Battered AT&T Reports Sharp Profit Drop

AT&T Corp. (T ) posted $0.26 vs. $0.53 Q4 EPS from operations as its acquisition of MediaOne and the impact of Excite@Home offset a 3% revenue rise. AT&T sees $0.04-$0.07 Q1 EPS from operations and $0.17-$0.20 Q1 cash EPS.

According to a Wall Street Journal report, Daimler Chrysler (DCX ) is expected to announce 26,000 job cuts, effectively shutting at least three factories at its loss-making Chrysler unit.

Ariba (ARBA ) agreed to acquire Agile Software (AGIL ) in a stock-for-stock deal valued at about $2.6 billion. The terms are 1.35 Ariba shares per Agile share.

Cisco Systems (CSCO ) reportedly says January looks more challenging than a few weeks ago, but says its longer-term outlook has improved.

Morgan Stanley Dean Witter upgraded its investment rating on shares of Edison International (EIX ) and Pacific Gas & Electric Co. (PCG ) to outperform from neutral.

Newport News (NSS ) says it has been awarded a $3.8 billion contract by the U.S. Navy for the design and construction of a tenth Nimitz-class aircraft carrier, CVN 77.

According to a Wall Street Journal report, The New York Times (NYT ) is seeking to sell its magazine publishing unit and has approached Conde Nast (X.ADP ) and a unit of AOL Time Warner (AOL ).

Campbell Soup (CPB ) will buy soup and sauce businesses in Europe from Unilever (UL ) for about $950 million.

Dallas Semiconductor (DS ) agreed to be acquired by Maxim Integrated Products (MXIM ) in a $2.5 billion deal. The terms are 0.6163 Maxim shares per Dallas Semiconductor share.

Bear Stearns upgraded JC Penney (JCP ) to attractive from neutral.

CS First Boston upgraded Harrah's Entertainment (HET ) to strong buy from buy, and upgraded Argosy Gaming (AGY ) to buy from hold.

Advanced Micro Devices (AMD ) set a $300 million stock buyback.

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