March job cuts hit four month low

Though March job-cut announcements by Internet businesses fell to the lowest monthly level since November, outplacement firm Challenger Gray & Christmas warned Tuesday the decline might mean the sector is running out of jobs to cut rather than stabilizing. Challenger Gray said dot-com companies trimmed 9,533 employees in March, a reduction 18 percent smaller than February levels. Despite the continuing fall in job cuts since the January peak, the number of firms going out of business in March has increased to 23. This compares to 22 companies that closed in February. Challenger Gray said the number of Internet-related technology jobs cut in March rose 66 percent to 4,516 jobs from February, ''further evidence that the industry may not be on the road to recovery.''

Allegheny Energy Inc. had its senior unsecured notes and commercial paper ratings lowered by ratings agency Moody's Investors Services. Allegheny Energy's senior unsecured notes were downgraded to ''Baa1'' from ''A3'' and its commercial paper rating was downgraded to ''Prime-2'' from ''Prime-1.'' The rating outlook for Allegheny's senior unsecured notes remains negative. The ratings were changed after Allegheny Energy reorganized its business as a result of deregulation. The negative rating also reflects Allegheny Energy Supply Co.'s contribution to its parent and financing risks associated with expansion. Moody's upgraded Allegheny's unit, West Penn Power Co. and confirmed the ratings of three other units.

Ubics Inc. said fourth quarter and year 2000 earnings fell. It also forecast declines for the first quarter, citing weaker demand for its information technology consulting services. The Canonsburg-based company projected a first quarter loss of $650,000 to $800,000, with a 7 to 9 percent decline in revenue. Fourth quarter revenue was $11.2 million vs. $9.1 million in 1999. Net loss for the quarter was $130,000, or two cents a diluted share, vs. a profit of $135,000, or two cents a share, a year earlier. Net income for 2000 was $7,000, or zero cents a share, vs. $610,000, or nine cents a share, in 1999. Revenue was $42.3 million vs. $37.9 million. Ubics' shares closed Tuesday at $1.56, down 31 cents.

Walt Disney Co. will eliminate 4,000 full-time jobs, or about 3 percent of its work force, citing ''increasingly pressing challenges of the softening economic environment.'' The media and entertainment giant said Tuesday it will try to achieve the cuts through a voluntary program within the next month, but that layoffs will occur if the full reduction is not achieved. The cuts will come across all operating areas, including the company's corporate staff in Burbank, Calif., and would be accomplished by July, the company said. The company employs 120,000 workers worldwide, with the greatest concentration -- 55,000 -- in Orlando, Fla.

Suez Lyonnaise des Eaux, the French utility that bought Nalco Chemical Co., will spend $9.5 million to expand an Ellwood City-area chemical plant, making it the largest in the company. Last year, Suez Lyonnaise snatched up Naperville, Ill.-based Nalco Chemical Co. for $4.1 billion. That deal came just after Suez bought the Pittsburgh-based water-treatment company Calgon Corp. Suex Lyonnaise will increase production at the plant by 50 percent. It makes liquid blends and latex emulsions used to remove solids from water and prevent corrosion of automotive metal.

Health care giant Johnson & Johnson said Tuesday it plans to buy drug delivery specialist Alza Corp. for $12.3 billion in stock, a deal that analysts said will make it easier for J&J to offer new ways for patients to take its drugs. Alza, based in Mountain View, Calif., developed the technology for the best-selling Nicoderm nicotine patches sold by GlaxoSmithKline. It also makes time-released capsules that allow people to take fewer pills and systems that use electricity to push drugs through skin.

For the first time in six weeks, motorists in the region will have to pay more for gasoline, according to AAA West Penn-West Virginia-South Central Ohio. The AAA Fuel Gauge Survey showed the average price paid for a gallon of regular, unleaded self-serve gasoline in western Pennsylvania this week was $1.388, up more than two cents a gallon from $1.367 last week. A year ago, the average price for the same fuel was $1.51 cents a gallon.

Manufacturing 2000, a workforce development program, has is accepting applications for Fall 2001 classes for free machinist training or welder training. It is also sponsoring free informational seminars on April 25 and May 30 at CareerLinks, on the 21st floor of the Regional Enterprise Tower, 425 Sixth Ave. in downtown Pittsburgh. Applicants can also sign up for a free math refresher course. For more information, call 1-800-227-8210.