$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Tim Ma » Mon, 04 Dec 2000 04:00:00





Quote:> The pollies focus on the fun part of Y2K, how quality 7.62
> semi-automatic battle rifles with high capacity box magazines proved to
> be unnecessary but they aren't too interested in accounting errors,
> incorrect invoices, payments, receivables, batch runs.

"Proved to be unncessary"? This is the well-trod ground of whether first
aid supplies are "unnecessary" just because an accident hasn't happened,
whether earthquake preps are unnecessary, blah blah blah.

Frankly, I'm _very_ glad that 1999 was the year I finally got some
7.62mm rifles. Starting with an HK91/G3 variant, then proeceeding to
some FAL variants.

Inasmuch as California has decided that no new such rifles may be sold
to its sheeple, nor may existing rifles be sold to other sheeple, and
that all such rifles must be registered with an appropriate Big Brother
set of I.D. and prints, I'm glad I bought when I did. Prices started
rising after I purchased.

As I said a year ago, my preps were in the $4-5K range, with most of
these expenditures fully recoverable. I wish my investment losses were
as recoverable...I've lost a thousand times this amount just in one bad
month. And there have been several bad months....

(No, I don't attribute this to Y2K in any way.)

--Tim May

--
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,  
ComSec 3DES:   831-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
"Cyphernomicon"             | black markets, collapse of governments.

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Theo » Tue, 05 Dec 2000 09:33:56


-> Snipped From
http://www.chicagotribune.com/business/chicagoinsider/article/0,2669,...
012020120,FF.html

TRUSERV VALUES SILENCE IN ACCOUNTING ERRORS CASE

Susan Chandler
December 2, 2000
True Value Hardware Store owners have been waiting for months for an answer to
an important question. How did their buying cooperative--Chicago-based TruServ
Corp.--make more than $100 million of accounting errors without anyone
noticing?

The errors, which were uncovered by a new TruServ chief financial officer in
January, wiped out the 1999 "patronage dividends" that hardware store owners
normally receive each year for buying their merchandise from TruServ.

Obviously, True Value owners weren't happy that their dividend evaporated, but
TruServ created a task force to investigate and promised a full accounting of
the fiasco.

The task force completed its work this summer and made a report to TruServ's
board of directors in late August. Yet TruServ says it can't release the report
to members because it is being sued over the accounting glitch in Delaware
Chancery Court.

In a September memo to members, TruServ Chairman Bill Blagg acknowledged that
"members are anxious to hear the results of the task force's efforts." But he
said TruServ's legal counsel has advised the co-op to keep the report to
itself. "Nor can we comment on the contents of the report at all," Blagg wrote.

The lawsuit, which seeks class-action status, accuses TruServ's executives and
directors of a number of misdeeds, including misrepresenting the true state of
the co-op's finances, not adequately supervising the accounting process and
wrongly withholding the 1999 patronage dividend. Its further charges TruServ's
officers and directors with failing to exercise their fiduciary
responsibilities.

The suit's plaintiff is Hudson City Properties Inc., a TruServ shareholder in
Hudson, N.Y. Hudson has terminated its membership in TruServ but it has not
been allowed to redeem its shares because of a moratorium established by the
co-op's management in March. Hudson's attorneys did not return phone calls.

Following its attorneys' advice, TruServ declined to comment on the suit or its
allegations, except to say it will defend itself "vigorously."

The ironic thing is the task force report will undoubtedly be one of the first
documents requested by the plaintiff's attorneys when they get to the discovery
phase of a trial.

That may mean that TruServ's loyal members will have to read the court
transcripts if they want to know what went wrong at the company they own.

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Pro News/2 Us » Tue, 05 Dec 2000 11:53:57



> -> Snipped From
> http://www.chicagotribune.com/business/chicagoinsider/article/0,2669,...
> 012020120,FF.html

> TRUSERV VALUES SILENCE IN ACCOUNTING ERRORS CASE

> Susan Chandler
> December 2, 2000

December 2000?  It's taking a while for some of these IT problems to
escape from the cone of silence.

Quote:> True Value Hardware Store owners have been waiting for months for an answer to
> an important question. How did their buying cooperative--Chicago-based TruServ
> Corp.--make more than $100 million of accounting errors without anyone
> noticing?

Accounting errors? Who would have expected accounting errors happening
without anyone noticing?  ...as in, "Where did our money go?"   Why does
it take months to resolve?  Aren't these kinds of problems quickly
solved?  Come-come.

Quote:

> The errors, which were uncovered by a new TruServ chief financial officer in
> January, wiped out the 1999 "patronage dividends" that hardware store owners
> normally receive each year for buying their merchandise from TruServ.

-gasp- They risk angering guys with chain saws.

Quote:

> Obviously, True Value owners weren't happy that their dividend evaporated, but
> TruServ created a task force to investigate and promised a full accounting of
> the fiasco.

> The task force completed its work this summer and made a report to TruServ's
> board of directors in late August. Yet TruServ says it can't release the report
> to members because it is being sued over the accounting glitch in Delaware
> Chancery Court.

> In a September memo to members, TruServ Chairman Bill Blagg acknowledged that
> "members are anxious to hear the results of the task force's efforts." But he
> said TruServ's legal counsel has advised the co-op to keep the report to
> itself. "Nor can we comment on the contents of the report at all," Blagg wrote.

> The lawsuit, which seeks class-action status, accuses TruServ's executives and
> directors of a number of misdeeds, including misrepresenting the true state of
> the co-op's finances, not adequately supervising the accounting process and
> wrongly withholding the 1999 patronage dividend. Its further charges TruServ's
> officers and directors with failing to exercise their fiduciary
> responsibilities.

OK, this is Doc's cue to point out how this *isn't* obviously a sort key
or date computation error.  Just because 1999 transactions disappeared
exactly as expected by the Y2K doomers (especially Jo Anne), heck, don't
let that spoil the polly-festival.

After all, Y2K was about riots, train crashes, muties looting and not
about back room batch systems that lose transactions, accounting errors,
1Q, 2Q, 3Q reports.

The pollies focus on the fun part of Y2K, how quality 7.62
semi-automatic battle rifles with high capacity box magazines proved to
be unnecessary but they aren't too interested in accounting errors,
incorrect invoices, payments, receivables, batch runs.

I can't blame them.  I can hardly stand to read about attorneys, co-ops,
patronage dividends, fiduciary responsibilities, accounting errors but
if someone starts yapping, "You doomers were wrong about your
Springfield Armory M1As, blah, blah."  that's some fine USENET arguing.

Quote:> The suit's plaintiff is Hudson City Properties Inc., a TruServ shareholder in
> Hudson, N.Y. Hudson has terminated its membership in TruServ but it has not
> been allowed to redeem its shares because of a moratorium established by the
> co-op's management in March. Hudson's attorneys did not return phone calls.

--snore.

Quote:

> Following its attorneys' advice, TruServ declined to comment on the suit or its
> allegations, except to say it will defend itself "vigorously."

--s-s-snorg.

Quote:

> The ironic thing is the task force report will undoubtedly be one of the first
> documents requested by the plaintiff's attorneys when they get to the discovery
> phase of a trial.

-zzzzz.

Quote:

> That may mean that TruServ's loyal members will have to read the court
> transcripts if they want to know what went wrong at the company they own.

-sna-SNORK!

Of course, the economy continues to unravel as expected but that's
duller than dull. How much better to be a polly and focus on the fun
stuff.  No World War III, no asteroid hit, no looted grocery stores.

All we got was PSI-net falling from $60 to a buck twenty a share, a
whole bunch of accounting errors, and some vague economic consequences
that no one could have predicted.

--
cory hamasaki - no one could have predicted accounting errors taking
months to recognize, no one.

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by N » Tue, 05 Dec 2000 11:54:59





>> -> Snipped From
>> http://www.chicagotribune.com/business/chicagoinsider/article/0,2669,...
>> 012020120,FF.html

>> TRUSERV VALUES SILENCE IN ACCOUNTING ERRORS CASE

>> Susan Chandler
>> December 2, 2000

>December 2000?  It's taking a while for some of these IT problems to
>escape from the cone of silence.

This is frequently the case, Mr Hamasaki... in fact, many of them never
see the light of day outside of the organisations in which they occur.

[snip]

Quote:>> The task force completed its work this summer and made a report to TruServ's
>> board of directors in late August. Yet TruServ says it can't release the report
>> to members because it is being sued over the accounting glitch in Delaware
>> Chancery Court.

[snip]

Quote:>> The lawsuit, which seeks class-action status, accuses TruServ's executives and
>> directors of a number of misdeeds, including misrepresenting the true state of
>> the co-op's finances, not adequately supervising the accounting process and
>> wrongly withholding the 1999 patronage dividend. Its further charges TruServ's
>> officers and directors with failing to exercise their fiduciary
>> responsibilities.

>OK, this is Doc's cue to point out how this *isn't* obviously a sort key
>or date computation error.  Just because 1999 transactions disappeared
>exactly as expected by the Y2K doomers (especially Jo Anne), heck, don't
>let that spoil the polly-festival.

No, Mr Hamasaki... let us remember that there is special legislation to
protect corporations from errors caused by date-arithmetic, sort sequence
and file-key errors.

Were those to have been the cause might it just possibly be the case that
the corporation, instead of saying 'we cannot say because it is under
litigation', might *scream* 'Sorry, law says you cannot hold us
responsible, take a hike, have a nice life'?

[snip]

Quote:>> The suit's plaintiff is Hudson City Properties Inc., a TruServ shareholder in
>> Hudson, N.Y. Hudson has terminated its membership in TruServ but it has not
>> been allowed to redeem its shares because of a moratorium established by the
>> co-op's management in March. Hudson's attorneys did not return phone calls.

>--snore.

Since *when*, Mr Hamasaki?

Quote:

>> Following its attorneys' advice, TruServ declined to comment on the suit or its
>> allegations, except to say it will defend itself "vigorously."

>--s-s-snorg.

Nary a specially-mandated defense in sight... how tedious, true.

[snippage]

Quote:>Of course, the economy continues to unravel as expected but that's
>duller than dull.

Mr Hamasaki, what do you see as 'the economy unravelling'?  A stockmarket
falling back to levels which, a few years ago, were labelled 'irrationally
exuberant?

DD

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Bob Broc » Tue, 05 Dec 2000 04:00:00




>| "Proved to be unncessary"? This is the well-trod ground of whether first
>| aid supplies are "unnecessary" just because an accident hasn't happened,
>| whether earthquake preps are unnecessary, blah blah blah.

>Blah, blah blah is right!  Anybody who says that a tinfoil hat is
>unnecessary just needs to wait long enough!  Captain Snorfxd jusht has not
>YET given the order!  It could come any time!  And then those who are
>foolish enough to have neglected to wear a tinfoil hat AT ALL TIMES, man,
>will they be SORRY!

>Sounds fair to me...

http://zapatopi.net/afdb.html
 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Pro News/2 Us » Tue, 05 Dec 2000 04:00:00





> > The pollies focus on the fun part of Y2K, how quality 7.62
> > semi-automatic battle rifles with high capacity box magazines proved to
> > be unnecessary but they aren't too interested in accounting errors,
> > incorrect invoices, payments, receivables, batch runs.

> "Proved to be unncessary"? This is the well-trod ground of whether first
> aid supplies are "unnecessary" just because an accident hasn't happened,
> whether earthquake preps are unnecessary, blah blah blah.

> Frankly, I'm _very_ glad that 1999 was the year I finally got some
> 7.62mm rifles. Starting with an HK91/G3 variant, then proeceeding to
> some FAL variants.

I was employing the polly-ploy of commenting on irrelevant side issues.
In fact, the reason I mentioned 7.62 is that the other day, I was at
Site-B and noticed that even with the loss of leaf cover, there were
very few clear lines of fire out beyond 50-100 yards.

Here in the East, the terrain is a good match for 5.56.  Then I wondered
about Tim's conversion to 7.62 and recalled my trips to SF,  There were
several places on the coast with long clear open vistas (ignoring the
redwood park near Santa Cruz).

Quote:> Inasmuch as California has decided that no new such rifles may be sold
> to its sheeple, nor may existing rifles be sold to other sheeple, and
> that all such rifles must be registered with an appropriate Big Brother
> set of I.D. and prints, I'm glad I bought when I did. Prices started
> rising after I purchased.

That's an odd situation. In general, quality firearms hold their value
well but don't return windfalls. I've noticed that there is a jump in
price when restrictive legislation passes but that a short while later,
prices fall back and resume a steady annual increase.

Quote:> As I said a year ago, my preps were in the $4-5K range, with most of
> these expenditures fully recoverable. I wish my investment losses were
> as recoverable...I've lost a thousand times this amount just in one bad
> month. And there have been several bad months....

Say no more.  Although I've been on the sidelines for a while, many pals
have lost knee-buckling sums in the last few months. When Worldcom
fell from $60 to $16, the losses were astounding.  Several of the
precursor companies were DeeCee area startups, UUNet, MCI, Satellite
Business Systems, etc.

Quote:

> (No, I don't attribute this to Y2K in any way.)

> --Tim May

--
cory hamasaki
 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by N » Tue, 05 Dec 2000 04:00:00





>| "Proved to be unncessary"? This is the well-trod ground of whether first
>| aid supplies are "unnecessary" just because an accident hasn't happened,
>| whether earthquake preps are unnecessary, blah blah blah.

>Blah, blah blah is right!  Anybody who says that a tinfoil hat is
>unnecessary just needs to wait long enough!

... or just needs to have learned about the new-and-improved
tin-foil-and-egg-salad version.

DD

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by N » Tue, 05 Dec 2000 04:00:00




[snippage]

Quote:>I was employing the polly-ploy of commenting on irrelevant side issues.
>In fact, the reason I mentioned 7.62 is that the other day, I was at
>Site-B and noticed that even with the loss of leaf cover, there were
>very few clear lines of fire out beyond 50-100 yards.

>Here in the East, the terrain is a good match for 5.56.

Mr Hamasaki, the terrain you describe is, from what I have been taught,
*not* a 'good match for 5.56'; it is a good match for a .44 magnum
carbine, a .444 carbine or a 12-bore slug-gun... but what do *I* know,
I'se jes' a COBOL-codin' fool.

DD

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Pro News/2 Us » Tue, 05 Dec 2000 04:00:00





> [snippage]

> >I was employing the polly-ploy of commenting on irrelevant side issues.
> >In fact, the reason I mentioned 7.62 is that the other day, I was at
> >Site-B and noticed that even with the loss of leaf cover, there were
> >very few clear lines of fire out beyond 50-100 yards.

> >Here in the East, the terrain is a good match for 5.56.

> Mr Hamasaki, the terrain you describe is, from what I have been taught,
> *not* a 'good match for 5.56'; it is a good match for a .44 magnum
> carbine, a .444 carbine or a 12-bore slug-gun... but what do *I* know,
> I'se jes' a COBOL-codin' fool.

> DD

Why is that?  Are you talking about the eastern hills covered by
evergreens, holly and such or the eastern cities?

I was noticing that we have a lot of ground cover and thought that 5.56
would be more suitable than 7.62

--
cory hamasaki

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by N » Tue, 05 Dec 2000 04:00:00







>> [snippage]

>> >I was employing the polly-ploy of commenting on irrelevant side issues.
>> >In fact, the reason I mentioned 7.62 is that the other day, I was at
>> >Site-B and noticed that even with the loss of leaf cover, there were
>> >very few clear lines of fire out beyond 50-100 yards.

>> >Here in the East, the terrain is a good match for 5.56.

>> Mr Hamasaki, the terrain you describe is, from what I have been taught,
>> *not* a 'good match for 5.56'; it is a good match for a .44 magnum
>> carbine, a .444 carbine or a 12-bore slug-gun... but what do *I* know,
>> I'se jes' a COBOL-codin' fool.

>> DD

>Why is that?  Are you talking about the eastern hills covered by
>evergreens, holly and such or the eastern cities?

I am talking about *anywhere* that a clear line-of-fire less than 100
yards exists.

Quote:

>I was noticing that we have a lot of ground cover and thought that 5.56
>would be more suitable than 7.62

That is, as stated above, contrary to what I was taught; heavy ground
cover is better dealt with by heavy, slow-moving slugs with a high
cross-sectional density.

DD

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Tim Ma » Tue, 05 Dec 2000 04:00:00





> > Frankly, I'm _very_ glad that 1999 was the year I finally got some
> > 7.62mm rifles. Starting with an HK91/G3 variant, then proeceeding to
> > some FAL variants.

> I was employing the polly-ploy of commenting on irrelevant side issues.
> In fact, the reason I mentioned 7.62 is that the other day, I was at
> Site-B and noticed that even with the loss of leaf cover, there were
> very few clear lines of fire out beyond 50-100 yards.

> Here in the East, the terrain is a good match for 5.56.  Then I wondered
> about Tim's conversion to 7.62 and recalled my trips to SF,  There were
> several places on the coast with long clear open vistas (ignoring the
> redwood park near Santa Cruz).

There are other reasons. If one looks at the reasons the 5.56mm was
adopted over the 7.62mm (i.e., the transition from the M-14 to the
M-16), there were several reasons:

-- ammunition weight...more 5.56mm could be carried by soldiers

-- rifle recoil...poorly-trained soldiers, and small-stature soldiers,
could better train with the lightly-recoiling 5.56mm

-- rifles became a less important part of the battlefield, as we saw in
Viet Nam, with choppers, napalm, air strikes, artillery, etc.

There are more reasons, much-debated in military circles.

However, for a few lone gunmen--to coin a phrase--the equation shifts a
bit.

As a 220-pound, 6'2" male with many years of rifle experience, I have no
problem handling the recoil of a 7.62mm rifle (.308 Winchester,
equivalently). BTW, the gas and roller-block actions of my FAL and HK91
variants make them noticeably lighter in recoil than my .308 bolt-action
rifle (Remington 700 VS-SS).

In a world where "each shot counts," and where I can't call in napalm
strikes, chaingun strafings, or mortar, then I want each shot to have
the maximum punch.

Including the punch to go through car doors easily. (Something the
military usually doesn't have to think about, as soldiers are either out
in the open or in armored vehicles where no rifle range will penetrate.)

But I have no opinion that those who have 5.56mm rifles are
under-gunned. AR-15 variants from Bushmaster, Colt, Olympic, etc. are
very fine rifles. They'll do the job if the shooter does his job.

--Tim May

--
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,  
ComSec 3DES:   831-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
"Cyphernomicon"             | black markets, collapse of governments.

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Wade Ram » Thu, 07 Dec 2000 04:00:00




> As a 220-pound, 6'2" male

That's a y2k prep all by itself.

Wade

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Tom Beckne » Thu, 07 Dec 2000 04:00:00




Quote:> I was employing the polly-ploy of commenting on irrelevant side issues.
> In fact, the reason I mentioned 7.62 is that the other day, I was at
> Site-B and noticed that even with the loss of leaf cover, there were
> very few clear lines of fire out beyond 50-100 yards.

> Here in the East, the terrain is a good match for 5.56.  Then I wondered
> about Tim's conversion to 7.62 and recalled my trips to SF,  There were
> several places on the coast with long clear open vistas (ignoring the
> redwood park near Santa Cruz).

Nothing wrong with a full auto 5.56, but only the ordained are allowed
those. For one shot at a time, stopping power takes on a new signifigance as
mentioned by Tim May. This article reminded me of the subject also:

http://asia.dailynews.yahoo.com/headlines/entertainment/afp/article.h...
sia/headlines/001206/entertainment/afp/Los_Angeles_police_dogs_get_bullet-pr
oof_vests.html

Wednesday, December 6 7:58 AM SGT

Los Angeles police dogs get bullet-proof vests
SANTA MONICA, California, Dec 5 (AFP) -
Some police dogs here will be as well dressed -- and well-protected -- as
the police people, sporting brand-new, doggie-sized bullet-proof vests.

Students at Carlthorpe Elementary School presented two "ballistic vests" to
the Los Angeles Police Department's canine corps, during a ceremony at the
school, officials said Tuesday.

The youngsters raised the money through bake sales, said LAPD spokeswoman
Mariana Gallegos.

Santa Monica has police dogs, but the department doesn't use them in
dangerous situations requiring body armor, a police officer said.

End quoted material.

Tom Beckner

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Tim Ma » Thu, 07 Dec 2000 04:00:00




> Nothing wrong with a full auto 5.56, but only the ordained are allowed
> those. For one shot at a time, stopping power takes on a new signifigance
> as
> mentioned by Tim May. This article reminded me of the subject also:
....
> Los Angeles police dogs get bullet-proof vests
> SANTA MONICA, California, Dec 5 (AFP) -
> Some police dogs here will be as well dressed -- and well-protected -- as
> the police people, sporting brand-new, doggie-sized bullet-proof vests.

Just so we're all on the same page, either a .223 or a .308 will go
through commonly-available vests like a knife through butter.

It takes something like a "Level IV" vest, with ceramic insert plates,
to have a reasonable chance of stopping a rifle round.

(Vests are rated Level II, IIA, III, IIIA, IV, etc. I don't have the
distinctions in my biological cache memory at this time. The Web will
have exact details.)

Most vests are worn to stop handgun rounds, not rifle rounds.

And, as we all know, "bullet-proof vest" is a misnomer.

--Tim May

--
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,  
ComSec 3DES:   831-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
"Cyphernomicon"             | black markets, collapse of governments.

 
 
 

$100+ Million Of Unnoticed Accounting Errors At Y2K Compliant True Value Hardware

Post by Steve Helle » Tue, 19 Dec 2000 23:25:46


I do. Of course, that is not because of the "mutant *"
scenario, which as we all know did not occur. It is because the insane
explosion of NASDAQ stock prices last year and early this year was
largely due to the wild increase in liquidity engineered by the
Federal Reserve due to concerns about Y2K financial problems. Once
that surge in liquidity was over, the stockmarket bubble had to burst.
And it is presently in the process of doing so.


>As I said a year ago, my preps were in the $4-5K range, with most of
>these expenditures fully recoverable. I wish my investment losses were
>as recoverable...I've lost a thousand times this amount just in one bad
>month. And there have been several bad months....

>(No, I don't attribute this to Y2K in any way.)

--
Steve Heller, WA0CPP
PGP public key available from http://www.veryComputer.com/:11371
http://www.veryComputer.com/
Author of "Learning to Program in C++", Who's Afraid of C++?", "Who's Afraid of More C++?",
"Optimizing C++", and other books
Free online versions of "Who's Afraid of C++?" and "Optimizing C++" are now available
at http://www.veryComputer.com/://www.steveheller.com/opt
 
 
 

1. $100 MILLION In Lost Sales From $112 MILLION Hershey SAP-Based System?

--> Snipped From http://biz.yahoo.com/rf/991029/2s.html

FOCUS-Computer glitch haunts Hershey's Halloween sales
(Updates; edits; adds comment from Kroger in 15th graf)

By David Morgan

PHILADELPHIA, Oct 29 (Reuters) - Halloween could turn out to be a real horror
story for Hershey Foods Corp. (NYSE:HSY - news), the leading U.S. candy maker,
whose distribution channels continue to be haunted by problems with a new
computer system, analysts say.

The maker of Hershey's chocolate bars and Kisses, Reese's Peanut Butter Cups,
Kit Kats and Twizzlers has not been able to get all of its Halloween inventory
onto store shelves soon enough to fill the plastic orange jack-o'-lanterns of
trick-or-treaters, who are expected to stalk American neighborhoods on Sunday
evening.

Analysts on Wall Street had expected the gremlin in Hershey's $112 million
order-and-distribution system to be exorcised by mid-October. But now they fear
lingering problems could jinx candy sales through Christmas and maybe even into
Easter.

``This is serious stuff. The fourth quarter represents about 40 percent of
profits, and Hershey could lose $100 million in sales between back to school,
Halloween, Thanksgiving and Christmas,'' said Merrill Lynch analyst Leonard
Teitelbaum.

The Hershey, Pa.-based company had $4.44 billion in revenues last year.

Most serious is the potential for a 0.5 percent loss in U.S. market share to
privately held Mars Inc. and Nestle SA , as consumers who find store shelves
bare of Hershey products switch to rival brands.

Hershey, which has had no production problems, also must face the potential
costs posed by pallets of undelivered ``Cat 'O' Lantern'' milk chocolate
snacks, Reese's Peanut Butter ``Pumpkins'' and other seasonal goods marketed in
highly decorated holiday wrappers only at this time of year.

The company's computer system, which uses software from SAP AG and Siebel
Systems Inc. (NasdaqNM:SEBL - news), began operating in July. But it quickly
presented the 1,200-strong sales force with a steep learning curve. Managers
are now expected to have the upper hand by the first quarter of 2000.

Industry executives believe Hershey has not been able to fill orders at 100
percent and has resorted to flying some shipments out to keep relations sweet
with key customers such as Kmart Corp. (NYSE:KM - news) and Wal-Mart Stores
Inc. (NYSE:WMT - news).
...

2. Need Immediately..!!! Business Analysts // NYC, NY((Need Local)) // 6+ Months

3. Media: Alberta govt to spend $100 million on health care Y2K bug

4. ROUTED killing SLIP

5. Another $100 million drop in the bucket

6. money 2000

7. Most prepared county falls behind, From 40 million to 47 million not counting 5 million.

8. TeX-Fonts for Adobe Illustrator 8.0

9. $100 MILLION In Lost Sales Due To $112 MILLION Hershey SAP System? Could Cause

10. $50 million check too good to be true

11. Undervalued y2k solution provider pe 24 assets 25 million Market cap 59 million

12. Apple spends $13 million on Y2K compliance, up $6 million from estimate !!

13. Malasia may get $100-m from World Bank to fix Y2k