Gateway Layoffs Overshadow Bright K&B Earnings

LOS ANGELES-Locally based building giant Kaufman & Broad Home Corp. says it enjoyed a record-breaking year in 2000, but Southland-headquartered computer giant Gateway Inc. says its that fourth-quarter earnings fell sharply, and the firm will lay off 2,400 workers.

LA-based Kaufman & Broad and San Diego-based PC-maker Gateway are two of SoCal’s largest companies and biggest employers. Taken together, their two reports show the dichotomy that’s emerging in the region’s economy: it’s the best of times for companies in certain types of industries and the worst of times for those involved in others.

Gateway’s disappointing earnings announcement and lay-off plans surprised most analysts, who expected much better figures. Gateway says poor holiday sales helped to push fourth-quarter profit from operations down to $37.6 million, or 12 cents a share. It earned $126 million, or 38 cents a share, a year earlier.