Daily Business Report — Nov. 22, 2011
METRO Movers to Watch
SD Metro is soliciting nominations for our annual Metro Movers to Watch awards, which will be published in January. Send your nominations to Rebeca Page at email@example.com. Nominate a man or woman you believe will make outstanding contributions in San Diego County during the new year. Nominations will close on Dec. 22.
San Diego Economy Lagging Behind Nation
San Diego’s economic momentum lags the rest of the nation, according to an analysis of gross domestic product (GDP) by the National University System Institute for Policy Research. Instead of leading the nation in recovery as in former eras, both San Diego and state of California continue to trail the rest of the country, the institute said. According to preliminary estimates of the nation’s GDP, the U.S. reached a new peak for economic activity in the third quarter of 2011, 15 quarters after the pre-recession peak. The institute projects San Diego and California will not reach a similar recovery milestone until sometime in 2012. While economic growth is evident in 2011, the outlook for further recovery is decidedly lackluster. California’s 2011 GDP growth is estimated to have slowed to 1.2 percent, while San Diego stood slightly higher at 1.4 percent. This compares with estimates of U.S. GDP growing 1.6 percent. The institute projects a similar discrepancy in growth rates thorough 2012. Despite significant losses in manufacturing employment over the past decade, the industry in San Diego continually increased production every year since 2003. This is a result of increasingly high value-added mechanized manufacturing production processes that utilize fewer technically skilled workers. Perhaps most surprising, the institute said, is annual manufacturing production increased $1.9 billion the past two years, the strongest gain of value for any San Diego industry over the past two years.
Cubic Reports Record High Sales and Earnings
Cubic Corporation today reported record high sales and earnings for the fiscal year ended Sept. 30. Sales in fiscal 2011 were $1.285 billion, representing an increase of 8 percent over sales of $1.194 billion in 2010. Net income attributable to Cubic shareholders increased 20 percent, to $84.8 million ($3.17 per share) in 2011 from $70.6 million ($2.64 per share) last year. Operating income increased 6 percent, to $112.3 million this year from $105.5 million in 2010 and cash flows from operations were $132.6 million in 2011. The company said its financial condition continued to be very strong in 2011. Cash and short-term investments at Sept. 30 were $355 million while total debt was $15.9 million. Total backlog reached a record high $2.837 billion at Sept. 30 compared to $2.486 billion at Sept. 30, 2010. Funded backlog was $2.163 billion at Sept. 30 compared to $1.872 billion at the end of last year.
Pfizer to Acquire N.Y. Biopharmaceutical Company
Pfizer Inc. announced today that it will acquire Excaliard, a privately owned biopharmaceutical company in New York that develops drugs for the treatment of skin fibrosis, commonly referred to as skin scarring. The acquisition is expected to close before the end of the year. “The science behind Excaliard’s lead compound aligns well with our R&D focus on new treatments for fibrosis and tissue remodeling,” said Jose-Carlos Gutierrez-Ramos, senior vice president of Pfizer. Financial terms of the acquisition are not being revealed, but Pfizer said it will provide to Excaliard an upfront payment and contingent payments if certain milestones are achieved. Isis Pharmaceuticals Inc. is an equity owner of Excaliard and has granted Excaliard an exclusive worldwide license agreement for the development and commercialization of certain antisense drugs, including EXC 001, Excaliard’s lead product. As such, Isis will receive a portion of the upfront and milestone payments paid by Pfizer to Excaliard.
San Diego REP Receives $25,000 Grant
San Diego REPertory Theatre (San Diego REP) has received a $25,000 grant from the National Endowment for the Arts to produce the world premiere production of “Tortilla Curtain” by playwright Matthew Spangler. The project will support a final workshop followed by a full rehearsal period and the world premiere. The production will be directed by Sam Woodhouse, the artistic director and co-founder of San Diego REP. “Tortilla Curtain” is based on T.C. Boyle’s popular novel, “The Tortilla Curtain,” which was published in 1995, in the wake of California’s Proposition 187, which would have banned all public services, including education and non-emergency health care, for undocumented immigrants in the state. Previews for the world premiere of “Tortilla Curtain” begin March 17, 2012. Opening night is March 23, and the production runs through April 8, 2012 on the Lyceum Stage. For ticket prices and additional information, visit sdrep.org.
Intelligent Office to Expand into San Diego
Intelligent Office, a virtual, staffed office space for mobile executives and small businesses, is expanding its presence in California with the opening of a San Diego location next February. Adding a new office at 4275 Executive Square in La Jolla increases the company’s presence into Southern California. Intelligent Office offers professional office space and services that allow people to work smarter and meet the demands of modern business, the company said. The 4,500-square-foot office space will have services that can be purchased a la carte ranging from remote receptionist services; furnished private offices, conference rooms; and professionals scheduling and handling appointments, data entry, managing client account history, and mail forwarding. For more information, call (858) 964-2300.
The Daily Business Report is produced by REP Publishing Inc., publisher of SD METRO, the North Park News and the West Coast Craftsman. Contact: Manny Cruz (619) 287-1865.