Apple CEO says he feels shareholders' pain, urges long view

CUPERTINO, California (Reuters) - Apple Inc CEO Tim Cook acknowledged widespread disappointment in the company's sagging share price but shared few details about its secretive product pipeline or a raging debate about how to best reward shareholders.

The world's most valuable technology company headed into its annual shareholders' meeting at its headquarters on Wednesday on shakier ground than it has been accustomed to in years, since the iPhone and iPad helped vault the company to premier investment status.

A declining share price has lent weight to Wall Street's demand that it share more of its $137 billion in cash and securities pile - equivalent to Hungary's Gross Domestic Product, and growing - a debate now spearheaded by outspoken hedge fund manager David Einhorn.

Einhorn was not spotted at the meeting on Wednesday. Cook repeated that the company's board remained in "very very active" discussions about options for cash sharing, and said he shared investors' dissatisfaction over the stock price.

"I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors at the company's headquarters on 1 Infinite Loop.

But by focusing on the long term, revenue and profit will follow, he said.

Cook added that the company was working on new product categories, but, as usual, would not elaborate.

Speculation is rife on Wall Street and in Silicon Valley that the iPhone maker is working on a project to revolutionize the television and TV content, or a smart "iWatch."

Apple's stock was down 1 percent to $444 in afternoon trade. It is now down more than 35 percent from its $702.10 September peak.

Despite a slipping share price, dissatisfaction on the Street over its cash allocation and uncertainty over its product pipeline, shareholders re-elected the entire board on Wednesday, and Cook won more than 99 percent of the vote in preliminary results.

SHARE AND SHARE ALIKE

Apple's annual shareholder meetings have been celebrations in recent years. Since the company came out with its first iPhone in 2007, the company has multiplied in market value until it peaked in September.

Then Samsung Electronics and Amazon.com Inc began seriously eroding its market share in 2012, powered by arch-rival Google Inc's Android software. On March 14, Samsung will launch the Galaxy SIV smartphone, the latest iteration of a flagship smartphone that helped it dethrone Apple from the top of the industry.

Institutional investors want the company to share a greater chunk of its cash and securities pile, a demand growing increasingly strident with the company's stock wallowing at levels untested since the start of 2012.

Einhorn himself is advocating "iPrefs, preferred stock that will carry a perpetual 4 percent dividend to boost returns while not hampering cash flow.

On Friday, Einhorn won an important legal victory that strengthened his hand. His Greenlight Capital secured an injunction that invalidated shareholder voting on a proposal to scrap Apple's power to issue preferred stock at its discretion.

Apple says this will enhance governance. But the hedge fund manager argued it could complicate efforts to issue preferred securities in the future.

Cook said again on Wednesday that Einhorn's lawsuit - regardless of its efficacy - was a "silly sideshow". The underlying principle of cash distribution was something he and the board took seriously, he added.

The California Public Employees Retirement System, owner of 2.7 million Apple shares, had supported the so-called Proposal 2. Senior Portfolio Manager Anne Simpson said it was unfortunate the proposal could not be put forward for a vote.

"We know there is hot debate going on with cash," Simpson told the assembled shareholders at 1 Infinite Loop. "We are willing and happy to wait."

(Reporting by Poornima Gupta; Editing by Lisa Von Ahn and Tim Dobbyn)

Read More..

AP Source: 49ers to send Smith to KC

Alex Smith is headed to Kansas City, the first major acquisition by the Chiefs since Andy Reid took over as coach.

A person with knowledge of the trade told The Associated Press on Wednesday that the Chiefs have agreed to deal for the 2005 top overall draft pick who lost his starting quarterback job in San Francisco to Colin Kaepernick last season.

The person spoke on condition of anonymity because the trade does not become official until March 12, when the NFL's new business year begins.

Another person familiar with the deal said the 49ers will get a second-round draft pick in April, No. 34 overall, and a conditional pick in the 2014 draft.

Fox Sports first reported the deal.

Smith sustained a concussion Nov. 11 and Kaepernick played well in his place. Coach Jim Harbaugh stuck with him even when Smith got healthy, and Kaepernick led the 49ers to the NFC championship and a close loss to Baltimore in the Super Bowl.

The 28-year-old Smith struggled for most of his career in San Francisco, plagued as much by coaching and coordinator changes as by his own indecisiveness. But when Harbaugh became coach, Smith blossomed. He was among the league leaders in passer rating (104.1) with a 70.2 completion percentage when he was injured in a 24-24 tie against St. Louis.

Smith never started again for the 49ers, but now will replace Matt Cassel in Kansas City.

The Chiefs went 2-14 in 2012, earning the top pick in April's draft. But with no standout quarterbacks coming out of college this year, they quickly turned to finding a veteran.

Reid was fired by Philadelphia after 14 highly successful seasons, although the Eagles went 4-12 last year. Kansas City made him the first coach hired to fill a vacancy in January — there were eight of them — and the Chiefs also fired general manager Scott Pioli.

Now Reid has found his quarterback, and Smith has found another starting job.

Kansas City also has Brady Quinn on the roster, and he started eight games last season, going 1-7.

The 49ers, meanwhile, will be searching for a veteran to back up Kaepernick, their second-round draft choice in 2011.

Read More..

Vt. lye victim gets new face at Boston hospital

BOSTON (AP) — The 2007 chemical attack left the Vermont nurse unrecognizable to anyone who knew her.

But now Carmen Blandin Tarleton's face has changed again following a facial transplant this month.

Doctors at Brigham & Women's Hospital in Boston said Wednesday that the 44-year-old's surgery included transplanting a female donor's facial skin to Tarleton's neck, nose and lips, along with facial muscles, arteries and nerves.

"I know how truly blessed I am, and will have such a nice reflection in the mirror to remind myself what selfless really is," Tarleton wrote on her blog Wednesday.

The Thetford, Vt., woman suffered burns on more than 80 percent of her body and was blinded after her estranged husband attacked her with a baseball bat and doused her with lye in 2007.

Tarleton, who once worked as a transplant nurse, has undergone more than 50 surgeries since the attack, including work to restore some of her vision.

The latest surgery took 15 hours and included a team of more than 30 medical professionals. The lead surgeon, Bohdan Pomahac, called her injuries among the worst he's seen in his career.

"Carmen is a fighter," the doctor said Wednesday. "And fight she did."

Pomahac's team has performed five facial transplants at the hospital. He said the patient is recovering very well and is in great spirits as she works to get stronger.

He said she was very pleased when she saw her face for the first time, and that her appearance will not match that of the late donor's face.

"I think she looks amazing, but I'm biased," he said with a smile.

The donor's family wants to remain anonymous, but released a statement through a regional donor bank saying that her spirit would live on through Tarleton and three other organ recipients.

The estranged husband, Herbert Rodgers, pleaded guilty in 2009 in exchange for a prison sentence of at least 30 years.

Read More..

Author tells businesses to be like Mike

CAPTIONS

MJ in 1982
Michael Jordan in his college days with teammates Matt Doherty (44) and Sam Perkins and coach Dean Smith. (AP photo by Robert Willett /October 14, 1982)

By Samantha Bomkamp




Tribune reporter

10:11 a.m. CST, February 27, 2013

An author of a new book has some sage advice for business leaders: Be more like Michael Jordan.

Bruce Piasecki, who penned "Doing More with Teams: The New Way to Winning," says Michael Jordan's long and storied career "is a shining example of how the best teams operate."

Jordan shouldn't be emulated just because of the Bulls star's individual success, the author says, but by the way he showed leadership and helped create a seemingly unstoppable team, meshing with different personalities such as the quiet Scottie Pippen and outrageous Dennis Rodman to create a basketball dynasty.

Those team dynamics are similar in the business world, the author says. And businesses are most successful when they are led by the right leaders and are composed of a mix of people with varying talents, he argues.

Jordan also is held up as an example in other tenets of good business teamwork the author describes.

-- Ego and individual goals have no place on teams.

"When we pin all our hopes on a single individual and ignore the context in which he or she operates, we will be disappointed," he says.

--  Failure is part of winning.

"Leaders must instill in teams a tolerance of losing," he said. "We must convey that failure is a part of life and thus a part of business."

Jordan, who helped the Chicago Bulls win six NBA championships, famously said "I've failed over and over and over again in my life, and that is why I succeed."

The book is set to be released next month but is available for pre-order on Amazon.com.

Read More..

Chicago pelted by snow, sleet

Chicago's midday full weather forecast. (WGN - Chicago)

A winter weather advisory is in effect until tonight as the Chicago area is getting hit with sleet, freezing rain and snow that is making travel hazardous and grounding hundreds of flights.

The National Weather Service expects the heaviest snow to fall this afternoon. Winds gusting at 35 to 40 mph will reduce visibility and glaze roads, the weather service warned in the advisory.

"Snowfall rates in excess of an inch per hour could occur at times," it said. "This will likely be a heavy wet snow sometimes referred to as heart attack snow."

Mike Bardou, a weather service meteorologist, said "the early part of the rush hour will be most affected."

Spinouts have already been reported this on interstates 90, 94 and 55, according to the Illinois State Police. Chicago's Street and Sanitation Department had its full fleet of 284 trucks out. And the Illinois Tollway said it was mobilizing its fleet of 182 snowplows.

The northern part of the city and the northwest suburbs could see 2 to 3 inches of snow by the evening rush hour, Bardou said. Chicago's South Side and southwest suburbs like Oak Lawn, Tinley Park and Joliet might only get 1 to 2 inches of snow, and the far south suburbs could see less than an inch.

Snow will continue to fall, at a lighter intensity, through the evening until early Wednesday morning  and temperatures are expected to hover around freezing. When it's over, we could see anywhere from 3 to 6 inches throughout the area.

Here are some early snowfall totals from the National Weather Service: 2 inches in west suburban Elmhurst, 1.5 inches in west suburban Westmont, 1 inch in south suburban Peotone, and .5 inches in west suburban Elmwood Park.

By midday, nearly 400 flights had been canceled at O'Hare and 60 at Midway, according to FlightStats, which gathers data from airports and airlines. There were 252 delays at O'Hare and 78 at Midway.

Chicago's Streets and Sanitation Department has deployed its entire fleet of 284 plows. Drivers will plow the main roads, such as Lake Shore Drive, through the evening rush hour. As the snow begins to taper off, the plows will clear residential roads, said department spokeswoman Anne Sheahan.

Extra plows are being deployed to the 2^nd congressional district, to help residents get to their polling places for today's primary election, Sheahan said.

As of 1 p.m., road conditions were treacherous throughout the southwest suburbs, especially along Interstates 55 and 80 in Will County, police and fire officials said.

Several vehicles have slipped into ditches along I-55 near Plainfield, especially near U.S. Route 30, said Jon Stratton, a deputy chief with the Plainfield Fire Protection District.  "On I-55, there are vehicles everywhere in the ditch," Stratton said. "Visibility is going down and roads are getting all snow covered, so it's going to be an interesting day."

The most serious accident in the area so far today occurred when an SUV slid under a semi's trailer on the Route 30 overpass over I-55, Stratton said.

Firefighters extricated the woman who was driving the SUV, and she was taken by ambulance to Provena Saint Joseph Medical Center in Joliet, Stratton said. The woman was conscious and stable when removed from the SUV, he said.

Plainfield police have responded to several reports of crashes and vehicles that have slid into ditches, Sgt. Mike Fisher said. "It is getting slick out there, so people should give themselves extra time, slow down and drive safe," Fisher said.

Schools in the southwest suburbs have also begun changing their schedules because of the storm.

High school students in Plainfield Community Consolidated School District 202 will be dismissed 20 minutes early today, at 1:50 p.m., to give bus drivers more time to complete their routes, according to a news release from the district.

Middle school students will be dismissed as soon as buses arrive at those schools after completing their high school routes. Elementary school students will be dismissed as close to their usual time as possible, according to the district.

All after-school activities in the district have also been cancelled, including sports practices and games and Plainfield Park District programs that are usually held in the school district's buildings.

Read More..

Marlins owner says he didn't renege on promises

JUPITER, Fla. (AP) — A cluster of media stood outside the Miami Marlins clubhouse, awaiting the arrival of owner Jeffrey Loria, when outfielder Bryan Petersen walked past.

"Somebody getting married?" Petersen said.

It was more like somebody trying to salvage a relationship. Loria's three-day public relations campaign to patch things up with angry fans brought him to spring training Tuesday for an interview session that included several testy exchanges before the owner cut it short.

Loria reiterated many of his previous comments regarding the 2012 payroll purge, saying it wasn't about money but about improving the farm system. Ten minutes into the news conference, he bristled when asked why fans should believe him.

"You've said that question in four different ways," Loria said. "My response to you is we have put together some championship-caliber players. We're going to field an excellent team in the next two or three years that you're going to be proud of."

Fans are upset that after only one season of big spending in a new ballpark built mostly with tax money, the Marlins have reverted to their tight budgets of the past. Loria was asked about trying to change the impression the ballpark project was "a con job."

"A con job? I'm not even going to answer that," Loria said.

Many project the Marlins to lose 100 games only a year after they were the talk of baseball and touted as playoff contenders. This year's payroll is expected to be less than $45 million, compared with $90 million in 2012.

Loria denied he reneged on any promise, noting the Marlins finished last in the NL East with their biggest payroll ever.

"I fulfilled my promise in the new ballpark last year," he said. "It didn't work. So what do you do? Go back again and lose more games? We needed to do something to beef up the organization."

A blockbuster trade in November sent to Toronto three of the Marlins' highest-paid players — shortstop Jose Reyes and pitchers Mark Buehrle and Josh Johnson. In exchange Miami acquired mostly prospects.

"We have some very exciting young players here," Loria said. "We need to bring them along and develop our own stars, or else we're going to be a last-place team forever."

As he stepped away from the TV cameras after 15 minutes, a PR aide said the owner would take more questions. Instead, Loria disappeared through a clubhouse door and didn't return.

At some point the team's play will have to speak for itself.

Read More..

FDA halts Amgen study after teen patient death

WASHINGTON (AP) — Federal health regulators say they have halted Amgen's studies of its thyroid drug Sensipar after the death of a 14-year-old patient in a company trial.

The Food and Drug Administration says it is gathering information about the death, but has shut down all studies of the drug in children.

Sensipar is approved for adults to treat over-activity of the parathyroid gland. Amgen Inc. had been studying the drug to see whether it works in children.

The FDA says in a statement it is unclear whether Amgen's drug had a role in the patient's death, but it is reminding doctors to prescribe it carefully.

The agency says doctors should monitor patients' calcium levels to make sure they don't fall to dangerous levels.

Read More..

One and done at Oscars for MacFarlane

NEW YORK (AP) — It looks like it's one and done at the Oscars for Seth MacFarlane.

The "Family Guy" creator was asked on his Twitter account whether he'd consider hosting the Academy Awards again and he replied: "No way. Lotta fun to have done it, though."

MacFarlane's edgy comedy proved a polarizing force on Sunday's Academy Awards, with jokes about domestic violence, women's bodies and Jews in Hollywood that offended some viewers. The Oscars did get their biggest audience in three years, however, with particular growth among young viewers.

MacFarlane's spokeswoman said Tuesday she had nothing to add to the tweet.

Read More..

JPMorgan to eliminate 4,000 jobs in 2013

JPMorgan Chase & Co. plans to cut 3,000 to 4,000 jobs in its consumer bank in 2013, representing about 1.5 percent of the company's overall workforce, it said in a presentation to investors on Tuesday.

The cuts will come mainly through attrition, spokeswoman Kristin Lemkau said.

Additionally, Forbes reports that job cuts in its mortgage and community banking units could total 19,000.

JPMorgan Chase had 258,965 employees globally at the end of 2012. Its headcount rose following the financial crisis, to 262,882 in the second quarter of 2012 from 219,569 in the first quarter of 2009. Since last year's second quarter, staffing levels have drifted lower.

The bank has been building more branches even as competitors such as Bank of America Corp have scaled back. But its consumer bank business is also looking to reduce costs in its branches by staffing them more efficiently, JPMorgan Chase said in the presentation.

JPMorgan Chase had 5,614 branches at the end of 2012, making its network the second-biggest in the United States behind Wells Fargo & Co. JPMorgan is No. 3 in deposits, behind Bank of America and Wells Fargo.

The bank hopes to sell more services, such as wealth management, at its branches, and allow its automated teller machines to handle more routine transactions such as check deposits.

JPMorgan Chase said in its presentation that it is aiming to cut overall expenses by $1 billion in 2013.
 

Read More..

Woman freed after conviction in son's death tossed

Nicole Harris, who has been locked up since the 2005 death of her son, walked out of an Illinois prison today after an appeals court threw out her murder conviction.

Harris emerged from Dwight Correctional Center in front of a gathering of news crews after being reunited with her other son.

"I'm just overwhelmed and I'm thankful that's it's going to be over and I just want to be home with my son," Harris told the assembled media.

"I'm just ready to get on with my life and hold my son."

The Chicago woman was 23 when a jury found her guilty of killing her 4-year-old son Jaquari in their Northwest Side apartment following her confession to authorities. But Harris has long maintained that her confession was false and the result of threats and manipulation by police.

She said today that she was able to make it through the past seven years knowing that "I'm innocent and the truth will come out."

"It was like at some point I just knew this isn't it, that this was not my final destination."

In a 90-page ruling last October that vacated her conviction, the 7th Circuit U.S. Court of Appeals said there were "many reasons" to question her confession.

The appeal judges also ruled that Diante, then 5, should have been allowed to testify.

Now 14, Diante was the first person to meet Harris when she was released into an outer room of the prison at about 11:30 a.m. today.  Diante walked in bearing a balloon that read, "It's your Day" and a teddy bear. Harris threw her arms around him, wept softly and kissed him.

When asked later what it was like to see her son at that time, she said, "There are no words."

At exactly noon, a prison official told Harris she was "free to go." She clutched hands with a close friend and walked out of the prison. She had been told to get her things together around 8:30 a.m. this morning, she told the media, and said that, at that time, "I was beyond anxious."

Jaquari had been found dead with an elastic bedsheet cord wrapped around his neck. Diante had told authorities that he was alone with Jaquari when he saw him wrap the cord around his neck while playing.

Prosecutors, who argued that Diante also said he was asleep when Jaquari died, accused Harris of strangling Jaquari with the cord because she was angry he would not stop crying.

Harris' release, which the state argued against, is not the end of legal battle. The state has appealed the October ruling, asking the U.S. Supreme Court to review the case. In addition, Cook County prosecutors could still move to retry her. A representative from the state's attorney's office said no decision on a retrial has been made.

For now, Harris said, "I just want to enjoy life."

"I'm just glad to be free. I'm just glad to be free."

deldeib@tribune.com

Read More..