Newsday, Melville, N.Y., Business Briefs Column

Jun. 17–VERIZON MAY INCREASE BURDEN ON UNIONIZED WORKERS: Verizon Communications Inc. may require its unionized workers to pay more of their medical costs, reduce absenteeism and become more productive, the company said as union contract talks began yesterday.

Verizon also wants greater flexibility in moving jobs among its offices across the country, it told reporters yesterday as it began negotiations with the International Brotherhood of Electrical Workers in New England.

A spokesman for a separate union, the Communications Workers of America in Manhattan, cried foul, noting that its negotiations with Verizon don’t even begin until June 23.

“Declaring war before bargaining begins is not a constructive step,” said Ken Peres, a spokesman for CWA’s District One office in Manhattan.

Sharp differences could increase the possibility of a strike by workers this summer, if an agreement isn’t reached by Aug. 3.

Verizon spokesman Eric Rabe said the company was hopeful it could avoid a strike as it negotiates 27 different contracts for 75,000 unionized workers from Maine to Virginia. Verizon workers pay about 5 percent of their medical costs, he said, compared with a national average of 27 percent. Six percent of its work force is absent each day, which Rabe said was double the industry’s average.

Peres said thousands of layoffs and forced overtime have stressed workers to their limits, while consumers are suffering with poorer service. “We find that really disturbing given that Verizon made $3.9 billion in profits last year,” he said.

— Mark Harrington

STANDARD MICROSYSTEMS POSTS HIGHER PROFIT: Standard Microsystems Corp. said yesterday that sales and profit in its latest quarter were better than earlier estimates by the company.

The Hauppauge-based computer chip company reported a 26 percent increase in fiscal first-quarter sales, to $42.7 million, while earnings rose from $352,000 in the first quarter last year to $1.7 million this year. The quarter ended May 31.

On a per-share basis, Standard Microsystems earned 10 cents, compared with 2 cents in the year-ago period.

Chief executive Steven J. Bilodeau said in a statement that the results bested the company’s expectations. Among other factors, he said the company’s new high-speed technology that improves communications between personal computers and peripherals is contributing “meaningful revenue.”

Shares of Standard Microsystems rose 51 cents yesterday to $15.76, their highest close in almost three months. The company is the 34th largest public firm on Long Island in sales, and has 500 employees, 350 on the Island.

— James Bernstein

EDO CORP. ACQUIRES BRITISH COMPANY: The defense company EDO Corp. announced yesterday that it has bought a British competitor, its third acquisition this year. The Manhattan-based company, which has operations in Deer Park and Amityville, acquired Emblem Group Ltd. of Brighton, England, for $25.6 million.

Emblem supplies aircraft weapons carriage and interfacing systems that EDO said will strengthen its position as one of the world’s leaders in aircraft armament release systems. Emblem had sales last year of $25.2 million.

EDO chief executive James Smith said in a statement that the deal will broaden the company’s customer base in Europe and help it enter new markets. As a result of the acquisition, EDO raised its 2003 sales estimate.

The companies acquired by EDO earlier this year were Darlington Inc., a military electronics company, for $28.5 million, and Advanced Engineering and Research Associates, for $38 million.

EDO stock rose 43 cents yesterday to $16.86.

— Bernstein

TELEPHONICS WINS $2.4 MILLION LOCKHEED CONTRACT: Telephonics Corp. in Farmingdale said yesterday it won a contract worth more than $2.4 million from Lockheed Martin Corp. to provide communications equipment for the Navy’s P-3C maritime patrol aircraft.

Telephonics, a unit of Jericho-based Griffon Corp., will design and manufacture a digital communications management system for the Lockheed-built plane. Telephonics said the work will be done at its facilities in Farmingdale and Huntington.

Griffon shares rose 21 cents yesterday to $15.53, their highest point so far this year.

— Bernstein

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