/19)
Big Box Retailer Expansion-- Developers are adding approximately 1 million square feet of coming or proposed retail space to the market. This growth surge comes on the heels of big box retails building up their presence in the local market, including Wal-Mart Stores Inc., Home Depot Inc., Target Corp., Lowe's Cos. Inc., Kmart Corp., BJ's Wholesale Club Inc. and Sam's Wholesale Club Ltd. Co. The majority of them have entered the local market in the last decade. In general, big boxes are occupied by large national retail chains and take up 100,000 square feet of space or more. In the Rochester market, they generally have three or four sites, are freestanding, and are within sight of expressways. Wal-Mart has stores in Greece, Henrietta and Webster, each equaling roughly 100,000 sq.ft. They are expected to open their first local supercenter in June, in Westgate Plaza in Gates. Another Wal-Mart supercenter is planned for the former Hechinger's Plaza on the Irondequoit/Rochester town line. The former Hechinger's Co. home improvement store site sat vacant for roughly a decade. Construction is expected to start this year after demolitions and the store is slated to open in late 2002. Wal-Mart plans to build its third area supercenter in Victor near Route 96 and is considering enlarging its existing Henrietta and Greece stores. Home Depot is the big box with the largest local chain - five stores in Irondequoit, Henrietta, Greece, Victor and Penfield and a sixth to open soon in Gates. Lowe's has built one site in Henrietta. It has presented plans for another store to the Webster planning board for land it acquired near BJ's in Webster Square. Lowe's has also proposed building a store at the Greece Park Outlet Mall. It plans to bulldoze the former Ames store and movie theater and build new. BJ's, which has stores in Webster, Victor and Henrietta, plans soon to relocate its Brighton-Henrietta Town Line Road store to new facility next to Home Depot on Jefferson Road. Target has four stores in Victor, Greece, Henrietta, and Penfield. Sam's has two locations in Greece and Henrietta. Kmart has five locations in Greece, Irondequoit, Victor, Webster, and Chili. (4/27)
Corn Hill Project-- Three projects are under way along the Genesee River gateway into downtown, between the Court Street and the Ford Street bridges. In the next five years, a housing and commercial center will be built on the west side of the river near Corn Hill. The state will replace the bridge carrying Interstate 490 over the river with a stylish steel arch bridge. On the east side of the river, the state is replacing the river wall and building a walkway. The cost of the projects approaches $50 million. The $20 million Corn Hill Landing project, announced two years ago, is a major part of the riverside development. Mark IV Construction is planning to invest more than $15 million into the project. Company plans include construction of 125 one-and-two-bedroom luxury apartments, 15,500 square feet of retail space, 15,000 square feet of office space and underground parking. Construction was scheduled to start this spring, but delays in financing and an agreement between the city and state for the lease of land along the river has delayed the project's start to end of summer or early fall. It will take approximately 18 months to complete construction, excluding the office facility. Mark IV is working to secure a $14.5 million loan guarantee form the Department of Housing and Urban Development for the project. HUD has given preliminary approval and financing should be obtained by the end of summer. The state and city are partners in the development. The state Canal Corp. completed reconstruction of the flood wall and built a public walkway south of Court Street, linking downtown with the Canal Landing project. The state project included dockage for boats with hookups to water and electric service. Its cost was about $1.6 million. The city spent $2.7 million to prepare the site for construction, including the removal of contaminated soil. Mark IV is planning to integrate apartments, retail and office facilities into the riverside improvements completed last year. The city and state are spending more than $4 million to rebuild the river wall and to build a walkway similar to one on the west bank. The work is expected to be completed by the end of the year. It will improve the trail between the Erie Canal and downtown. (5/29)
Bank Acquisition-- FleetBoston Financial announced that Fleet Bank branches in Naples, Rushville, and Penn Yan, along with 33 other branches in upstate New York, will be sold to Dewitt based Community Bank, N.A. The 36 branches employ 174 employees in total. The Shortsville branch is not inlcuded among the branches sold. Terms of the agreement were not disclosed. Branches acquired by Community Bank N.A. represent approximately $484 million in consumer and commercial deposits and approximately $240 million in consumer and commercial loans as of March 31, 2001. Fleet's total workforce throughout the upstate region is approximately 5,600 employees. (6/10)
Auto Dealership-- Ford Motor Co. announced plans to disband the Rochester Ford Auto Collection. The Collection has eight locations: Avon-90 W. Main St., Brighton-2500 W. Henrietta Rd., Churchville-111 S. Main St., East Rochester-71 Marsh Rd., Greece-4545 W. Ridge Rd., Irondequoit-1600 E. Ridge Rd., Victor-7325 Route 96, and Webster-810 Ridge Road. Each of the eight locations will be sold individually. Ford Investment Enterprises brought the dealerships under one umbrella to increase profits, first sharing ownership and then buying out Auto Nation Inc.'s shares. The company will begin negotiating deals within the next two weeks. The Rochester Auto Collection employs 397 people. It is anticipated that those employed will most likely continue with the new owners. (6/27)
Recreational Facility Growth-- Three local developers, William Boulter, Andrew Gallina and Bernard Iacovangelo plan to build nearly $10 million worth of indoor and outdoor soccer fields to meet the needs of the area's growing amateur soccer population. They are in various stages of planning and building three soccer-field complexes on some 200 acres throughout Monroe County. If approved, 38 indoor and outdoor fields will be added to the Rochester market. Boulter broke ground on a $1.7 million, 44,000 square-foot indoor soccer facility, an addition to the Webster Community Sports Center at 855 Publishers Parkway in Webster and is expanding a series of outdoor fields. The expansion project, which received a $750,000 grant from the state, will add one full-size indoor field and is expected to be finished by November. Gallina purchased 60-acres at 838 Elmgrove Road in Gates from Eastman Kodak Co. Gallina plans to build a 107,000 square-foot facility by November. It will feature two indoor soccer fields and one larger field with sidelines. Plans also include an 8,000 square-foot workout facility and adding two or three outdoor fields. The cost of developing the recreation site is roughly $4 million. The County of Monroe is considering a proposal by Iacovangelo to build an estimated $4.5 million, 24-field, tournament-style complex on 125 acres off Union Street in Chili. (5/11)
Area Home Sales-- According to the Greater Rochester Association of Realtors, sales of existing single-family homes fell 4.3% in April compared with the same month in 2000. However, sales were up 8.3% from March 2001. The Association reported more than 14% fewer homes are on the market in 2001 than there were in 2000. Accepted purchase offers, an indication of future closings, were down 12%. The median sales price rose 4.3% to $91,000. (5/11)
Area Employment-- According to state Labor Department, Rochester's jobless rate was 4% in March, down from 4.5% in February and 4.4% in March of 2000. The state's unemployment rate was also 4%, down from 4.3% in February. Overall, there are approximately 575,000 jobs in Monroe County. (4/20)
Automobile Sales-- The Rochester Automobile Dealers' Association reported that 3,941 new vehicles were sold in May 2001, down from 4,173 for the same month a year ago. There were 2,234 used vehicles sold in Monroe County in May, down from 2,349 in May 2000. (6/28) go to top
1st Quarter 2001
Xerox Corporation Employment-- Xerox Corp. cut 4,300 jobs worldwide in the first 90 days of 2001, 740 local employees left the company during that period - half through voluntary measures and the others through job cuts. At the end of March, employment in Monroe County was 12,600, down 1,550 from the beginning of last year. In Ontario County, Xerox employs 400, down from 525 in October 2000. The company has moved offices out of rental space and consolidated operation in its downtown tower. (4/20)
Eastman Kodak Company-- Eastman Kodak Co. reported first quarter sales were $2.975 billion, a decline of 4% from $3.095 billion in the first quarter of 2000. Net earnings were $150 million, or $.52 per share, compared with $289 million or $.93 per share in the first quarter of 2000. Earnings from operations were $262 million, compared with $456 million in the comparable 2000 quarter. The company announced it expects to take a restructuring charge of approximately $375 million to $450 million pre-tax, primarily in the second quarter, but with a portion to be taken in the third quarter. The charge is expected to include a reduction of about 3,000 to 3,500 jobs worldwide. (4/17)
Eastman Kodak Job Cuts-- Eastman Kodak Company announced it will cut 3,000 to 3,500 jobs worldwide this year, or about 4.5% of its workforce, in a move to get positioned for recovery. It's the company's third downsizing since 1997. The cuts, made up of layoffs, retirements and attrition, will help save $50 million this year. Kodak did not say how many jobs would be lost in Rochester. The company currently has a local work force of 24,000 people. (4/18)
Bausch & Lomb Inc.-- Bausch & Lomb reported operational revenues for the fourth quarter were $462.4 million down 1% from $466.6 million reported in the fourth quarter of 1999. Reported net earnings were $4.6 million, or $.09 per share, for the quarter compared to $17.2 million, or $.29 per share, in the same period last year. Full-year 2000 reported revenues from continuing businesses were $1,763.1 million, essentially flat with the $1,756.1 million reported in 1999. Comparable basis net earnings from continuing operations for the full year 2000 were $139.2 million, or $2.54 per share, compared to $132.6 million, or $2.26 per share, in1999. (1/25) Bausch & Lomb's announced its Pay-for-Performance Policy resulted in no earned bonuses in 2000 and no pay raises in 2001 for key executives. (3/23)
Home Properties-- Home Properties of New York Inc., the Rochester based apartment management company, has closed a deal to sell its Conifer Realty affordable housing arm for $16.1 million. Home Properties purchased Conifer in 1995 for $13.4 million. Under the terms of the sale, Home Properties will retain control of 8,225 apartment units that were developed under Conifer auspices, and the rental revenue that comes from those units. Conifer gets control of more than 30 developments in various stages of completion. Most of those properties are in New Jersey. (12/20) Home Properties reported full-year funds from operations of $120.9 million, or $2.94 a share, versus $89.1 million in 1999, or $2.78 a share. They reported fourth quarter earnings were $32.55 million, or 75 cents a share, a penny better than the same quarter in 1999. The company stated that the high cost of natural gas was largely to blame for the brake on earnings. The company's energy costs were up 34% in the quarter compared with the 1999 period. Home Properties includes heat in 70% of its leases and can't adjust rents quickly in response to fuel cost increases. Company officials announced plans to sell off $100 to $200 million worth of properties, about half of which are in Rochester, Buffalo and Syracuse. The company would use that money to buy back stock. (2/14)
Paychex Inc.-- Paychex Inc. announced record net income of $66.4 million, or $.18 diluted earnings per share, for the third quarter ended February 28, 2001, a 34% increase over net income of $49.6 million, or $.13 diluted earnings per share for the same period last year. Total revenue services were $229.3 million, an increase of 19% over $192.2 million for the third quarter last year. For the nine months ended February 28, 2001, net income increased 35% to $187.1 million, or $.50 diluted earnings per share, as compared to $138.4 million, or $.37 diluted earnings per share, for the same period last year. Total service revenues were $641.2 million, an increase of 21% over $530.9 million for the same period last year. Third quarter operating income for the Payroll segment increased 21% to $94.3 million from $77.7 million for the third quarter last year. Total payroll service revenues were $203.7 million, an increase of 19% over $171.8 million for the prior year period. For the nine months ended February 28, 2001, operating income for the Payroll segment increased 22% to $272.1 million from $222.4 million for the same period last year. Total payroll service revenues were $570.2 million, an increase of 19% over $477.6 million for the same period last year. (3/19)
Health Care-- Unity Health Systems reported a year end profit of $2.6 million up from the $62 million loss they reported in 1999. Unity's Park Ridge Hospital alone ended the year with $1.6 million in gains, after posting a $68 million loss for 1999. The system announced plans to build an outpatient cancer center at Park Ridge, where most of its in-patient hospital services are located. The center would be a collaboration involving Unity and competitor Strong Health, as well as Blue-Cross Blue-Shield of the Rochester Area's home health agency. Unity, which is the area's eighth-largest employer, with about 2,500 workers, moved most of St. Mary's Hospital's acute-care services to Park Ridge, cut $44 million from their $170 million budget and slashed more than 900 full-time jobs. (3/7) ViaHealth headquarters announced plans to close Genesee Hospital's 700,000± sq.ft. Alexander Street campus. For 2000, ViaHealth lost $21.7 million, with Genesee accounting for $18.5 million of the loss. Genesee can decide to close the hospital without state approval. The law requires a closure plan that ensures continuation of care until patients can be linked to other services. The hospital employs 2,250 people approximately 700 of which are nurses. Doctors with practices on the campus will have to move to Rochester General or to another area hospital. Staff members will likely be placed at Rochester General or other facilities within ViaHealth, but some may face layoffs. Severance packages may be offered. BlueCross pressed ViaHealth to close the hospital to lower ViaHealth's capacity and take pressure off premiums. Genesee Hospital handles approximately 30,000 emergency cases in the city annually. (3/29)
Economic Development-- The west side of the Inner Loop, from Plymouth Avenue west and Broad Street north has been stealthily undergoing a rebirth the last two years. A combination of factors, including price, public sector support and private sector recognition of the area's potential have triggered the revitalization. Three developments have been completed: The Cascade District-the area across the Inner Loop from Frontier Field, is a mix of office and residential space in what was once industrial property. The 130,000 sq.ft. Cascade Building has six tenants while 100,000 sq.ft. Knowlton Building has nine businesses, plus 13 of its 14 loft apartments have tenants. The Lofton Brothers spent more than $3 million renovating the property. The Broad Way Business District-just across West Main Street from Cascade was developed by Buckingham partners Harold Samloff and Larry Glazer. The renovations include the fully leased, 55,000 sq.ft. Washington Building, the Jonathan Child House on South Washington and a cluster of adjacent buildings. Buckingham has also purchased two properties on Main Street that it plans to renovate. High Falls-the area between State Street and the Genesee River. New work there includes the $6 million rebirth of the old 45,000 sq.ft. Canfield Tack Building and continued development of the 130,000 sq.ft. Rochester Button Factory. More than 500,000 sq.ft. of space is currently being revamped in High Falls and the west side of downtown. (12/17)
Area Population-- Results from the 2000 census show the county's population up 3%, or 21,375 residents, over the last decade. Monroe County had 735,343 residents as of April 1. The biggest growth areas in Monroe County were Clarkson, up 34.4%; Mendon, up 22.3%; and Webster, which grew by 19.5%. According to the 2000 U.S. Census figures, the only areas that lost people in the vicinity of southeastern Monroe County were the villages of Pittsford and Fairport. In Pittsford, the village population decreased 4.7% while the village of Fairport decreased 3.4%. (3/22)
Area Employment-- According to the state Labor Department, Rochester's unemployment rate for December fell to 3.7%, down from 3.8% in November and 4% in December 1999. 21,100 people were unemployed in the area in December. The Rochester area had 551,300 jobs in December versus 538,500 in the Buffalo metro area. New York state's unemployment rate was 4.5% in December, down from December 1999's 4.8%. The national unemployment rate for December was 4%. (1/19) According to state Labor Department, Rochester's jobless rate was 4% in March, down from 4.5% in February and 4.4% in March of 2000. The state's unemployment rate was also 4%, down from 4.3% in February. The statistics showed the state's full-and part-time private sector job count grew by 130,800 between February 2000 and last month, a 1.9% increase to 7.26 million. Overall, there are approximately 575,000 jobs in Monroe County. (3/23,4/20)
Area Home Sales-- According to the Greater Rochester Association of Realtors, for the year 2000, 11,542 single family homes were sold in the 11-county region, down 3.8% from the 12,003 sold in 1999. Home sales fell 9.3% in December compared with 1999. Sales in the city of Rochester were up 15.6 % for the year. The number of homes listed for sale in 2000 dropped 4.2%, to slightly more than 22,000. The dollar volume of sales dropped 1.2%, to $1.275 billion. (1/12) Home sales in the greater Rochester area were down 15.2% in February compared with the same month a year ago, according to the monthly statistics from the Greater Rochester Association of Realtors. Compared with January 2001, sales were down 39.2%. The number of houses listed for sale fell more than 11% from January, and listings are down more than 5% for the year. The dollar volume of area sales, at $142 million so far, is 8.4% ahead of 2000. The city of Rochester reported 215 houses sold, up 9.7% from the same time last year. (3/;8)
New Construction/Building Permits-- Construction of single-family houses in Monroe County dropped 9.6% last year. According to the Rochester Home Builders Association, overall housing construction fell only 3.5%, though, because town home development more than doubled. Countywide, municipalities issued 184 permits for town homes in 2000 vs. 84 in 1999. Town homes are defined as buildings with four units or less. According to statistics compiled by the Home Builders group and the Greater Rochester Association of Realtors, the number of single-family building permits issued in 2000 dropped by 160, from 1,675 to 1,515. Since 1998, single-family permits are down more than 40%. (1/20)
Area Exports-- The Greater Rochester Metro Chamber of Commerce found that 1,342 companies sold $14.8 billion in products and services outside the country in 2000, a 6% increase over the previous year. The leading destination for the exports: Canada, the United Kingdom, Germany, Mexico and Japan. The Chamber survey indicates small and midsize firms have become the focus of the area's exporting growth. Rochester's nine-county region has more than 4,000 exporting firms. Some 85% employ fewer than 200 people. (1/20, 3/9)
Airport Traffic-- Airport statistics for the Greater Rochester International Airport show 2,455,506 passengers used the airport last year, compared with 2,456,329 in 1999. The number of people who flew out of Rochester increased to 1,235,493 from 1,233,640 the previous year. JetBlue was fourth in market share behind the following major carriers and their affiliates: US Airways, United Airlines and American Airlines. (1/19) go to top
4th Quarter 2000
Xerox Corporation Job Cuts-- In October, Xerox, which employs 94,000 people worldwide, stated it would expand upon the 14,400 job cuts announced in 1998. The layoffs are needed as the company seeks to cut $1 billion from operations. In early November, Xerox cut 115 white-collar workers in Monroe County. The second round of layoffs, November 30, included 200 local union-represented workers. Another 75 temporary contract workers at inkjet design and manufacturing sites in Canandaigua and Farmington have also been cut. The unionized employees, all of whom work in Monroe County, will receive pay and benefits through January. The cuts are to be based on seniority and scattered throughout Monroe County. The labor contract covering union workers at Xerox provides that anyone cut from the work force is eligible to be re-called to their jobs within two years. (12/1)
Eastman Kodak Company-- Eastman Kodak Co. reported for the year 2000, sales were $13.994 billion, down less than 1% compared with $14.089 billion in 1999. Net earnings for the year totaled $1.407 billion, or $4.59 per share, compared with $1.392 billion or $4.33 per share in 1999. Earnings from operations for the year were $2.214 billion, up 11% from $1.990 billion a year ago. Earnings from operations in 2000 included charges of $350 million for restructuring and $103 million related to the exit of several businesses and product lines. The company reported that fourth quarter sales totaled $3.560 billion, a decline of 6% from $3.799 billion in the fourth quarter of 1999. Net earnings were $194 million, or $.66 per share, compared with a reported $475 million, or $1.50 per share, in the fourth quarter of 1999. Earnings from operations were $352 million, compared with $619 million in 1999. (01/17)
Eastman Kodak Company Wage Dividend-- Eastman Kodak Company announced that employees will receive a Wage Dividend payment equal to 3.5% of their 2000 pay. The Wage Dividend, estimated at $55 million, will be paid on March 13 to 32,800 employees in the United States. In the Rochester area, 26,500 employees will share in an estimated Wage Dividend payment of $44 million. (01/17)
Bausch & Lomb Inc.-- Bausch & Lomb announced plans to cut about 450 non-manufacturing positions over the next several months. The cuts, mainly in North America, will help reduce costs by $20 million to $30 million annually but will mean a fourth-quarter charge of $30 to $35 million. The company reported third-quarter income from continuing operations of $37.8 million, or 70 cents a share, excluding certain charges, compared with $37.3 million, or 64 cents a share, a year earlier. Operating revenues fell to $440.9 million from $446.3 million. Bausch & Lomb plans to reinvest the savings generated by the restructuring actions to accelerate the longer-term growth of the company. (10/12)
Paychex Inc.-- Paychex Inc. announced record net income of $62.1 million, or $.16 diluted earnings per share, for the second quarter ended November 30, 2000, a 36% increase over net income of $45.8 million, or $.12 diluted earnings per share for the same period last year. Total revenue services were $208.1 million, an increase of 21% over $172.4 million for the second quarter last year. For the six months ended November 30, 2000, net income increased 36% to $120.8 million, or $.32 diluted earnings per share, as compared to $88.8 million, or $.24 diluted earnings per share, for the same period last year. Total service revenues were $412.0 million, an increase of 22% over $338.8 million for the same period last year. Second quarter operating income for the Payroll segment increased 24% to $90.3 million from $72.6 million for the second quarter last year. Total payroll service revenues were $184.5 million, an increase of 19% over $154.9 million for the prior year period. For the six months ended November 30, 2000, operating income for the Payroll segment increased 23% to $177.9 million from $144.8 million for the same period last year. Total payroll service revenues were $366.4 million, an increase of 20% over $305.8 million for the same period last year. (12/20)
Area Unemployment-- Rochester-area unemployment in October was 3.5%, down from 4% in September and 3.9% in October 1999. According to a state Labor Department report, that compares with New York's overall jobless rate of 4.4% last month. The state rate was down 0.2% from September and 0.7% from October 1999. Nationally, unemployment was 3.9% in October, the same as in September. (11/17)
Area Home Sales-- Home sales in the greater Rochester area fell 11.7% from October to November but are only down 3.4% through the first 11 months of the year. According to the Greater Rochester Association of Realtors, through November, 10,706 homes sold in the 11-county region, down from 11,081 in 1999. In November, 885 existing single family homes were sold, down 9.4% from November 1999. That's also down 11.7% from October of this year. New November listings fell 22% from November 1999. For the year, new listings are down 4%. (11/13)
New Construction-- According to F.W. Dodge Co., overall construction starts fell 13% in October, down to $68.48 million from $78.96 million in October 1999. Residential work was off 45% from October 1999. Nonresidential work was up 52% for the month of October. From January to October, more than $957.5 million in construction projects were reported to Dodge, 8% more than the same period a year ago. Nationally, Dodge estimates that new construction will rise 3% this year, to an adjusted annual rate of $472.4 billion. Dodge defines residential construction as one-and two-family homes and apartments. Nonresidential construction includes industrial, office, commercial, educational and recreational buildings. (12/15)
Single-family Building Permits-- According to statistics compiled by the Home Builders group and the Greater Rochester Association of Realtors, 1,092 building permits have been issued so far this year, compared with 1,137 through July last year. So far this year, people have filed permits to build $5.3 million worth of buildings. Housing construction in August was running 7.6% lower than for the same month last year. (9/20) go to top
3rd Quarter 2000
Eastman Kodak Company-- Eastman Kodak Co. reported for the first half of 2000, sales were $6.844 billion, up 2% compared with $6.710 billion for the first half of 1999. Net earnings for the half-year were $795 million or $2.55 per share, up 21% on a per-share basis when compared with $682 million, or $2.11 per share in the first half of 1999. The company reported second quarter revenues of $3.749 billion, an increase of 4% from the $3.610 billion posted in the 1999 second quarter. Net earnings were a record $506 million, or $1.62 per share, up 7% on a per-share basis. Earnings from operations were $746 million, up 4%. (7/21)
Bausch & Lomb Inc.-- Bausch & Lomb Inc., which previously announced plans to eliminate 600 local jobs, plans to cut 100 more workers in Rochester. All the jobs to be cut are contact lens manufacturing positions at B&L's North Goodman Street plant. The reductions will be made this year. The company will offer voluntary severance packages. By year's end, employment at the optics center on North Goodman should be 425. The total Rochester work force will be approximately 1,700 at year's end, down from 3,100 in 1996. Vision care, the contact lens and solutions business, accounts for 58% of B&L revenue. Vision care revenue fell 2% in the second quarter. (8/8) Bausch & Lomb announced plans to cut about 450 non-manufacturing positions over the next several months. The cuts, mainly in North America, will help reduce costs by $20 million to $30 million annually but will mean a fourth-quarter charge of $30 to $35 million. The company reported third-quarter income from continuing operations of $37.8 million, or 70 cents a share, excluding certain charges, compared with $37.3 million, or 64 cents a share, a year earlier. Operating revenues fell to $440.9 million from $446.3 million. Bausch & Lomb plans to reinvest the savings generated by the restructuring actions to accelerate the longer-term growth of the company. (10/12)
Paychex Inc.-- Paychex Inc. announced record net income of $58.6 million or $.16 diluted earnings per share for the first quarter ended August 31, 2000, a 36% increase over net income of $43 million or $.12 diluted earnings per share, for the same period last year. Total payroll service revenues were $181.9 million, an increase of 21% over $150.9 million for the prior year period. (9/20)
Corning Inc.-- Corning Inc. plans to spend $80 million, creating 440 jobs with a new plant for its world-leading fiber-optic photonic technology division. The $80 million investment will go toward purchasing equipment and the ABB Instrumentation Inc. facility on John Street in University Industrial Park, Henrietta. The purchase includes 10 to 15 acres of periphery lands to the north of the vacant 240,000± square foot building. Empire State Development Corp. has granted $6 million in incentives to Corning to keep the plant in New York. The incentives include wage and sales tax credits, along with site-readiness and infrastructure improvements. In addition, Corning received a $500,000 low-interest loan from Monroe County, $2 million or more in tax abatements from the county and $150,000 in training grants from other economic development groups. Corning needs to have the plant operating by early 2001 to meet the demand for its fiber-optics equipment. (7/28,8/17,8/18)
Kodak Elmgrove Acquisition-- Rochester-based Eastman Kodak sold the former 500 acre Kodak Elmgrove campus on June 30 for $30 million to Continental Industrial Capital, a joint venture between two Los Angeles-based companies consisting of Cohen Asset Management and SB Management. The campus, renamed Rochester Technology Park, consists of 17 buildings totaling ~ 4 million square feet of office, R&D, biomedical, warehouse/distribution and manufacturing space. The new owners plan to expand the site by more than 30%, incorporating new retail construction, and spend some $30 million on renovations. They plan to divide the now-combined utilities, with separate metering for each tenant. The owners aim to complete the infrastructure upgrades within three years. Continental Industrial received no local or state incentives for the property but plan to work with those entities to put together attractive packages for tenants. The sale of the campus was part of Kodak's ongoing program of consolidating its Rochester area operations within Kodak Park. Kodak has committed to lease back approximately 2.9 million square feet of space at Rochester Technology Park on a short-term basis. Heidelberg Digital, which leased Building 11 from Kodak, purchased buildings 11 & 14 and roughly 100 acres of the site, from Continental Industrial for $9 million in July. The firm plans to spend ~ $60 million to build and renovate its headquarters within the next year to 18 months. Nationwide Precision Products Inc., a local tool and die company, will lease 100,000 square feet at the campus. The company plans to invest $10 million in equipment and hire more than 75 people in the immediate future. CB Richard Ellis, the world's leading real estate services company, arranged the transaction between Kodak and Continental Industrial and will remain the real estate broker for the Rochester Technology Park. (6/1, 8/4,10/12)
Office Park Acquisition-- Uniland Development Co. of Amherst, Erie County, purchased four office parks from Charles Mills of Brighton for approximately $49.3 million. According to deeds filed in the Monroe County's Clerk's Office, the purchases were: 1250 Pittsford-Victor Road for $10 million; Cross Keys Office Park and some vacant land on Route 31 near Turk Hill Road for $16.3 million; Perinton Hills Office Park, Route 31 and Moseley Road, for $8.2 million; WillowBrook Office Park and some vacant land at 1451 Pittsford-Victor Road for $20.2 million. The sale includes 28 buildings with 180 tenants, including Xerox Corp., Cisco Systems and Motorola. The properties, comprising about 800,000 square feet of Class A space, are 97% occupied. The office parks in total are assessed at about $4.1 million on Perinton Tax rolls. Mills will retain retail property adjacent to the Perinton Hills Office Park, and will assist Uniland in managing the office properties on a consulting basis. Uniland, founded in 1974, owns and manages some 5.5 million square feet of commercial space in Western New York. (6/30, 7/1)
Dolomite Group Acquisition-- The Dolomite Group, a local producer of stone, asphalt and concrete, has been sold to CRH Plc, an Irish building materials conglomerate. The deal was announced as part of a $172 million package of cash, assumed debt, and deferred payments for both Dolomite and an Ohio Paving company. The sale price for Dolomite was not disclosed. Oldcastle Materials Group, a CRH subsidiary will run the businesses. Oldcastle already owns Spancrete Northeast in Manchester, Ontario County, and Allied Building Products at 1160 Scottsville Road. Dolomite operates eight quarries, two sand, and gravel sites, 13-asphalt plants and six ready-mix concrete plants in the Rochester area. The management team, the staff of 650 employees and the company names will remain. (6/22)
Construction Costs-- Construction projects are taking longer to build and costing up to 10% more because of a surge in demand. The volume of commercial construction projects has more than doubled in the last six years. Volume for the top five builders has increased from $249 million in 1994 to ~ $570 million last year, an increase of 129%. Suppliers unable to keep up with material demands and the shortage of skilled laborers and managers were two of the reasons cited for the increases. Area builders anticipate the rise in commercial construction will extend through next year. (9/8) go to top
2nd Quarter 2000
Xerox Corporation Expansion-- Xerox will launch a line of low-cost inkjet products, with the hub of those operations in Canandaigua and Farmington. The restructuring involves a $2 billion alliance among Xerox, small-business pioneer Sharp Corp. and Fuji Xerox of Japan. Approximately 60 to 100 new manufacturing jobs will be created. Xerox employs 485 at the CenterPointe Business Park off Route 332 in Canandaigua, and 80 at a leased site on Collett Drive in Farmington. (3/14)
Eastman Kodak Company-- Eastman Kodak Company reported first quarter sales of $3.095 billion, essentially level with the $3.1 billion posted for the first quarter of 1999. Net earnings were $289 million or $.93 per share, up 58% on a per-share basis from $191 million, or $.59 per share a year ago. On an operational basis, net earning for the first quarter of 2000 were $297 million, or $.95 per share, up 19% on a per-share basis from $259 million or $.80 per share in the 1999 first quarter. The operational comparison excludes accelerated depreciation charges and relocation costs associated with the sale and exit of an equipment manufacturing facility this year and charges related to existing non-strategic businesses in 1999. (4/17, 4/18)
Bausch & Lomb Inc. Acquisition-- Bausch & Lomb Inc. announced plans to acquire competing contact-lens maker Wesley Jessen VisionCare, Inc. In addition, the company announced its intention to consolidate its contact-lens business and cut 850 jobs over the next year. About 600 of those layoffs will occur in Rochester, the company's home base since 1853. The company will pay $600 million, or $34 per share, in cash for Wesley Jessen. The company employs approximately 12,000 people worldwide. (3/23)
Paychex Inc.-- Paychex Inc. announced record net income of $190 million or $.51 diluted earnings per share for the fiscal year ended May 31, 2000, a 37% increase over net income of $139.1 million or $.37 diluted earnings per share for the prior fiscal year. Total service revenues were $728.1 million, an increase of 22% over $597.3 million for the previous year. For the fourth quarter ended May 31, 2000, net income increased 36% to $51.6 million or $.14 diluted earnings per share as compared to net income of $37.9 million or $.10 diluted earnings per share for the same period last year. Total service revenues were $197.2 million, an increase of 26% over $156.6 million for the prior year fourth quarter. Paychex currently services 351,900 Payroll clients. (6/26)
Banking Acquisitions-- M&T Bank has acquired approximately 300 branches in the past two years, roughly one-third of which are located in Upstate New York. The bank has increased its market share in the Rochester area from 8% five years ago to 19% last year. M&T has acquired banks and branches from OnBank & Trust Co., FranklinFirst Savings Bank, First Nation Bank of Rochester and Chase. Most recently, they acquired Pennsylvania-based Keystone's 171 branches. Some of the branches were consolidated. M&T has 450 branches concentrated mainly in New York and Pennsylvania, with a handful in Maryland and West Virginia. (5/26) Chase Manhattan Bank, which shut down two Rochester branches last week, has sold or consolidated 35 upstate branches in the past several years. Recently, Chase consolidated the staff and services of its Main Street and Irondequoit Mall branches. According to Federal Deposit Insurance Corp. statistics, Chase's market share of local deposits has dropped 12% to 10%. Last fall, Chase sold 29 branches and its retail business to M&T, mostly in Buffalo, Jamestown and Binghamton markets. (5/26)
Banking Growth-- Lyndon Guaranty Bank of New York has a single office on Mt. Read Boulevard in Greece. Philip Saunders, a 50% partner in the bank, announced that in three weeks it would open new branches on Monroe Avenue in Pittsford and the Reynolds Arcade downtown. With the branch openings, Lyndon will change its name to Genesee Regional Bank. Some 10 additional branches in Rochester suburbs and surrounding rural areas are planned within three years. (4/7)
Supermarket Acquisition-- Tops Markets Inc., a division of Ahold USA, has signed an agreement to acquire Sugar Creek convenience stores from Rochester entrepreneur Philip Saunders. Tops plans to merge the 87-store chain, a $142 million operator of fuel and merchandise convenience stores, with Tops' Wilson Farms Neighborhood Stores. Terms of the deal were not disclosed. The transaction is scheduled to close in May. (3/31)
Restaurant Closing-- Friendly Ice Cream Corp. reported it will close 80 poorly performing restaurants immediately and shed 70 others in the next two years. Three Rochester-area Friendly's restaurants that will close are at 1806 Penfield Road, 839 E. Ridge Road, and 2133 East Henrietta Road. The reason cited for the store closings were the significantly lagging sales and profitability compared with the chain's average. In January, the Friendly Corp. sold 29 restaurants in the Rochester, Syracuse, and Buffalo area to Kessler Family LLC of Henrietta. (3/28)
Mall Expansion-- Pyramid Cos., owners of the Carousel Center in Syracuse, unveiled plans for a two-phase, 3.3 million-square-foot addition to the mall. The $900 million plan would bring Carousel to 4.5 million square feet. While the Rochester area has a bigger population base and is slightly more affluent, its biggest mall is only 1.6 million square feet, The Mall at Greece Ridge Center, closely followed by EastView Mall at 1.3 million square feet. The mall plan, which still faces county and city approval, would require a 30-year tax abatement and $250 million in tax-free infrastructure financing. Additional sales tax revenue from the expanded mall is estimated at $89 million a year. Mall employment would increase from 3,100 jobs to 11,150 jobs, plus 8,200 construction jobs to build the addition. All the work could be finished as early as 2004. (5/2)
Employment Growth-- According to the state Labor Department survey, the Rochester region had 554,600 jobs in April compared with 552,600 for Buffalo. A month earlier, Buffalo was 800 jobs ahead. In the last decade, Rochester has grown by approximately 45,000 jobs. The Buffalo job count has grown by approximately 8,400 jobs. The Labor Department counts the Buffalo metro area as Erie and Niagara counties, while the Rochester region consists of Monroe, Wayne, Ontario, Livingston, Genesee and Orleans counties. The population of the Buffalo metro area is about 1.2 million, or about 100,000 more than greater Rochester. In the past year, the job count in Buffalo grew by 1,800 while the Rochester market picked up 7,500 jobs. (5/24)
Enrollment Growth-- Booming enrollment at local liberal arts colleges has spurred $80 million in current or proposed renovations on area campuses. The 5-year growth spurt has already resulted in some $35 million in renovations, with schools planning to spend another $45 million. Over the past five years, applications to attend the colleges have risen an average of nearly 25% per school, led by Keuka College with a 68% jump. A $10 million renovation project will begin this spring at Keuka College to revamp the science building, demolish, and rebuild a new administration building, and add an athletic facility. In the last few years, St. John Fisher College has spent $18 million to renovate its classrooms and laboratory facilities and build Growney Stadium. It is spending another $6 million to construct an academic building featuring a cyberspace café and information commons. Roberts Wesleyan College plans to begin next month on a $10 million project that includes a large dormitory and a community service center. The two combined total 80,000 square feet. Nazareth has outgrown its campus and plans to invest more than $19 million in renovations and construction. These plans include acquiring adjacent land from the Sisters of St. Joseph of Rochester. Geneva's Hobart and William Smith Colleges wrapped up its $17 million renovation project about a year ago. The project included a significant addition to the library, expanded athletic facilities and Rosenberg Hall, a science facility. Liberal arts schools are generally smaller, private colleges with a low teacher/student ratio and a regional draw. The average tuition at liberal arts institutions nationally is $11,700. (4/7)
Tourism-- According to the Greater Rochester Visitors Association, visitor spending in Rochester increased by $7 million last year. Officials estimate 1.56 million people visited last year, 42,000 more than in 1998. Those visitors spent $238 million. (5/10)
Erie Canal Revitalization Plan-- A revitalization plan launched in 1996 is giving upstate New York a powerful economic boost in the 21st century. The five-year, $32 million program is designed to preserve and rehabilitate the waterway's infrastructure, expand recreational opportunities and foster economic development along the canal corridor. Seven canal harbors, including Rochester, are undergoing improvements. The canal system is also benefiting from a federal program, approved in 1997, which provides some $400 million in loans, loan guarantees, and grants. The state Canal Corp., a subsidiary of the Thruway Authority, is pumping nearly $3 million into marketing efforts. Studies predict that canal redevelopment will create thousands of jobs and generate hundreds of millions of dollars in local revenues. Fairport and Pittsford are examples of communities that have seized the chance to develop their canal assets. Surrounding communities are currently undertaking similar development projects. (5/5) go to top
1st Quarter 2000
Eastman Kodak Company-- Eastman Kodak Company reported first quarter sales of $3.095 billion, essentially level with the $3.100 billion posted for the first quarter of 1999. Net earnings were $289 million or $.93 per share, up 58% on a per-share basis from $191 million, or $.59 per share a year ago. On an operational basis, net earning for the first quarter of 2000 were $297 million, or $.95 per share, up 19% on a per-share basis from $259 million or $.80 per share in the 1999 first quarter. The operational comparison excludes accelerated depreciation charges and relocation costs associated with the sale and exit of an equipment manufacturing facility this year and charges related to existing non-strategic businesses in 1999. (4/17)
Bausch & Lomb Inc.-- The company announced first-quarter earning rose 59% as sales of laser surgery products and contact lenses increased. Profits from operations rose to $23.9 million or 42 cents a share, from profit from continuing operations of $15 million, or 26 cents, in the year-earlier period. Revenue rose 4.4% to $406.9 million from $389.8 million a year ago. Revenue from its surgical business rose 14% while contact-lens sales rose 8%. (4/11) Bausch & Lomb repurchased 4.5 million shares during the first quarter, and will buy back another 100,000 shares in the second quarter. It bought 500,000 shares in December. Including $15.2 million from a patent litigation settlement with Alcon Laboratories Inc., Bausch & Lomb earned $39.1 million, or 68 cents a share compared to $22.4 million, or 39 cents a share in the year-earlier quarter. (4/17)
Paychex Inc.-- Paychex Inc. announced record net income of $49.6 million or $.20 diluted earnings per share for the third quarter ended February 29,2000, a 37% increase over net income of $36.2 million or $.15 diluted earnings per share for the same period last year. Total service revenues were $192.2 million, an increase of 21% over $158.4 million for the third quarter last year. For the nine months ended February 29,2000, net income increased 37% to $138.4 million or $.55 diluted earnings per share as compared to net income of $101.2 million or $.41 diluted earnings per share for the same period last year. Total service revenues were $530.9 million, an increase of 20% over $440.7 million for the same period last year. (3/16)
Global Crossing Ltd.-- Global Crossing Ltd., the company that acquired Frontier Corp., expects to soon complete its U.S. network and begin additional expansion, creating 300 to 500 jobs here. The job creation in Rochester will occur over the next two years. The company has already begun leasing additional space across the county. The company employs 3,217 here. (3/3)
Restaurant Acquisition-- Kessler Family LLC of Henrietta, have purchased 29 Friendly's restaurants in the Rochester, Syracuse and Buffalo area from the Friendly Ice Cream Corp. The company plans to develop 15 more Friendly's in those areas over the next seven years. The terms of the deal were not disclosed. Kessler Family LLC is an affiliate of the Kessler Group, which owns 22 Burger Kings in upstate New York. Publicly traded Friendly Ice Cream Corp. owns 589 full-service restaurants and franchises 90 others in 15 states. The company, with sales of $529 million in its last three quarters, also manufactures a line of frozen desserts that are distributed through 5,000 supermarkets and other retail outlets. The company was privately held and owned all its restaurants until about two years ago, when due to mounting debt, it went public and began selling off some of its restaurants to franchisees. (1/19)
Home Sales-- According to the Greater Rochester Association of Realtors, sales of single-family homes in the 11-county Genesee region fell to 680 in January, down 13% from 784 in the same month a year ago. Purchase offers accepted on single-family residences in January grew to 579, up from 423, or 37% over last year. Overall in January, real estate agents sold $68.5 million worth of houses. The median sale price was $82,250. Closings increase ~ 6.7%, while Monroe County sales fell 16.8%. (2/9) Year-to-date figures (through December 1999) showed existing single-family home sales in Monroe County 5.2% ahead of 1998 and sales in the City of Rochester 12.9% ahead of 1998. Dollar volume of sales was up 5.5%, reaching $1,290,902,830 by December. (1/2000) In the City of Rochester, over a two year period from 1997-1999, existing single family home sales increased 24%. (2/8)
Exports-- According to a report released by the International Business Council of the Greater Rochester Metro Chamber of Commerce, exports from the Rochester area were up 1.4% in 1999. Companies in the nine-county Rochester region exported approximately $14 billion worth of goods and services in 1999, exceeding the 1998 total of $13.8 billion. (1/11) go to top
4th Quarter 1999
Bausch & Lomb Inc.-- The company announced that it would slash 850 lens-manufacturing jobs worldwide, including 600 in Rochester. The cuts, which are a quarter of B&L's local work force, represent the fourth major layoff announcement at B&L since July 1995. The company has laid off 4,085 people worldwide and more than 2,000 in Rochester during that time. Bausch & Lomb is aiming to reduce annual costs by $10 million in 2000 and $30 million in 2001 and beyond. A portion of the savings realized from the job cuts will be reallocated to research and development. The company plans to take a restructuring charge of $56 million, or 61 cents a share, against results in the fourth quarter. (12/2)
Paychex Inc.-- Paychex earnings rose 13% in the company's first quarter to $43 million. Service revenue totaled $166.4 million, compared to $139.3 million in the same quarter a year ago, an increase of 19%. The Penfield based payroll processing company matched analysts' expectations by earning 17 cents a diluted share, up from 13 cents in its first quarter of 1999. Paychex plans to roll out its Internet-based payroll services at the beginning of 2000. (9/17)
Assessments-- Figures complied by the city show that the top 12 downtown properties, which range from Bausch & Lomb Inc.'s recently constructed world headquarters to the aging and distressed Midtown Plaza complex, on paper have decreased 34% of their assessed value since the 1994-95 fiscal year. The properties' total assessed value dropped from $300.5 million to $197.8 million, a decline of $102.8 million. Showing the biggest declines in descending order were HSBC Plaza, the Midtown Plaza complex, the Riedman Building and First Federal Plaza, which respectively saw their assessed values drop 70%, 58.8%, 46.9% and 45.4%. The decline came during a time in which area property values as a whole were viewed as holding their own. The total dollars that the owners of these building have paid annually in city property taxes and payments in lieu of taxes have remained more or less stable over the five-year period, ranging from $8 million to $8.8 million. The rate of decline in assessments of top downtown properties has outpaced the rate at which other commercial and residential properties' assessments have fallen. The 34% assessment drop compares with an 8.8% decline in the assessed value of residential properties, a 10.5% decline for all commercial properties and a 9.5% drop in the city's assessed base. (11/12)
Bank Acquisition-- M&T Bank Corp. plans to close five former First National Bank of Rochester branches as part of a consolidation following its acquisition of FNB Rochester Corp. By years end the bank will have 42 branch offices locally, including a new branch under construction at 3208 Latta Road, Greece. The consolidation involves closing the former FNB branches and moving personnel and accounts to nearby M&T branches, which generally are larger and better equipped. M&T employs 576 people in the Rochester area. As of June 30, 1998, the combined banks had nearly 19% of the total market share of deposits in Monroe County. (9/24)
Area Construction-- According to the F.W. Dodge report, nonresidential construction was up 89% from one year ago to $63,642,000 in the Rochester area. Residential building is up 20% to $42,899,000 and total building construction in the area reached $106,542,000. Contracting for new construction declined 5% in July to an adjusted annual rate of $399 billion. The decline for total construction was the result of decreased contracting for housing and public works, outweighing moderate improvement for non-residential building. (9/2)
Home Sales-- According to the Greater Rochester Association of Realtors, a total of 1,109 homes were sold in Monroe County last month, down from 1,404 in August and 1,215 in September 1998. The year-to-date total was 9,034 vs. 8,381 for the period last year. The median sale price last month was $92,500. (10/12) Year-to-date dollar volume of sales for the Monroe County region was $1.1 billion, 8.8% higher than at this time last year. (11/10) Home prices in New York were up 5% on average in the third quarter of the year over 1998. The survey by the state Association of Realtors found the average price paid for houses in July, August and September was $125,193, up from $119,348 a year earlier. The survey covers all of the state except Manhattan, Brooklyn and the Bronx, where there's no formal multiple-listing system. (12/25)
Health Care Construction-- More than $250 million has been spent in Rochester over the last three years to build and renovate health care facilities and equip them with the latest in medical technology. Projects included in the CON report: a new three-story building under construction at Clinton Crossings, St. Ann's of Greater Rochester Inc.'s $22.5 million renovation of its anchor nursing home and assisted-living apartments, the $20 million emergency department project at Strong Memorial Hospital, a $24.3 million overhaul of St. John's Home, Unity Health System's $40 million project to consolidate Park Ridge and St. Mary's hospitals, and ViaHealth's multimillion-dollar outpatient centers in Henrietta and Perinton. Also included is the $31.8 million in construction and technology purchases. Not included in the report is the $73 million Arthur Kornberg Medical Research Building and the accompanying $40 million in laboratory space renovations at the University of Rochester Medical Center. (9/17)
Employment-- The New York State Labor Department announced that Monroe County's unemployment was down to 3.7% in August, up from 3.5% in August of last year. Statewide, unemployment totaled 4.9% in August while the national rate was 4.2%. Rochester labor market analysts stated that most of the area's new service jobs were in computer services, health and hospitals, and private education. The manufacturing sector, including Eastman Kodak Co., Xerox Corp. and Bausch & Lomb, Inc., lost 3,900 jobs during the past year. (9/17)
Transportation-- Oneida Airlines plans to spend almost $340 million to start a Utica-based, 10-jet carrier next summer that would serve dozens of major cities across the United States and connect to international destinations. Onedia has not yet applied for government approval to fly but airline officials said they have retained Avmark Inc., an aviation-consulting firm based in Virginia, to help with its applications. Oneida plans to file with the U.S. Department of Transportation in the next 30 days. Three daily flights between Rochester and New York City would most likely be part of the airline's first round of services. (11/9) go to top
3rd Quarter 1999
Eastman Kodak Company-- Eastman Kodak reported they had cut operating costs by ~ $125 million during the third quarter, for a year-to-date reduction of $340 million. Third-quarter sales totaled $3.58 billion, up 5.6% from $3.39 billion last year. They posted third-quarter net profits of $235 million, or 73 cents a diluted share, compared with $398 million, or $1.21, one year ago. Excluding a charge of $350 million in the quarter to cover 3,400 job cuts and asset writedowns, Rochester, N.Y.-based Kodak earned $1.45 share, compared with $1.21 last year. R&D spending was reduced, both in dollar terms and as a percentage of sales. Selling, general and administrative expenses, excluding advertising, were unchanged as a percentage of sales. Sales at its consumer imaging unit, which includes the film and photographic paper business that accounts for more than half of Kodak's business, grew 5 percent over last year. (10/15) Eastman Kodak Co. plans to move its European headquarters to Geneva, Switzerland, from England. Forty of the 100 employee's in Kodak's Uxbridge, England, office will move to Geneva in mid-2000. In the regions covered by the European headquarters, sales fell ~ 21% to $3.7 billion from 1996 to 1998. (9/11)
Xerox Corporation-- Xerox Corp. posted an 11% drop in third-quarter profits due to intense competition and a reorganization of its U.S. Customer Service Division. The company reported quarterly net income of $339 million, or 47 cents a share, versus $381 million or 53 cents a share in the same quarter of 1998. B&L's profit margin of 43.3% dropped 3% from the third quarter last year. The company reported revenues of $4.628 billion versus $4.607 billion in 1998. (10/15)
Bausch & Lomb Inc.-- Bausch & Lomb reported income in the third quarter was $37.3 million, or 64 cents per diluted share, compared to $33.7 million, or 60 cents per share a year ago. Of $446.3 million in revenues recorded in the third quarter from continuing operations, Bausch & Lomb said it saw 20% revenue growth in its pharmaceutical/surgical segment and 5% growth in its vision care line. Total revenues from continuing operations rose 11%. Bausch & Lomb's third quarter earnings results excluded one-time gains of $181.9 million after tax, or $3.09 per diluted share, from its previously announced divestiture of remaining non-core businesses. (10/01)
Home Properties of New York Inc.-- Home Properties announced the $1.7 million acquisition of the development business of Community Investment Strategies Inc., a New Brunswick, N.J., affordable housing company. CIS has 10 communities with ~ 750 units in either the planning or development stage. The purchase price was paid in operating partnership units, convertible to Home Properties common shares on a one-for-one basis. (8/3)
Paychex Inc.-- Earnings at Paychex Inc., a payroll service company located in the town of Penfield, increased 36%, from $102 million to $139 million, for the fiscal year and 35%, from $28.1 million to $37.9 million, in fourth quarter 1999. Total service revenues for the fourth quarter, ended June 1999, were up 19%, from $132 million to $157 million. For the year, service revenues were $597 million, up 21% from $494 million in fiscal 1998. (6/30)
Genesee Brewing Co.-- Pabst Brewing Co., the nation's No. 4 brewer, is interested in the acquisition of Rochester's Genesee Corp. Genesee Corp is the nation's fifth-largest brewer, with sales of 1.5 million barrels last year. Net sales for the company's core Genesee Brewing Co. were $103.3 million in 1998, down 11.9% from the prior year. (7/10)
Banking Acquisitions-- Thompkins Trustco Inc. agreed to buy Letchworth Bancshares, a Wyoming County bank holding company, for approximately $81.5 million in stock. Letchworth is the holding company for the Bank of Castile, which operates 12 branches. The Bank of Castile will continue to operate as a community bank under its own board once the deal is completed. Letchworth has $447 million in assets and operates branches in Wyoming, Genesee and Livingston counties, as well as its Chili office. (8/3) Niagara Bancorp. Inc. announced plans to buy Albion Banc Corp. for approximately $12.4 million. Albion Federal Savings and Loan will merge into Lockport Savings Bank. The transaction is expected to close by the end of the first quarter of 2000, subject to regulatory and shareholder approvals. (9/3)
Home Sales-- According to the Greater Rochester Association of Realtors, home sales in the 11-county Rochester region for the year to date are up 12.6% while sales in the city have risen 14.4%, compared with the same period a year ago. A total of 1,404 existing single-family houses were sold in August, the highest level since the Association began tracking sales in 1989. The median price for August fell 3.9% from July to $92,250. (8/11, 9/8)
Population-- According to new estimates by the U.S. Census Bureau, Rochester is now the 79th-largest city in the nation, down 13 spots since 1990. Rochester's population has decreased 5.8% (13,469) from 230,356 in 1990 to 216,887 in 1998. The population shrank 27,458 or 8.4% for Buffalo and 11,645 or 7.1% for Syracuse. Overall, the census bureau stated that among the 2,578 cities with 10,000 or more people last year, 1,854 had grown while 724 had lost population since 1990. (6/30)
Bankruptcy-- The Rochester division of U.S. Bankruptcy Court reported a total of 348 filings for the month of July; a decrease of 6.7% from the previous month. For the year to date, a total of 2,377 petitions have been filed, 17% less than in the comparable 1998 period. The strong economy and low unemployment rate was cited as a reason for the decreased number of filings. (8/5)
2nd Quarter 1999
Xerox Corporation-- Xerox Corp. distributed $40.2 million in 1998 employee bonuses, padding the cash and 401(k) deferrals with 2.5 million Xerox stock options. Xerox's 13,900 local workers elected to receive $24.2 million in cash and $16 million in 401(k) deferrals. This is the fourth year in a row employees have received 10% of their annual salary, the maximum allowed. Xerox plans to change the way it calculates profit sharing for next year's bonus. Instead of basing the bonus on return on assets, it will use growth in earnings per share. The maximum payout will increase to 15%. Half will be cash or 401(k) deferrals, 25% will be automatically deferred to the Xerox stock fund in the 401(k) plan, and the remaining 25% will be paid in Xerox stock options. (3/16)
Eastman Kodak Company-- Eastman Kodak Co. reported earnings of $191 million during the first quarter, down from $272 million for the fourth-quarter of 1998. Kodak's first-quarter sales, $3.1 billion, posted the first year-over-year increase in eight quarters. Sales of digital products were $537 million in 1999's first quarter, 17% of revenue, up from $348 million, 12% of revenue, in 1998's first quarter. Losses are approaching $750 million. (5/12)
Eastman Kodak Leadership-- Kodak announced that Daniel A. Carp, currently president and chief operating officer, would replace George Fisher as CEO January 1, 2000. Fisher will direct long-term strategy as chairman until January 2001 and then leave the company. Kodak said the decision was made to allow the company an orderly transition as it begins to plan its strategy for 2000 and beyond. (6/10)
Bausch & Lomb Inc.-- B&L sold its sun-glass business to Luxottica Group SpA, Italy's largest eye-glass company and owner of LensCrafters retail chain for $640 million. Terms of the contract require Luxottica to keep all of B&L sunglasses division employees in their current jobs, at the same location, at current salary and with comparable benefits during a one-to two-year transition. Proceeds of the $640 million cash sale will be used by B&L to pay debt that it took on in 1997, when the company bought two companies that make instruments for eye surgery. (4/29)
Canandaigua Brands Inc.-- Canandaigua Brands Inc. reported a fourth-quarter net income of $12 million and $62 million for fiscal 1999. Net sales reached $459 million during a three-month period from December through February, a 63% increase over fourth quarter 1998. Net sales for fiscal 1999 were $1.5 billion, a 23% increase over last year. Gross profits improved by $58 million, or 73%, in the fourth-quarter and reached $448 million for the year, a 30% increase over fiscal 1998. Net sales for Canandaigua-based Canandaigua Wine Co. Inc. increase by 3% in the fourth quarter. (4/15)
Banking-- Chase Manhattan Corp. has sold 29 branches in Buffalo, Jamestown, Binghamton, Corning, Albany and Schenectady to M&T Bank Corp. for an undisclosed price. The sale will have no impact on Chase's Rochester operations. The branches have about $600 million in retail and business deposits, making the deal slightly larger than M&T's just-completed purchase of First National Bank of Rochester. The acquisition will raise M&T's branch count in New York and Pennsylvania to more than 265. (6/5)
Home Sales-- According to the Genesee Region Real Estate Information Service of the Greater Rochester Association of Realtors, home sales in the Monroe County region for the year to date are up 13% over 1998. City home sales are up 7.9% over 1998. A total of 796 existing single-family houses were sold in April, an increase of 7.6% over March and 3.5% over April 1998. Housing prices are expected to rise 3-5% this year due to fewer houses on the market - 14% less than in 1998. (5/8)
New Construction-- According to the Commerce Department, construction of new homes and apartments dropped by 10.1% in April. Builders started work in April on 1.57 million units at a seasonably adjusted annual rate. Housing starts fell by .06% in March and 3.7% in February. The West was the only region of the country that experienced growth in housing construction - it rose 2%. (5/18)
Unemployment-- The nation's unemployment rate declined to a new 29-year low of 4.2% in March. The economy generated approximately a quarter-million new jobs in April. Manufacturers cut 35,000 jobs in March, bringing the decline for the past year to 381,000. Over the past year, losses have been most severe at factories making industrial machinery, apparel and electrical equipment. (4/2) According to the Labor Department, April's overall jobless rate was 4.3%. Statewide, private-sector jobs grew 1.7% for the fiscal year that ended March 31st. The number of non-government jobs in the Buffalo and Rochester regions grew by only 0.2% and 0.4%, respectively, compared to the national figure of 2.2%. (5/8, 5/11)
Higher Education-- According to a national evaluation of the impact of colleges and universities on a community, Rochester ranks higher than many larger metropolitan areas. Researchers at the Center for Governmental Research used data reported to the federal government by colleges and universities in the 60 most-populous areas to rank them in 20 categories. Most of the data is based on 1996 and 1997 activities. Rochester and its surrounding counties ranked 52nd in size of population. Total expenditures on higher education of $1.5 billion place the Rochester area 22nd in the nation. Rochester ranked 31st in the number of bachelor's, master's and doctoral degrees awarded in 1997, with 9,552. In the total number of people employed in higher education, Rochester, with 19,954 jobs, ranked 23rd. One of the reasons cited for Rochester's high position relative to its size was longevity. (5/3)
1st Quarter 1999
Xerox Corporation-- Xerox reported that net income for the fourth quarter rose to $615 million, or $1.69 a share, from $525 million, or $1.46 per share, in the fourth quarter of 1997. The company stated that fourth-quarter profits rose 17% and revenues for the quarter rose 7%, to $5.8 billion from $5.4 billion. For the year ending 1998, Xerox earned $1.69 billion before a $1.1 billion charge for the restructuring. Including the charge and discontinued operations, Xerox earned $395 million last year, compared with $1.4 billion in 1997. Revenues for 1998 grew 7%, to $19.4 billion. Xerox stated it plans to deliver per-share profit growth of 15-18% in 1999. (1/26,1/27) For the fourth consecutive year, Xerox announced its 50,200 U.S. employees - 13,700 in Rochester - will receive a bonus of 10% of their annual salary. Half will come in cash or a contribution to their 401(k) plan, the other half in stock options. The bonuses will be paid in March. (1/27) Xerox Corp. plans to hire 700 engineers in the next year for its fast-growing digital business. Approximately 400 of the jobs will be in Rochester. 85% will be software engineers. For the first time last year, sales of digital products, such as networked printers and multifunction copiers, accounted for more than half of Xerox's total revenue. (2/9)
Eastman Kodak Company-- Eastman Kodak Co. reported earnings of $272 million or 83 cents per share during the fourth quarter, up from a loss of $2.29 a share a year ago. For the year, Kodak earned $1.39 billion, or $4.24 a share, up from the $5 million left in 1997 after the costs of 20,000 layoffs and restructuring. Revenue totaled $3.563 billion during the quarter and $13.4 billion for the year. Chief Executive Officer George Fisher projected that 1999 earnings will increase between 10-20%. (1/15)
Home Properties of New York Inc.-- Home Properties, the Rochester-based real estate investment trust reported fourth-quarter funds from operations were $17.9 million, or 66 cents a share. That represents a 101% increase in total funds from operations from the quarter a year ago, and a 13.5% increase on a per-share basis. Funds from operations for the full year grew 131%, to $56.3 million. On a per-share basis, funds from operations grew 15.7%, to $2.45. Occupancies for the 17,128 apartment units acquired in 1997 and 1998 averaged 94.7% in the fourth quarter, at average monthly rents of $647. (2/5)
Banking-- FNB Rochester Corp. reported fourth-quarter net income of $1.4 million, up from $1.3 million, in the quarter a year earlier. The net income for 1998 was up 11% to $5.04 million. The parent company of First National Bank of Rochester boosted net income for the year 9% to $23 million, and assets totaled $588 million vs. $522 million at the close of 1997. In December, M&T Bank Corp. agreed to purchase FNB Rochester Corp., parent of First National Bank of Rochester, for $120 million. The transaction is expected to be completed in the second quarter of 1998. This was the third takeover of a locally owned bank in a little more than two years. (1/27) M&T Bank Corp. reported net income of $208 million last year, up 18% from the previous year. M&T had cash net income of $237.9 million, up 30%, from $182.4 million the prior year. The earnings did not include expenses of $14 million related to costs associated with M&T's merger with ONBANCorp. (1/13,1/27)
Restaurant Acquisition-- Denny's Inc., a subsidiary of Advantica Restaurant Group of Spartanburg, S.C., has obtained 30 upstate Perkins franchises owned by Perk Development. Denny's outbid Perkins for the bankrupt Perk chain. The winning bid in U.S. Bankruptcy Court was $4.11 million. Perk filed for Chapter 11 bankruptcy protection from creditors last May, listing $6.1 million in assets and $22.9 million in liabilities. At the time of the bankruptcy filing, Fleet Bank, owed $8 million, was the largest unsecured creditor. The lawyer who represented the debtors, stated the total deal, including assumption of mortgages and leases, is worth ~ $44 million. Denny's president and CEO stated that 28 of the 30 restaurants would reopen after undergoing extensive remodeling. Current Perkins employees will be offered employment opportunities with Denny's. The 37 Denny's company-owned and franchised restaurants across upstate New York will continue to operate as usual. (1/26,2/5,2/10,2/26)
Supermarket Acquisition-- Royal Ahold bought the Pathmark supermarket chain for $1.7 billion. Ahold, which already owns the Tops Market, Giant Food and Stop & Shop chains, reached an agreement with SMG-II Holdings Corp., to buy its outstanding shares for $250 million. It also agreed to assume $1.5 billion of Pathmark's debt. The Pathmark stores' estimated 1998 sales were $3.7 billion, and the chain employs 28,000 people. The acquisition positions Ahold to be the No. 1 drug and food retailer in the eastern United States. (3/10)
Drugstore Acquisition-- Tops Markets Inc. sold Vix Deep Discount drugstore chain to Ohio-based Drug Emporium Inc. for $32.5 million. Tops currently operates three Vix stores in the Rochester area. All current Vix associates have been included in the transaction and will become Drug Emporium employees upon completion of the sale. Drug Emporium currently has 132 company-owned stores and 53 franchise units in 22 states. Revenues for the 1998 fiscal year reached $1.6 billion. (1/20)
Home Sales-- According to data released by the Greater Rochester Association of Realtors, 11,552 homes sold in the 11-county Genesee region, representing a 12.6% increase from 10,256 in 1997. Sales of existing single-family homes in January totaled 784, an increase of 5.5% from January 1998. The number of homes listed for sale in the region dropped to 1,597 in January from 2,312 in the same month a year earlier. Purchase offers accepted rose 26% in December. The median sale price rose 4.6%, from $85,000 to $89,900. The dollar volume on sales last year topped out at $1,223,518,810, a 17% increase from $1,046,146,319 in 1997. Statistics complied by the National Association of Realtors showed sales of existing single-family homes reached a record 4.78 million in 1998. (1/14,1/21,1/26,2/9)
Mortgages-- In 1998, 41,062 mortgages were processed compared to 46,049 in 1997. Real property transfers reached a record 20,910, up from 18,730 in 1997. The deed value also hit a record, topping out at $1.61 billion from $1.49 billion. The Monroe County Clerk's office collected $27 million in mortgage taxes, almost $10 million more than 1997. The county also collected $1.6 million in mortgage filing fees, an increase of $590,000 over 1997. (1/21,1/25)
New Home Market-- Last year area homebuilders broke ground on 1414 new homes, up from 1260 in 1997. Wayne and Ontario Counties have experienced a 30-35% increase in building permits while Monroe County experienced a 20% increase. (2/19)
New Construction-- According to the F.W. Dodge Division of The McGraw-Hill Co., the value of new construction contracts in December were reported at an annual rate of $371.4 billion. For all of 1998, total construction contracts advanced 5% to $375.3 billion. Nonresidential building in December increased 1% to $117.4 billion. Moderate improvement was shown by church construction, up 18%; stores and shopping centers up 6%; and warehouses up 1%. On the down side, construction of new manufacturing plants fell 14%, office construction was down 12%, healthcare facilities down 11% and school construction down 3%. (2/2)
Commercial Market-- The national office vacancy rate dropped .9 percentage points during 1998, to 8.8%. Class "A" properties are at 7.2% vacancy, down from 7.8% a year ago. The suburban Monroe County office vacancy rate fell from 5.9% in 1997 to 2.5% in 1998. More than 250,000 square feet of office space went up along Route 96. According to the Rochester Downtown Development Corp., downtown vacancy rates were 19.95%.
Unemployment-- According to the state Labor Department report, 20,500 people, or 3.6% of the six-county area's work force, was jobless compared with 3.5% the previous December. New York's unemployment rate at 5.5% remained higher than the national average of 4.3%. In 1998, Rochester lost 6,100 jobs in the manufacturing employment industry, with an average payroll per worker of ~ $50,000. The majority of the decrease came through layoffs at Kodak, Xerox Corp. and B&L. (1/22)
Agricultural-- New York state lost 13.8% of its farmland in 10 years. That's a loss of 6,000 farms covering nearly 1.2 million acres. The state has 32,000 farms covering 7.7 million acres, or 25% of the land. In Monroe County, 480 farms grew crops worth nearly $48 million in 1997, employed approximately 3,000 full-time workers, and contributed $144 million to the economy. The county lost 31,573 acres, or 23% of its producing land, mostly to shopping malls, roadways, houses and lawns. (2/20)
Bankruptcy-- In the nine-county region, 236 bankruptcies were filed vs. 319 in January 1998, a drop of 26%. The 4,959 total filings in 1998 were an increase of only 0.6% over the previous year. (2/5)
4th Quarter 1998
Xerox Corporation-- Xerox earnings for the third quarter ending September 30th were up 19%, to $381 million, from the same quarter a year ago. Diluted earnings per share were $1.05, compared with 89 cents a year ago. Revenues grew 5.4%, from $4.37 billion to $4.61 billion. Chief Financial Officer, Barry Romeril, said revenue was clearly affected by weakness in international markets but lower overhead costs helped counter the less-than-expected revenues. Approximately 1,700 workers left the company in the third quarter, both through retirement and layoffs. To date, about 3,400 jobs have been eliminated in Rochester. (10/23)
Bausch & Lomb Inc.-- Bausch & Lomb analysts predict that the financial picture for the company over the next three years will include growth at each of B&L's core businesses nearing 10% by 2000, while earnings-per-share were estimated for 15% growth. In vision care, the company's largest division, executives forecast a 21% improvement in operating margins. Rochester based B&L has seen flat sales and declining profits since 1995. (11/22)
Eastman Kodak Co.-- Eastman Kodak Co. expects to cut an undisclosed number of jobs from its copier assembly division at the Elmgrove plant, where it makes copiers for Danka Business Systems PLC. Kodak sold most of its copier division to Danka two years ago for $680 million. Kodak spokesman Charles Smith, stated that any job cuts in copier products would be in addition to the 19,900 layoffs tied to Kodak's year-old, $1.5 billion reorganization. (11/10)
RF Communications-- The RF Communications division of Harris Corp. will cut nearly 100 jobs in the Rochester area as a result of a downturn in the defense industry and the world economy in general. In July, Harris announced it would cut 2,300 jobs worldwide, mainly in its semiconductor chip business, as part of a restructuring. The division employs 1,200 to 1,300 people. Employees who lose their jobs will get outplacement counseling and severance pay based on years of service. (10/30)
Banking Acquisition-- M&T Bank Corp. agreed to purchase FNB Rochester Corp., parent of First National Bank of Rochester, for $120 million. The $33-a-share deal, divided equally between stock and cash, is more than a 50% premium over the stock's price before the deal was announced. This will be the third takeover of a locally owned bank in a little more than two years. M&T is No. 1 in deposits in the Buffalo and Syracuse area. Currently it has ~ 15% of Rochester-area deposits and First National 4%. M&T is the Rochester-area leader in loans to small-and-medium-sized businesses and First National Bank is third. Combined, they have ~ 25% of a $39 million portfolio. M&T has reported assets of $19.5 billion and FNB $568 million. Executives expect that most, is not all of the 140 jobs at FNB's 14 Rochester-area branches will be absorbed, even though about a half dozen branches will be eliminated. M&T has 31 branches in the Rochester area. (12/10)
Restaurant Closings-- Boston Chicken Inc. announced it was reorganizing under Chapter 11 protection from creditors and closing 178 of the 1,143 restaurants in its Boston Market chain, including locations at 1525 Lake Ave. in Rochester and 1900 Empire Boulevard in Penfield. The chain's restaurants on Jefferson Road in Henrietta, Pittsford-Palmyra Road in Perinton and West Ridge Road in Greece will remain open. The Boston Chicken Inc. bankruptcy filing followed three months of restructuring discussions with a committee representing debt of about $625 million. All five Boston Market restaurants in Monroe County are company owned. In addition, Kenny Rogers restaurants on Winton Road in Henrietta and at 671 Maiden Lane in Greece are scheduled to close in October. Also going out of business is the Kenny Rogers Roasters concession stand in the Frontier Field concourse. Malaysian-owned Roasters Inc. filed Chapter 11 bankruptcy last spring. (10/6)
Home Sales-- According to data released by the GRAR, Realtors in the 11-county Genesee region closed on 9,487 home sales during the first 10 months of the year, up 12% from 8,468 closings in the comparable 1997 period. Realtors reported sales on 1,106 single-family homes in October, an increase of 10% from 1,007 closings reported for October 1997. Existing single-family home sales total $889.7 million for 1998 through September, up 16.9% from last year. The total paid for existing single-family homes during the first 10 months of 1997 was $862 million. Statistics complied by the GRAR stated that 1,979 homes were listed for sale in October vs. 1,938 in September and 1,924 in October 1997. The median sale price in October was $88,000, down from $92,900 in September but higher than the $86,000 median in October the year before. (10/7,11/12)
Property Values-- County property values will drop $300 million in 1999, according to estimates by County Executive Jack Doyle's administration. The biggest decline: $742 million in lost property value in the city. In 1988, property owned by the 10 largest taxpayers, big companies like Kodak and Wegmans, amounted to 14.4% of the county tax base. That percentage has dropped to 9.4% in 1997. One of the leading factors for the 12.7% drop in property values forecast for Rochester in 1999 is urban sprawl. Another factor affecting Rochester's tax base: the drive by businesses to negotiate reduced property tax assessments. The result: over the past five years, homeowners' share of the county property tax burden has risen from 58% to 65%. (10/13)
Unemployment-- According to the state Labor Department report, the six-county area had a 3.4% unemployment rate in October, down from 3.9% in September. The jobless rate was 3.9% in October 1997. The Rochester-area jobless rate was below the New York average of 5.1% and the U.S. average of 4.6%. The rate tied October 1990's, the lowest here since 1976. The state pegged the total labor force for the six-county area at 567,300 this October, a decrease of 7,000 since last year. The net gain in jobs this October over last year was 600. The community has lost 5,900 jobs since October 1997 in the category that includes Rochester's biggest employers, Kodak and Xerox. (11/21)
Automobile Sales-- According to figures released by the Rochester Automobile Dealers Association, dealers reported selling 3,171 new vehicles in August, down 11% from the 3,549 sold in August 1997. Used car sales totaled 1,989 in August, down from 2,079. Car sales for the first eight months of 1998 are about the same as for the 1997 period - 28,638 new vehicles sold vs. 28,587. (9/29)
Automotive Consolidation-- The merger of nine Rochester-area Ford dealerships into at least two Ford-owned superstores, a consolidation that is among the first of its kind in the nation, will take place in January 1999. Ford Motor Co. and Republic Industries Inc., the nation's biggest auto dealer announced they would consolidate and turn the vacated sites of several Rochester dealerships into service centers. The consolidation is part of Ford's push to cut costs. The new company will be called the Rochester Auto Collection. Rochester-area dealerships participating include Koerner Ford in Brighton; Bob Hastings Ford in Perinton; Empire Ford in Webster; Churchville Ford; Fox Ford in Victor; Vanderstyne Ford in Greece and Avon; Cristo Ford in Irondequoit; and Baytowne Lincoln-Mercury in Webster. (11/21, 12/4)
Exports-- According to the U.S. Commerce Department's International Trade Administration, companies in the six-county metro area exported a total of $4.69 billion in goods in 1997. That's 8.8% more than the $4.31 billion exported the previous year and a 52% increase since 1993. Rochester is the 29th largest exporting center among 253 U.S. metro area, and the 26th biggest gainer in export shipments since 1993. Rochester exports exceed the total exports of 24 U.S. states. (11/11)
Agricultural-- From 1982 to 1992 the number of small and part-time farms fell from 628 to 363 in Monroe County. Farming occupies 25% of the total land in the county. The total farmland in acres fell from 150,258 in 1982 to 110,150 in 1992. Labor shortages, government regulations and school and property taxes are a few reasons cited for the decline. (10/2)
3rd Quarter 1998
Xerox Corporation (Employment)-- Xerox Corp. stated that 2,000 U.S. workers have agreed to take early retirement as part of the company's drive to cut its global work force by 9,000. In the Rochester area, 669 employees have opted to retire early or leave voluntarily with up to one year's pay. Xerox, which employs 13,900 people in Monroe County, planned to eliminate 1,400 jobs locally. The job reductions, and plans to cut overhead expenses, are expected to free up cash to reinvest in areas that are growing. (7/29)
Xerox Corporation (Expansion)-- Xerox Corp. announced it will expand its manufacturing operations in Ontario County. The expansion includes construction of a 17,600 square-foot addition to its existing 105,000 square-foot Canandaigua facility and renovations to a newly leased 27,200 square-foot building on Collett Road in Farmington. The project is expected to add ~ 400 jobs over the next two years. Both projects are expected to be completed in early 1999. The company did not disclose the cost of the project. (8/18)
Home Properties-- Home Properties of New York Inc., the Rochester-based real estate investment trust announced the value of its holding has reached $1 billion. According to Vice President Amy Tait, about 66% of the company's total market capitalization reflect equity at current market values and about 34% is debt. Home Properties is 58% larger than it was at the start of 1998 after doubling in size in 1997. The company operates 31,324 apartment units, owning 22,244 of them. (7/11)
Paychex Inc.-- Paychex Inc. is exploring a major expansion of its corporate headquarters at 911 Panorama Trial. The plans call for the construction of two 150,000 square-foot complexes, each large enough for 400 to 500 workers. In addition, they are converting a 70,000 square-foot warehouse into offices in Perinton to accommodate its growing business-service divisions. Employment at Paychex Inc. has increased 70% since 1994 to its current total of 5,100. Profits rose 36% last year, to $102 million, on revenues of $493 million, up 24%. (8/14, 8/19)
ITT Industries-- ITT Industries Inc. announced it is selling its ITT Automotive Electrical Systems North America Inc. operations as part of a $1.7 billion deal with French auto-parts maker Valeo SA. The 3,500-worker Rochester plant is the biggest single component of the sale. (7/3)
Eastwind Airlines-- Eastwind Airlines, a three-year-old low-cost carrier based in Greensboro, N.C. will begin flying out of Greater Rochester International Airport starting in August. A fleet of two new 737-700 will service the Rochester area. Monroe County Executive Jack Doyle said county government offered no financial incentives to Eastwind. (6/25)
Convention Center-- The Rochester Riverside Convention Center reported events the facility hosted in 1997 generated $26 million in business at area hotels, motels, restaurants and retail emporiums. Attendance rose 12% in the year ended June 30 and was up 28% over 1995. The convention center's 1997 revenues were $4.7 million; in 1996, they were $4.6 million. Expenses for the two years were $5.8 million and $5.6 million, respectively. The convention center continues to run an annual operating deficit of ~ $1 million. The non-profit corporation that runs the convention center receives public contributions to cover the gap. The subsidy comes from two sources in a roughly 70/30 split. The larger amount comes out of a 4% tax imposed by the county on all hotel and motel room rentals. The balance comes directly from the city's operating budget. In addition, the city owns the convention center building, which it leases to the non-profit operating corporation at no charge. ((7/28, 8/17)
Disposition-- USAirports, a developer and operator of air-freight facilities, has sold its Air Cargo Division to Airport Group International of Glendale, California. The division provides cargo services at nine airports and ranks as the nation's third-largest cargo handler. USAirports, with revenues totaling more than $65 million, has grown at an average of 12% annually over the past three years. AGI will continue to operate its fixed-based and tenant-based operator facilities, including those at the Greater Rochester International Airport. (7/15)
Home Sales-- According to data released by the GRAR, realtors in the 11-county Genesee region closed sales on 1,201 single-family homes in July, an increase of 2.2% from 1,175 in June, and 9.3% from 1,099 closings in July 1997. The associations Genesee Region Real Estate Information Service reported 5,950 closing for the first seven months of 1998, up 10.9% from the year-before period. The dollar volume of sales for the first seven months of 1998 was $617.7 million, up 13.2% from $545.6 million in the year before period. The total paid for existing single-family homes in July was $133.6 million, up 12% from $119.7 million in July 1997. (8/11) Realtors in the 11-county region closed sales in August on 1,216 existing single-family homes, up 16.8% from the 1,041 homes sold in August 1997. Statistics complied by the GRAR stated that 2,034 homes were listed for sale in August, a decrease of 29.2% from the 2,872 listings the previous August. (9/10)
Rental Housing Market-- The Monroe County Rental Housing Market Study reported the average gross rent for the County, including all unit types and sizes, was $649 per month. The average gross rent within the City sample was $558, roughly 20% lower than the $680 average for all areas outside of the City. Per square foot gross rents averaged $0.65 per foot for two-bedrooms, $0.59 for three bedrooms and $0.68 one-bedrooms. The survey results showed 1,100 vacant units, 341 of which are located within the City, indicating a market-wide vacancy rate of 6.1%. Among those vacant units, 25% had been vacant for less than 30 days, 35% had been vacant for 30 to 60 days, and nearly 40% had been vacant for more than 60 days. (5/15)
Unemployment-- The Rochester area unemployment rate fell to 3.9% in June, reflecting a strong local economy despite job losses at Eastman Kodak Co. and Xerox Corp. The number of unemployment insurance claimants was down 14% from June of 1996. The June figures reflect a gain of 3,300 jobs from May. (7/17) The state Labor Department reported that 3.6% of the work force was unemployed in the six-county Rochester area in August, down from 4.5% in July. The Rochester rate was 1.1% below the U.S. average rate of 4.7% and 2% below New York State's average of 5.6%. The area got back 3,800 non-farm jobs when General Motors auto workers returned to work and gained 600 jobs in business services, reflecting more jobs in temporary agencies and contract computer programming businesses. Overall services employment was up by 2,400 from last year. (9/18)
Automobile Sales-- According to figures released by the Rochester Automobile Dealers Association, 22,463 new vehicles were sold in the first six months of 1998, an increase of 143 from the year before period. (8/11)
Median Sale Price-- The National Association of Realtors reported the median sale price of existing single-family homes nationwide rose from $103,700 in 1992 to $124,100 in 1997, a 20% gain. The Rochester region reported a median sale price of $93,000 in July, a 3.4% increase from $89,900 in June and in July of 1997. The region reported a median home sale price of $94,800 in August, the highest median price on record. The August median sale price rose 11.6% over the $85,000 median in August 1997. (7/19, 8/11, 9/10)
New Construction-- Housing starts in Monroe County for the first five months of 1998 are up 7.3% from the year before period. The National Association of Home Builders projects only a 1% increase in 1998 for the nation as a whole. (7/19)
2nd Quarter 2005
Eastman Kodak - Eastman Kodak Co. has taken the No. 3 position away from Olympus Corp in the world-wide digital camera sales contest. Kodak ranked 5th in 2002 and 4th in 2003 and became the first U.S. company to be in the top three worldwide. Shipments jumped 50.5% last year as Kodak narrows in on the two leaders, Sony Corp. and Canon, Inc. 8.6 million cameras were shipped by Kodak in 2004, Sony Corp. shipped 12.3 million cameras and Canon was 2nd with 12.5 million cameras shipped. (4/15)
Eastman Kodak - Kodak lost its ranking as the largest employer in the area as its local employment fell 21% in 2004. The University of Rochester/Strong Health surpassed Kodak with a total of 16,565 employees. In 2003, Kodak employed 64,000 worldwide, 54,800 in 2004. Locally, Kodak ranks 2nd with 16,300 workers, down from 20,600 in 2003. The peak employment for Kodak was in 1982 when 60,400 were employed locally. (4/8)
Constellation Brands - The fiscal year end net income for the Fairport Wine company reached $4.09 billion, a 15% increase from last year. The fiscal fourth quarter net income dropped to $47.5 million which reflected the costs of purchasing of Robert Mondavi Corp. Constellation became the largest wine company in the U.S. after acquiring Mondavi, surpassing E & J Gallo, Inc. Net sales totalled $794.7 million in their 4th quarter, up 26% from the same time last year. (4/14)
Bausch & Lomb - The first quarter results were better than expected for the local eye-care company. Figures were up 47% from the same time last year as Bausch & Lomb recorded earnings of $34.5 million. B&L also announced that it will increase its spending for research and development by 12% to 15%. The company has plans on hiring researchers locally and around the world. Another 100 jobs will resume production of the PureVision contact lens at its optics center on North Goodman Street. in May. (4/20)
Renaissance Square - The architect has been chosen for the Renaissance Square project by local officials. Internationally known architect and urban planner, Moshe Safdie, was picked as lead designer. The Renaissance Square project will combine a bus terminal, performing arts center and a satellite campus for Monroe Community College. The facility is planned to be built on East Main Street and cost $230 million. It is the largest project undertaken in the history of the City. (3/24)
Fast Ferry - The Fast Ferry will begin sailing again on June 17th, one year to the day from its official inauguration in 2004. After a $2.8 million engine overhaul, the ferry service to Toronto will begin with one round trip per day. A new name has also been adopted by the City and the ferry will now be known as "The Cat." Ticket prices have not been set, but will be comparable to previous prices. (5/5)
Homes Sales - Area homes sales increased slightly in April with 936 houses sold, a slight increase from the same time last year. Homes selling above the $200,000 market are not selling as quickly as the homes listed at the $150,000 range. The median sales price for a single family was $104,000, up $200 from March and up $8,100 from April, 2004. (5/13)
Bausch & Lomb - B&L announced that they will be expanding research & development and invest $35 million into its optic center on North Goodman Street. A 73,000 square foot addition will be added to the North Goodman Street facility with new laboratories and office space. The existing research facility will also be renovated and updated with new equipment and machines. B&L expects to add up to 200 new research jobs. Construction will begin in July and be completed in 2007. One of the reasons Rochester was chosen over other sites is because of the research relationship B&L has with U of R and RIT. (6/10)
Genesee County - In a study of economic development in small communities across the country, Batavia was listed 7th as for its economic efforts. Last year, Genesee County listed 37 economic development projects totaling $48 in capital investments. Over the last 2 years, there have been 80 projects totaling $80 million in investments and creating 1,100 jobs. (3/18)
Monroe County - A number of multi-billion dollar real estate transactions took place in 2004 in Monroe County from out of state buyers. The biggest real estate sale was the $2.33 billion acquisition of Wilmorite Properties by Macerich Partnership of California. Macerich bought Wilmorite's 11 regional malls in 5 states, including Eastview Mall and Marketplace. DDR of Ohio bought up 18.8 million square feet of retail space from Benderson Development Corp. for $2.3 billion, which included 1.5 million square feet in Monroe County. DDR now owns Culver-Ridge Place, Panorama Plaza and West Gate Plaza. (3/25)
Renaissance Square - Funding for the Renaissance Square has been 60% secured with $140.9 million. $12 million was included in the New York State budget and another $12.5 million is coming from the Genesee Transportation Council. Monroe Community College has secured $55.6 million from the SUNY and the county. $67.4 million has been allocated for an underground transit center. The remaining $17.9 million will be put towards the $106 million performing arts center. On an average, 80% of funding comes from federal money, 10% from the state and another 10% from local funding. Anticipated costs for the project is $230 million. (6/3)
Fast Ferry - The June 17th launch date for the high-speed ferry to Toronto has been canceled and a new start-up date has not been determined. Problems with the computer software that maneuver the ship were found and repairs were being made. The boat is currently docked at Welland Canal in Ontario, Canada for engine upgrades and is expected to return to Rochester by June 10th. (6/2)
Downtown - The Urban Land Institute completed a study for the Rochester Downtown Development Corp. outlining their recommendations for downtown. The $110,000 outline included plans to demolish Midtown Tower for a public park; rehab Sibley Tower into apartments; move Midtown mall tenants to both sides of Main Street with storefronts facing the street; and building the bus station at street level instead of underground as planned for the Renaissance Square project. The report nixed the casino idea for the Sibley building as suggested last year. As recommended by the study, two groups will form to evaluate the recommendations of the study. One group will focus on specific "re-creation" concepts, while the second group will explore creative financial alternatives. The groups will meet again in September. (6/11)
Home Sales - Figures released for May for homes sale in the 11-county Rochester area show a 5.5% increase over last years figures. Real estate closings were up 12.8% from May of last year with 1,098 closings taking place, and up 17.3% from April of this year. A total of 4,328 homes have been sold since the beginning of 2005 which is up 5.5% from last years tally. The median sales price in May was $106,500 and for the year is $125,476. (6/14)
3rd Quarter 2005
Eastman Kodak - In a public news release, Kodak announced another plan to cut its traditional film enterprise by up to 66% in manufacturing and jobs. Originally conceived to eliminate 12,000 to 15,000 jobs worldwide over the next 3 years, Kodak announced it will reduce its manufacturing from $2.9 billion to $1 billion and will cut an additional 10,000 from its workforce by 2007. In its 2nd quarter, Kodak posted a disappointing net loss of $146 million; revenues grew 6% to $3.7 billions, fueled by a 43% increase in digital sales. Digital and film imaging also fell with sales totaling $2.15 million, down 12%. (7/22)
Paychex - In their fiscal fourth-quarter earnings report, Paychex posted a record $101.4 million net income, up from $61.4 million for the same time last year. For the year, Paychex earned a net income of $368.8 million, compared to $303 million in 2004. This was the 15th consecutive quarter of record revenue and earnings for the Penfield based payroll service provider. (6/28)
Constellation Brands - Constellation Brands reported a $75.7 million net income for their fiscal first quarter, up from $51.3 million for the same time last year. Net sales were $1.1 billion, up 18% from 2004 earnings of $927.3 million. The world's largest wine maker, Constellation Brands attributed part of its growth to the acquisition of the Mondavi wines. (7/1)
Xerox - In their second quarter report, Xerox reacted with a 4.4 workforce cutback worldwide and dropped expectations of the revenue projections. Sales of the higher-end office copiers and presses were lower than expected. 2,600 jobs in technical service and manufacturing were eliminated worldwide. Xerox currently employs 8,450 in Monroe County, down 183 from the same time last year. (7/12)
Bausch & Lomb - The second quarter postings for B&L reported earnings of $45 million and worldwide earnings of $608 million, 7% increase over the same time last year. B&L's success is due partly to the revenue growth in Latin America, Asia and Europe, with a 12.7% increase in sales. The eye care company has increased its projected revenue for fiscal 2005 as a result of its successful 2nd quarter. (7/28)
Home Sales - Homes sales for the month of June rose just 0.6% over the same time last year for the 11-county greater Rochester area. There were 1,342 closings, up slightly from June 2004; median sales price for single-family homes was up 3.2% to $114,000. Year-to-date sales are up 4.3% to 5,669. For July, sales continued to grow with 1,362 properties sold, up from 1,255 homes sold in July of 2004. The median sales price for July, 2005 was $120,000. In August, sales were 19.9% higher than in July with 1,633 homes sold. The market has been favorable to homes under the $200,000 price range, while it has slowed for higher priced homes in the area. (7/15; 8/9; 9/14)
Eastman Kodak - One year after its announcement to shed one-third of its assets, Kodak has successfully demolished 19 buildings, revitalized 17, and have 8 buildings for sale. The 4-year revitalization plan expects to reduce Kodak Park by 12%; equivalent to 7 million square feet of space. Costs for the overall reduction will be more than $600 million. The company expects cost savings of $800 million to $1 billion at the end of the project in 2007. Kodak Park is the oldest and largest of the companies manufacturing facilities and the largest photographic manufacturing facility in the world. The Kodak Park complex covers 1,300 acres, spreading from the city to Greece, stretching nearly 4 miles. (7/1)
Rochester - Eastman Kodak has decided to consolidate paper production to its factories in Colorado and England and will close its facilities here in Rochester resulting in the loss of more than 450 jobs. The layoffs are part of Kodak's plan to shift its focus towards digital imaging. As of the second quarter, Kodak has eliminated 13,000 jobs around the world and plans to reduce its workforce by a total of 25,000 by 2007. (8/26)
Monroe County - In a detailed report, Monroe County showed a strong economic recovery for the first half of 2005. Loans, grants and other incentives were provided to 82 projects with $273 million in investments. Monroe County was able to help create 2,841 new jobs and retain 7,370 in the area. Developing projects include a new research laboratory at Bausch & Lomb, a storage warehouse for CooperVision and Xerox is building a new factory for manufacturing toner. (7/19)
Corning Glass - Corning, Inc. posted a 53% increase in second-quarter profits, earning $165 million, compared to last years second quarter earnings of $108 million. The success was attributed to the high demand for its ultra-thin glass used in flat screen, high definition computers and televisions. Corning's display technologies sales also rose 50% to a record $415 million in revenue as they try to keep up with the demand for liquid crystal display glass. (7/27)
Rochester Institute of Technology - With a campus 2 miles away from anything, RIT has decided to develop a 90-acre parcel on the northeast corner into its own college town. The $50 million project includes retail space, upscale housing and wetlands for trailways. Plans are for 90,000 square feet of retail and townhouses and apartments for 800 residents. Approval for the project needs to come from the DEC and the Henrietta Town Board. (8/12)
Eastman Kodak - Sales of its digital camera bested its rivals for the third straight quarter as Kodak secured 24% of the market. According to market research, 1.25 million Kodak cameras were shipped in the second quarter. The Kodak EasyShare was also ranked first in customer satisfaction for cameras in the $200 to $399 market. (8/17)
Fast Ferry - The Mayors of both Rochester and Toronto officially opened the International Marine Passenger Terminal at the Port of Toronto after a short ceremony. The new $8.9 million terminal is a two-story, 38,244 square foot building where passengers will be screened by the Canadian Border Services. The new terminal is part of a long-range plan spanning the next 30 years and $17 billion in lakefront development. For now, the terminal is used by five to seven other ships which peruse the Great Lakes. (6/28)
Fast Ferry - Passenger numbers on the Rochester Fast Ferry have doubled since the re-startup in June. Weekend riders have averaged 700 plus passengers which has a capacity of 785. Operation managers, Bay Ferries, has submitted a request to the ferry board to reduce the number of trips to offset the rising gas prices, along with other changes. Any change needs the consensus of the ferry's executive committee. (8/30)
JP Morgan Chase - JP Morgan Chase announced that it will be cutting 300 jobs from its downtown home equity office this year. Rochester will remain one of Chase's home equity center's, servicing 3,000 mortgage loan officers and home direct sales nationally. The Chase office is located in the Seneca Building of Midtown Plaza. Even with the cuts, Chase will remain the largest financial employer in the area with more than 1,000 workers. (7/19)
Renaissance Square - A conceptual design was introduced to city leaders by lead designer Moshe Safdie. The biggest change in the plan was the relocation of the bus terminal, originally set to be built underground. The bus terminal would a glass structure at ground level and located off of East Main Street, north of the MCC campus and performing arts center. The MCC campus and arts center would be along East Main Street with a combinations courtyards, retail space and gardens. The project is satiated to cost $230 million, with $160 million all ready secured. (9/8) go to top
2nd Quarter 1998
Xerox Corporation Employment-- Xerox Corp. will cut 9,000 jobs worldwide, ~10% of its work force, over the next two years. Xerox employs 13,900 people in Monroe County and 91,400 across the globe. Of the 9,000 positions to be cut worldwide, 1,400 will be eliminated locally. Most people in the Rochester area will be offered the chance to retire early or leave voluntarily with up to one year's pay. The job reductions, and plans to cut overhead expenses, are expected to free up cash to reinvest in areas that are growing. (4/7, 4/8)
Xerox Corporation Expansion-- Xerox Corp., announced it will spend $270 million to build a toner plant and establish a European customer service center in Ireland. The facilities, which will open starting later this year, are expected to employ ~ 2,200 people within five years. The customer service center, which will be built just outside of Dublin, essentially consolidates 50 smaller Xerox centers scattered around Europe. The consolidation will help Xerox meet a goal of 3,600 job cuts in Europe, part of a restructuring, announced in April, that will cut ~ 10% of the company's 91,400 employees worldwide. Xerox LTD., the European subsidiary of Xerox, represented ~ 30% of the company's $9.9 billion in revenues last year. (6/3)
Eastman Kodak Company-- Analysts predict Kodak will earn between 65 cents and 76 cents per share for the quarter, compared to 82 cents a share, or about $270 million, in last year's first quarter. They'll be looking at the results closely to see how much progress the company has made since announcing a $1.5 billion reorganization and 6,000 job cuts late last year. The company last year lost $440 million on digital ventures and has vowed to improve in 1998. (4/13)
Eastman Kodak Company Expansion-- Kodak has completed construction of a 15,000 square foot state-of-the-art facility for the manufacture of motion-picture film. The new facility, which houses a film-base manufacturing machine known as the "307 machine", will be used to make polyester film base for motion-picture print films. The machine is part of a $1 billion investment they are making in facilities, technology, and infrastructure at Kodak Park. (4/1)
Bausch & Lomb-- Bausch & Lomb, the $1.9 billion global manufacturer of contact lenses, Ray-Ban sunglasses and other eye-care products has acquired Storz Instrument Co. and Chiron Vision Corp. as part of its two year reconstructing plan. In 1997, the company launched into a $150 million cost-cutting plan, at the same time expanding its core business into the growing surgical market. According to CEO, William Carpenter, 60% of B&L's revenue and 90% of its operating earnings come from the vision care and pharmaceutical businesses. B&L approved a quarterly dividend of 26 cents a share, payable July 1 to shareholders. (4/29, 5/4)
Pyramid Co.-- Pyramid Cos., one of the largest closely held real-estate owners and operators in the U.S., has put itself up for sale, reflecting the increasing consolidation of the real-estate industry. Pyramid, based in Syracuse, N.Y., is a low-profile property developer with a fast-growing portfolio of 31 properties, consisting of one of the largest shopping mall networks in the Northeast. The family of Robert Congel, the managing partner, holds 70% of the stock. The Pyramid portfolio totals more than 45 million square feet. Occupancy rates stand at ~ 94% for the properties. (4/8)
General Motors Corp.-- Strikes in Flint, Michigan by 9,200 United Auto Workers have caused GM to layoff workers in Rochester. The 600 local laid-off workers are employed at GM's Delphi Energy and Engine Management Plant at Lee Road. In addition, ITT Automotive Electrical Systems, a subcontractor for GM, laid off 650 employees in Rochester. GM's Delphi unit employs 3,750 in the Rochester area - 2,700 hourly and 550 salaried. ITT Automotive employs 3,200 hourly and 370 salaried workers. An estimated 2,700 of the hourly workers are employed on GM-related contracts. Nationwide, the number of GM workers idled by the strike has grown to 70,800. Component shortages have forced GM to close 17 of its 30 North American assembly plants. (6/17)
Home Properties-- Home Properties of New York Inc., a Rochester-based real estate investment trust announced record first-quarter earnings along with the purchase of its first Maryland apartments for $53.7 million, boosting acquisitions so far this year to $120 million. First-quarter funds from operations, the primary earnings measured for equity REITs, were a record $9.2 million, up from $4.2 million in the quarter a year ago. Home Properties manages 169 communities with 24,528 apartment units. Of these, 17,103 units in 71 communities are owned outright. (5/1)
Supermarket Acquisition-- Dutch food retailer, Royal Ahold NV has acquired U.S. supermarket chain Giant Food Inc. for ~ $2.6 billion. The acquisition means Ahold's annual worldwide sales will increase to about $35 billion compared with $25 billion in 1997. Giant Food had sales of $4.2 billion in its fiscal year ended February 28 and operates 176 supermarkets, including Buffalo-based Tops Friendly Markets. Tops Markets Inc. operates 15 food stores in the Rochester area and is building a new supermarket on West Avenue in the city. (5/20)
Service Acquisition-- Monro Muffler Brake Inc. will buy the U.S. operations of Speedy Muffler King for $58 million, adding 205 shops to its growing portfolio. Monro will pay $52 million in cash and assume $6 million in debt for the 192 company-operated and 13 franchised stores operating along the East Coast. Monro Muffler had $141 million in sales last year, while revenue at the stores to be acquired was $86.5 million. (4/14)
Utility Acquisition-- Rochester Gas and Electric Corp. announced the acquisition of Griffith Oil Co., the state's second largest wholesaler and retailer of heating oil, propane and other petroleum goods by Energet!x, a newly formed subsidiary of RG&E. The deal with Griffith will give RG&E access to 65,000 new customers from the New York - Vermont state line to Buffalo, and down through northern Pennsylvania. Griffith employs 325 people as truck drivers, technicians, and in sales and customer service jobs. (4/16)
Bankruptcy-- Perk Development Corp. of Rochester, the largest franchisee of Perkins Family Restaurants, is seeking Chapter 11 protection from creditors. The company listed $22.9 million in liabilities, $6.1 million in assets, and 1,800 creditors on its petition. The privately-owned Perk, based at 765 Elmgrove Road, is co-owned by local businessmen John Kendall, Michael Cavalcanti and Louis Bianchi and employs ~ 2,400 people. Travel Ports of America Inc., based in Brighton, stated their purchase offer would now become a part of the bankruptcy reorganization plan. (5/21)
Ferry Services-- A Toronto company is working on a $200 million deal to launch a ferry service between Rochester and Toronto. Two 300-foot-long catamarans, that could transport up to 1,000 people, 176 cars and several buses, would carry thousands of tourists across Lake Ontario. The ferries cost between $60 million and $70 million each. Preliminary plans reveal Rochester would create a ferry terminal with a customs office in the Charlotte area. The estimated traveling time would be two hours at a fare of ~ $100 - in Canadian currency - for a family of four in a car. An announcement on the project is expected in the next two months. (5/8)
Housing Market-- According to the National Association of Realtors, new-home sales are expected to rise 3% in 1998 to 834,000 units, surpassing the 819,000 sales recorded in 1997. NAR's forecast states that the national median existing-home price will rise 4% in 1998 to $128,700, with the median new-home price increasing 7% to $154,200 this year. NAR expects the 30-year, fixed mortgage rate to average 7%, with minor fluctuations within a range of a quarter percentage point. (5/19)
Car Sales-- According to figures released by the Rochester Automobile Dealers' Association Inc., new-car sales ran 2% below last year's levels for the first quarter of 1998. Monroe County dealers sold 3,815 new vehicles and 2,110 used vehicles in March vs. 3,887 new and 2,070 used the previous March. For the first three months of 1998, dealers sold 8,915 new vehicles and 5,885 used vehicles vs. a year-before total of 9,703 new and 6,152 used. (4/14, 4/15)
Employment-- The state Labor Department reported that 4.7% of the work force was unemployed in the six-county Rochester area in March, 1.8% below New York state's average. The figures showed 123,900 people worked for manufacturing companies, down 2,500 from March 1997. Many of the people laid off from Eastman Kodak Co. are being counted as unemployed. (4/17) The state Labor Department reported that the unemployment rate for the six-county Rochester area rose to 4.3% in May vs. 3.9% the previous May. The state's figures reported for May show that the Rochester area lost 1,100 jobs since April in instruments and related manufacturing, the category that includes Kodak and Xerox. (6/19)
Median Home Price-- The Greater Rochester Association of Realtors reported the median price of an existing single-family home hit $90,000 in May, up 5.9% from 85,000 last May. Realtors in the 11-county region reported 3,574 closings for the first five months of 1998, up 6.7% from a year-before 3,350. The five month sales breakdown was: City of Rochester, 483 closings, up 12.3% from 1997's 430 - Monroe County towns, 1,874 closings, up 5.6% - and other regional counties, 1,217 closings, up 3.7% from a year-before 1,147. (6/5)
1st Quarter 1998
Eastman Kodak Company-- Kodak reported sales for last year were $14.5 billion, 9% lower than the $15.9 billion in sales for 1996. Net profits were $5 million, or 1 cent per share, compared with $1.2 billion, or $3.82 per share, for 1996. Kodak posted a fourth quarter loss of $774 million, or $2.29 a share. A big reason for the adverse quarterly numbers was a $1.5 billion write-off for restructuring and severance pay. (1/16)
Eastman Kodak Company Employment-- The company reported that worldwide employment rose from 94,800 at the end of 1996 to 97,500 at the end of 1997. Kodak employment fell by 1,100 jobs in Rochester, rose by 2,500 in the rest of the United States and increased by 1,300 in foreign countries. The company said 6,300 jobs would be eliminated in Rochester, and about 3,000 of the affected workers have already received layoff notices. Kodak made acquisitions last year that increased worldwide employment. These included the purchase of the software business of Wang Laboratories Inc. and talking full ownership of the CPI Fox chain of photo retail stores. (2/13)
Eastman Kodak Company Acquisition-- Eastman Kodak Co. will become the first major non-Chinese manufacturer of film and photographic paper in China. Kodak announced a $1 billion deal that will give it an 80% share of Kodak (China) Co. Ltd., a new company making color film and paper. Kodak also acquired a 70% share of Kodak (Wuxi) Co. Ltd., a new company that will make medical and X-ray film. Kodak will spend $380 million to acquire assets for the new companies from its Chinese partners and $700 million over the next few years to upgrade manufacturing. (3/24)
Xerox Corporation-- Xerox Corp. announced that fourth-quarter profits jumped 23% and sales for 1998 are expected to climb steadily. Net income rose to $525 million, or $1.46 a diluted share, from $426 million, or $1.18, a year ago. Sales rose 7%, to $5.41 billion. Xerox's 13,000 employees in Monroe County will receive an annual bonus equaling 10% of their pay. (1/24)
Xerox Corporation Employment-- Xerox Corp. intends to cut 10,000 jobs worldwide, 11% of its work force, over the next two years. Xerox employs 13,900 people in the Rochester area and 91,400 across the globe. As many as 2,000 jobs could be eliminated in Monroe County. The company expects to announce the cuts the week of April 6th. (3/24)
Mobil Chemical Corporation-- Mobil Chemical Corp.'s films division may move its headquarters and research center within a year. The company will either consolidate all area operations at its research center in Macedon, Wayne County, or move to one of five locations out-of-state. Mobil's lease on the 67,000 square-foot headquarters building at 1150 Pittsford-Victor Road expires February 1999. Approximately 200 workers are employed at the film headquarters in Perinton and 100 at the research center. Mobil Chemical is a subsidiary of Mobil Corporation, a Virginia-based energy giant that had $71 billion in 1996 revenue. (2/6)
Tourism-- The total number of visitors to the Rochester area during 1997 was more than 1,525,000, an increase of approximately 75,000. Visitors were classified in three categories: Corporate and transient: 755,000; Meetings and Conventions: 510,000; and Leisure and Consumer: 260,000. Visitor spending in the region was up 7% to $217 million. According to the Greater Rochester Visitors Association, the figure represents spending of $102 million on lodging, $67.5 million on food, beverages and entertainment and $47.5 million on retail purchases. Sales taxes generated by visitor spending were estimated at $16.5 million. (3/25)
Job Loss-- The Rochester area will lose 580 jobs in 1998 when Perinton-based Student Loan Corp. relocates its office operation back to Citibank's service center in Sioux Falls, South Dakota. Citicorp owns 80% of publicly held Student Loan Corp., a leading provider and servicer of student loans, with a $7.6 billion portfolio. Jobs were being eliminated in the customer service, loan service and student loan origination areas as part of a streamlining by Citicorp. The Perinton center is a "stand-alone" business that handles only student loans. (2/13)
Network Services-- Eastman Kodak Co. has announced plans to buy controlling interest in PictureVision, Inc., its biggest online competitor. Kodak is buying a 51% stake in PictureVision, but other terms of the deal were not disclosed. With the Herndon, Va. based PictureVision, Inc. as a subsidiary, Kodak will increase their online customers base by 80% to 40,000. Kodak's Picture Network customers pay a monthly fee to have prints delivered and stored online. PictureVision allows quicker Internet posting directly from 9,000 photo sources. (2/13)
Car Sales-- The Rochester Auto Dealers Association reported 41,311 new vehicles were sold in Monroe County in 1997 - down from 43,113 in 1996. Used car sales were 24,840 in 1997 vs. 24,4566 in 1996 and 22,725 in 1995. A local automotive group stated that Kodak Co. layoffs hurt car sales in the last few months of 1997 and will continue to hurt sales this year. Lease-to-buy plans were also cited as a reason for the decease. (1/17)
Home Sales-- The National Association of Realtors announced annual sales of 4.21 million in 1997, a 3.1% increase over the 4.09 million homes sold in 1996. Nationally, the median price for an existing home was $124,100 in 1997, up 5% from 1996. Realtors in the 11 county Rochester region reported closings on 10,250 existing single-family homes vs. 10,542 in 1996; median sale price of $86,700 vs. $85,900 in 1996; and $1.05 billion in total home sales vs. $1.06 billion in 1996. (1/27)
Exports-- According to the Greater Rochester Metro Chamber of Commerce report, about 4,000 companies in the nine-county Rochester region sent a record $15 billion worth of goods abroad in 1997 up from $14,000 in 1996. The report showed that for the first time exports from Rochester to Latin American exceeded exports to eastern Asia. The U.S. Commerce Department, using the ZIP codes of shipments going to foreign countries for totaling exports, stated its 1997 figures haven't been complied yet. (1/23)
Employment-- The state Labor Department reported that 4.7% of the work force was unemployed in the six-county Rochester area in January, up from 4.6 % the year before. The average U.S. unemployment rate was 5.2% in January, and New York state's was 6.6%. (3/5)
Bankruptcies-- The Rochester district of U.S. Bankruptcy Court filings jumped 21.3% in 1997 to 4,929. Nationally, Bankruptcies were up by 19.5% to 1.33 million. More than 90% of the local filings were personal bankruptcies. Experts cite downsizing at Eastman Kodak Co., and other local businesses, overwhelming medical expenses, and credit card debt as the main causes. (1/7)
Health Care-- The American Red Cross announced plans to build a $16 million laboratory and administrative facility south of Rochester, near the New York state Thruway. The new facility, scheduled to open early next year, is expected to employ 300 people. The Red Cross currently has processing labs in Rochester, Syracuse and Buffalo. No decision has been made on the future of Rochester's current Red Cross blood services located at 50 Prince Street. (1/13)
Cinema Acquisition-- Hicks, Muse, Tate & Furst Inc. and Kohlberg Kravis Roberts & Co., announced a deal to acquire the nation's No. 2 cinema company, Regal Cinemas Cos. of Knoxville. The $1.5 billion transaction will create a company with 5,300 screens at 727 theaters in 35 states. The deal would include Regal Cinemas at Eastview Mall, Henrietta Cinemas 18 and Culver Ridge Cinemas 16. The purchase is expected to be complete by the middle of 1998. (1/21)
Acquisition-- Travel Ports of America Inc. plans to acquire privately-held Perk Development Corp. of Rochester, the largest franchisee of Perkins Family Restaurants. Rochester-based Travel Port owns and