U.S. Envoy Apologizes for Ship’s Grounding on Philippine Coral Reef

Philippine Western Command, via Agence France-Presse — Getty Images

The Guardian, a Navy minesweeper, hit the Tubbataha Reef about 80 miles east of the Philippine island of Palawan on Jan. 17.

MANILA — The United States ambassador to the Philippines apologized Friday for the grounding of an American naval ship on a reef in a marine sanctuary, the latest in a string of embarrassing episodes for the United States military in the country at a time when the administration is pushing a “pivot” to Asia and the American military has increased its presence in the Philippines.

“I wish to convey to the Philippine government and people my profound regret over the grounding of the U.S.S. Guardian on Tubbataha Reef,” the American ambassador, Harry K. Thomas Jr., said in a statement issued Friday about the Jan. 17 accident that left the ship listing in the water.

The area struck by the minesweeper is a Unesco World Heritage site, and is described by the organization as “a pristine coral reef” that is home to more than 350 species of coral and almost 500 types of fish.

“This is the collateral damage from the U.S. military presence in our country,” said Bobby Tuazon, the director of policy studies at the Center for People Empowerment in Governance, based in Manila. “What were they doing there in the first place? This is a World Heritage site.”

The minesweeper crashed into the reef after a refueling stop at Subic Bay and as it was on its way to Indonesia, according to the Navy. The Navy has said the ship was using digital navigation charts that turned out to be faulty, according to a preliminary review, though an investigation into the cause of the accident is continuing.

Opinion in the country on the increased military presence, which includes port visits by naval ships, is split. President Benigno S. Aquino III has welcomed it as a counterbalance to what is viewed by many Filipinos as aggressive actions by China in the South China Sea. The Philippines and China have multiple overlapping territorial claims in the area and the two countries have engaged in tense maritime standoffs while asserting their sovereignty over contested areas.

But others Filipinos remain wary more than 20 years after the shuttering of the Subic Bay Naval Station, a casualty of the sense among some that the base was a painful reminder of decades of American rule.

The Associated Press reported that the Philippine government wants to fine the Navy for damages and for the entry into a marine sanctuary.

The recent grounding of the naval ship was preceded by other events that have led to renewed criticism of the United States military presence here. On Jan. 6, fishermen in the Philippines recovered an unmanned American drone that had been lost after it was used during American military exercises near the Pacific island of Guam.

Residents on the island of Masbate were initially alarmed by the discovery, fearing that it was an armed drone similar to those used in Afghanistan. But American and Philippine officials quickly clarified that it was an unarmed drone used as an aerial target.

The Philippine Senate is also investigating accusations that an American government contractor dumped about 50,000 gallons of untreated domestic waste from a Navy ship near Subic Bay after joint exercises in October. The former American naval facility, which is frequently visited by American ships, is also a popular Filipino tourist destination for beachgoers.

In the latest episode, the United States Navy minesweeper hit the Tubbataha Reef about 80 miles east of the Philippine island of Palawan, according to a Navy statement.

The full extent of the damage done to the reef by the 224-footship cannot be determined until the vessel is removed, but aerial photos taken by the Philippine military indicate that ship has put a gash in the reef measuring more than half the ship’s length.

Read More..

DealBook: Compuware Rejects Elliott's $2.3 Billion Bid

11:46 a.m. | Updated

Compuware said on Friday that its board had rejected a $2.3 billion takeover bid by Elliott Management, arguing that the hedge fund’s offer was too low.

Instead, the business software maker said that it was focused on its own corporate turnaround blueprint, including a three-year plan to cut costs and an effort to spin off its Covisint business communication products arm. It also unveiled plans to pay a 50-cent quarterly dividend, beginning next quarter.

Compuware said that Elliott’s offer of $11 a share, made last month, would not deliver enough value to shareholders, compared to the improvements that its self-help plan would yield.

“We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects,” Bob Paul, the company’s chief executive, said in a statement.

The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.

People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware. But the hedge fund also believed that private equity firms would also express interest.

Though shares in Compuware began rising after Elliott disclosed an 8 percent stake in the company in November, they have remained largely below the $11-a-share offer, implying investor skepticism about a deal being done. The stock closed on Thursday at $10.76.

Jesse Cohn, the Elliott portfolio manager overseeing the hedge fund’s bid, said in a statement: ““This is a good outcome. Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisors. We remain very interested in the company.”

Read More..

Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

Read More..

Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

Read More..

Court Rejects Recess Appointments to Labor Board

In a ruling that called into question nearly two centuries of presidential “recess” appointments that bypass the Senate confirmation process, a federal appeals court ruled on Friday that President Obama violated the Constitution when he installed three officials on the National Labor Relations Board a year ago.

The ruling was a blow to the administration and a victory for Mr. Obama’s Republican critics – and a handful of liberal ones – who had accused Mr. Obama of improperly claiming that he could make the appointments under his executive powers. The administration had argued that the president could decide that senators were really on a lengthy recess even though the Senate considered itself to be meeting in “pro forma” sessions.

But the court went beyond the narrow dispute over pro forma sessions and issued a far more sweeping ruling than expected. Legal specialists said its reasoning would virtually eliminate the recess appointment power for all future presidents when it has become increasingly difficult for presidents to win Senate confirmation for their nominees. In recent years, senators have more frequently balked at consenting to executive appointments. President George W. Bush made about 170 such appointments, including John R. Bolton to be ambassador to the United Nations and two appeals court judges, William H. Pryor Jr. and Charles W. Pickering Sr.

“If this opinion stands, I think it will fundamentally alter the balance between the Senate and the president by limiting the president’s ability to keep offices filled,” said John P. Elwood, who handled recess appointment issues for the Justice Department during the Bush administration. “This is certainly a red-letter day in presidential appointment power.”

The ruling, if not overturned, could paralyze the National Labor Relations Board, an independent agency that oversees labor disputes, because it would lack a quorum without the three Obama appointments in January 2012.

The ruling’s immediate impact was to invalidate one action by the board involving a union fight with a Pepsi-Cola bottler in Washington State, but it raises the possibility that all the board’s decisions from the past year could be nullified. The decision also casts a legal cloud over Mr. Obama’s appointment that same day of Richard Cordray as the director of the Consumer Financial Protection Bureau.

A White House spokesman said, “We disagree strongly with the decision” by the United States Court of Appeals for the District of Columbia Circuit, adding that it conflicted with other court rulings and well over a century of government practice. Administration officials did not immediately say whether they would appeal the ruling or wait for other appeals courts to issue decisions in similar lawsuits filed across the country challenging other labor board actions.

The three judges on the appeals court panel, all of them appointed by Republicans, rejected the Justice Department’s argument that Mr. Obama could make the labor board appointments by declaring the Senate’s pro forma sessions during its winter break — in which a single senator came into the empty chamber every three days to bang the gavel — a sham. The Republican-controlled House of Representatives had refused to let the Democratic-controlled Senate adjourn for more than three days.

“An interpretation of ‘the Recess’ that permits the President to decide when the Senate is in recess would demolish the checks and balances inherent in the advice-and-consent requirement, giving the President free rein to appoint his desired nominees at any time he pleases, whether that time be a weekend, lunch, or even when the Senate is in session and he is merely displeased with its inaction,” wrote Judge David B. Sentelle. “This cannot be the law.”

The panel went on to significantly narrow the definition of “recess,” for purposes of the president’s appointment power. The judges held that presidents may invoke their recess appointment power only between formal sessions of Congress – a brief period that usually arises only once a year – rather than during breaks that arise during a session, like lawmakers’ annual August vacations. Two of the three judges also ruled that the president may also only use that power to fill a vacancy that opens during the same recess.

The ruling also called into question nearly 200 years of previous such appointments by administrations across the political spectrum. The executive branch has been making intrasession appointments since 1867 and has been using recess appointments to fill vacancies that opened before a recess since 1823. Among other things, Mr. Elwood noted, it called into question every ruling made by several federal appeals court judges who were installed by recess power.

“You know there are people sitting in prisons around the country who will become very excited when they learn of this ruling,” he said.

Read More..

American Mumbai Plotter Sentenced to 35 Years

CHICAGO (AP) — Minutes before an American was sentenced to 35 years in prison for helping plan an attack on Mumbai, India, one of his victims tearfully pleaded for a harsh punishment despite the terrorist plotter's widespread cooperation with U.S. investigators following his arrest.

David Coleman Headley, 52, shifted uncomfortably in a gray tracksuit and kept his eyes fixed on the Chicago courtroom floor Thursday as he listened to the American children's author describe the violent chaos during her 2008 vacation to India.

Bullets flew past her check and panicked diners dived under tables as gunmen burst into a hotel restaurant, then walked around executing people one by one, recalled Linda Ragsdale, at times almost shouting as she stood just a few feet from Headley during the sentencing hearing.

"I know the sweet sickening smell of gunfire and blood," said Ragsdale, 53, of Nashville, Tenn., who was shot through the chest — the bullet passing along her spine and then out her thigh. "I know what a bullet can do to every part of the human body ... These are things I never needed to know, never needed to experience."

She did not comment after the judge imposed the sentence, but others victimized by the attack that has been called India's 9/11 said they were disturbed and upset Headley did not get the maximum life sentence he faced. With credit for good behavior, he could walk out of prison before he turns 80.

"He lost his right to live life as a free man. He doesn't deserve to be let out. He gave up that right when he played a role in the attack," said Kia Scherr, whose husband Alan Scherr and 13-year-old daughter, Naomi, were at the same table as Ragsdale and died.

It was prosecutors who pressed for leniency, saying they wanted Headley to get no more than 35 years as credit for his almost immediate cooperation after his 2009 arrest and providing intelligence about terror networks, including the Pakistani-based group that mounted the attack. Rewarding Headley with the hope of at least a few years of freedom, the said, would encourage future suspects in terrorist cases to spill their secrets.

A somber Judge Harry Leinenweber sounded reluctant about imposing the lesser sentence, saying the Mumbai assault was so unfathomable and terrifying that, "perhaps the lucky ones were the ones who didn't survive."

"I don't have any faith in Mr. Headley when he says he's a changed person and believes in the American way of life," he said.

Ragsdale, the only victim to address the court during Thursday's hearing, also read a text message from Kia Scherr to the judge, in which Scherr implored the court not to give Headley less than life in prison and asserting that anything less "would be an appalling dishonor."

The attack heightened the strain in a historically antagonistic relationship between India and Pakistan, which have fought three major wars. Indian officials accuse Pakistani intelligence of helping to plan the assault — an allegation Pakistan denies.

It was Headley's meticulous scouting missions that helped make the assault by 10 gunmen from a Pakistani-based militant group on multiple targets in Mumbai so deadly. TV cameras captured much of the three-day rampage that including multiple targets, including the landmark Taj Mahal Hotel.

Ragsdale painted a detailed picture of the gory scene as she huddled under the table with Scherr's husband Alan and her daughter, Naomi. After the initial gunfire, they were all still alive, and she said she would have thrown her body across the teen to shield her.

"That moment still haunts me," she said, crying, as she looked straight at Headley. She said she passed out from her injuries under the table and "awoke to hear Naomi take her last breath."

Headley showed no emotion when the sentence was announced. Earlier, when the judge asked if him if he wanted to address the court, he leaned forward and said politely, "No your honor, I expressed everything in the letter I wrote you."

Read More..

AT&T Fourth-Quarter Earnings Hurt by Pensions and Storm

Over the holiday season, AT&T sold a record number of smartphones. But its quarterly earnings took a hit from pension costs and Hurricane Sandy.

On Thursday, AT&T reported a loss in the fourth quarter of $3.9 billion, or 68 cents a share, up from a loss of $6.7 billion, or $1.12 a share, from the same quarter a year earlier.

The company said revenue was essentially flat at $32.6 billion.

Its adjusted per-share earnings were 44 cents a share, excluding pension costs, the impact of Hurricane Sandy and the sale of its advertising units. Wall Street analysts had expected 45 cents a share on earnings of $32.2 billion, according to Thomson Reuters.

“We had an excellent 2012,” said Randall Stephenson, AT&T’s chief executive, in a statement. “Looking ahead, our key growth platforms — mobile data, U-verse and strategic business services — all have good momentum with a lot of headroom,” Mr. Stephenson added.

The company, based in Dallas, said that it sold 10.2 million smartphones over the quarter, the most ever sold by any American carrier. A majority of those smartphones were iPhones: AT&T sold 8.6 million iPhones, in contrast with Verizon’s 6.2 million iPhones. AT&T, the second biggest carrier after Verizon Wireless, is in the process of a major network expansion. It said late last year that it would invest an extra $14 billion to expand its wireless and broadband services through 2015. It expects that its fourth-generation network technology, called LTE, will cover 300 million people by the end of next year.

Beyond making upgrades to its wireless network, AT&T has plans to offer new services that might create new revenue streams. In March, it will begin selling its new wireless home security system, Digital Life, which will allow people to use tablets or phones to monitor their homes from afar. If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Ralph de la Vega, chief executive of AT&T Mobility, has said that he believes home security will be a big opportunity to increase revenue, because only 20 percent of American homes have security systems, leaving millions of homeowners as potential buyers.

This article has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this article published online misstated the expectation of Wall Street analysts for AT&T’s quarterly per-share earnings. It was 45 cents, not 48 cents.

Read More..

The New Old Age Blog: Grief Over New Depression Diagnosis

When the American Psychiatric Association unveils a proposed new version of its Diagnostic and Statistical Manual of Mental Disorders, the bible of psychiatric diagnoses, it expects controversy. Illnesses get added or deleted, acquire new definitions or lists of symptoms. Everyone from advocacy groups to insurance companies to litigators — all have an interest in what’s defined as mental illness — pays close attention. Invariably, complaints ensue.

“We asked for commentary,” said David Kupfer, the University of Pittsburgh psychiatrist who has spent six years as chairman of the task force that is updating the handbook. He sounded unruffled. “We asked for it and we got it. This was not going to be done in a dark room somewhere.”

But the D.S.M. 5, to be published in May, has generated an unusual amount of heat. Two changes, in particular, could have considerable impact on older people and their families.

First, the new volume revises some of the criteria for major depressive disorder. The D.S.M. IV (among other changes, the new manual swaps Roman numerals for Arabic ones) set out a list of symptoms that over a two-week period would trigger a diagnosis of major depression: either feelings of sadness or emptiness, or a loss of interest or pleasure in most daily activities, plus sleep disturbances, weight loss, fatigue, distraction or other problems, to the extent that they impair someone’s functioning.

Traditionally, depression has been underdiagnosed in older adults. When people’s health suffers and they lose friends and loved ones, the sentiment went, why wouldn’t they be depressed? A few decades back, Dr. Kupfer said, “what was striking to me was the lack of anyone getting a depression diagnosis, because that was ‘normal aging.’” We don’t find depression in old age normal any longer.

But critics of the D.S.M. 5 now argue that depression may become overdiagnosed, because this version removes the so-called “bereavement exclusion.” That was a paragraph that cautioned against diagnosing depression in someone for at least two months after loss of a loved one, unless that patient had severe symptoms like suicidal thoughts.

Without that exception, you could be diagnosed with this disorder if you are feeling empty, listless or distracted, a month after your parent or spouse dies.

“D.S.M. 5 is medicalizing the expected and probably necessary process of mourning that people go through,” said Allen Frances, a professor emeritus at Duke who chaired the D.S.M. IV task force and has denounced several of the changes in the new edition. “Most people get better with time and natural healing and resilience.”

If they are diagnosed with major depression before that can happen, he fears, they will be given antidepressants they may not need. “It gives the drug companies the right to peddle pills for grief,” he said.

An advisory committee to the Association for Death Education and Counseling also argued that bereaved people “will receive antidepressant medication because it is cheaper and ‘easier’ to medicate than to be involved therapeutically,” and noted that antidepressants, like all medications, have side effects.

“I can’t help but see this as a broad overreach by the APA,” Eric Widera, a geriatrician at the University of California, San Francisco, wrote on the GeriPal blog. “Grief is not a disorder and should be considered normal even if it is accompanied by some of the same symptoms seen in depression.”

But Dr. Kupfer said the panel worried that with the exclusion, too many cases of depression could be overlooked and go untreated. “If these things go on and get worse over time and begin to impair someone’s day to day function, we don’t want to use the excuse, ‘It’s bereavement — they’ll get over it,’” he said.

The new entry for major depressive disorder will include a note — the wording isn’t final — pointing out that while grief may be “understandable or appropriate” after a loss, professionals should also consider the possibility of a major depressive episode. Making that distinction, Dr. Kupfer said, will require “good solid clinical judgment.”

Initial field trials testing the reliability of D.S.M. 5 diagnoses, recently published in The American Journal of Psychiatry, don’t bolster confidence, however. An editorial remarked that “the end results are mixed, with both positive and disappointing findings.” Major depressive disorder, for instance, showed “questionable reliability.”

In an upcoming post, I’ll talk more about how patients might respond to the D.S.M. 5, and to a new diagnosis that might also affect a lot of older people — mild neurocognitive disorder.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

---

This post has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this post misspelled the surname of a professor emeritus at Duke who chaired the D.S.M. IV task force. He is Allen Frances, not Francis.

Read More..

The New Old Age Blog: Grief Over New Depression Diagnosis

When the American Psychiatric Association unveils a proposed new version of its Diagnostic and Statistical Manual of Mental Disorders, the bible of psychiatric diagnoses, it expects controversy. Illnesses get added or deleted, acquire new definitions or lists of symptoms. Everyone from advocacy groups to insurance companies to litigators — all have an interest in what’s defined as mental illness — pays close attention. Invariably, complaints ensue.

“We asked for commentary,” said David Kupfer, the University of Pittsburgh psychiatrist who has spent six years as chairman of the task force that is updating the handbook. He sounded unruffled. “We asked for it and we got it. This was not going to be done in a dark room somewhere.”

But the D.S.M. 5, to be published in May, has generated an unusual amount of heat. Two changes, in particular, could have considerable impact on older people and their families.

First, the new volume revises some of the criteria for major depressive disorder. The D.S.M. IV (among other changes, the new manual swaps Roman numerals for Arabic ones) set out a list of symptoms that over a two-week period would trigger a diagnosis of major depression: either feelings of sadness or emptiness, or a loss of interest or pleasure in most daily activities, plus sleep disturbances, weight loss, fatigue, distraction or other problems, to the extent that they impair someone’s functioning.

Traditionally, depression has been underdiagnosed in older adults. When people’s health suffers and they lose friends and loved ones, the sentiment went, why wouldn’t they be depressed? A few decades back, Dr. Kupfer said, “what was striking to me was the lack of anyone getting a depression diagnosis, because that was ‘normal aging.’” We don’t find depression in old age normal any longer.

But critics of the D.S.M. 5 now argue that depression may become overdiagnosed, because this version removes the so-called “bereavement exclusion.” That was a paragraph that cautioned against diagnosing depression in someone for at least two months after loss of a loved one, unless that patient had severe symptoms like suicidal thoughts.

Without that exception, you could be diagnosed with this disorder if you are feeling empty, listless or distracted, a month after your parent or spouse dies.

“D.S.M. 5 is medicalizing the expected and probably necessary process of mourning that people go through,” said Allen Frances, a professor emeritus at Duke who chaired the D.S.M. IV task force and has denounced several of the changes in the new edition. “Most people get better with time and natural healing and resilience.”

If they are diagnosed with major depression before that can happen, he fears, they will be given antidepressants they may not need. “It gives the drug companies the right to peddle pills for grief,” he said.

An advisory committee to the Association for Death Education and Counseling also argued that bereaved people “will receive antidepressant medication because it is cheaper and ‘easier’ to medicate than to be involved therapeutically,” and noted that antidepressants, like all medications, have side effects.

“I can’t help but see this as a broad overreach by the APA,” Eric Widera, a geriatrician at the University of California, San Francisco, wrote on the GeriPal blog. “Grief is not a disorder and should be considered normal even if it is accompanied by some of the same symptoms seen in depression.”

But Dr. Kupfer said the panel worried that with the exclusion, too many cases of depression could be overlooked and go untreated. “If these things go on and get worse over time and begin to impair someone’s day to day function, we don’t want to use the excuse, ‘It’s bereavement — they’ll get over it,’” he said.

The new entry for major depressive disorder will include a note — the wording isn’t final — pointing out that while grief may be “understandable or appropriate” after a loss, professionals should also consider the possibility of a major depressive episode. Making that distinction, Dr. Kupfer said, will require “good solid clinical judgment.”

Initial field trials testing the reliability of D.S.M. 5 diagnoses, recently published in The American Journal of Psychiatry, don’t bolster confidence, however. An editorial remarked that “the end results are mixed, with both positive and disappointing findings.” Major depressive disorder, for instance, showed “questionable reliability.”

In an upcoming post, I’ll talk more about how patients might respond to the D.S.M. 5, and to a new diagnosis that might also affect a lot of older people — mild neurocognitive disorder.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

---

This post has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this post misspelled the surname of a professor emeritus at Duke who chaired the D.S.M. IV task force. He is Allen Frances, not Francis.

Read More..

AT&T Fourth-Quarter Earnings Hurt by Pensions and Storm

Over the holiday season, AT&T sold a record number of smartphones. But its quarterly earnings took a hit from pension costs and Hurricane Sandy.

On Thursday, AT&T reported a loss in the fourth quarter of $3.9 billion, or 68 cents a share, up from a loss of $6.7 billion, or $1.12 a share, from the same quarter a year earlier.

The company said revenue was essentially flat at $32.6 billion.

Its adjusted per-share earnings were 44 cents a share, excluding pension costs, the impact of Hurricane Sandy and the sale of its advertising units. Wall Street analysts had expected 45 cents a share on earnings of $32.2 billion, according to Thomson Reuters.

“We had an excellent 2012,” said Randall Stephenson, AT&T’s chief executive, in a statement. “Looking ahead, our key growth platforms — mobile data, U-verse and strategic business services — all have good momentum with a lot of headroom,” Mr. Stephenson added.

The company, based in Dallas, said that it sold 10.2 million smartphones over the quarter, the most ever sold by any American carrier. A majority of those smartphones were iPhones: AT&T sold 8.6 million iPhones, in contrast with Verizon’s 6.2 million iPhones. AT&T, the second biggest carrier after Verizon Wireless, is in the process of a major network expansion. It said late last year that it would invest an extra $14 billion to expand its wireless and broadband services through 2015. It expects that its fourth-generation network technology, called LTE, will cover 300 million people by the end of next year.

Beyond making upgrades to its wireless network, AT&T has plans to offer new services that might create new revenue streams. In March, it will begin selling its new wireless home security system, Digital Life, which will allow people to use tablets or phones to monitor their homes from afar. If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Ralph de la Vega, chief executive of AT&T Mobility, has said that he believes home security will be a big opportunity to increase revenue, because only 20 percent of American homes have security systems, leaving millions of homeowners as potential buyers.

This article has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this article published online misstated the expectation of Wall Street analysts for AT&T’s quarterly per-share earnings. It was 45 cents, not 48 cents.

Read More..