Subject:
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Re: A rant on many poor business practices leading to unemployment
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Newsgroups:
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lugnet.lego
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Date:
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Fri, 2 Jan 2004 15:23:35 GMT
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Viewed:
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1300 times
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In lugnet.lego, Andrew Kochan wrote:
Had to Snip some.
> Ok... here's an interesting article from Australian Financial Review that I
> think appeared in a number of other places as well. Article follows at bottom
> of post. Highly saddening.
I suppose I shouldn't be upset because they're doing the same thing every toy
company, TV station, radio
> station (baring college and public radio), and game company is doing. But can't
> they see what it's doing? Each year people become more sheeplike than the last.
> And more fickle. And that's why they keep desperately changing their themes...
> trying to keep up with the newest fad. Well... apparently it isn't working.
> Good luck finding a new job you poor laid off souls.
>
> -Andy
I don't think you have been hearing all the news about colleges raising tuition,
laying off staff, giving board members and executives raises, and building
multi-million dollar facilities with money they claim they do not have. An
example is University of Michigan in Ann Arbor, Michigan. The presidents new
digs.
Steven Weiser
>
> Lego limps as Christmas disappoints
> Dec 30 08:07
> AFP
>
> Lego, which has built a toy and game empire from building bricks, warned on
> Monday that profits would slump because sales of Star Wars and Harry Potter
> products had flopped over Christmas.
>
> Vice director Poul Plougmann told the financial newspaper Boersen that "the
> trend throughout the year was unexpectedly bad, nearly catastrophic".
>
> He said that "all the signs of Christmas sales, for toy manufacturers throughout
> the world, show an attitude of growing reticence by customers".
>
> He added: "Apart from Denmark, I have not heard anything positive about trends
> in the retail trade."
>
> Lego, a family company, signalled that it was heading for its third loss since
> it was founded in 1932.
>
> The board had seen the threat back in August after disappointing sales in the
> first half, particularly in the United States which accounts for nearly 40
> percent of its total turnover.
>
> A key factor was weak sales this year of games based on the Star Wars and Harry
> Potter films in 2002, much in contrast to last year's boom.
>
> Christmas sales, which represent 40 per cent of Lego's annual turnover, would be
> known in January and would either enable the company to recover or push it into
> loss, it said.
>
> In 2000 Lego reported a pre-tax loss of nearly 1.07 billion kroner, the second
> loss in its history, resulting in restructuring and job cuts which have reduced
> the workforce by 20 percent to about 7,500 people throughout the world.
>
> These changes, and a change of strategy, resulted in a profit of 530 million
> kroner in 2001 and 625 million kroner last year.
>
> To face up to tough competition from computer games, Lego began producing in
> 2002 video films and animated productions based on its successful Bionicle
> series, signing contracts with US companies Creative Capers Entertainment and
> Miramax Films.
>
> Its film "Bionicle Mask and Light", produced in DVD and VHS formats, got off to
> a strong start when it was launched in the United States and Canada on September
> 16. Lego is counting on similar success in Europe and in the rest of the world.
>
> As part of its diversification, Lego has also signed a partnership agreement
> with the Williams Formula 1 Team to connect children to the world of Formula 1
> car racing.
>
> But these new products might not be enough to keep Lego in profit.
>
> The board has already sent a signal by announcing the loss of 257 jobs at the
> headquarters at Billund in the west of the country and has not ruled out further
> such measures in 2004.
>
> On October 27 the company announced that it was preparing a "positive and solid
> budget" for 2004.
>
> "Particularly in the United States, the toy market is more dynamic than ever
> which means that Lego must demonstrate a vital capacity to react rapidly and
> reply efficiently to the needs of our clients and customers," Mr Plougmann said
> at the time.
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